Falcon Machine Tools Co., Ltd. (4513) AI Stock Analysis

Falcon Machine Tools Co., Ltd.

(TPEx:4513)

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Rating:26Underperform

Price Target:TWD 12.50▼(-16.67% Downside)

Action:initiatedcoverage

Date:11/09/26

Falcon Machine Tools scores poorly, driven mainly by severely deteriorating financials: a third consecutive year of revenue decline, sharp margin compression, a NT$204.3 million net loss, negative operating cash flow, and leverage that has risen to 1.76x debt-to-equity as equity erodes. Technicals reinforce the caution, with the stock trading below all major moving averages and a negative MACD, though deeply oversold RSI and Stochastic readings hint at the possibility of a short-term bounce. Valuation offers no support given negative earnings and no dividend. Modest positives — a 76% reduction in cash burn, low capital spending, positive gross margin, and profitability in stronger cycles — suggest recovery potential, but this remains a high-risk, cyclically depressed situation until operating cash flow turns positive.

Positive Factors

Positive Gross ProfitPositive gross profit indicates the company’s products still generate contribution before operating expenses, preserving an underlying base for recovery. If demand, pricing, or costs improve, this remaining product-level economics could support renewed profitability without requiring a complete business-model change.

Negative Factors

Deteriorating ProfitabilityThe shift from profitability to increasingly deep losses signals that the current operating model is not absorbing its cost base effectively. Continued losses can erode equity, restrict investment capacity, and make recovery dependent on a sustained improvement in demand, pricing, or operating efficiency.

Falcon Machine Tools Co., Ltd. (4513) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.72B
Dividend Yield: ―
Average Volume (3M): 244.75K
Price to Earnings (P/E): -19.1
Beta (1Y): 0.54
Revenue Growth: 89.10%
EPS Growth: ―
Country: TW
Employees: 184
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Falcon Machine Tools Co., Ltd. Business Overview & Revenue Model

Company Description

Falcon Machine Tools Co., Ltd. specializes in the manufacturing, processing, and global sale of a wide array of industrial machinery, including grinders, lathes, milling machines, planers, drill presses, and saw machines, among other related products...

Falcon Machine Tools Co., Ltd. Financial Statement Overview

Summary

Financials are very weak across all three statements. Revenue has declined for three straight years to roughly NT$1.01 billion (-16% YoY, -40% from peak), gross margin collapsed from 28.4% to 17.7%, and the company swung to a NT$204.3 million net loss with negative operating profit. The balance sheet has deteriorated as debt nearly doubled to NT$2.02 billion while equity eroded to NT$1.15 billion (D/E of 1.76x) and ROE fell to -17.8%. Cash flow remains negative (-NT$174.7 million operating, -NT$175.5 million free cash flow), leaving the company reliant on external financing. Partial offsets include a 76% narrowing of cash burn, light capex needs, a still-positive gross margin, and a remaining equity cushion with prior-cycle profitability.

Income Statement

16Very Negative

Balance Sheet

29Negative

Cash Flow

14Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.85B	1.01B	1.19B	1.29B	1.61B	1.61B
Gross Profit	269.89M	178.69M	315.59M	366.12M	403.87M	389.26M
EBITDA	-42.74M	-96.85M	21.36M	263.68M	76.79M	130.48M
Net Income	-92.43M	-204.25M	-55.63M	115.65M	-23.00M	33.90M
Balance Sheet
Total Assets	4.25B	4.09B	3.82B	2.93B	2.47B	2.53B
Cash, Cash Equivalents and Short-Term Investments	614.86M	330.28M	443.59M	868.03M	342.26M	314.77M
Total Debt	2.04B	2.02B	1.97B	1.07B	1.15B	1.05B
Total Liabilities	2.70B	2.94B	2.46B	1.52B	1.65B	1.72B
Stockholders Equity	1.56B	1.15B	1.36B	1.41B	820.97M	811.13M
Cash Flow
Free Cash Flow	-343.97M	-175.54M	-742.05M	27.47M	-72.05M	66.33M
Operating Cash Flow	-341.99M	-174.66M	-729.67M	52.92M	-63.65M	76.44M
Investing Cash Flow	53.20M	35.26M	-631.88M	133.24M	-19.16M	-23.68M
Financing Cash Flow	479.11M	54.38M	733.17M	309.55M	64.02M	-38.70M

Falcon Machine Tools Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4513 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4560	76Outperform	TWD 2.02B	9.32	―	6.75%	13.63%	11.46%
TW:6904	62Neutral	TWD 2.28B	16.75	―	4.07%	3.45%	4.85%
TW:4535	58Neutral	TWD 1.96B	22.41	―	3.09%	-11.46%	-28.88%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1586	45Neutral	TWD 2.19B	45.26	―	1.63%	4.79%	―
TW:4534	35Underperform	TWD 2.15B	53.16	―	―	15.46%	―
TW:4513	26Underperform	TWD 2.16B	-19.14	―	―	89.10%	―

* General Sector Average

Performance Comparison

TW:4513 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4513	Falcon Machine Tools Co., Ltd.	15.00	-2.60	-14.77%
TW:1586	China Fineblanking Technology Co., Ltd.	17.80	-9.54	-34.88%
TW:4534	Trinity Precision Technology Co., Ltd.	32.11	13.18	69.66%
TW:4535	Fine Blanking & Tool Co., Ltd.	25.85	-1.47	-5.40%
TW:4560	Strong H Machinery Technology (Cayman), Inc.	29.65	-0.41	-1.36%
TW:6904	Proxene Tools Co., Ltd.	123.00	0.04	0.03%

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

Falcon Machine Tools Co., Ltd. AI Stock Analysis