Kenturn Nano Tec Co., Ltd. (4561) AI Stock Analysis

Kenturn Nano Tec Co., Ltd.

(TPEx:4561)

Select Model

Rating:46Neutral

Price Target:TWD 37.00▼(-14.45% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is held down primarily by a steep deterioration in operating performance — revenue down about 22%, margins cut by roughly two-thirds at the operating line, net income down around 80%, and free cash flow reduced to a token NT$9 million. Technicals reinforce the caution, with the price below all key moving averages and negative MACD momentum. Valuation offers little support at a 23.3 P/E on depressed earnings paired with a sub-1% dividend yield. The main offset is a conservatively financed balance sheet: leverage has been halved since 2021 (debt-to-equity 0.48), equity funds about 62% of assets, and the business remains profitable and cash-generative, giving it the staying power to absorb a weak cycle. A rebound in revenue and gross margin would be the key evidence that the 2025 downturn is cyclical rather than structural.

Positive Factors

Improving LeverageDebt-to-equity has improved substantially from earlier years and remains moderate, reducing balance-sheet strain relative to the past. This provides greater financial flexibility to absorb operating volatility, fund necessary investment, and preserve strategic options over the next several quarters.

Negative Factors

Margin CompressionThe steep decline in both net and EBITDA margins indicates that profitability has become materially less resilient, whether from higher costs, weaker pricing, or both. Sustained margin pressure would reduce earnings power, limit reinvestment capacity, and weaken the value of prior operating scale.

Kenturn Nano Tec Co., Ltd. (4561) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.50B
Dividend Yield: 0.46%
Average Volume (3M): 275.54K
Price to Earnings (P/E): 25.6
Beta (1Y): 1.32
Revenue Growth: 0.82%
EPS Growth: 64.72%
Country: TW
Employees: 263
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

Kenturn Nano Tec Co., Ltd. Business Overview & Revenue Model

Company Description

Established in 1983 and headquartered in Changhua, Taiwan, Kenturn Nano. Tec. Co., Ltd. specializes in the engineering, manufacturing, and global distribution of advanced machine tool spindles. Their comprehensive product portfolio encompasses spindl...

Kenturn Nano Tec Co., Ltd. Financial Statement Overview

Summary

Fiscal 2025 was a sharp cyclical setback: revenue fell about 22% to NT$927 million, gross margin compressed from 30.7% to 21.3%, operating margin collapsed from 21.4% to 6.3%, and net income dropped roughly 80% to NT$38 million (Income Statement score 38). Cash flow weakened in tandem — operating cash flow halved to NT$102 million and free cash flow nearly evaporated to NT$9 million as capex absorbed almost all operating cash, though cash still covered net income about 2.6 times, indicating reasonable earnings quality (Cash Flow score 45). The clear strength is the balance sheet (score 66): debt-to-equity has improved from 1.08 in 2021 to 0.48, equity funds about 62% of the NT$2.2 billion asset base, and the company remains profitable at every line. Offsetting that, return on equity has fallen to just 2.8%, and the asset base has shrunk for three straight years, showing capital is currently being deployed unproductively.

Income Statement

38Negative

Balance Sheet

66Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.01B	926.95M	1.20B	1.20B	1.12B	1.39B
Gross Profit	226.47M	197.58M	367.14M	339.38M	219.56M	281.46M
EBITDA	211.20M	145.18M	331.21M	276.83M	187.01M	249.74M
Net Income	99.89M	38.42M	192.21M	160.08M	113.03M	145.74M
Balance Sheet
Total Assets	2.35B	2.20B	2.34B	2.41B	2.40B	2.48B
Cash, Cash Equivalents and Short-Term Investments	720.15M	606.71M	679.16M	625.81M	588.10M	507.84M
Total Debt	723.43M	655.23M	678.25M	825.77M	1.02B	1.17B
Total Liabilities	931.81M	840.76M	944.46M	1.15B	1.25B	1.39B
Stockholders Equity	1.41B	1.36B	1.40B	1.26B	1.14B	1.09B
Cash Flow
Free Cash Flow	108.83M	8.74M	179.47M	286.09M	280.57M	-4.08M
Operating Cash Flow	155.33M	101.66M	228.72M	325.40M	366.18M	85.77M
Investing Cash Flow	-50.75M	-92.91M	30.94M	-38.20M	-76.70M	-148.97M
Financing Cash Flow	-43.59M	-81.20M	-126.47M	-248.37M	-200.34M	94.56M

Kenturn Nano Tec Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4561 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4561	46Neutral	TWD 2.30B	25.58	―	0.46%	0.82%	64.72%
TW:1586	45Neutral	TWD 2.19B	45.51	―	1.63%	4.79%	―
TW:6698	38Underperform	TWD 2.06B	-16.69	―	1.57%	10.60%	-30.07%
TW:8431	35Underperform	TWD 2.42B	-9.16	―	―	-5.87%	-1125.70%
TW:6405	34Underperform	TWD 2.13B	-148.86	―	0.31%	-98.80%	84.08%

* General Sector Average

Performance Comparison

TW:4561 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4561	Kenturn Nano Tec Co., Ltd.	43.25	7.35	20.46%
TW:1586	China Fineblanking Technology Co., Ltd.	17.80	-9.54	-34.88%
TW:6405	Onano Industrial Corp.	32.50	5.40	19.93%
TW:6698	FineMat Applied Materials Co., Ltd.	31.25	0.36	1.18%
TW:7879	Advanced Material Systems Corp	54.30	-94.62	-63.54%
TW:8431	Superior Plating Technology Co., Ltd.	50.90	12.71	33.28%

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

Kenturn Nano Tec Co., Ltd. AI Stock Analysis