Episil-Precision, Inc. (3016) AI Stock Analysis

Episil-Precision, Inc.

(TWSE:3016)

Select Model

Rating:44Neutral

Price Target:TWD 95.00▼(-19.15% Downside)

Action:initiatedcoverage

Date:11/09/26

Episil-Precision scores poorly overall, driven primarily by severely eroded earnings power: three consecutive years of revenue decline, operating margin near breakeven at 0.3%, and return on equity of just 0.4%. A conservative balance sheet (0.23x debt-to-equity, 72% equity-funded assets) and solid depreciation-driven operating cash flow provide downside support, but free cash flow of NT$43m leaves little room for reinvestment or dividends. Technicals compound the picture, with the share price below all major moving averages and a deeply negative MACD, though oversold readings hint at scope for a near-term bounce. Valuation offers no cushion, with a P/E of 54.3 on trough earnings and a slim 0.51% yield. A recovery in fab utilization and pricing is the key catalyst required to improve the outlook.

Positive Factors

Return to Revenue GrowthRevenue returned to growth in 2025 after declines in 2023 and 2024, indicating the company retains a path to recover demand. If sustained, renewed top-line expansion can improve fixed-cost absorption and support earnings normalization over the next several quarters.

Negative Factors

Profitability CompressionMaterial margin deterioration versus 2021–2022 indicates weaker earnings quality and reduced pricing or operating leverage. Net income remains positive, but near-breakeven net margins leave less buffer against demand softness and make durable earnings recovery dependent on improved profitability.

Episil-Precision, Inc. (3016) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 35.78B
Dividend Yield: 0.42%
Average Volume (3M): 11.40M
Price to Earnings (P/E): 62.2
Beta (1Y): 1.85
Revenue Growth: 29.78%
EPS Growth: 22824.42%
Country: TW
Employees: 148
Sector: General
Sector Strength: 55
Industry: Semiconductors

Episil-Precision, Inc. Business Overview & Revenue Model

Company Description

Episil-Precision Inc. (3016.TW) specializes in the full lifecycle of advanced epitaxial wafers, from their initial design and development through manufacturing and global distribution. These wafers utilize silicon (Si), silicon carbide (SiC), and gal...

Episil-Precision, Inc. Financial Statement Overview

Summary

Financial results reflect a deep semiconductor downcycle. Revenue has contracted three years running from the NT$5.90bn 2022 peak to NT$3.89bn, while gross margin compressed to 7.9% and operating margin to just 0.3%, leaving net income at a nominal NT$20m (0.5% net margin) and return on equity near zero at 0.4% — the income statement is the clear weak spot (score 29). The balance sheet is the offsetting strength (score 68): debt-to-equity of 0.23 and equity funding roughly 72% of assets give the company staying power, though capital productivity is poor. Cash flow (score 55) is better than headline profit, with NT$492m of operating cash flow driven by heavy depreciation, but capex absorbs nearly all of it, leaving free cash flow at only NT$43m after two years of negative FCF.

Income Statement

29Negative

Balance Sheet

68Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.41B	3.89B	4.11B	4.24B	5.90B	5.04B
Gross Profit	696.90M	306.50M	382.00M	495.47M	1.10B	726.43M
EBITDA	805.32M	413.48M	774.27M	737.28M	1.33B	963.35M
Net Income	348.56M	20.42M	264.61M	164.04M	681.27M	380.53M
Balance Sheet
Total Assets	7.56B	6.90B	7.41B	6.81B	7.67B	6.61B
Cash, Cash Equivalents and Short-Term Investments	2.73B	2.29B	2.65B	2.28B	2.84B	1.96B
Total Debt	1.16B	1.13B	1.39B	990.94M	915.29M	754.51M
Total Liabilities	2.35B	1.96B	2.35B	1.91B	2.37B	2.00B
Stockholders Equity	5.21B	4.94B	5.06B	4.90B	5.30B	4.61B
Cash Flow
Free Cash Flow	416.35M	43.15M	-22.42M	-60.67M	681.98M	515.95M
Operating Cash Flow	749.66M	492.48M	804.97M	553.67M	1.16B	692.46M
Investing Cash Flow	-333.47M	-439.41M	-573.25M	-611.84M	-19.09M	-576.52M
Financing Cash Flow	152.12M	-404.80M	122.77M	-498.41M	150.19M	66.51M

Episil-Precision, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3016 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8131	65Neutral	TWD 23.84B	13.29	―	1.86%	37.20%	416.69%
TW:8028	57Neutral	TWD 37.35B	35.55	―	1.33%	24.28%	51.82%
TW:2329	56Neutral	TWD 24.47B	14.80	―	2.68%	10.61%	51.02%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4991	54Neutral	TWD 42.26B	78.98	―	―	52.19%	―
TW:3016	44Neutral	TWD 34.46B	62.18	―	0.42%	29.78%	22824.42%
TW:3707	38Underperform	TWD 24.11B	-51.01	―	―	22.70%	38.31%

* General Sector Average

Performance Comparison

TW:3016 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3016	Episil-Precision, Inc.	117.50	65.19	124.61%
TW:2329	Orient Semiconductor Electronics, Limited	37.30	-14.60	-28.13%
TW:3707	Episil Technologies Inc.	60.20	9.80	19.44%
TW:4991	GCS Holdings, Inc.	352.00	186.17	112.27%
TW:8028	Phoenix Silicon International Corp.	203.50	43.93	27.53%
TW:8131	Formosa Advanced Technologies Co., Ltd.	53.90	6.24	13.10%

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

Episil-Precision, Inc. AI Stock Analysis