Test Rite International Co., Ltd. (2908) AI Stock Analysis

Test Rite International Co., Ltd.

(TWSE:2908)

Select Model

Rating:35Underperform

Price Target:TWD 20.00▼(-7.62% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is very low, driven primarily by a severe deterioration in financial performance. The company's profitability has nearly vanished, leaving it vulnerable under a heavy debt load, while cash flow trends are declining. Technical indicators confirm strong bearish momentum, with the stock trading below key moving averages. The modest dividend yield and reasonable P/E ratio provide only a slight cushion and are not enough to offset the fundamental and technical weaknesses.

Positive Factors

Stable Gross MarginThe relatively stable gross margin indicates that product-level economics have held up despite weaker overall earnings. This provides a more durable base for recovery if operating costs improve, although it does not eliminate pressure from expenses below the gross-profit line.

Negative Factors

Revenue VolatilityThe uneven revenue pattern indicates that the company has not established consistent top-line growth. A declining latest year can limit operating leverage and make it harder to absorb fixed costs, leaving future earnings dependent on a sustained improvement in demand.

Test Rite International Co., Ltd. (2908) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 10.99B
Dividend Yield: 2.54%
Average Volume (3M): 295.95K
Price to Earnings (P/E): 17.6
Beta (1Y): 0.13
Revenue Growth: -1.04%
EPS Growth: 480.86%
Country: TW
Employees: 4,543
Sector: General
Sector Strength: 55
Industry: Home Improvement

Test Rite International Co., Ltd. Business Overview & Revenue Model

Company Description

Test-Rite International Co., Ltd., established in Taipei, Taiwan, in 1978, is a global enterprise engaged in the import and export of an extensive range of goods, including hand tools, automotive components, various types of machinery, furniture, and...

Test Rite International Co., Ltd. Financial Statement Overview

Summary

Financial health is critically weak. The income statement shows a 65% YoY drop in net income and a razor-thin 0.34% net margin. The balance sheet is highly leveraged with debt over 3x equity, and while cash flow is positive, it is declining sharply (FCF down 24% YoY), signaling increasing liquidity risk.

Income Statement

18Very Negative

Balance Sheet

22Negative

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	34.51B	33.62B	36.83B	35.41B	37.41B	43.76B
Gross Profit	9.79B	8.52B	9.48B	8.89B	9.10B	10.71B
EBITDA	3.09B	2.79B	3.12B	3.16B	3.15B	3.62B
Net Income	629.67M	115.20M	331.71M	257.70M	425.89M	782.83M
Balance Sheet
Total Assets	39.56B	38.41B	36.11B	36.59B	38.75B	38.37B
Cash, Cash Equivalents and Short-Term Investments	4.19B	2.63B	3.24B	1.94B	3.39B	2.45B
Total Debt	20.89B	21.01B	19.14B	21.28B	22.56B	18.74B
Total Liabilities	30.52B	29.64B	28.47B	29.80B	31.67B	31.39B
Stockholders Equity	7.25B	6.99B	7.15B	6.55B	6.89B	6.82B
Cash Flow
Free Cash Flow	3.65B	1.48B	2.01B	1.73B	-654.20M	1.05B
Operating Cash Flow	4.03B	1.94B	2.38B	2.12B	-56.56M	1.48B
Investing Cash Flow	-1.10B	-1.01B	-458.35M	-663.19M	631.40M	-285.34M
Financing Cash Flow	-2.75B	-1.64B	-1.07B	-2.69B	122.28M	-1.67B

Test Rite International Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2908 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5609	70Outperform	TWD 11.17B	9.34	―	7.15%	15.14%	7.70%
TW:6790	68Neutral	TWD 9.84B	11.95	―	7.17%	-3.83%	17.72%
TW:2373	60Neutral	TWD 11.48B	13.85	―	7.20%	-2.40%	3.68%
TW:2636	56Neutral	TWD 9.49B	9.94	―	7.14%	-16.77%	-23.50%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6655	52Neutral	TWD 10.15B	26.86	―	4.53%	23.47%	59.07%
TW:2908	35Underperform	TWD 10.73B	17.60	―	2.54%	-1.04%	480.86%

* General Sector Average

Performance Comparison

TW:2908 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2908	Test Rite International Co., Ltd.	21.65	1.97	9.99%
TW:2373	Aurora Corporation	51.40	-1.92	-3.60%
TW:2636	T3EX Global Holdings Corp.	70.00	7.33	11.69%
TW:5609	Dimerco Express Corporation	78.30	3.46	4.62%
TW:6655	Keding Enterprises Co., Ltd.	132.50	34.00	34.52%
TW:6790	Yuen Foong Yu Consumer Products Co., Ltd.	36.95	1.29	3.62%

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

Test Rite International Co., Ltd. AI Stock Analysis