UVAT Technology Co., Ltd. (3580) AI Stock Analysis

UVAT Technology Co., Ltd.

(TPEx:3580)

Select Model

Rating:47Neutral

Price Target:TWD 80.00▼(-11.70% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held back primarily by a sustained revenue and earnings contraction, a sharp fall in return on equity to 7.4%, and negative free cash flow of NT$95.6 million alongside rising debt — a combination that signals increasing financial strain despite a still-solid, equity-funded balance sheet. Technicals reinforce the caution, with the price below all major moving averages and a negative MACD, though the very low stochastic and near-oversold RSI suggest the selling may be extended. Valuation offers little cushion at a P/E of 53.0 with only a 1.49% yield. The key offsets are record gross margin of 54.1%, operating margin held near 20% despite the volume loss, and operating cash flow that still exceeds reported earnings — leaving the investment case dependent on whether the current capex cycle delivers a demand recovery.

Positive Factors

Solid Operating MarginsThe company continues to generate respectable gross and EBIT margins, indicating that its operations retain pricing power and efficiency despite weaker growth. Maintaining this profitability provides an earnings cushion and could support reinvestment if revenue conditions stabilize over the next several quarters.

Negative Factors

Revenue ContractionThe continued decline in revenue signals weakening demand or execution momentum and creates pressure on the company to protect margins through efficiency. If contraction persists, lower scale could reduce operating leverage, constrain reinvestment, and make a durable earnings recovery more difficult.

UVAT Technology Co., Ltd. (3580) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.37B
Dividend Yield: 1.32%
Average Volume (3M): 1.32M
Price to Earnings (P/E): 52.7
Beta (1Y): 1.15
Revenue Growth: -19.96%
EPS Growth: -63.63%
Country: TW
Employees: 190
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

UVAT Technology Co., Ltd. Business Overview & Revenue Model

Company Description

UVAT Technology Co., Ltd., established in 1991 and headquartered in Taoyuan City, Taiwan, specializes in the innovative design and development of physical vapor deposition (PVD) systems and various coating machinery. The company operates across both...

UVAT Technology Co., Ltd. Financial Statement Overview

Summary

A mixed and weakening profile. Revenue has declined for three straight years to NT$432.1 million, down roughly 35% year-over-year and nearly 60% from the 2022 peak, with net income falling to NT$76.4 million from NT$198.2 million and net margin compressing to 17.7%. Management has defended profitability impressively — gross margin expanded to a record 54.1% and operating margin held near 20.4% — and the balance sheet remains conservatively financed with about 58% equity funding, though debt-to-equity rose to 0.56 and return on equity dropped to a low of 7.4%. Cash flow is the weakest link: operating cash flow halved to NT$103.4 million and free cash flow swung to negative NT$95.6 million on roughly NT$199 million of capital spending, increasing reliance on borrowings during a downturn.

Income Statement

48Neutral

Balance Sheet

63Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	417.64M	432.07M	660.17M	744.58M	1.04B	773.16M
Gross Profit	217.97M	233.69M	286.12M	310.73M	477.47M	287.67M
EBITDA	89.69M	114.54M	163.53M	188.48M	399.61M	205.30M
Net Income	63.93M	76.39M	198.18M	102.22M	247.30M	116.12M
Balance Sheet
Total Assets	1.95B	1.78B	1.65B	1.80B	2.28B	1.45B
Cash, Cash Equivalents and Short-Term Investments	596.39M	567.38M	663.69M	856.87M	1.52B	699.54M
Total Debt	698.15M	572.47M	419.01M	610.61M	627.85M	370.00M
Total Liabilities	917.63M	755.77M	586.88M	907.90M	1.32B	674.50M
Stockholders Equity	1.04B	1.03B	1.07B	887.10M	963.21M	777.72M
Cash Flow
Free Cash Flow	-207.12M	-95.63M	99.99M	-531.30M	567.80M	192.56M
Operating Cash Flow	95.41M	103.44M	205.72M	-198.34M	573.09M	199.16M
Investing Cash Flow	-390.97M	-235.86M	43.39M	661.83M	-587.83M	-108.78M
Financing Cash Flow	91.11M	4.95M	-278.15M	-216.63M	163.02M	74.82M

UVAT Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3580 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3038	60Neutral	TWD 2.87B	15.54	―	6.38%	-9.99%	1.97%
TW:3051	60Neutral	TWD 3.22B	10.90	―	2.59%	0.82%	73.31%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3580	47Neutral	TWD 3.49B	52.72	―	1.32%	-19.96%	-63.63%
TW:6742	43Neutral	TWD 3.71B	-44.63	―	0.58%	-37.46%	-4.44%
TW:4956	41Neutral	TWD 3.22B	68.47	―	―	1.03%	―
TW:2461	39Underperform	TWD 3.07B	35.89	―	6.27%	0.99%	―

* General Sector Average

Performance Comparison

TW:3580 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3580	UVAT Technology Co., Ltd.	90.60	32.37	55.60%
TW:2461	K LASER Technology, Inc.	16.15	0.50	3.19%
TW:3038	Emerging Display Technologies Corp	18.80	-1.18	-5.88%
TW:3051	Optimax Technology Corporation	19.30	-0.10	-0.52%
TW:4956	Epileds Technologies, Inc.	32.10	12.85	66.75%
TW:6742	Vactronics Technologies, Inc.	52.60	6.20	13.36%

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

UVAT Technology Co., Ltd. AI Stock Analysis