TBI MOTION TECHNOLOGY CO LTD (4540) AI Stock Analysis

TBI MOTION TECHNOLOGY CO LTD

(TWSE:4540)

Select Model

Rating:37Underperform

Price Target:TWD 45.00▼(-15.09% Downside)

Action:initiatedcoverage

Date:11/09/26

TBI Motion scores at the low end of the range, driven primarily by weak financial performance: a third consecutive year of losses, a negative operating margin, and a sharp 2025 swing back to cash burn with free cash flow of -NT$663m against roughly NT$3.2bn of debt. Encouraging signs exist — revenue is growing again, gross margin has returned to positive territory, the net loss narrowed sharply, and leverage has declined for a third straight year — but the recovery is unproven at the cash and operating profit level. Technicals compound the caution, with the price below all key moving averages and negative MACD momentum, although oversold RSI and stochastic readings suggest the selling may be extended. Valuation offers no support given negative earnings and no dividend, leaving this a high-risk turnaround candidate.

Positive Factors

Motion-control market positionThe company serves several durable industrial applications, including factory automation, machine tools, electronics and semiconductor equipment. This diversified motion-control product base can support recurring demand from precision-manufacturing investment over the next several quarters.

Negative Factors

Ongoing operating lossesThe company has not yet converted its revenue recovery into sustainable earnings, with both net income and operating profit still negative. Continued operating losses can limit reinvestment capacity and weaken the durability of the turnaround if margins fail to normalize.

TBI MOTION TECHNOLOGY CO LTD (4540) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.16B
Dividend Yield: ―
Average Volume (3M): 2.53M
Price to Earnings (P/E): -382.9
Beta (1Y): 1.30
Revenue Growth: 36.77%
EPS Growth: 94.53%
Country: TW
Employees: 1,180
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

TBI MOTION TECHNOLOGY CO LTD Business Overview & Revenue Model

Company Description

Tbi Motion Technology Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of precision transmission components, ball screws, and linear guides for the automation industry in Taiwan, rest of Asia, Europe, and internationally...

TBI MOTION TECHNOLOGY CO LTD Financial Statement Overview

Summary

Financials remain under significant stress despite early recovery signs. The income statement (28) shows revenue rebounding to ~NT$2.56bn and gross margin swinging back to +9.6% with the net loss narrowing ~85% to NT$74m, but the company is still loss-making at the operating level (-11.7% margin) with a slightly negative EBITDA margin, and non-operating items are cushioning the bottom line. The balance sheet (46) is the steadiest element — equity funds ~46% of assets and debt-to-equity has fallen for a third year to 0.93 — yet NT$3.22bn of debt is being carried by a business with negative operating profit, leaving thin interest coverage. Cash flow (20) is the weakest link: operating cash flow swung from +NT$629m to -NT$515m and free cash flow to -NT$663m, with FCF negative in four of the past six years, implying reliance on the balance sheet or external funding until the recovery becomes cash-generative.

Income Statement

28Negative

Balance Sheet

46Neutral

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.06B	2.56B	2.29B	2.57B	3.37B	3.29B
Gross Profit	432.82M	246.43M	-125.11M	418.09M	937.52M	850.76M
EBITDA	-49.99M	-27.38M	-207.70M	221.19M	742.82M	660.77M
Net Income	-15.58M	-74.07M	-486.65M	-103.61M	284.01M	237.30M
Balance Sheet
Total Assets	7.98B	7.54B	7.10B	7.76B	8.06B	6.83B
Cash, Cash Equivalents and Short-Term Investments	277.54M	677.17M	733.04M	612.04M	700.01M	812.17M
Total Debt	3.51B	3.22B	3.32B	4.05B	3.47B	2.56B
Total Liabilities	4.49B	4.09B	3.82B	4.50B	4.58B	3.57B
Stockholders Equity	3.49B	3.45B	3.28B	3.26B	3.47B	3.26B
Cash Flow
Free Cash Flow	-1.11B	-663.44M	529.55M	-514.24M	-920.04M	-66.03M
Operating Cash Flow	-895.32M	-514.92M	628.82M	-299.96M	36.99M	231.11M
Investing Cash Flow	-232.52M	385.12M	-88.16M	-209.62M	-960.10M	-500.29M
Financing Cash Flow	790.95M	60.86M	-421.41M	424.39M	802.20M	156.07M

TBI MOTION TECHNOLOGY CO LTD Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4540 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2221	69Neutral	TWD 6.43B	56.44	―	0.90%	18.85%	87.57%
TW:3485	65Neutral	TWD 6.99B	28.85	―	2.42%	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6215	51Neutral	TWD 6.49B	20.70	―	1.26%	48.31%	106.93%
TW:4533	44Neutral	TWD 5.25B	51.00	―	0.58%	-0.25%	42.76%
TW:1583	40Underperform	TWD 5.56B	59.87	―	0.21%	3.58%	-65.42%
TW:4540	37Underperform	TWD 5.89B	-382.86	―	―	36.77%	94.53%

* General Sector Average

Performance Comparison

TW:4540 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4540	TBI MOTION TECHNOLOGY CO LTD	53.00	16.60	45.60%
TW:1583	Goodway Machine Corp.	46.70	5.13	12.34%
TW:2221	Tachia Yung Ho Machine Industry Co., Ltd.	167.00	139.45	506.28%
TW:3485	Eclat Forever Machinery Co., Ltd.	186.00	106.12	132.84%
TW:4533	Shieh Yih Machinery Industry Co., Ltd.	30.80	10.55	52.07%
TW:6215	Aurotek Corporation	79.40	-30.05	-27.45%

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

TBI MOTION TECHNOLOGY CO LTD AI Stock Analysis