Cmc Magnetics Corporation (2323) AI Stock Analysis

Cmc Magnetics Corporation

(TWSE:2323)

Select Model

Rating:54Neutral

Price Target:TWD 10.00▼(-8.68% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is heavily constrained by a critical disconnect between reported earnings and actual cash generation. The company's core operations are burning cash, which is a fundamental red flag that overshadows a solid balance sheet. This financial weakness is confirmed by a deeply bearish technical trend, with the stock in a severe downtrend. While the P/E ratio and dividend yield appear superficially attractive, they are unreliable given the poor quality of earnings and the risk of a dividend cut. The primary risk is the unsustainable cash flow, making the stock a high-risk proposition despite a seemingly strong asset base.

Positive Factors

Profitability RecoveryThe sharp recovery in reported profitability shows that earnings can improve materially when operating conditions become more favorable. Higher gross margin provides a stronger base for future earnings, although sustained operating execution will determine whether this improvement becomes durable.

Negative Factors

Weak Cash GenerationPersistent negative operating and free cash flow means the business has recently consumed cash rather than funded itself internally. If this pattern continues, CMC may need to rely more heavily on its balance sheet, limiting financial flexibility and weakening the quality of reported earnings.

Cmc Magnetics Corporation (2323) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 10.74B
Dividend Yield: 9.96%
Average Volume (3M): 7.10M
Price to Earnings (P/E): 3.4
Beta (1Y): 0.90
Revenue Growth: 12.45%
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 performance is conflicted. The balance sheet is solid with manageable leverage (D/E 0.36) and strong equity, but the income statement shows declining revenue and core operating losses. Critically, operating cash flow is persistently and deeply negative, indicating poor earnings quality and an unsustainable business model. This cash flow weakness heavily drags down the score.

Income Statement

55Neutral

Balance Sheet

72Positive

Cash Flow

25Negative

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2323 against its peers
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:2323	54Neutral	TWD 9.79B	3.44	―	9.96%	12.45%	―
TW:3455	50Neutral	TWD 10.71B	80.13	―	1.87%	-21.50%	-50.50%
TW:2406	34Underperform	TWD 10.39B	167.34	―	―	82.89%	―

* General Sector Average

Performance Comparison

TW:2323 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2323	Cmc Magnetics Corporation	10.95	1.40	14.64%
TW:2406	Gigastorage Corporation	29.05	8.20	39.33%
TW:3455	UTECHZONE Co., Ltd.	187.50	103.15	122.29%

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

Cmc Magnetics Corporation AI Stock Analysis