Young Optics Inc. (3504) AI Stock Analysis

Young Optics Inc.

(TWSE:3504)

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Rating:50Neutral

Price Target:TWD 51.00▼(-10.53% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is constrained primarily by minimal profitability, sharply weaker cash-flow performance, and an extremely high P/E ratio. A conservative balance sheet and modest revenue and gross-margin improvement provide support, while weak momentum and a price below all moving averages remain significant risks.

Positive Factors

Revenue and Gross Margin RecoveryImproving revenue and gross margin indicate a healthier pricing, product-mix, or cost-control backdrop. If maintained, this recovery can strengthen operating leverage and provide a more durable foundation for earnings improvement over the next several quarters.

Negative Factors

Operating Profitability Remains WeakThe revenue recovery has not yet translated into durable operating profits. Slightly negative EBIT and a near-breakeven net margin leave limited earnings buffer, making future results sensitive to execution, margins, and continued improvement in the business cycle.

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

The balance sheet is solid, supported by low debt-to-equity of 0.22 and higher equity, but very weak profitability and deteriorating cash generation weigh on the score. Revenue and gross margin improved modestly, while operating profit remained negative, free cash flow turned negative, and net margin was only 0.2%.

Income Statement

55Neutral

Balance Sheet

78Positive

Cash Flow

38Negative

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3504 against its peers
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	50Neutral	TWD 6.38B	1375.00	―	―	6.51%	-89.54%

* General Sector Average

Performance Comparison

TW:3504 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3504	Young Optics Inc.	57.00	6.00	11.76%
TW:3441	Unique Opto-Electronics Co.,Ltd	179.00	147.01	459.48%
TW:3622	Young Fast Optoelectronics Co., Ltd	40.15	-25.00	-38.38%
TW:5312	Formosa Optical Technology Co., Ltd.	90.00	-1.50	-1.64%
TW:6434	TacBright Optronics Corp.	12.35	7.45	152.04%
TW:7926	Chunghwa Leading Photonics Tech Co., Ltd.	427.00	-310.00	-42.06%

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

Young Optics Inc. AI Stock Analysis