Materials Analysis Technology Inc. (3587) AI Stock Analysis

Materials Analysis Technology Inc.

(TPEx:3587)

Select Model

Rating:49Neutral

Price Target:TWD 175.00▼(-6.91% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is constrained by significant headwinds. The most impactful factor is the extremely weak technical picture, with the stock in a clear downtrend and deeply oversold, which heavily penalizes the score. Financially, severe margin compression and declining profitability outweigh the company's strong cash flow generation and stable balance sheet. The moderate P/E ratio does little to offset these concerns given the negative earnings trajectory.

Positive Factors

Multi-year revenue expansionConsistent revenue expansion over several years indicates that the company has increased its scale and maintained demand for its materials analysis and testing offerings. Although growth has recently slowed, the established expansion record provides a durable foundation for future customer and market development.

Negative Factors

2025 earnings deteriorationThe sharp decline in net income alongside slower revenue growth signals weaker earnings quality and reduced operating momentum. If this step-down persists, it could limit internally funded investment, weaken returns to shareholders, and make future profit growth more dependent on a recovery in demand or margins.

Materials Analysis Technology Inc. (3587) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 13.91B
Dividend Yield: 2.15%
Average Volume (3M): 439.58K
Price to Earnings (P/E): 23.0
Beta (1Y): 1.26
Revenue Growth: -15.79%
EPS Growth: 34.88%
Country: TW
Employees: 262
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Materials Analysis Technology Inc. Business Overview & Revenue Model

Company Description

Materials Analysis Technology Inc. (MATI) is an expert provider of specialized laboratory services, focusing on critical areas such as material characterization, failure diagnosis, and reliability testing. With its headquarters in Hsinchu City, Taiwa...

Materials Analysis Technology Inc. Financial Statement Overview

Summary

Financial performance is mixed. Cash flow is a strength, with robust free cash flow of NT$746M and strong cash conversion. The balance sheet is stable with a manageable debt-to-equity ratio of 0.55. However, these positives are offset by significant margin compression, with net margin falling to 7.3% from 13.5% and ROE dropping to 8.4%, indicating deteriorating profitability despite modest revenue growth.

Income Statement

45Neutral

Balance Sheet

60Neutral

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.00B	5.55B	5.11B	4.81B	3.97B	3.36B
Gross Profit	1.90B	1.58B	1.68B	1.70B	1.47B	1.21B
EBITDA	2.26B	2.02B	2.05B	1.96B	1.69B	1.49B
Net Income	471.51M	407.10M	688.12M	686.21M	627.49M	586.54M
Balance Sheet
Total Assets	9.79B	8.81B	8.51B	7.50B	6.90B	5.31B
Cash, Cash Equivalents and Short-Term Investments	3.69B	2.55B	1.88B	2.13B	1.65B	1.69B
Total Debt	2.11B	2.66B	2.32B	1.81B	2.08B	1.21B
Total Liabilities	3.85B	3.94B	3.67B	3.00B	3.34B	2.04B
Stockholders Equity	5.94B	4.87B	4.84B	4.49B	3.54B	3.26B
Cash Flow
Free Cash Flow	1.29B	745.95M	-10.66M	602.51M	-537.71M	522.37M
Operating Cash Flow	1.82B	1.84B	1.80B	1.84B	1.30B	1.52B
Investing Cash Flow	-723.81M	-1.09B	-1.68B	-1.34B	-1.80B	-961.45M
Financing Cash Flow	105.84M	-98.32M	-303.49M	-112.25M	441.40M	-64.03M

Materials Analysis Technology Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3587 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3587	49Neutral	TWD 13.84B	23.00	―	2.15%	-15.79%	34.88%
TW:4768	42Neutral	TWD 14.22B	-493.44	―	0.29%	118.90%	-282.44%
TW:8027	41Neutral	TWD 15.56B	468.75	―	―	38.03%	―
TW:2338	40Underperform	TWD 12.68B	-30.27	―	―	-15.28%	82.42%
TW:3055	40Underperform	TWD 14.19B	-128.44	―	0.36%	3.62%	56.40%
TW:6217	38Underperform	TWD 15.04B	-363.51	―	―	25.51%	87.28%

* General Sector Average

Performance Comparison

TW:3587 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3587	Materials Analysis Technology Inc.	188.00	6.59	3.63%
TW:2338	Taiwan Mask Corp.	37.50	2.89	8.34%
TW:3055	Spirox Corporation	132.50	73.89	126.06%
TW:4768	Ingentec Corporation	287.00	68.87	31.57%
TW:6217	C.C.P. Contact Probes Co., Ltd.	125.00	72.70	139.01%
TW:8027	E&R Engineering Corp.	143.50	56.30	64.56%

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 10, 2026

Materials Analysis Technology Inc. AI Stock Analysis