Value Valves Co., Ltd. (4580) AI Stock Analysis

Value Valves Co., Ltd.

(TPEx:4580)

Select Model

Rating:63Neutral

Price Target:TWD 83.00▲(3.11% Upside)

Action:initiatedcoverage

Date:11/09/26

Value Valves scores in the mid-range, supported by an exceptionally conservative balance sheet (0.14x debt-to-equity, 73% equity-funded assets) and strong cash conversion of roughly 90% of profits into free cash flow with minimal capex needs. A low 13.1x P/E and a 5.1% dividend yield add valuation and income appeal. Offsetting these strengths are two consecutive years of revenue decline, sharp margin compression (operating margin down from 22.1% to 13.4%), a 39% fall in net income, and ROE sliding to 8.4%. Technicals reinforce the caution, with the price below its key moving averages and a negative MACD, though deeply oversold RSI and Stochastic readings suggest downside may be near-term exhausted. The balance sheet and dividend provide a meaningful buffer while investors await stabilisation in orders and gross margin.

Positive Factors

Conservative Balance SheetVery low leverage gives Value Valves financial resilience while industrial demand is soft. A solid equity base and reduced debt burden preserve flexibility to sustain operations, fund needed investment, and withstand weaker conditions without relying heavily on additional borrowing.

Negative Factors

Contracting RevenueTwo consecutive years of revenue contraction point to sustained weakness in demand, volume, or pricing rather than a single quarterly setback. Continued top-line pressure can reduce operating leverage, limit reinvestment capacity, and make a durable recovery in earnings more difficult.

Value Valves Co., Ltd. (4580) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.74B
Dividend Yield: 4.97%
Average Volume (3M): 73.18K
Price to Earnings (P/E): 13.2
Beta (1Y): 0.27
Revenue Growth: -2.83%
EPS Growth: 2.78%
Country: TW
Employees: 399
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Value Valves Co., Ltd. Business Overview & Revenue Model

Company Description

Value Valves Co., Ltd., a Taiwanese enterprise, specializes in the comprehensive lifecycle of industrial valves, from their initial research and development through design, manufacturing, quality inspection, and ultimately, marketing. Its extensive p...

Value Valves Co., Ltd. Financial Statement Overview

Summary

A fortress balance sheet (score 82) anchors the profile: debt-to-equity of just 0.14x, equity funding ~73% of assets, and a capital base that has compounded from NT$1.58bn to NT$2.75bn. Cash flow (score 62) remains positive and high-quality, with ~91% of net income converting to free cash flow and minimal capex, though operating cash flow has slid for two straight years. The weak link is the income statement (score 54): a second consecutive revenue decline to NT$2.27bn, gross margin compression to 30.8%, operating margin falling from 22.1% to 13.4%, a 39% drop in net income, and ROE down to 8.4% from 18.6% in 2021. Financially resilient, but earnings momentum is clearly in reverse.

Income Statement

54Neutral

Balance Sheet

82Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	2.30B	2.27B	2.40B	2.61B	2.55B	2.40B
Gross Profit	678.14M	698.43M	837.43M	836.21M	826.54M	805.27M
EBITDA	363.96M	362.51M	591.95M	536.22M	577.05M	517.15M
Net Income	282.97M	232.14M	383.67M	331.31M	333.00M	314.50M
Balance Sheet
Total Assets	4.04B	3.78B	3.82B	3.53B	3.51B	3.13B
Cash, Cash Equivalents and Short-Term Investments	1.23B	1.16B	1.33B	1.11B	758.55M	658.43M
Total Debt	381.35M	384.04M	601.35M	686.01M	684.87M	759.74M
Total Liabilities	1.29B	1.03B	1.29B	1.27B	1.35B	1.44B
Stockholders Equity	2.75B	2.75B	2.53B	2.25B	2.16B	1.69B
Cash Flow
Free Cash Flow	208.65M	215.75M	410.54M	653.24M	-15.57M	296.99M
Operating Cash Flow	237.97M	237.40M	429.49M	673.93M	183.25M	334.10M
Investing Cash Flow	-79.47M	-175.69M	-5.36M	8.80M	-293.00M	-118.68M
Financing Cash Flow	-240.69M	-240.03M	-211.97M	-231.18M	119.72M	-71.47M

Value Valves Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4580 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4417	73Outperform	TWD 4.02B	9.25	―	7.31%	4.16%	-8.23%
TW:4580	63Neutral	TWD 3.77B	13.24	―	4.97%	-2.83%	2.78%
TW:4541	61Neutral	TWD 3.68B	12.31	―	2.72%	23.40%	208.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:9934	43Neutral	TWD 3.85B	37.44	―	1.07%	2.25%	309.21%
TW:3631	42Neutral	TWD 3.24B	-59.58	―	―	-46.72%	16.78%
TW:1595	39Underperform	TWD 3.65B	-41.91	―	0.73%	-17.88%	5.42%

* General Sector Average

Performance Comparison

TW:4580 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4580	Value Valves Co., Ltd.	80.50	1.63	2.06%
TW:1595	Chime Ball Technology Co., Ltd.	63.60	27.33	75.35%
TW:3631	Chernan Metal Industrial Corp.	39.60	16.00	67.80%
TW:4417	King Chou Marine Technology Co., Ltd	47.85	-4.81	-9.14%
TW:4541	Magnate Technology Co., Ltd.	50.60	8.55	20.34%
TW:9934	Globe Union Industrial Corp.	9.36	-0.59	-5.94%

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

Value Valves Co., Ltd. AI Stock Analysis