Chroma Ate Inc. (2360) AI Stock Analysis

Chroma Ate Inc.

(TWSE:2360)

Select Model

Rating:66Neutral

Price Target:TWD 1,301.00▼(-0.69% Downside)

Action:initiatedcoverage

Date:11/09/26

Chroma ATE scores well on fundamentals, which carry the greatest weight: rapid revenue growth, best-in-class and still-expanding gross margins, a near debt-free balance sheet and rising returns on equity. Offsetting this strength is a sharply deteriorating technical picture — the stock trades well below all major moving averages with deeply negative MACD momentum, and its high beta amplifies swings. Valuation at nearly 30x earnings is fair but not a bargain, with only a modest 1.6% dividend yield. Investors should also monitor earnings quality, as a meaningful portion of recent net income came from non-operating items, and free cash flow conversion remains modest given heavy capital spending. The result is a solid but not top-tier score: strong business quality tempered by weak price momentum and a full multiple.

Positive Factors

High ProfitabilityExceptionally high gross, operating, and net margins indicate differentiated test and measurement offerings with substantial economic value for customers. This profitability provides room to fund research, product development, and market expansion while supporting resilience through normal industry cycles.

Negative Factors

Weak Cash ConversionAlthough free cash flow remains positive, operating and free cash flow materially trail reported net income. This weaker conversion can reflect working-capital timing or investment needs, making earnings quality less robust and potentially limiting internally funded growth or shareholder returns.

Chroma Ate Inc. (2360) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 571.85B
Dividend Yield: 1.49%
Average Volume (3M): 2.67M
Price to Earnings (P/E): 32.2
Beta (1Y): 1.80
Revenue Growth: 101.38%
EPS Growth: 61.49%
Country: TW
Employees: 3,582
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Chroma Ate Inc. Business Overview & Revenue Model

Company Description

Chroma ATE Inc., established in 1973 and headquartered in Taoyuan City, Taiwan, is a global company operating under its "Chroma" brand. The company specializes in the development, production, sale, and maintenance of a wide range of electronic and co...

Chroma Ate Inc. Financial Statement Overview

Summary

A high-quality financial profile. Revenue accelerated roughly 31% in the latest year to NT$28.3bn, gross margin expanded to an exceptional 61.5%, and EBIT margin reached 32.5% (Income Statement: 86). The balance sheet is a fortress — debt-to-equity has fallen to just 0.12 with equity funding about 68% of assets, while ROE improved to 36.7% (Balance Sheet: 88). Cash flow is the weaker pillar (71): operating cash flow rose to NT$5.35bn and free cash flow to NT$3.05bn, but free cash flow equals only about a quarter of reported net income, heavy capex absorbs over 40% of operating cash, and results are volatile. Key caveats are earnings quality — 2025 net income exceeded operating profit, inflating net margin and ROE — and demonstrated cyclicality, as seen in the 15% revenue decline in 2023.

Income Statement

86Very Positive

Balance Sheet

88Very Positive

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	40.38B	28.31B	21.60B	18.68B	22.07B	17.58B
Gross Profit	24.66B	17.42B	12.75B	10.76B	11.36B	8.45B
EBITDA	15.31B	10.04B	7.53B	5.54B	7.18B	5.62B
Net Income	16.60B	11.69B	5.26B	3.98B	5.11B	4.18B
Balance Sheet
Total Assets	63.70B	47.15B	37.31B	33.48B	33.83B	29.55B
Cash, Cash Equivalents and Short-Term Investments	13.68B	8.31B	5.04B	4.79B	6.68B	4.95B
Total Debt	4.58B	3.95B	3.91B	3.49B	3.62B	3.98B
Total Liabilities	29.99B	14.59B	11.86B	10.96B	11.96B	10.60B
Stockholders Equity	32.99B	31.90B	24.88B	21.96B	21.36B	18.51B
Cash Flow
Free Cash Flow	5.79B	3.05B	2.72B	1.79B	4.60B	1.48B
Operating Cash Flow	7.90B	5.35B	4.78B	3.41B	5.30B	2.59B
Investing Cash Flow	-525.86M	1.06B	-1.89B	-1.39B	901.61M	1.74B
Financing Cash Flow	-3.05B	-4.27B	-3.00B	-3.83B	-3.47B	-4.07B

Chroma Ate Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2360 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6223	68Neutral	TWD 399.27B	90.53	―	0.54%	38.49%	63.77%
TW:2360	66Neutral	TWD 554.71B	32.23	―	1.49%	101.38%	61.49%
TW:6510	63Neutral	TWD 91.71B	56.10	―	0.55%	24.45%	61.25%
TW:3264	62Neutral	TWD 90.99B	20.47	―	2.19%	31.88%	80.58%
TW:2449	56Neutral	TWD 292.08B	30.21	―	0.44%	34.64%	-10.44%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6239	54Neutral	TWD 172.30B	23.17	―	1.96%	29.10%	65.42%

* General Sector Average

Performance Comparison

TW:2360 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2360	Chroma Ate Inc.	1310.00	509.77	63.70%
TW:2449	King Yuan Electronics Co., Ltd.	227.50	23.01	11.25%
TW:3264	Ardentec Corporation	192.00	103.17	116.13%
TW:6223	MPI Corporation	4075.00	2281.13	127.16%
TW:6239	Powertech Technology Inc.	230.00	63.28	37.96%
TW:6510	Chunghwa Precision Test Tech Co., Ltd.	2785.00	1312.94	89.19%

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

Chroma Ate Inc. AI Stock Analysis