Young Optics Inc. AI Stock Analysis
Young Optics Inc. (3504) AI Stock Analysis
Young Optics Inc.
(TWSE:3504)
Young Optics scores below average. The dominant concern is profitability: despite a revenue stabilization and improving gross margins, the company still loses money at the operating level, net margin is a razor-thin 0.17%, return on equity is near zero, and free cash flow has just turned negative as capex outpaces operating cash. Technical signals compound the caution, with the share price trading far below all major moving averages and momentum indicators deeply depressed. Valuation offers no cushion, as the ~1,236x P/E reflects negligible earnings and there is no dividend. The key offset is a conservative balance sheet — low leverage (debt-to-equity 0.22), a steadily shrinking debt load and a stable equity base — which gives management time to execute a turnaround. Until the recovery translates into durable operating profit and the price trend stabilizes, the risk-reward remains unfavorable.
Young Optics Inc. (3504) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 6.64B
- Dividend Yield
- ―
- Average Volume (3M)
- 2.49M
- Price to Earnings (P/E)
- 1375.0
- Beta (1Y)
- 1.28
- Revenue Growth
- 6.51%
- EPS Growth
- -89.54%
- Country
- TW
- Employees
- 887
- Sector
- General
- Sector Strength
- 55
- Industry
- Hardware, Equipment & Parts
Young Optics Inc. Business Overview & Revenue Model
Company Description
Operating out of Taiwan, Young Optics Inc. specializes in the development, production, and distribution of a diverse array of optical components, engines, and integrated modules. Its comprehensive product portfolio includes various plastic injection...
Young Optics Inc. Financial Statement Overview
Summary
A strong balance sheet (score 68) is the clear anchor: equity funds ~64% of assets, debt has fallen to NT$620 million and debt-to-equity sits at a conservative 0.22. However, earnings quality remains weak (income statement score 40) — revenue collapsed from NT$4.68 billion in 2022 to NT$2.57 billion in 2024 before stabilizing, and while gross margin has recovered to 15.4% and the bottom line turned to a small NT$4.8 million TTM profit, operating income is still negative (-NT$32 million) and net margin is just 0.17%. Cash flow (score 50) is positive at NT$171 million operating but down sharply from NT$333 million, with free cash flow swinging to -NT$8 million as capital spending absorbs all operating cash. Return on equity is effectively zero, leaving a conservative but unproductive capital base.
Income Statement
40NegativeBalance Sheet
68PositiveCash Flow
50Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.86B | 2.69B | 2.57B | 3.01B | 4.68B | 4.56B |
| Gross Profit | 439.46M | 404.45M | 301.80M | 316.62M | 809.27M | 785.27M |
| EBITDA | 280.47M | 299.32M | 72.71M | 65.87M | 357.41M | 376.36M |
| Net Income | 4.82M | -9.39M | -247.77M | -287.30M | 64.65M | 26.36M |
Balance Sheet | ||||||
| Total Assets | 4.45B | 4.23B | 4.44B | 4.72B | 5.57B | 5.94B |
| Cash, Cash Equivalents and Short-Term Investments | 1.18B | 1.23B | 1.02B | 1.07B | 1.39B | 1.33B |
| Total Debt | 620.09M | 645.21M | 743.81M | 876.45M | 1.26B | 1.66B |
| Total Liabilities | 1.60B | 1.44B | 1.63B | 1.72B | 2.25B | 2.76B |
| Stockholders Equity | 2.86B | 2.80B | 2.81B | 3.00B | 3.30B | 3.17B |
Cash Flow | ||||||
| Free Cash Flow | -8.47M | 271.59M | 58.87M | 119.39M | 452.15M | -276.18M |
| Operating Cash Flow | 170.93M | 333.03M | 141.93M | 289.96M | 662.29M | -145.41M |
| Investing Cash Flow | -164.08M | -25.23M | -62.32M | -177.46M | -201.10M | -130.96M |
| Financing Cash Flow | -214.37M | -100.27M | -158.92M | -409.30M | -441.50M | 275.16M |
Young Optics Inc. Peers Comparison
Overall Rating
TW:362272Outperform
TW:531262Neutral
TW:344161Neutral- TW:350446Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:3622 | 72Outperform | TWD 6.11B | 7.91 | ― | 7.97% | 7.76% | 5.37% |
| TW:5312 | 62Neutral | TWD 5.29B | 12.29 | ― | 7.22% | 12.13% | 2.35% |
| TW:3441 | 61Neutral | TWD 7.01B | 75.92 | ― | 0.47% | 26.87% | 117.51% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:3504 | 46Neutral | TWD 6.38B | 1375.00 | ― | ― | 6.51% | -89.54% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:3504 | Young Optics Inc. | 57.00 | 5.00 | 9.62% | |
| TW:3441 | Unique Opto-Electronics Co.,Ltd | 179.00 | 146.71 | 454.37% | |
| TW:3622 | Young Fast Optoelectronics Co., Ltd | 40.15 | -23.59 | -37.01% | |
| TW:5312 | Formosa Optical Technology Co., Ltd. | 90.00 | -1.50 | -1.64% | |
| TW:6434 | TacBright Optronics Corp. | 12.35 | 7.33 | 146.02% | |
| TW:7926 | Chunghwa Leading Photonics Tech Co., Ltd. | 427.00 | -310.00 | -42.06% |
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