Kenda Rubber Industrial Co., Ltd (2106) AI Stock Analysis

Kenda Rubber Industrial Co., Ltd

(TWSE:2106)

Select Model

Rating:48.2Neutral

Price Target:TWD 16.00▲(6.67% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily constrained by deteriorating profitability, moderate leverage, and weak technical momentum. Improved cash generation and the dividend yield provide some support, but the elevated valuation limits the upside.

Positive Factors

Revenue ResilienceThe return to revenue growth indicates that demand and market access remained resilient despite the prior contraction. Continued sales stability across replacement and OEM channels can support operating scale, preserve customer relationships, and provide a base for margin recovery over the next several quarters.

Negative Factors

Severe Margin CompressionThe sharp decline in operating and net margins materially weakens earnings quality and leaves little buffer against further cost or pricing pressure. Unless profitability recovers, stable revenue may translate into limited earnings, reducing internal funding capacity and shareholder returns.

Kenda Rubber Industrial Co., Ltd (2106) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 14.28B
Dividend Yield: 4.33%
Average Volume (3M): 1.27M
Price to Earnings (P/E): 46.6
Beta (1Y): 0.18
Revenue Growth: 4.27%
EPS Growth: 15.53%
Country: TW
Employees: 11,717
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Kenda Rubber Industrial Co., Ltd Business Overview & Revenue Model

Company Description

Kenda Rubber Industrial Co. Ltd., a Taiwanese entity established in 1962, is a key player in the design, manufacturing, and distribution of a diverse range of rubber products. Headquartered in Yuanlin, Taiwan, the company primarily specializes in var...

Kenda Rubber Industrial Co., Ltd Financial Statement Overview

Summary

Financial performance is below average: sharply weaker margins and profitability, rising leverage, and declining equity returns outweigh improved operating and free cash flow.

Income Statement

42Neutral

Balance Sheet

48Neutral

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	34.45B	33.96B	34.20B	34.44B	38.62B	34.90B
Gross Profit	6.73B	6.51B	7.54B	6.67B	5.67B	7.15B
EBITDA	2.56B	2.38B	3.87B	3.66B	2.93B	3.43B
Net Income	453.61M	125.41M	1.24B	880.98M	338.15M	917.93M
Balance Sheet
Total Assets	47.73B	45.49B	47.18B	43.73B	46.60B	46.34B
Cash, Cash Equivalents and Short-Term Investments	9.96B	9.78B	9.25B	9.98B	7.64B	7.91B
Total Debt	20.54B	19.71B	19.19B	17.97B	21.02B	19.85B
Total Liabilities	27.88B	25.93B	26.10B	24.15B	27.22B	27.60B
Stockholders Equity	19.85B	19.56B	21.08B	19.57B	19.38B	18.74B
Cash Flow
Free Cash Flow	472.21M	1.19B	433.19M	4.67B	-455.83M	-3.27B
Operating Cash Flow	1.72B	2.28B	2.10B	5.62B	1.46B	-1.14B
Investing Cash Flow	-1.34B	-36.76M	-1.48B	-1.59B	-1.49B	-2.92B
Financing Cash Flow	149.55M	-767.42M	-328.47M	-3.56B	-164.84M	1.70B

Kenda Rubber Industrial Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2106 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4536	67Neutral	TWD 13.71B	10.79	―	5.57%	-5.35%	-33.09%
TW:4551	67Neutral	TWD 15.15B	14.74	―	2.91%	16.24%	32.38%
TW:2108	64Neutral	TWD 13.32B	14.16	―	3.72%	12.61%	105.71%
TW:2247	59Neutral	TWD 17.31B	15.02	―	6.86%	-17.17%	-31.53%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2106	48Neutral	TWD 14.75B	46.63	―	4.33%	4.27%	15.53%
TW:2227	41Neutral	TWD 11.95B	-10.37	―	2.16%	-14.55%	-318.18%

* General Sector Average

Performance Comparison

TW:2106 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2106	Kenda Rubber Industrial Co., Ltd	15.00	-5.43	-26.57%
TW:2108	NANTEX INDUSTRY CO LTD	26.90	4.47	19.94%
TW:2227	Yulon Nissan Motor Co., Ltd.	38.80	-15.63	-28.72%
TW:2247	Pan German Universal Motors Ltd.	211.50	-58.65	-21.71%
TW:4536	Topkey Corporation	143.50	-19.50	-11.96%
TW:4551	Global PMX Co., Ltd.	144.50	29.59	25.75%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 10, 2026

Kenda Rubber Industrial Co., Ltd AI Stock Analysis