Taiwan Mask Corp. (2338) AI Stock Analysis

Taiwan Mask Corp.

(TWSE:2338)

Select Model

Rating:43Neutral

Price Target:TWD 34.00▼(-12.93% Downside)

Action:initiatedcoverage

Date:11/09/26

Primarily impacted by weak financial performance with profitability deterioration and high leverage despite cash flow resilience. Bearish technical momentum and unfavorable valuation from negative P/E further constrain the score.

Positive Factors

Recent Cash GenerationImproved operating cash flow and a return to positive free cash flow provide greater internal funding capacity for operations and obligations. If sustained, this cash conversion can reduce reliance on external financing and support business stability through the next several quarters.

Negative Factors

Profitability CollapseThe combination of lower revenue, severe gross-margin compression, and deeply negative operating and net margins signals a major loss of earnings power. Unless margins recover, ongoing losses can consume equity, weaken reinvestment capacity, and intensify dependence on financing.

Taiwan Mask Corp. (2338) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 12.74B
Dividend Yield: ―
Average Volume (3M): 7.05M
Price to Earnings (P/E): -30.3
Beta (1Y): 1.49
Revenue Growth: -15.28%
EPS Growth: 82.42%
Country: TW
Employees: 585
Sector: General
Sector Strength: 55
Industry: Semiconductors

Taiwan Mask Corp. Business Overview & Revenue Model

Company Description

Established in 1988 and headquartered in Hsinchu City, Taiwan, Taiwan Mask Corporation (TMC) is a key player in the semiconductor industry. The company primarily focuses on the research, development, manufacturing, and commercialization of critical c...

Taiwan Mask Corp. Financial Statement Overview

Summary

Profitability challenges from 8.3% revenue decline, gross margins collapsed to 7.8%, net losses, high debt-to-equity of 2.64, and negative ROE of -27.4%. Strong operating cash flow of 2.37 billion and positive free cash flow of 1.05 billion provide key support.

Income Statement

25Negative

Balance Sheet

28Negative

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.87B	6.04B	7.56B	7.20B	7.74B	6.08B
Gross Profit	670.65M	473.79M	1.42B	1.84B	2.10B	1.41B
EBITDA	1.02B	350.05M	1.06B	1.73B	1.53B	1.82B
Net Income	-333.19M	-1.17B	-472.52M	366.13M	445.63M	886.56M
Balance Sheet
Total Assets	18.36B	17.48B	20.82B	20.92B	17.89B	16.11B
Cash, Cash Equivalents and Short-Term Investments	4.23B	3.42B	4.79B	3.25B	3.50B	6.32B
Total Debt	9.57B	11.30B	14.61B	13.76B	11.57B	9.41B
Total Liabilities	12.10B	13.13B	16.74B	15.87B	13.46B	11.24B
Stockholders Equity	6.15B	4.28B	4.40B	5.12B	4.55B	5.10B
Cash Flow
Free Cash Flow	622.26M	1.05B	-101.65M	-2.40B	-1.54B	-3.16B
Operating Cash Flow	1.28B	2.38B	1.90B	817.03M	1.41B	-1.27B
Investing Cash Flow	-700.41M	-1.49B	-2.35B	-3.54B	-3.58B	-1.94B
Financing Cash Flow	-239.56M	-1.45B	500.41M	2.35B	1.22B	4.86B

Taiwan Mask Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2338 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3587	59Neutral	TWD 13.84B	23.00	―	2.15%	-15.79%	34.88%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6438	52Neutral	TWD 11.34B	24.48	―	3.57%	18.41%	-25.67%
TW:2338	43Neutral	TWD 12.68B	-30.27	―	―	-15.28%	82.42%
TW:4768	42Neutral	TWD 14.22B	-493.44	―	0.29%	118.90%	-282.44%
TW:3055	40Underperform	TWD 14.19B	-128.44	―	0.36%	3.62%	56.40%

* General Sector Average

Performance Comparison

TW:2338 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2338	Taiwan Mask Corp.	39.05	4.44	12.82%
TW:3055	Spirox Corporation	137.50	78.89	134.59%
TW:3587	Materials Analysis Technology Inc.	195.50	14.09	7.77%
TW:4768	Ingentec Corporation	289.00	70.87	32.49%
TW:6438	Symtek Automation Asia Co., Ltd.	140.00	14.94	11.94%
TW:7913	QBit Semiconductor Ltd.	230.50	-298.50	-56.43%

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

Taiwan Mask Corp. AI Stock Analysis