Good Will Instrument Co., Ltd. (2423) AI Stock Analysis

Good Will Instrument Co., Ltd.

(TWSE:2423)

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Rating:69Neutral

Price Target:TWD 67.00▲(7.54% Upside)

Action:initiatedcoverage

Date:11/09/26

Good Will Instrument earns a solid above-average score, driven primarily by strong fundamentals: an essentially debt-free balance sheet, six consecutive years of gross margin expansion, and a 2025 profit recovery to NT$424m. Valuation adds support, with a modest 14.5x P/E and a 4.1% dividend yield backed by low financial risk. The main drags are technical: the stock sits below all key moving averages with negative MACD momentum, though oversold RSI and Stochastic readings suggest selling pressure may be stretched. Softening cash conversion (free cash flow down roughly a third, covering only ~77% of net income) and cyclical revenue swings are the key fundamental items to monitor.

Positive Factors

Strong ProfitabilityGross, operating, and net margins of about 53%, 18%, and 14% show that the core offering converts revenue into substantial profit at multiple stages. This profitability provides internal funding for product development and resilience, while leaving more room to absorb demand variability over the next several quarters.

Negative Factors

Uneven Revenue GrowthThe uneven revenue trajectory, including a 2024 decline and only low-single-digit growth in 2025, indicates that demand is not consistently expanding. This can make capacity planning and earnings growth less predictable, even though strong margins provide some protection against slower top-line performance.

Good Will Instrument Co., Ltd. (2423) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 9.34B
Dividend Yield: 4.01%
Average Volume (3M): 86.15K
Price to Earnings (P/E): 14.8
Beta (1Y): 0.53
Revenue Growth: 15.15%
EPS Growth: 61.26%
Country: TW
Employees: 751
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Good Will Instrument Co., Ltd. Business Overview & Revenue Model

Company Description

Good Will Instrument Co., Ltd., established in 1975 and headquartered in New Taipei City, Taiwan, specializes in the development and distribution of electrical test and measurement devices. These precision instruments cater to a broad clientele, serv...

Good Will Instrument Co., Ltd. Financial Statement Overview

Summary

A conservative, steadily improving financial profile. The balance sheet is the standout (score 88): debt-to-equity of roughly 0.02 makes the company effectively debt-free, with equity funding about 79% of assets and ROE improving to 14.3%. The income statement (score 77) shows a 2025 rebound with revenue up ~5.5% to NT$2.94bn, net income up ~21% to NT$424m, and six straight years of gross margin expansion to 52.9%, with net margin rising from 8.6% to 14.4%. Cash flow is the weak link (score 66): operating cash flow fell to NT$386m from NT$501m and free cash flow dropped about a third to NT$295m, cutting cash conversion to ~77% of net income on heavier working-capital use. Cyclical, uneven revenue growth also tempers the score.

Income Statement

77Positive

Balance Sheet

88Very Positive

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.28B	2.94B	2.79B	3.02B	2.89B	2.61B
Gross Profit	1.74B	1.56B	1.44B	1.56B	1.45B	1.33B
EBITDA	820.01M	618.01M	539.16M	646.75M	616.95M	491.50M
Net Income	611.57M	424.09M	351.13M	428.27M	403.72M	289.54M
Balance Sheet
Total Assets	4.33B	3.74B	3.56B	3.80B	3.99B	3.49B
Cash, Cash Equivalents and Short-Term Investments	929.42M	581.43M	611.81M	668.63M	639.47M	525.06M
Total Debt	35.98M	66.64M	58.71M	222.51M	427.98M	195.63M
Total Liabilities	1.34B	774.30M	749.11M	1.05B	1.36B	1.06B
Stockholders Equity	2.99B	2.96B	2.81B	2.74B	2.63B	2.43B
Cash Flow
Free Cash Flow	418.84M	295.31M	432.94M	488.97M	104.48M	401.04M
Operating Cash Flow	538.73M	385.80M	500.57M	548.14M	158.90M	437.69M
Investing Cash Flow	-136.34M	-165.61M	-50.69M	-78.79M	-27.61M	-3.58M
Financing Cash Flow	-315.74M	-296.29M	-507.49M	-524.82M	-7.50M	-608.43M

Good Will Instrument Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2423 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2423	69Neutral	TWD 8.89B	14.80	―	4.01%	15.15%	61.26%
TW:5222	58Neutral	TWD 8.40B	43.35	―	2.71%	-22.61%	-44.77%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3015	55Neutral	TWD 8.02B	21.21	―	5.12%	-5.43%	17.09%
TW:6207	44Neutral	TWD 9.82B	68.87	―	0.55%	-6.64%	34.89%
TW:6706	38Underperform	TWD 9.54B	-37.35	―	―	-40.08%	16.61%

* General Sector Average

Performance Comparison

TW:2423 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2423	Good Will Instrument Co., Ltd.	62.30	11.54	22.73%
TW:3015	FSP Technology Inc.	42.95	-10.82	-20.13%
TW:5222	Transcom, Inc. (Taiwan)	83.80	-35.77	-29.91%
TW:6207	Laser Tek Taiwan Co., Ltd.	109.00	59.81	121.60%
TW:6706	Fittech Co., Ltd.	124.00	45.20	57.36%
TW:7815	Sync-Tech System Corp.	315.00	166.93	112.73%

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

Good Will Instrument Co., Ltd. AI Stock Analysis