Holy Stone Enterprise Co., Ltd. (3026) AI Stock Analysis

Holy Stone Enterprise Co., Ltd.

(TWSE:3026)

Select Model

Rating:60Neutral

Price Target:TWD 499.00▼(-11.05% Downside)

Action:initiatedcoverage

Date:11/10/26

Strong cash generation and stable balance sheet form the primary support, offset by weak technical momentum from price action below moving averages and negative indicators. Elevated valuation further caps the score.

Positive Factors

2025 Revenue ReboundThe return to positive growth in 2025 demonstrates renewed demand after a difficult multi-year period. If maintained, the rebound can improve operating leverage, support reinvestment in electronic materials, and strengthen the company’s earnings base over the next several quarters.

Negative Factors

Multi-Year Revenue VolatilityThe sequence of revenue declines followed by a sharp 2025 rebound shows that demand has not yet demonstrated consistent stability. Continued volatility could make capacity planning and resource allocation harder, while also reducing confidence in the durability of future earnings growth.

Holy Stone Enterprise Co., Ltd. (3026) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 85.77B
Dividend Yield: 1.03%
Average Volume (3M): 10.49M
Price to Earnings (P/E): 44.1
Beta (1Y): 2.38
Revenue Growth: 17.07%
EPS Growth: 110.82%
Country: TW
Employees: 1,331
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Holy Stone Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Holy Stone Enterprise Co.,Ltd., a Taiwanese firm, manufactures and supplies multilayer ceramic capacitors (MLCCs) marketed under its IHHEC brand. These MLCCs are integral to various applications, including Power over Ethernet (PoE) circuits, switchin...

Holy Stone Enterprise Co., Ltd. Financial Statement Overview

Summary

Revenue rebounded 9.3% with gross margin recovery to 18.3%, while strong operating cash flow of 1.35B and free cash flow of 1.07B support reinvestment. Balance sheet remains stable with low debt-to-equity of 0.36 and improving ROE.

Income Statement

62Positive

Balance Sheet

74Positive

Cash Flow

83Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.47B	13.43B	12.79B	13.24B	15.07B	16.60B
Gross Profit	3.10B	2.45B	2.09B	2.29B	3.13B	3.68B
EBITDA	2.39B	1.81B	1.88B	1.61B	2.08B	2.62B
Net Income	1.70B	1.09B	973.27M	850.50M	1.23B	1.95B
Balance Sheet
Total Assets	17.72B	16.19B	15.83B	15.03B	16.11B	16.27B
Cash, Cash Equivalents and Short-Term Investments	5.77B	5.58B	5.11B	3.44B	3.60B	4.41B
Total Debt	3.17B	3.64B	3.33B	3.06B	3.78B	3.43B
Total Liabilities	7.18B	5.79B	5.45B	5.00B	6.04B	6.19B
Stockholders Equity	10.33B	10.15B	9.98B	9.83B	9.70B	9.86B
Cash Flow
Free Cash Flow	524.93M	1.07B	1.16B	965.32M	205.86M	120.58M
Operating Cash Flow	1.13B	1.35B	1.61B	1.60B	1.24B	1.58B
Investing Cash Flow	-557.79M	-355.31M	145.95M	-448.20M	-1.01B	-1.59B
Financing Cash Flow	-1.43B	-617.94M	-379.38M	-1.44B	-861.15M	-462.96M

Holy Stone Enterprise Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3026 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3090	61Neutral	TWD 39.11B	16.26	―	3.43%	28.25%	67.56%
TW:3026	60Neutral	TWD 84.60B	44.12	―	1.03%	17.07%	110.82%
TW:6278	59Neutral	TWD 63.74B	21.85	―	2.33%	5.43%	16.09%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3491	54Neutral	TWD 89.88B	121.16	―	0.47%	61.31%	111.10%
TW:8112	52Neutral	TWD 43.35B	4.03	―	4.56%	148.84%	1132.71%
TW:2492	51Neutral	TWD 139.69B	32.36	―	0.87%	20.39%	136.52%

* General Sector Average

Performance Comparison

TW:3026 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3026	Holy Stone Enterprise Co., Ltd.	561.00	456.18	435.20%
TW:2492	Walsin Technology Corporation	288.00	164.16	132.55%
TW:3090	Nichidenbo Corp.	140.00	50.97	57.26%
TW:3491	Universal Microwave Technology, Inc.	1435.00	972.43	210.23%
TW:6278	Taiwan Surface Mounting Technology Corp.	238.50	139.34	140.52%
TW:8112	Supreme Electronics Co., Ltd.	83.40	11.19	15.50%

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

Holy Stone Enterprise Co., Ltd. AI Stock Analysis