Cmc Magnetics Corporation AI Stock Analysis
Cmc Magnetics Corporation (2323) AI Stock Analysis
Cmc Magnetics Corporation
(TWSE:2323)
CMC Magnetics scores below average, driven primarily by poor earnings quality and persistent cash burn: profits come almost entirely from non-operating gains while operating cash flow was negative NT$1.33 billion and free cash flow negative NT$1.47 billion, funding needs that have tripled debt to NT$7.0 billion. Revenue continues to decline and the core business remains unprofitable at the operating line. Technicals add to the caution, with the stock trading below all major moving averages and a negative MACD, though RSI near 28 signals deeply oversold conditions that could support a short-term bounce. The main offsets are a solid equity-funded balance sheet, three straight years of gross margin expansion, narrowing operating losses, and an optically cheap 3.0x P/E with an 11% dividend yield — attractive if, but only if, cash generation turns positive and sustains the payout.
Cmc Magnetics Corporation (2323) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 9.78B
- Dividend Yield
- 10.98%
- Average Volume (3M)
- 7.23M
- Price to Earnings (P/E)
- 3.1
- Beta (1Y)
- 0.85
- Revenue Growth
- 6.77%
- EPS Growth
- ―
- Country
- TW
- Employees
- 4,380
- Sector
- General
- Sector Strength
- 55
- Industry
- Computer Hardware
Cmc Magnetics Corporation Business Overview & Revenue Model
Company Description
CMC Magnetics Corporation, established in 1978 and headquartered in Taipei, Taiwan, operates as a diversified global enterprise. Initially renowned for its optical media manufacturing, the company supplies a comprehensive range of products worldwide,...
Cmc Magnetics Corporation Financial Statement Overview
Summary
Financial quality is weak. Revenue has declined roughly 12% in the latest year and nearly 24% from the 2020 peak, and the core business still runs an operating loss of about NT$93 million. Reported net income of NT$1.72 billion stems almost entirely from non-operating gains, which explains the violent swings between profits and losses over the past four years. Most concerning is cash generation: operating cash flow was negative NT$1.33 billion and free cash flow negative NT$1.47 billion, worsening year over year and negative in five of the past six years. The balance sheet is the one genuine strength, with NT$19.25 billion of equity funding roughly two-thirds of assets and a moderate 0.36 debt-to-equity ratio, though debt has tripled to NT$7.0 billion in five years to cover the cash shortfall. Improving gross margins (19.0% to 24.0%) and narrowing operating losses are encouraging, but an operational turnaround is still needed.
Income Statement
36NegativeBalance Sheet
58NeutralCash Flow
14Very Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.73B | 7.18B | 7.44B | 7.38B | 7.69B | 8.71B |
| Gross Profit | 1.88B | 1.72B | 1.64B | 1.66B | 1.47B | 2.00B |
| EBITDA | 3.03B | 277.41M | 385.84M | 2.42B | -154.91M | 1.11B |
| Net Income | 3.30B | 1.72B | -290.10M | 1.75B | -1.08B | 161.19M |
Balance Sheet | ||||||
| Total Assets | 32.09B | 28.82B | 26.13B | 25.49B | 23.36B | 24.15B |
| Cash, Cash Equivalents and Short-Term Investments | 13.43B | 13.02B | 11.55B | 10.07B | 8.03B | 7.58B |
| Total Debt | 8.42B | 7.00B | 6.33B | 4.77B | 5.01B | 3.52B |
| Total Liabilities | 11.68B | 9.23B | 8.11B | 6.67B | 6.50B | 5.71B |
| Stockholders Equity | 20.05B | 19.25B | 17.68B | 18.48B | 16.54B | 18.11B |
Cash Flow | ||||||
| Free Cash Flow | -184.41M | -1.47B | -1.01B | 539.79M | -617.58M | -1.11B |
| Operating Cash Flow | -84.71M | -1.33B | -868.04M | 691.36M | -442.35M | -909.44M |
| Investing Cash Flow | 1.49B | 1.25B | -325.65M | -307.02M | -229.98M | 125.87M |
| Financing Cash Flow | 494.03M | 312.06M | 882.39M | -241.38M | 519.63M | -118.27M |
Cmc Magnetics Corporation Peers Comparison
Overall Rating
TW:345550Neutral- TW:232344Neutral
TW:240634Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:3455 | 50Neutral | TWD 11.27B | 53.65 | ― | 1.81% | -23.10% | 33.40% |
| TW:2323 | 44Neutral | TWD 9.75B | 3.13 | ― | 10.98% | 6.77% | ― |
| TW:2406 | 34Underperform | TWD 10.16B | 166.76 | ― | ― | 82.89% | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:2323 | Cmc Magnetics Corporation | 9.94 | 0.53 | 5.60% | |
| TW:2406 | Gigastorage Corporation | 28.95 | 8.80 | 43.67% | |
| TW:3455 | UTECHZONE Co., Ltd. | 193.50 | 108.46 | 127.54% |
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