Simple Mart Retail Co., Ltd. (2945) AI Stock Analysis

Simple Mart Retail Co., Ltd.

(TWSE:2945)

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Rating:49Neutral

Price Target:TWD 38.00▼(-2.56% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is constrained by weak technical momentum and poor cash flow conversion, which are the most significant factors. The stock is in a clear downtrend, and the declining quality of earnings is a major red flag. Positively, the company's balance sheet is strengthening, and the high dividend yield offers some support, but these are secondary factors that do not fully offset the primary risks.

Positive Factors

Revenue expansionMulti-year revenue expansion indicates that Simple Mart has continued to grow its retail sales base and customer reach. The sharper 2025 increase provides a stronger platform for operating leverage and supports continued investment in stores, products, and everyday consumer offerings.

Negative Factors

Thin and pressured profitabilityVery thin net margins leave little room for execution mistakes, cost increases, or weaker trading conditions. The decline in operating profit despite higher revenue also suggests that incremental sales are currently producing limited profit, constraining durable earnings growth.

Simple Mart Retail Co., Ltd. (2945) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.59B
Dividend Yield: 3.93%
Average Volume (3M): 17.53K
Price to Earnings (P/E): 26.0
Beta (1Y): 0.14
Revenue Growth: 23.01%
EPS Growth: -26.72%
Country: TW
Employees: 3,740
Sector: General
Sector Strength: 55
Industry: Grocery Stores

Simple Mart Retail Co., Ltd. Business Overview & Revenue Model

Company Description

Simple Mart Retail Co., Ltd. is primarily engaged in managing supermarkets throughout Taiwan. Beyond its core operations, the company also retails a broad spectrum of goods, encompassing food items, beverages, and household essentials, in addition to...

Simple Mart Retail Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is improving with reduced leverage (Score 62), but this is offset by weak profitability and a concerning decline in cash flow generation (Income Score 45, Cash Flow Score 48). The inability to convert revenue growth into stronger cash profits is a key risk.

Income Statement

45Neutral

Balance Sheet

62Positive

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.61B	14.80B	14.30B	14.04B	14.18B	14.59B
Gross Profit	3.85B	4.04B	3.88B	3.64B	3.53B	3.72B
EBITDA	798.80M	902.37M	884.38M	863.90M	853.50M	1.08B
Net Income	125.07M	144.26M	136.40M	101.15M	55.29M	194.50M
Balance Sheet
Total Assets	8.16B	6.30B	6.39B	5.88B	5.74B	5.88B
Cash, Cash Equivalents and Short-Term Investments	548.31M	330.79M	592.67M	918.83M	730.34M	750.83M
Total Debt	2.87B	2.02B	2.04B	1.81B	1.71B	1.75B
Total Liabilities	6.06B	4.13B	4.35B	3.99B	3.88B	3.88B
Stockholders Equity	1.93B	1.99B	1.90B	1.85B	1.80B	2.00B
Cash Flow
Free Cash Flow	631.40M	335.85M	287.25M	908.65M	508.13M	1.07B
Operating Cash Flow	894.63M	801.74M	562.98M	1.05B	682.93M	1.37B
Investing Cash Flow	-22.44M	-461.91M	-421.52M	-130.30M	-175.46M	-259.12M
Financing Cash Flow	-912.20M	-601.71M	-582.47M	-556.32M	-710.26M	-662.94M

Simple Mart Retail Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2945 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:7708	73Outperform	TWD 2.29B	11.59	―	6.12%	13.10%	30.56%
TW:1236	56Neutral	TWD 2.33B	-385.00	―	6.12%	-2.79%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1233	55Neutral	TWD 2.58B	30.64	―	0.70%	1.42%	17.11%
TW:2754	54Neutral	TWD 2.89B	15.31	―	1.64%	6.28%	91.71%
TW:2732	51Neutral	TWD 2.79B	17.20	―	6.69%	26.17%	282.20%
TW:2945	49Neutral	TWD 2.60B	26.02	―	3.93%	23.01%	-26.72%

* General Sector Average

Performance Comparison

TW:2945 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2945	Simple Mart Retail Co., Ltd.	39.00	2.49	6.81%
TW:1233	Ten Ren Tea Co., Ltd.	28.20	-2.39	-7.80%
TW:1236	Hunya Foods Co. Ltd.	26.95	3.47	14.79%
TW:2732	La Kaffa International Co., Ltd.	58.40	-9.32	-13.77%
TW:2754	Kura Sushi Asia Co., Ltd.	61.40	-24.80	-28.77%
TW:7708	Family International Gourmet Co Ltd	89.70	-4.45	-4.72%

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

Simple Mart Retail Co., Ltd. AI Stock Analysis