National Aerospace Fasteners Corporation (3004) AI Stock Analysis

National Aerospace Fasteners Corporation

(TWSE:3004)

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Rating:56Neutral

Price Target:TWD 124.00▲(1.22% Upside)

Action:initiatedcoverage

Date:11/09/26

The score is held back primarily by weak cash generation: two consecutive years of deeply negative free cash flow and operating cash flow covering only about 40% of net income, with expansion partly funded by rising debt. Margin compression that pushed net income lower despite double-digit revenue growth, plus a drop in ROE to roughly 9.1%, further weigh on the financial profile. These risks are partially offset by impressive revenue growth, a restored profit base, and a strengthened equity position. Technicals are neutral, with the stock hovering around its 50- and 200-day averages and a mid-range RSI, while a P/E of 15.0 and a 2.1% dividend yield provide a reasonable but not compelling valuation cushion. A re-rating likely depends on capacity investments translating into higher margins and positive free cash flow.

Positive Factors

Revenue GrowthThe multi-year revenue recovery indicates that the company is expanding its sales base rather than relying only on a temporary earnings improvement. Continued top-line growth supports operating scale, strengthens customer reach, and provides a foundation for sustaining investment in its specialized aerospace component business.

Negative Factors

Weak Cash ConversionDeeply negative recent free cash flow despite positive net income indicates that accounting profits are not currently translating into available cash. If this pattern persists, the company may have less flexibility to fund investment internally and could become more dependent on financing to support ongoing operations.

National Aerospace Fasteners Corporation (3004) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 7.89B
Dividend Yield: 2.08%
Average Volume (3M): 342.31K
Price to Earnings (P/E): 15.3
Beta (1Y): 0.57
Revenue Growth: 37.56%
EPS Growth: 28.85%
Country: TW
Employees: 675
Sector: General
Sector Strength: 55
Industry: Aerospace & Defense

National Aerospace Fasteners Corporation Business Overview & Revenue Model

Company Description

National Aerospace Fasteners Corporation (NAFC), established in 1997 with its headquarters in Taoyuan City, Taiwan, specializes in the global manufacturing and distribution of precision fastening components. The company serves a diverse range of indu...

National Aerospace Fasteners Corporation Financial Statement Overview

Summary

Strong multi-year growth with revenue nearly tripling since 2021 to about NT$4.06 billion and a return to consistent profitability (Income Statement: 66). The balance sheet is adequately capitalized with equity rising to roughly NT$3.64 billion and debt-to-equity easing to about 0.82, though total debt grew 29% and ROE fell to roughly 9.1% (Balance Sheet: 58). Cash flow is the clear weakness (Cash Flow: 28): operating cash flow of about NT$137 million covers only ~40% of net income, and free cash flow was negative NT$795 million after a negative NT$735 million the prior year, driven by heavy capital spending and working capital absorption. Margin compression across gross, operating, and net lines caused net income to decline despite higher sales.

Income Statement

66Positive

Balance Sheet

58Neutral

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.72B	4.06B	3.50B	3.07B	2.19B	1.43B
Gross Profit	1.11B	991.55M	969.75M	812.54M	511.63M	166.09M
EBITDA	851.31M	728.66M	757.28M	628.63M	402.40M	184.46M
Net Income	414.04M	330.95M	375.98M	307.60M	149.97M	-96.73M
Balance Sheet
Total Assets	9.04B	8.06B	6.31B	5.08B	4.57B	4.31B
Cash, Cash Equivalents and Short-Term Investments	230.66M	225.23M	181.17M	107.56M	141.38M	111.00M
Total Debt	3.82B	2.99B	2.33B	1.47B	1.55B	1.84B
Total Liabilities	5.27B	4.42B	3.59B	2.75B	2.63B	2.53B
Stockholders Equity	3.78B	3.64B	2.73B	2.33B	1.95B	1.77B
Cash Flow
Free Cash Flow	-1.28B	-794.59M	-734.66M	50.97M	164.62M	10.37M
Operating Cash Flow	-104.33M	137.06M	-140.73M	220.40M	250.92M	73.55M
Investing Cash Flow	-1.18B	-931.82M	-594.25M	-177.89M	-79.29M	-62.39M
Financing Cash Flow	1.29B	846.98M	791.16M	-70.73M	-141.95M	-36.75M

National Aerospace Fasteners Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3004 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4571	71Outperform	TWD 7.65B	16.28	―	3.60%	-0.89%	-0.66%
TW:2233	57Neutral	TWD 6.87B	19.42	―	3.51%	-2.23%	-20.63%
TW:3004	56Neutral	TWD 7.89B	15.33	―	2.08%	37.56%	28.85%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6727	55Neutral	TWD 9.58B	34.55	―	1.26%	50.99%	177.59%
TW:4566	47Neutral	TWD 8.39B	30.31	―	0.90%	18.15%	370.19%

* General Sector Average

Performance Comparison

TW:3004 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3004	National Aerospace Fasteners Corporation	122.50	18.07	17.31%
TW:2233	Turvo International Co., Ltd.	114.00	-95.87	-45.68%
TW:4566	GLOBAL TEK FABRICATION CO., Ltd.	76.20	25.01	48.85%
TW:4571	Khgears International Ltd.	146.50	-12.67	-7.96%
TW:6727	Asia Metal Industries, Inc.	356.50	208.12	140.26%
TW:7907	Laienparts Technology Co., Ltd.	221.00	-181.41	-45.08%

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

National Aerospace Fasteners Corporation AI Stock Analysis