Tradetool Auto Co. Ltd. (3685) AI Stock Analysis

Tradetool Auto Co. Ltd.

(TPEx:3685)

Select Model

Rating:37Underperform

Price Target:TWD 26.00▲(0.58% Upside)

Action:initiatedcoverage

Date:11/10/26

The stock scores at the bottom of the range due to pervasive weakness across all core pillars. The most significant factor is the company's poor financial performance, marked by persistent net losses and a dramatic drop in operating cash flow, which threatens its financial stability. This is compounded by a bearish technical trend with the price below all major moving averages and weak momentum. The negative P/E ratio further confirms a lack of current earnings power. The combination of fundamental deterioration and negative market sentiment leaves the stock with no positive catalysts.

Positive Factors

Improving operating profitabilityImproved gross margin and positive operating earnings indicate that the core business generated better operating economics in the latest two reported years. If maintained, this progress can support stronger internal funding, improve resilience, and create a foundation for eventual bottom-line recovery.

Negative Factors

Persistent and widening net lossesFour consecutive years of net losses, including a wider loss in 2025, show that improved operating performance has not yet translated into sustainable bottom-line profitability. Continued losses can consume equity, weaken financing flexibility, and make future investment or growth more difficult to support.

Tradetool Auto Co. Ltd. (3685) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.11B
Dividend Yield: ―
Average Volume (3M): 1.29M
Price to Earnings (P/E): -198.4
Beta (1Y): 0.38
Revenue Growth: 17.59%
EPS Growth: 84.52%
Country: TW
Employees: 80
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Tradetool Auto Co. Ltd. Business Overview & Revenue Model

Company Description

Tradetool Auto Co., Ltd., established in 1980 and headquartered in Taichung, Taiwan, operates as a key manufacturer and distributor of various automotive components. The company's core business involves both advanced automotive optics and metal parts...

Tradetool Auto Co. Ltd. Financial Statement Overview

Summary

Financial health is weak. While revenue growth and gross margins are improving, the company has four years of net losses, a deteriorating balance sheet with rising leverage, and a severe collapse in operating cash flow. The inability to convert operational gains into net profit or strong cash generation is a major risk.

Income Statement

35Negative

Balance Sheet

42Neutral

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.41B	1.20B	1.25B	1.52B	1.55B	1.49B
Gross Profit	306.78M	248.90M	199.12M	265.20M	216.86M	211.98M
EBITDA	213.78M	161.73M	139.50M	113.72M	68.12M	129.74M
Net Income	-12.55M	-81.19M	-41.91M	-61.20M	-59.81M	3.79M
Balance Sheet
Total Assets	2.29B	2.13B	2.21B	2.40B	2.65B	2.37B
Cash, Cash Equivalents and Short-Term Investments	366.13M	395.57M	393.01M	225.60M	343.72M	230.95M
Total Debt	651.50M	618.59M	585.91M	662.13M	795.06M	675.04M
Total Liabilities	1.10B	953.14M	845.17M	1.02B	1.19B	1.04B
Stockholders Equity	732.91M	705.32M	801.15M	830.85M	901.60M	942.31M
Cash Flow
Free Cash Flow	57.62M	17.26M	229.51M	40.77M	-147.83M	-172.16M
Operating Cash Flow	67.66M	32.42M	251.61M	118.41M	54.99M	-57.52M
Investing Cash Flow	-91.15M	23.74M	-1.06M	-44.05M	-242.81M	-161.94M
Financing Cash Flow	56.62M	-46.96M	-127.16M	-136.07M	257.74M	108.43M

Tradetool Auto Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:3685 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2115	59Neutral	TWD 2.40B	12.56	―	6.54%	13.54%	-9.75%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2066	49Neutral	TWD 2.08B	12.91	―	4.56%	-2.41%	82.10%
TW:1517	41Neutral	TWD 2.15B	-15.74	―	1.99%	-4.28%	19.85%
TW:2239	40Underperform	TWD 2.09B	-1.93	―	―	-10.18%	-223.51%
TW:3685	37Underperform	TWD 2.23B	-198.44	―	―	17.59%	84.52%
TW:4534	35Underperform	TWD 2.15B	53.16	―	―	15.46%	―

* General Sector Average

Performance Comparison

TW:3685 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:3685	Tradetool Auto Co. Ltd.	25.85	-10.65	-29.18%
TW:1517	Lee Chi Enterprises Co., Ltd.	10.00	-1.57	-13.61%
TW:2066	Sumeeko Industries Co., Ltd.	47.80	-1.02	-2.09%
TW:2115	Lu Hai Holding Corp.	22.85	-1.50	-6.17%
TW:2239	Cayman Engley Industrial Co., Ltd.	18.00	-11.70	-39.39%
TW:4534	Trinity Precision Technology Co., Ltd.	32.11	13.12	69.10%

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

Tradetool Auto Co. Ltd. AI Stock Analysis