TXC Corporation (3042) AI Stock Analysis

TXC Corporation

(TWSE:3042)

Select Model

Rating:62Neutral

Price Target:TWD 130.00▼(-8.13% Downside)

Action:initiatedcoverage

Date:11/09/26

TXC earns a moderate score. Its financial foundation is the primary strength: a near-debt-free balance sheet (D/E 0.13), operating cash flow nearly double reported profit, and free cash flow back above NT$2.2bn give the company low financial risk and ample flexibility through the cycle. This is partly offset by an earnings profile that is still contracting, with revenue down 2.6%, margins lower across the board and profits off ~16%, leaving ROE at roughly half its 2021 peak. The largest drag is technical: the stock sits well below all key moving averages with sharply negative MACD momentum, indicating investors are pricing in continued weakness. Valuation is balanced — a 20.8x P/E is fair rather than cheap, but a well-covered 3.9% dividend yield offers income support while the demand cycle recovers. Weights applied: Financial Performance 50%, Technical Analysis 30%, Valuation 20%, with earnings call and corporate events excluded for lack of data and their weight redistributed proportionally.

Positive Factors

Conservative Balance SheetVery low and improving leverage gives TXC meaningful financial flexibility. A larger equity base relative to debt can support investment, dividends, and resilience through weaker demand while reducing the burden of interest and refinancing over the next several quarters.

Negative Factors

Uneven Revenue and Earnings TrendThe sharp rebound in 2024 was not sustained into 2025, when revenue and net income declined. This uneven trajectory signals that recent growth has not yet become consistent, making forward earnings expansion less dependable over the next several quarters.

TXC Corporation (3042) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 48.79B
Dividend Yield: 3.39%
Average Volume (3M): 14.59M
Price to Earnings (P/E): 21.9
Beta (1Y): 1.46
Revenue Growth: 9.03%
EPS Growth: 13.53%
Country: TW
Employees: 3,348
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

TXC Corporation Business Overview & Revenue Model

Company Description

TXC Corporation engages in the research and development, design, production, and sale of crystal units and oscillator products in Taiwan and internationally. It offers ThermSym OCXO, TCXO, MHz XO, kHZ XO, Controlled Crystal Oscillators (VCXO), Temper...

TXC Corporation Financial Statement Overview

Summary

A conservatively financed, cash-generative business with a soft earnings profile. The balance sheet is the standout (score 83): debt-to-equity of just 0.13 after aggressive deleveraging from 0.34, with equity funding ~73% of assets, implying minimal financial risk. Cash flow is also strong (score 78): operating cash flow rose ~35% to NT$3.49bn, covering net income 1.9x, and free cash flow rebounded to NT$2.29bn from a depressed NT$99m, though FCF has been volatile due to lumpy capex. The income statement is the weak link (score 61): revenue slipped 2.6% to NT$13.35bn and remains below the 2021 peak, while gross, operating and net margins all compressed (33.0%, 17.0%, 13.5%), driving net income down ~16% and ROE to 11.3% versus 24.4% in 2021. Overall: low financial risk and ample liquidity, but no top-line growth and ongoing margin erosion.

Income Statement

61Positive

Balance Sheet

83Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.85B	13.35B	12.67B	10.85B	13.17B	15.24B
Gross Profit	4.39B	4.41B	4.49B	3.86B	5.03B	5.63B
EBITDA	3.46B	3.51B	3.77B	3.32B	4.63B	4.78B
Net Income	1.97B	1.80B	2.14B	1.71B	2.81B	3.12B
Balance Sheet
Total Assets	23.29B	21.82B	22.17B	18.82B	19.85B	20.80B
Cash, Cash Equivalents and Short-Term Investments	7.33B	6.18B	5.48B	4.92B	4.99B	4.49B
Total Debt	1.67B	2.07B	2.14B	4.01B	4.12B	3.79B
Total Liabilities	7.42B	5.78B	5.73B	6.95B	7.38B	8.04B
Stockholders Equity	15.76B	15.92B	16.32B	11.87B	12.47B	12.76B
Cash Flow
Free Cash Flow	2.20B	2.29B	99.23M	2.08B	2.08B	1.19B
Operating Cash Flow	3.00B	3.49B	2.59B	3.05B	3.35B	3.63B
Investing Cash Flow	-1.15B	-1.32B	-3.13B	-729.38M	-775.01M	-1.86B
Financing Cash Flow	-3.45B	-2.10B	80.61M	-2.29B	-2.03B	-329.12M

TXC Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3042 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2428	69Neutral	TWD 24.85B	13.78	―	3.04%	19.78%	25.02%
TW:2472	66Neutral	TWD 28.33B	17.52	―	2.03%	20.68%	44.10%
TW:3042	62Neutral	TWD 48.53B	21.90	―	3.39%	9.03%	13.53%
TW:4979	61Neutral	TWD 54.47B	61.63	―	0.56%	23.09%	43.10%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3163	49Neutral	TWD 45.09B	56.88	―	0.37%	21.59%	66.00%
TW:3363	46Neutral	TWD 46.71B	-342.44	―	―	-3.20%	-2090.12%

* General Sector Average

Performance Comparison

TW:3042 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3042	TXC Corporation	141.50	57.39	68.24%
TW:2428	Thinking Electronic Industrial Co., Ltd.	194.00	6.50	3.46%
TW:2472	Lelon Electronics Corp.	172.00	65.12	60.93%
TW:3163	Browave Corporation	476.50	279.09	141.38%
TW:3363	FOCI Fiber Optic Communications, Inc.	411.00	51.79	14.42%
TW:4979	Luxnet Corporation	383.00	179.05	87.79%

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

TXC Corporation AI Stock Analysis