Richmond International Travel & Tours Co Ltd (2743) AI Stock Analysis

Richmond International Travel & Tours Co Ltd

(TPEx:2743)

Select Model

Rating:54Neutral

Price Target:TWD 42.00▲(1.33% Upside)

Action:initiatedcoverage

Date:11/09/26

The score is held back primarily by deteriorating fundamentals: a sharp collapse in operating and free cash flow, two consecutive years of margin compression, and net income nearly halving from its 2023 peak, with revenue now plateauing. A sustained downtrend reinforces the caution, with the price trading below all major moving averages and MACD negative, though the extremely low RSI and Stochastic readings suggest the selling has become stretched. Offsetting these risks are a resilient balance sheet with moderate leverage and a near 16% return on equity, plus an inexpensive 11.4x P/E and a 7.8% dividend yield, although that payout's sustainability is questionable given weak cash generation. Overall, this is a recovered but decelerating travel operator where valuation appeal is counterbalanced by earnings and cash flow deterioration.

Positive Factors

Post-downturn revenue recoveryThe sharp recovery from the loss-making period and retention of a higher revenue run-rate indicate that the company rebuilt meaningful operating scale. Sustained activity at this level can support continued profitability and provide a stronger platform for future travel demand and service expansion.

Negative Factors

Sharp deterioration in cash generationThe steep 2025 decline in operating and free cash flow indicates that reported earnings were not translating efficiently into cash. Persistently weak conversion could reduce funds available for dividends, reinvestment, and balance-sheet strengthening, making financial performance less durable.

Richmond International Travel & Tours Co Ltd (2743) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.93B
Dividend Yield: 7.72%
Average Volume (3M): 64.85K
Price to Earnings (P/E): 11.3
Beta (1Y): 0.64
Revenue Growth: 2.46%
EPS Growth: 1.89%
Country: TW
Employees: 491
Sector: General
Sector Strength: 55
Industry: Travel Services

Richmond International Travel & Tours Co Ltd Business Overview & Revenue Model

Company Description

Richmond International Travel & Tours Co.,Ltd, a prominent travel agency based in Taiwan, offers a wide spectrum of services to both individual clients and professional groups. For travelers, its offerings include practical support such as assistance...

Richmond International Travel & Tours Co Ltd Financial Statement Overview

Summary

Richmond International has rebuilt its business impressively post-pandemic, but momentum has clearly stalled. Fiscal 2025 revenue of about NT$6.73 billion slipped slightly below the prior year, while gross margin compressed for a second straight year to 12.3% and net margin fell to 2.7%, driving net income down from NT$348 million (2023) to NT$185 million (2025). The balance sheet is the anchor of the story, with equity growing to roughly NT$1.18 billion, moderate and stable leverage (debt-to-equity near 0.50) and return on equity around 15.7%, though equity funds only 39% of assets. The decisive weakness is cash generation: operating cash flow collapsed to roughly NT$40 million from NT$547 million, and free cash flow fell over 96% to NT$7.6 million, converting only about 19% of net income into cash. A solid balance sheet partially offsets deteriorating profitability and very poor cash conversion in a structurally thin-margin industry.

Income Statement

56Neutral

Balance Sheet

66Positive

Cash Flow

33Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.79B	6.73B	6.84B	5.01B	559.41M	202.10M
Gross Profit	724.38M	829.80M	918.43M	740.95M	111.70M	48.88M
EBITDA	263.26M	373.46M	391.50M	408.83M	-42.81M	-35.28M
Net Income	172.25M	184.68M	260.65M	347.88M	-64.44M	-52.47M
Balance Sheet
Total Assets	3.31B	2.99B	2.96B	2.59B	1.28B	755.42M
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.15B	1.08B	835.48M	483.13M	385.59M
Total Debt	566.71M	588.51M	517.34M	454.08M	222.15M	127.08M
Total Liabilities	2.18B	1.82B	1.92B	1.70B	734.31M	285.42M
Stockholders Equity	1.13B	1.18B	1.04B	889.43M	541.55M	469.99M
Cash Flow
Free Cash Flow	81.19M	7.55M	435.35M	494.88M	-52.27M	-75.36M
Operating Cash Flow	89.41M	39.74M	546.78M	579.26M	-34.12M	-72.86M
Investing Cash Flow	-91.64M	-66.70M	-144.74M	-305.73M	-12.97M	-7.43M
Financing Cash Flow	203.73M	18.57M	-143.60M	76.37M	167.47M	47.86M

Richmond International Travel & Tours Co Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2743 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:7757	72Outperform	TWD 2.17B	14.38	―	8.59%	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2743	54Neutral	TWD 1.93B	11.29	―	7.72%	2.46%	1.89%
TW:2702	47Neutral	TWD 1.83B	17.39	―	―	7.84%	―
TW:2616	40Underperform	TWD 1.71B	-2.11	―	2.40%	8.63%	-1.04%
TW:5905	38Underperform	TWD 1.77B	-25.77	―	―	162.96%	63.44%

* General Sector Average

Performance Comparison

TW:2743 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2743	Richmond International Travel & Tours Co Ltd	41.45	-42.08	-50.38%
TW:2616	Shan-Loong Transportation Co., Ltd.	12.50	-1.24	-9.02%
TW:2702	Hotel Holiday Garden	11.65	0.05	0.43%
TW:5905	Nan Ren Lake Leisure Amusement Co. Ltd.	6.23	-3.60	-36.62%
TW:7705	Mercuries F&B Co Ltd	28.20	-10.76	-27.61%
TW:7757	Lebledor F&B Co Ltd	90.20	-25.10	-21.77%

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

Richmond International Travel & Tours Co Ltd AI Stock Analysis