Cayman Engley Industrial Co., Ltd. (2239) AI Stock Analysis

Cayman Engley Industrial Co., Ltd.

(TWSE:2239)

Select Model

Rating:40Underperform

Price Target:TWD 16.50▼(-7.04% Downside)

Action:initiatedcoverage

Date:11/09/26

Engley scores low primarily due to deteriorating fundamentals: two consecutive years of double-digit revenue decline, halved gross margins, and a swing to a NT$947 million net loss, combined with leverage above 1.0x equity and a shrinking equity base. The partial offset is a genuine cash flow turnaround — operating cash flow more than doubled to NT$2.54 billion, free cash flow returned to positive, and debt has been reduced for three straight years — which supports near-term solvency. Technicals reinforce the caution, with the price trading below all major moving averages and negative MACD confirming a persistent downtrend. Valuation provides no cushion given negative trailing earnings and no dividend. A sustained revenue and margin recovery is needed before the score can improve materially.

Positive Factors

Improving Cash GenerationOperating cash flow rose to 2.54B in 2025 from 1.17B, while free cash flow reached 0.96B after several negative years. If sustained, stronger internal cash generation can support operations and reduce reliance on external funding.

Negative Factors

Recent Revenue ContractionRevenue declined in both 2024 and 2025, with reported revenue growth of -10.18%. Continued top-line contraction can reduce operating leverage, weaken reinvestment capacity, and make a durable earnings recovery more difficult.

Cayman Engley Industrial Co., Ltd. (2239) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.07B
Dividend Yield: ―
Average Volume (3M): 71.13K
Price to Earnings (P/E): -1.9
Beta (1Y): 0.41
Revenue Growth: -10.18%
EPS Growth: -223.51%
Country: TW
Employees: 10,753
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Cayman Engley Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Cayman Engley Industrial Co., Ltd. produces and sells automobile parts in China and internationally. The company offers stamping products, hot-pressed products, mold designs, and manufacturing and related technical consulting services. It also involv...

Cayman Engley Industrial Co., Ltd. Financial Statement Overview

Summary

Financials are weak overall. The income statement is the main drag (score 21): revenue has fallen for two consecutive years to NT$19.1 billion, gross margin has compressed from ~16% in 2020 to 10%, and the company swung to an operating loss of NT$502 million and a net loss of NT$947 million. The balance sheet (score 42) is adequately capitalized at ~32% equity-to-assets, but debt of NT$12.2 billion now exceeds equity (D/E ~1.06) and the equity base is shrinking on accumulated losses, with ROE at about -8%. Cash flow (score 58) is the bright spot: operating cash flow more than doubled to NT$2.54 billion and free cash flow turned positive at NT$965 million after three years of burn, though this was aided by lower capex and working capital release rather than an earnings recovery. Positive EBITDA of NT$1.05 billion and three straight years of debt reduction provide a buffer, but the profitability trend remains the key risk.

Income Statement

21Negative

Balance Sheet

42Neutral

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.99B	19.09B	21.49B	24.27B	22.78B	20.28B
Gross Profit	1.59B	1.91B	2.55B	3.14B	2.40B	3.00B
EBITDA	789.91M	1.05B	2.27B	2.61B	2.07B	2.97B
Net Income	-1.09B	-946.61M	-10.69M	168.69M	139.50M	665.27M
Balance Sheet
Total Assets	35.49B	35.85B	37.77B	38.02B	36.45B	32.15B
Cash, Cash Equivalents and Short-Term Investments	7.84B	6.91B	6.37B	6.09B	3.59B	3.40B
Total Debt	11.01B	12.16B	12.92B	13.78B	13.40B	7.11B
Total Liabilities	16.72B	18.39B	19.84B	20.71B	21.20B	17.06B
Stockholders Equity	11.70B	11.43B	12.22B	11.81B	10.96B	10.90B
Cash Flow
Free Cash Flow	1.17B	964.86M	-468.10M	-470.09M	-754.87M	-471.23M
Operating Cash Flow	2.32B	2.54B	1.17B	1.61B	996.75M	1.56B
Investing Cash Flow	906.91M	-118.79M	-1.50B	-1.86B	-1.30B	-2.08B
Financing Cash Flow	-2.91B	-1.60B	-612.24M	2.93B	227.04M	-564.69M

Cayman Engley Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2239 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5215	59Neutral	TWD 2.19B	8.52	―	5.87%	11.28%	131.55%
TW:1521	56Neutral	TWD 1.85B	14.18	―	3.09%	9.34%	174.14%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3490	45Neutral	TWD 1.91B	5.47	―	1.44%	0.22%	―
TW:1517	41Neutral	TWD 2.15B	-16.95	―	2.00%	-4.28%	19.85%
TW:2239	40Underperform	TWD 2.09B	-1.93	―	―	-10.18%	-223.51%
TW:3230	39Underperform	TWD 2.05B	-11.80	―	1.48%	2.22%	-86.76%

* General Sector Average

Performance Comparison

TW:2239 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2239	Cayman Engley Industrial Co., Ltd.	17.75	-11.60	-39.52%
TW:1517	Lee Chi Enterprises Co., Ltd.	9.98	-1.64	-14.14%
TW:1521	Ta Yih Industrial Co., Ltd.	24.25	-0.03	-0.11%
TW:3230	Jiin Ming Industry Co., Ltd.	23.85	-20.75	-46.52%
TW:3490	Single Well Industrial Co. Ltd.	34.70	10.84	45.41%
TW:5215	Ko Ja (Cayman) Co., Ltd.	34.05	-1.65	-4.63%

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 09, 2026

Cayman Engley Industrial Co., Ltd. AI Stock Analysis