Khgears International Ltd. AI Stock Analysis
Khgears International Ltd. (4571) AI Stock Analysis
Khgears International Ltd.
(TWSE:4571)
Khgears earns an above-average score driven primarily by its financial strength: a virtually debt-free balance sheet, expanding margins, multi-year-high profits and robust free cash flow generation. Valuation adds support, with a modest 16.9x P/E and a well-covered 3.57% dividend yield. The main offsets are technical weakness — the stock sits below all key moving averages with negative MACD momentum — and a stalled top line, as revenue was flat year-over-year following 2024's rebound. In short, a financially resilient, income-paying industrial name whose share price momentum and growth outlook remain the key risks to watch.
Khgears International Ltd. (4571) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 7.73B
- Dividend Yield
- 3.53%
- Average Volume (3M)
- 134.83K
- Price to Earnings (P/E)
- 16.6
- Beta (1Y)
- 0.88
- Revenue Growth
- -0.89%
- EPS Growth
- -0.66%
- Country
- TW
- Employees
- 1,328
- Sector
- General
- Sector Strength
- 55
- Industry
- Industrial - Machinery
Khgears International Ltd. Business Overview & Revenue Model
Company Description
Khgears International Limited, together with its subsidiaries, engages in the research, development, manufacture, and sale of gears and gearboxes in Asia, the United States, and Europe. The company offers mid-mounted motors, industrial robot transmis...
Khgears International Ltd. Financial Statement Overview
Summary
A high-quality, low-risk financial profile. The balance sheet is the standout (score 89): total debt of just NT$22 million against NT$3.16 billion of equity makes the company effectively debt-free, with equity funding ~79% of assets and ROE of 15.8%. Cash flow is strong (score 83), with operating cash flow up ~21% to NT$661 million — about 1.3x net income — and free cash flow of NT$527 million on modest capex, marking a fourth straight year of positive FCF. The income statement (score 76) shows profit quality improving even without growth: gross margin expanded to 32.8% and net margin to 16.2%, driving net income to a multi-year high of NT$498 million. The main drag is flat revenue at NT$3.06 billion after 2024's rebound, slight operating margin compression, and the cyclicality typical of industrial machinery.
Income Statement
76PositiveBalance Sheet
89Very PositiveCash Flow
83Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.05B | 3.06B | 3.06B | 2.35B | 2.44B | 2.74B |
| Gross Profit | 1.04B | 1.00B | 946.48M | 666.40M | 692.72M | 885.36M |
| EBITDA | 703.47M | 714.52M | 736.09M | 529.97M | 550.71M | 557.95M |
| Net Income | 467.16M | 497.98M | 476.67M | 273.90M | 351.04M | 393.69M |
Balance Sheet | ||||||
| Total Assets | 4.38B | 4.02B | 3.89B | 3.50B | 3.65B | 3.31B |
| Cash, Cash Equivalents and Short-Term Investments | 1.60B | 1.35B | 1.07B | 881.11M | 798.57M | 444.15M |
| Total Debt | 8.60M | 21.59M | 31.04M | 101.83M | 303.36M | 59.26M |
| Total Liabilities | 1.11B | 855.92M | 971.05M | 886.34M | 1.04B | 879.69M |
| Stockholders Equity | 3.27B | 3.16B | 2.92B | 2.61B | 2.60B | 2.43B |
Cash Flow | ||||||
| Free Cash Flow | 559.71M | 527.15M | 467.50M | 510.54M | 326.45M | -374.56M |
| Operating Cash Flow | 700.12M | 661.40M | 546.70M | 592.92M | 496.04M | 152.13M |
| Investing Cash Flow | -389.16M | -281.12M | -390.27M | -77.41M | -165.54M | -526.32M |
| Financing Cash Flow | -260.09M | -262.33M | -335.95M | -405.52M | -14.63M | 256.51M |
Khgears International Ltd. Peers Comparison
Overall Rating
- TW:457171Outperform
TW:893858Neutral
TW:223357Neutral
TW:456647Neutral
TW:152242Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:4571 | 71Outperform | TWD 7.65B | 16.61 | ― | 3.53% | -0.89% | -0.66% |
| TW:8938 | 58Neutral | TWD 7.36B | 11.07 | ― | 8.70% | -0.03% | -33.33% |
| TW:2233 | 57Neutral | TWD 6.87B | 20.10 | ― | 3.39% | -2.23% | -20.63% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:4566 | 47Neutral | TWD 8.39B | 29.03 | ― | 0.90% | 18.15% | 370.19% |
| TW:1522 | 42Neutral | TWD 7.42B | -121.64 | ― | 5.01% | 34.53% | -119.38% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:4571 | Khgears International Ltd. | 149.50 | -9.67 | -6.08% | |
| TW:1522 | TYC Brother Industrial Co, Ltd. | 23.95 | -21.94 | -47.81% | |
| TW:2233 | Turvo International Co., Ltd. | 118.00 | -91.87 | -43.78% | |
| TW:4566 | GLOBAL TEK FABRICATION CO., Ltd. | 76.20 | 25.01 | 48.85% | |
| TW:7907 | Laienparts Technology Co., Ltd. | 225.00 | -177.41 | -44.09% | |
| TW:8938 | Advanced International Multitech Co. Ltd. | 46.00 | -15.67 | -25.42% |
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