Pacific Construction Co., Ltd. (2506) AI Stock Analysis

Pacific Construction Co., Ltd.

(TWSE:2506)

Select Model

Rating:48Neutral

Price Target:TWD 8.00▼(-2.68% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily constrained by deteriorating profitability and negative operating and free cash flow. A solid balance sheet provides support, but bearish technical trends and only moderate valuation appeal keep the overall score below average.

Positive Factors

Revenue GrowthThe 31.27% revenue-growth reading and strong 2025 rebound indicate the company can capture sizable project demand. If supported by its established civil engineering and building-construction platform, this provides a meaningful base for workload and scale over the next several quarters.

Negative Factors

Inconsistent Cash GenerationRepeated negative operating and free cash flow indicates that reported project activity does not consistently convert into cash. In construction, this can increase working-capital and project-cash-cycle pressure, limiting internal funding capacity and raising liquidity risk over the coming quarters.

Pacific Construction Co., Ltd. (2506) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.96B
Dividend Yield: 2.43%
Average Volume (3M): 186.35K
Price to Earnings (P/E): 22.1
Beta (1Y): 0.15
Revenue Growth: 16.90%
EPS Growth: ―
Country: TW
Employees: 1,048
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Pacific Construction Co., Ltd. Business Overview & Revenue Model

Company Description

Pacific Construction Co., Ltd., founded in Taipei, Taiwan in 1967, is a multifaceted enterprise with its core activities centered on the construction industry. The company undertakes a broad spectrum of construction-related work, including civil engi...

Pacific Construction Co., Ltd. Financial Statement Overview

Summary

The balance sheet is a relative strength, but weak cash generation and sharply declining revenue and net income weigh heavily on overall financial quality. The score reflects the average of the 42 income statement, 78 balance sheet, and 25 cash flow scores.

Income Statement

42Neutral

Balance Sheet

78Positive

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.41B	1.14B	1.44B	1.49B	857.46M	1.67B
Gross Profit	583.31M	515.11M	484.20M	556.69M	-404.92M	599.47M
EBITDA	499.13M	401.08M	1.24B	433.96M	1.06B	458.82M
Net Income	131.61M	6.20M	738.28M	43.49M	575.73M	92.00M
Balance Sheet
Total Assets	14.51B	14.64B	14.24B	13.37B	13.99B	14.04B
Cash, Cash Equivalents and Short-Term Investments	3.43B	3.61B	3.45B	2.33B	2.73B	1.17B
Total Debt	2.23B	2.43B	2.25B	2.42B	2.61B	3.48B
Total Liabilities	4.70B	4.92B	4.63B	4.63B	4.77B	5.46B
Stockholders Equity	7.96B	7.80B	7.70B	6.89B	7.29B	6.74B
Cash Flow
Free Cash Flow	280.81M	-199.99M	96.02M	270.52M	-417.67M	207.31M
Operating Cash Flow	336.70M	-146.13M	151.90M	356.87M	-390.17M	221.65M
Investing Cash Flow	-95.91M	157.44M	73.93M	45.83M	1.14B	-110.01M
Financing Cash Flow	-124.14M	-66.82M	-319.88M	-530.90M	-994.70M	-303.99M

Pacific Construction Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2506 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2596	59Neutral	TWD 3.19B	7.10	―	4.63%	21.22%	121.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2705	49Neutral	TWD 2.80B	20.00	―	―	-4.36%	88.01%
TW:2506	48Neutral	TWD 2.98B	22.12	―	2.43%	16.90%	―
TW:5514	40Underperform	TWD 3.02B	53.63	―	―	-1.23%	-28.46%
TW:2509	37Underperform	TWD 2.89B	135.93	―	―	445.07%	―
TW:2537	36Underperform	TWD 3.28B	27.22	―	―	62.26%	-41.64%

* General Sector Average

Performance Comparison

TW:2506 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2506	Pacific Construction Co., Ltd.	8.22	-1.15	-12.32%
TW:2509	Chainqui Construction Development Co., Ltd.	12.90	-1.90	-12.84%
TW:2537	We & Win Development Co., Ltd	10.95	0.15	1.39%
TW:2596	Realy Development & Construction Corp.	32.40	3.86	13.51%
TW:2705	LEOFOO DEVELOPMENT CO., LTD.	14.80	-2.10	-12.43%
TW:5514	Sunfon Construction Co., Ltd.	13.30	-3.70	-21.76%

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

Pacific Construction Co., Ltd. AI Stock Analysis