Khgears International Ltd. (4571) AI Stock Analysis

Khgears International Ltd.

(TWSE:4571)

Select Model

Rating:64Neutral

Price Target:TWD 158.00▲(5.69% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 64 reflects a company with strong fundamentals that is currently out of favor in the market. The primary strength is a fortress-like balance sheet and robust cash flow generation, which provide significant downside protection. However, this is heavily offset by weak technical momentum, with the stock trading below all major moving averages and showing bearish signals, suggesting near-term price pressure. The moderate valuation and attractive dividend yield provide some support but are not enough to counter the negative technical trend.

Positive Factors

Improving Profit MarginsImproved gross and net margins indicate stronger profitability and greater earnings retained from each unit of revenue. If maintained, this margin profile can support internal investment, provide resilience against revenue fluctuations, and strengthen financial performance over the next several quarters.

Negative Factors

Choppy Revenue GrowthUneven revenue performance indicates limited top-line momentum despite stronger margins. A declining or inconsistent sales base can constrain operating leverage, make profit growth less predictable, and reduce the company’s ability to compound earnings unless demand improves.

Khgears International Ltd. (4571) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 8.01B
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

The company exhibits high-quality financial health, combining a pristine, nearly debt-free balance sheet with strong and improving cash flow generation. While revenue growth has been inconsistent, management has demonstrated a clear ability to expand margins and profitability, resulting in a solid overall financial profile.

Income Statement

68Positive

Balance Sheet

85Very Positive

Cash Flow

78Positive

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4571 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4571	64Neutral	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

TW:4571 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4571	Khgears International Ltd.	149.50	-7.24	-4.62%
TW:1522	TYC Brother Industrial Co, Ltd.	23.95	-21.56	-47.37%
TW:2233	Turvo International Co., Ltd.	118.00	-78.18	-39.85%
TW:4566	GLOBAL TEK FABRICATION CO., Ltd.	76.20	23.92	45.76%
TW:7907	Laienparts Technology Co., Ltd.	225.00	-177.41	-44.09%
TW:8938	Advanced International Multitech Co. Ltd.	46.00	-17.18	-27.19%

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

Khgears International Ltd. AI Stock Analysis