Ambassador Hotel,Ltd. (2704) AI Stock Analysis

Ambassador Hotel,Ltd.

(TWSE:2704)

Select Model

Rating:56Neutral

Price Target:TWD 44.00▲(1.50% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily constrained by weak cash flow quality, negative free cash flow, low profitability efficiency, and weak technical momentum. A solid balance sheet, moderate valuation, and oversold technical readings provide partial support.

Positive Factors

Manageable leverageManageable leverage and a substantial equity base provide financial resilience for a hospitality operator. This reduces balance-sheet strain and preserves flexibility to maintain properties, support operations, and withstand variability in demand over the next several quarters.

Negative Factors

Weak free cash flowFree cash flow that is near breakeven or slightly negative leaves limited cash after investment needs, reducing the funds available for reinvestment, debt reduction, or shareholder returns. The change from stronger 2023 conversion also indicates less predictable cash generation.

Ambassador Hotel,Ltd. (2704) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 16.03B
Dividend Yield: 1.15%
Average Volume (3M): 152.98K
Price to Earnings (P/E): 16.3
Beta (1Y): 0.34
Revenue Growth: 8.88%
EPS Growth: 310.88%
Country: TW
Employees: 1,600
Sector: General
Sector Strength: 55
Industry: Travel Lodging

Ambassador Hotel,Ltd. Business Overview & Revenue Model

Company Description

The Ambassador Hotel, Ltd., a Taiwanese enterprise, manages a diverse portfolio of hospitality businesses, including hotels and various dining establishments. Its operations encompass the flagship Ambassador Hotels brand, in addition to A CUT STEAKHO...

Ambassador Hotel,Ltd. Financial Statement Overview

Summary

Financial performance is mixed: the company has strong equity and manageable leverage, but weak cash conversion, negative free cash flow, low return on equity, declining gross margin, and volatile profitability weigh on the score.

Income Statement

55Neutral

Balance Sheet

75Positive

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.38B	1.36B	1.30B	1.28B	1.45B	1.52B
Gross Profit	316.63M	298.34M	364.43M	369.47M	6.45M	261.87M
EBITDA	761.95M	231.71M	1.45B	961.29M	-398.14M	224.49M
Net Income	975.58M	210.04M	1.01B	492.98M	1.09B	-88.18M
Balance Sheet
Total Assets	40.90B	33.28B	34.34B	25.69B	18.64B	17.15B
Cash, Cash Equivalents and Short-Term Investments	24.37B	19.11B	20.12B	14.47B	8.02B	7.46B
Total Debt	4.10B	4.10B	3.55B	3.73B	3.92B	4.32B
Total Liabilities	8.33B	7.67B	6.48B	5.91B	5.22B	5.21B
Stockholders Equity	32.57B	25.60B	27.86B	19.77B	13.42B	11.94B
Cash Flow
Free Cash Flow	-256.42M	-4.09M	594.00K	2.57B	-2.66B	-318.70M
Operating Cash Flow	343.52M	645.80M	295.75M	2.95B	-2.26B	-105.32M
Investing Cash Flow	812.65M	-844.71M	95.04M	-565.19M	6.82B	-2.12B
Financing Cash Flow	-320.37M	321.76M	-602.20M	-429.97M	-3.58B	2.31B

Ambassador Hotel,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2704 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2731	70Outperform	TWD 12.64B	8.33	―	9.45%	10.02%	-6.82%
TW:2727	68Neutral	TWD 18.12B	12.44	―	7.20%	12.28%	20.10%
TW:2905	58Neutral	TWD 18.69B	6.49	―	1.70%	-5.93%	―
TW:2704	56Neutral	TWD 15.91B	16.30	―	1.15%	8.88%	310.88%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

TW:2704 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2704	Ambassador Hotel,Ltd.	43.35	1.22	2.90%
TW:01002T	Cathay No. 1 Real Estate Investment Trust	12.46	-1.67	-11.85%
TW:2727	Wowprime Corp.	224.00	20.58	10.12%
TW:2731	Lion Travel Service Co., Ltd.	135.50	-22.77	-14.39%
TW:2905	Mercuries & Associates, Holding Ltd.	17.60	3.65	26.12%
TW:7883	Feastogether Group Co. Ltd.	280.00	-47.64	-14.54%

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 10, 2026

Ambassador Hotel,Ltd. AI Stock Analysis