Macroblock, Inc. (3527) AI Stock Analysis

Macroblock, Inc.

(TPEx:3527)

Select Model

Rating:49Neutral

Price Target:TWD 42.00▼(-9.58% Downside)

Action:initiatedcoverage

Date:11/09/26

Macroblock scores below average, driven primarily by a deteriorating earnings profile: four consecutive years of revenue decline, roughly 15 points of gross margin erosion from the peak, a widening operating loss and a return to net loss in 2025. This is partially offset by an exceptionally strong, effectively debt-free balance sheet and solid free cash flow of NT$189M, which give the company ample staying power through the semiconductor downcycle. Technicals reinforce caution, with the price below all key moving averages and negative MACD confirming a downtrend, although deeply oversold RSI and Stochastic readings suggest scope for a near-term bounce. Valuation provides limited support, as the negative P/E removes any earnings-based anchor, leaving a 2.35% dividend yield and low beta as the main cushions. The investment case hinges on a cyclical recovery in revenue and margins; until that materialises, risk remains elevated despite the low financial leverage.

Positive Factors

Very low leverageThe company’s very low leverage provides substantial financial flexibility through a weak earnings cycle. Limited debt reduces refinancing and interest burdens, preserves capacity to fund product development or operations, and gives management more resilience while profitability remains under pressure.

Negative Factors

Persistent revenue contractionSeveral years of declining revenue indicate that the current business base is not yet expanding and may be losing scale. Continued contraction can reduce operating leverage, constrain investment capacity, and make it harder for the company to rebuild sustainable earnings over the next several quarters.

Macroblock, Inc. (3527) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.00B
Dividend Yield: 2.15%
Average Volume (3M): 62.40K
Price to Earnings (P/E): -74.6
Beta (1Y): 0.83
Revenue Growth: -10.31%
EPS Growth: 37.12%
Country: TW
Employees: 224
Sector: General
Sector Strength: 55
Industry: Semiconductors

Macroblock, Inc. Business Overview & Revenue Model

Company Description

Macroblock, Inc., established in 1999 and headquartered in Hsinchu City, Taiwan, specializes in the research, manufacturing, testing, and global distribution of integrated circuits engineered to power LEDs. Operating across Taiwan, China, and interna...

Macroblock, Inc. Financial Statement Overview

Summary

A classic 'strong balance sheet, weak earnings' profile. The balance sheet is a fortress (score 80): debt of just NT$27.8M against NT$2.26B equity, equity funding ~88% of assets, and virtually no refinancing risk. Cash flow is also resilient (score 68), with operating cash flow more than doubling to NT$217.6M and free cash flow rebounding to NT$189.2M on light capex. However, the income statement is the clear weak point (score 31): revenue has fallen four straight years to NT$1.45B (-19% in 2025, more than 50% below the 2021 peak), gross margin has compressed from ~46% to 31.3%, operating losses have persisted for three years and widened to NT$128M, and the company swung to a NT$81.8M net loss with ROE at -3.6%. Financial staying power is strong, but the earnings engine is still deteriorating.

Income Statement

31Negative

Balance Sheet

80Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.42B	1.45B	1.79B	1.86B	2.53B	3.17B
Gross Profit	558.06M	454.12M	683.87M	755.35M	1.16B	1.47B
EBITDA	8.28M	-1.36M	181.63M	170.02M	482.19M	774.77M
Net Income	-34.89M	-81.84M	12.65M	-12.35M	286.35M	564.11M
Balance Sheet
Total Assets	2.71B	2.56B	2.76B	2.83B	3.21B	3.61B
Cash, Cash Equivalents and Short-Term Investments	1.23B	1.21B	1.13B	1.18B	1.03B	1.38B
Total Debt	60.63M	27.84M	36.51M	31.61M	49.56M	43.17M
Total Liabilities	467.72M	300.31M	336.00M	343.29M	526.34M	858.93M
Stockholders Equity	2.24B	2.26B	2.43B	2.49B	2.69B	2.75B
Cash Flow
Free Cash Flow	89.51M	189.21M	52.44M	361.36M	28.76M	530.06M
Operating Cash Flow	109.96M	217.65M	97.48M	435.15M	149.97M	705.11M
Investing Cash Flow	-34.79M	-24.48M	-40.16M	-74.85M	-119.18M	-177.22M
Financing Cash Flow	-116.80M	-116.13M	-113.83M	-210.64M	-384.97M	-113.79M

Macroblock, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3527 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:5315	75Outperform	TWD 1.85B	10.66	―	9.04%	2.53%	3.36%
TW:6556	68Neutral	TWD 1.75B	7.77	―	5.71%	3.78%	33.16%
TW:6708	66Neutral	TWD 2.36B	162.73	―	―	7.17%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3527	49Neutral	TWD 2.08B	-74.64	―	2.15%	-10.31%	37.12%
TW:6129	40Underperform	TWD 2.01B	-21.99	―	―	24.89%	59.91%
TW:8171	27Underperform	TWD 2.04B	-9.43	―	―	-21.44%	63.14%

* General Sector Average

Performance Comparison

TW:3527 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3527	Macroblock, Inc.	46.45	-7.50	-13.90%
TW:5315	United Radiant Technology Corporation	17.70	-4.63	-20.73%
TW:6129	Princeton Technology Corporation	11.50	-5.47	-32.23%
TW:6556	Topview Optronics Corp.	61.30	-4.59	-6.97%
TW:6708	Mars Semiconductor Corp.	90.70	52.00	134.37%
TW:8171	Formosa Electronic Industries Inc.	18.15	-7.10	-28.12%

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

Macroblock, Inc. AI Stock Analysis