Fine Blanking & Tool Co., Ltd. (4535) AI Stock Analysis

Fine Blanking & Tool Co., Ltd.

(TPEx:4535)

Select Model

Rating:58Neutral

Price Target:TWD 26.00▲(0.58% Upside)

Action:initiatedcoverage

Date:11/09/26

Fine Blanking & Tool scores moderately. Its greatest strength is financial durability: an essentially debt-free balance sheet, equity funding over three-quarters of assets, and operating cash flow four times reported net income give it clear downside protection. However, this is offset by a meaningful earnings downturn — revenue has declined in three of the last four years, 2025 net income nearly halved, margins narrowed, and return on equity fell to about 4%. Technicals reinforce caution, with the share price below all major moving averages and a negative MACD indicating an ongoing downtrend. Valuation is only fair: the 22.5x P/E is elevated against depressed earnings, though a cash-covered 3.14% dividend yield offers some compensation. The result is a financially safe but currently uninspiring profile that needs a demand recovery and better deployment of its large equity base to re-rate.

Positive Factors

Very low leverageExtremely low leverage gives the company substantial financial flexibility through industry cycles. A conservatively financed balance sheet reduces interest and refinancing pressure, supports resilience during weaker demand, and preserves capacity to fund operations or investment without relying heavily on additional borrowing.

Negative Factors

Recent revenue contractionRecent revenue contraction signals weaker demand or business activity in the company’s industrial end markets. If sustained, lower volume can reduce operating leverage and make it harder to absorb fixed production and tooling costs, limiting near-term progress in earnings and returns.

Fine Blanking & Tool Co., Ltd. (4535) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.96B
Dividend Yield: 3.09%
Average Volume (3M): 10.99K
Price to Earnings (P/E): 22.4
Beta (1Y): 0.13
Revenue Growth: -11.46%
EPS Growth: -28.88%
Country: TW
Employees: 909
Sector: General
Sector Strength: 55
Industry: Auto - Parts

Fine Blanking & Tool Co., Ltd. Business Overview & Revenue Model

Company Description

Established in Changhua, Taiwan, in 1977, Fine Blanking & Tool Co., Ltd is a key manufacturer and supplier of a diverse range of precision-engineered parts, predominantly serving the automotive and motorcycle sectors. The company's extensive product...

Fine Blanking & Tool Co., Ltd. Financial Statement Overview

Summary

A tale of two halves. The balance sheet is exceptionally strong (score 86): total debt of just NT$15.9M against NT$2.48B of equity leaves the company effectively debt-free, with equity funding about 77% of assets — a powerful cushion in a cyclical industry. Cash flow is also solid (score 76): operating cash flow of NT$417M was more than four times net income, and free cash flow of NT$374M was positive for a sixth straight year, though it declined about 9% and was helped by a sharp cut in capital spending to roughly NT$43M. The weak link is the income statement (score 52): revenue fell to NT$2.52B in 2025, net income nearly halved to NT$98M, and margins compressed across the board (operating margin 11.2% from 13.7%, net margin 3.9% from 6.4%), pushing return on equity down to about 4%. The business is resilient and well capitalized but is in a clear earnings downcycle with an under-utilized equity base.

Income Statement

52Neutral

Balance Sheet

86Very Positive

Cash Flow

76Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.48B	2.52B	2.91B	2.86B	3.14B	2.77B
Gross Profit	449.23M	468.75M	567.14M	566.58M	608.40M	540.33M
EBITDA	353.01M	412.82M	544.13M	516.78M	545.68M	474.99M
Net Income	133.25M	98.08M	185.08M	181.42M	213.39M	181.20M
Balance Sheet
Total Assets	3.20B	3.21B	3.36B	3.27B	3.31B	3.11B
Cash, Cash Equivalents and Short-Term Investments	1.47B	1.52B	1.40B	1.19B	1.10B	1.02B
Total Debt	15.52M	15.94M	17.39M	17.51M	16.09M	18.00M
Total Liabilities	444.94M	390.87M	468.86M	490.67M	545.09M	519.42M
Stockholders Equity	2.47B	2.48B	2.54B	2.46B	2.44B	2.32B
Cash Flow
Free Cash Flow	256.06M	373.65M	414.26M	392.69M	237.33M	273.42M
Operating Cash Flow	303.53M	416.84M	455.12M	516.72M	413.55M	349.74M
Investing Cash Flow	-45.84M	-129.77M	-155.25M	-147.86M	-292.27M	-79.60M
Financing Cash Flow	-225.09M	-206.08M	-202.52M	-242.91M	-164.34M	-96.53M

Fine Blanking & Tool Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4535 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
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:1531	55Neutral	TWD 1.94B	39.81	―	9.30%	-9.49%	―
TW:2066	49Neutral	TWD 2.08B	13.04	―	4.51%	-2.41%	82.10%
TW:3296	48Neutral	TWD 2.13B	-81.97	―	―	-4.42%	-123.67%
TW:2239	40Underperform	TWD 2.09B	-1.93	―	―	-10.18%	-223.51%
TW:3230	39Underperform	TWD 2.05B	-11.80	―	1.48%	2.22%	-86.76%

* General Sector Average

Performance Comparison

TW:4535 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4535	Fine Blanking & Tool Co., Ltd.	25.85	-1.47	-5.40%
TW:1531	Kaulin Manufacturing Co. Ltd.	10.75	-0.19	-1.72%
TW:2066	Sumeeko Industries Co., Ltd.	47.65	-0.88	-1.82%
TW:2239	Cayman Engley Industrial Co., Ltd.	17.75	-10.95	-38.15%
TW:3230	Jiin Ming Industry Co., Ltd.	23.85	-20.60	-46.34%
TW:3296	Powertech Industrial Co., Ltd.	22.00	0.50	2.33%

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

Fine Blanking & Tool Co., Ltd. AI Stock Analysis