Dynamic Medical Technologies Inc. (4138) AI Stock Analysis

Dynamic Medical Technologies Inc.

(TPEx:4138)

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Rating:68Neutral

Price Target:TWD 58.00▲(7.01% Upside)

Action:initiatedcoverage

Date:11/09/26

Dynamic Medical Technologies scores moderately well, anchored by a strong financial foundation: low debt (0.24 debt-to-equity), robust free cash flow of NT$257.9M, and continually expanding gross margins now at 44.1%. The main drag is the income statement, where revenue has contracted for two straight years and net income fell roughly 26%, pushing return on equity down to 9.1%. Valuation support is meaningful, with a modest 15.3x P/E and a high 7.9% dividend yield backed by solid cash generation. Technicals temper the score, as the stock trades below most key moving averages with subdued momentum readings. The investment case hinges on management stabilizing the top line so that improving gross margins can finally translate into earnings growth.

Positive Factors

Strong Cash GenerationStrong operating and free cash flow indicate that reported earnings are converting into usable funds. This supports dividends, internal investment, and balance-sheet resilience, while the high cash-to-income relationship suggests the company has meaningful capacity to fund operations over the next several quarters.

Negative Factors

Revenue ContractionRepeated revenue contraction points to weakening business momentum rather than a single isolated period of softness. If the decline persists, it could reduce operating leverage, limit investment capacity, and make it harder for the company to sustain profitability and restore growth over the coming quarters.

Dynamic Medical Technologies Inc. (4138) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.16B
Dividend Yield: 7.75%
Average Volume (3M): 33.94K
Price to Earnings (P/E): 15.7
Beta (1Y): 0.07
Revenue Growth: -1.10%
EPS Growth: -16.90%
Country: TW
Employees: 85
Sector: General
Sector Strength: 55
Industry: Medical - Devices

Dynamic Medical Technologies Inc. Business Overview & Revenue Model

Company Description

Dynamic Medical Technologies Inc., encompassing its various subsidiaries, operates within the aesthetic industry throughout Taiwan and Hong Kong. The company's primary focus involves the commercialization and upkeep of cosmetic laser and light-based...

Dynamic Medical Technologies Inc. Financial Statement Overview

Summary

A conservatively financed, cash-generative business with a notable earnings-momentum problem. The balance sheet is a strength: debt-to-equity of just 0.24, equity funding more than half of total assets, and steady equity growth to NT$1.67B. Cash flow is equally solid, with operating cash flow rising to NT$309.7M and free cash flow roughly doubling to NT$257.9M (about 83% of net income), comfortably covering the modest debt load and dividends. The income statement is the weak link: revenue fell about 12% to NT$1.39B, a second consecutive year of contraction, with operating margin down to 13.7% and net income off roughly 26% to NT$152M. Gross margin expansion to 44.1% is impressive, but it has not reached the bottom line, and return on equity has slipped to 9.1%.

Income Statement

62Positive

Balance Sheet

78Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.40B	1.39B	1.57B	1.59B	1.29B	1.03B
Gross Profit	605.95M	611.40M	629.22M	603.05M	452.53M	354.58M
EBITDA	298.92M	339.50M	471.86M	448.71M	294.89M	270.03M
Net Income	146.07M	152.06M	205.39M	210.32M	137.11M	123.21M
Balance Sheet
Total Assets	2.96B	3.13B	3.00B	3.08B	2.68B	2.30B
Cash, Cash Equivalents and Short-Term Investments	1.19B	1.30B	1.34B	1.56B	1.26B	1.31B
Total Debt	379.90M	407.20M	426.22M	442.17M	285.68M	208.16M
Total Liabilities	1.17B	1.23B	1.24B	1.37B	1.13B	826.87M
Stockholders Equity	1.58B	1.67B	1.54B	1.54B	1.39B	1.28B
Cash Flow
Free Cash Flow	277.50M	257.90M	126.53M	289.14M	162.22M	235.34M
Operating Cash Flow	322.83M	309.70M	224.11M	360.95M	276.93M	277.64M
Investing Cash Flow	-31.95M	-77.76M	-61.59M	-58.02M	-251.28M	-92.42M
Financing Cash Flow	-285.91M	-233.39M	-379.01M	-55.63M	-186.86M	-148.68M

Dynamic Medical Technologies Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4138 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4138	68Neutral	TWD 2.15B	15.66	―	7.75%	-1.10%	-16.90%
TW:6574	66Neutral	TWD 2.39B	8.69	―	2.56%	20.16%	136.85%
TW:4155	64Neutral	TWD 2.19B	10.00	―	1.78%	-10.90%	―
TW:4175	60Neutral	TWD 2.09B	13.16	―	6.00%	2.49%	5.18%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1784	52Neutral	TWD 2.38B	40.18	―	1.96%	5.41%	-19.02%
TW:6796	40Underperform	TWD 2.04B	123.00	―	0.51%	12.26%	―

* General Sector Average

Performance Comparison

TW:4138 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4138	Dynamic Medical Technologies Inc.	54.20	-5.51	-9.23%
TW:1784	Bionet Corp.	45.00	-52.18	-53.69%
TW:4155	Ok Biotech Co., Ltd.	16.90	1.52	9.91%
TW:4175	MedFirst Healthcare Services, Inc. (TW)	50.00	-4.37	-8.04%
TW:6574	MIKOBEAUTE INTERNATIONAL CO., LTD.	117.00	44.18	60.66%
TW:6796	Medimaging Integrated Solution Inc.	49.20	-40.22	-44.98%

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

Dynamic Medical Technologies Inc. AI Stock Analysis