Yuanta Financial Holding Co. Ltd. (2885) AI Stock Analysis

Yuanta Financial Holding Co. Ltd.

(TWSE:2885)

Select Model

Rating:63Neutral

Price Target:TWD 71.00▼(-0.28% Downside)

Action:initiatedcoverage

Date:11/09/26

Yuanta scores in the moderate range. The financial profile is the dominant driver: outstanding revenue growth, a powerful rebound in operating and free cash flow, and steady equity accumulation are offset by broad margin compression, a slight decline in net income, leverage that nearly doubled to about 2x equity, and historically volatile cash generation. Technically, the stock sits comfortably above its long-term moving averages but has recently lost short-term momentum, trading below its 20- and 50-day averages with a weak RSI. Valuation is fair rather than cheap at 16.6x earnings, though the ~2.6% dividend yield and low beta add defensive appeal. No earnings call or corporate event data was available, so those components were excluded and their weight redistributed.

Positive Factors

Strong 2025 Revenue GrowthThe sharp 2025 revenue rebound indicates improving demand across Yuanta’s diversified financial businesses and strengthens its earnings base. Although the historical trajectory was uneven, renewed top-line expansion can support scale benefits and broader client activity over the coming quarters.

Negative Factors

Sharp Leverage IncreaseThe substantial increase in debt relative to equity raises balance-sheet risk and reduces financial flexibility compared with Yuanta’s earlier position. Higher leverage can constrain future capital allocation and make the group more sensitive to changes in funding conditions or weaker operating performance.

Yuanta Financial Holding Co. Ltd. (2885) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 966.35B
Dividend Yield: 2.43%
Average Volume (3M): 23.87M
Price to Earnings (P/E): 17.3
Beta (1Y): 0.64
Revenue Growth: 77.76%
EPS Growth: 64.03%
Country: TW
Employees: 15,872
Sector: General
Sector Strength: 55
Industry: Financial - Conglomerates

Yuanta Financial Holding Co. Ltd. Business Overview & Revenue Model

Company Description

Yuanta Financial Holding Co., Ltd. is a leading financial services conglomerate primarily based in Taiwan. Its comprehensive operations are organized into five distinct divisions: Banking, Securities, Futures, Insurance, and other diverse ventures. T...

Yuanta Financial Holding Co. Ltd. Financial Statement Overview

Summary

Yuanta combines strong scale and growth with rising risk. Revenue jumped roughly 64% to NT$197.4 billion and operating cash flow swung to a positive NT$130.6 billion, with free cash flow covering about 97% of net income. Equity has compounded steadily to NT$340.4 billion and return on equity remains a respectable ~10.7%. However, margins compressed sharply across gross, operating and net lines, net income slipped modestly year over year, total debt nearly doubled to NT$680.5 billion (debt/equity ~2.0x), and cash flows have been highly erratic over the past five years, limiting confidence that the latest cash generation is a sustainable baseline.

Income Statement

72Positive

Balance Sheet

64Positive

Cash Flow

61Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	231.60B	197.38B	120.78B	98.10B	91.55B	126.04B
Gross Profit	195.68B	155.61B	114.87B	94.36B	88.07B	119.03B
EBITDA	74.45B	50.85B	49.57B	37.27B	31.63B	54.26B
Net Income	60.06B	36.52B	38.31B	28.53B	21.46B	34.87B
Balance Sheet
Total Assets	5.15T	4.29T	3.72T	3.30T	3.02T	3.02T
Cash, Cash Equivalents and Short-Term Investments	146.49B	186.65B	511.80B	457.24B	156.03B	161.08B
Total Debt	772.98B	680.50B	335.18B	242.69B	203.50B	198.24B
Total Liabilities	4.74T	3.92T	3.38T	2.99T	2.74T	2.73T
Stockholders Equity	382.97B	340.42B	314.24B	287.01B	256.37B	269.04B
Cash Flow
Free Cash Flow	107.23B	126.93B	-113.17B	-38.77B	5.25B	36.83B
Operating Cash Flow	110.48B	130.65B	-107.37B	-35.47B	7.93B	38.76B
Investing Cash Flow	-425.56B	-433.73B	-3.73B	-4.23B	-1.91B	-1.75B
Financing Cash Flow	397.71B	288.36B	97.86B	52.92B	23.89B	-20.85B

Yuanta Financial Holding Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2885 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2884	71Outperform	TWD 832.12B	19.75	―	2.94%	36.49%	29.38%
TW:2882	68Neutral	TWD 1.61T	12.35	―	3.10%	-15.82%	65.25%
TW:2890	66Neutral	TWD 644.31B	16.12	―	2.53%	30.53%	55.89%
TW:5880	66Neutral	TWD 445.22B	18.61	―	2.85%	-2.59%	24.94%
TW:2885	63Neutral	TWD 958.03B	17.32	―	2.43%	77.76%	64.03%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2883	52Neutral	TWD 597.51B	11.62	―	2.79%	31.98%	143.59%

* General Sector Average

Performance Comparison

TW:2885 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2885	Yuanta Financial Holding Co. Ltd.	71.20	38.18	115.65%
TW:2882	Cathay Financial Holdings Co., Ltd.	113.00	49.37	77.60%
TW:2883	KGI Financial Holding Co., Ltd.	35.90	20.29	130.05%
TW:2884	E.SUN Financial Holding Co., Ltd.	47.60	18.72	64.84%
TW:2890	SinoPac Financial Holdings Co., Ltd.	42.80	17.43	68.73%
TW:5880	Taiwan Cooperative Financial Holding Co., Ltd.	28.10	5.36	23.55%

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

Yuanta Financial Holding Co. Ltd. AI Stock Analysis