IBF Financial Holdings Co., Ltd. (2889) AI Stock Analysis

IBF Financial Holdings Co., Ltd.

(TWSE:2889)

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Rating:55Neutral

Price Target:TWD 16.00▲(0.31% Upside)

Action:initiatedcoverage

Date:11/09/26

The score is held back primarily by financial fundamentals: although revenue, assets and equity are all growing and the company remains consistently profitable, returns are low (ROE ~5%), net margins have slipped, leverage is high at ~7.3x equity, and operating cash flow has turned negative again — a recurring volatility pattern. Technicals add a mild drag, with the stock below its 20- and 50-day averages and a negative MACD, though oversold RSI and Stochastic readings plus support from the rising 100- and 200-day averages suggest downside may be limited. Valuation is the main offset: a 13.3x P/E, 3.15% dividend yield and low 0.32 beta make this a reasonably priced, defensive income holding, but the lack of earnings-quality improvement keeps the overall assessment near neutral.

Positive Factors

Revenue Growth and ProfitabilitySteady revenue expansion combined with mid-teens net margins indicates that IBF has continued operating profitability while growing its business. The 2025 acceleration could support reinvestment and strengthen earnings capacity over the next several quarters if margins remain resilient.

Negative Factors

Very High LeverageDebt at roughly six to seven times equity leaves IBF more exposed to funding-cost increases, market stress, and balance-sheet losses. High leverage can reduce financial flexibility and constrain the company’s ability to absorb shocks or fund growth through the next several quarters.

IBF Financial Holdings Co., Ltd. (2889) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 59.02B
Dividend Yield: 3.13%
Average Volume (3M): 11.31M
Price to Earnings (P/E): 13.1
Beta (1Y): 0.33
Revenue Growth: 65.79%
EPS Growth: 174.93%
Country: TW
Employees: 1,585
Sector: General
Sector Strength: 55
Industry: Investment - Banking & Investment Services

IBF Financial Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

IBF Financial Holdings Co., Ltd., through its subsidiaries, provides various financial products and services for individual and corporate clients primarily in Taiwan. The company engages in the brokerage and proprietary trading of short-term bills an...

IBF Financial Holdings Co., Ltd. Financial Statement Overview

Summary

IBF Financial Holdings shows steady growth but modest quality. Revenue rose about 9% to roughly NT$15.5 billion and total assets expanded to NT$448 billion with equity up 10% to NT$46.1 billion (Income Statement 60, Balance Sheet 58). However, net income growth of only ~6% to NT$2.30 billion, a slipping net margin of 14.8%, and ROE of just 5.0% — about half 2021 levels — signal weak earnings conversion. Leverage remains high at ~7.3x debt-to-equity, and cash flow is the clear weak spot (score 36), with operating cash flow swinging to roughly -NT$950 million and negative free cash flow, continuing an erratic multi-year pattern where profits are rarely backed by cash.

Income Statement

60Neutral

Balance Sheet

58Neutral

Cash Flow

36Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.97B	15.51B	14.23B	12.00B	8.27B	10.97B
Gross Profit	17.50B	14.43B	8.42B	7.32B	6.06B	10.22B
EBITDA	13.88B	9.52B	3.76B	3.41B	2.51B	5.71B
Net Income	4.42B	2.30B	2.17B	2.00B	1.29B	3.88B
Balance Sheet
Total Assets	508.08B	448.46B	403.68B	363.92B	358.34B	349.89B
Cash, Cash Equivalents and Short-Term Investments	22.93B	3.95B	3.52B	3.29B	3.74B	2.28B
Total Debt	372.17B	336.75B	313.69B	279.95B	14.51B	265.39B
Total Liabilities	451.77B	394.36B	354.22B	315.13B	316.17B	305.70B
Stockholders Equity	47.62B	46.15B	41.98B	42.14B	36.69B	38.87B
Cash Flow
Free Cash Flow	-9.44B	-1.02B	1.61B	-9.61B	8.34B	-7.31B
Operating Cash Flow	-9.34B	-950.50M	1.77B	-9.51B	8.43B	-7.02B
Investing Cash Flow	-32.06B	-6.96B	-305.72M	15.12M	-725.29M	-577.64M
Financing Cash Flow	64.00B	8.55B	-1.39B	8.46B	-6.31B	7.20B

IBF Financial Holdings Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2889 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2849	63Neutral	TWD 28.48B	14.95	―	3.46%	9.63%	40.11%
TW:6005	63Neutral	TWD 66.78B	5.70	―	1.45%	80.75%	158.29%
TW:2845	58Neutral	TWD 61.30B	12.45	―	4.08%	-13.12%	18.06%
TW:2855	56Neutral	TWD 80.07B	5.27	―	4.13%	592.27%	347.85%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2889	55Neutral	TWD 57.76B	13.10	―	3.13%	65.79%	174.93%
TW:2897	52Neutral	TWD 28.84B	12.26	―	5.05%	―	20.11%

* General Sector Average

Performance Comparison

TW:2889 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2889	IBF Financial Holdings Co., Ltd.	15.95	0.68	4.49%
TW:2845	Far Eastern International Bank	12.60	0.52	4.33%
TW:2849	Entie Commercial Bank	14.75	2.01	15.78%
TW:2855	President Securities Corp.	51.10	27.31	114.77%
TW:2897	O-Bank Co. Ltd.	10.30	1.62	18.70%
TW:6005	Capital Securities Corp.	27.60	6.02	27.90%

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

IBF Financial Holdings Co., Ltd. AI Stock Analysis