Arch Meter Corporation (4588) AI Stock Analysis

Arch Meter Corporation

(TWSE:4588)

Select Model

Rating:60Neutral

Price Target:TWD 56.00▲(2.75% Upside)

Action:initiatedcoverage

Date:11/09/26

Arch Meter scores in the mid-range. The dominant factor is a financial profile that is still healthy in absolute terms — double-digit operating and net margins, 14.8% ROE, positive free cash flow and reduced leverage — but clearly decelerating, with revenue down about 14%, profit down about 24%, and margins compressing after several years of rapid growth. Technical signals are the weakest element, with the share price below all major moving averages and momentum indicators pointing lower. Offsetting this is an undemanding valuation: a 15.2 P/E and a 5.6% dividend yield provide downside support, though the payout depends on earnings stabilising. Investors should watch for revenue stabilisation, continued debt reduction and margin recovery before assuming a return to the prior growth trajectory.

Positive Factors

Solid profitabilitySustained gross and net profitability indicates the company retains meaningful economic value in its measurement and monitoring products. These margins can support internal investment, shareholder returns, and resilience over the next several quarters even as growth moderates.

Negative Factors

Revenue decline and margin compressionThe 2025 top-line decline and lower margins point to weaker operating momentum and reduced profitability per unit of revenue. If this pattern persists, it could constrain reinvestment, diminish earnings power, and make future growth more dependent on improved demand or execution.

Arch Meter Corporation (4588) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.36B
Dividend Yield: 5.50%
Average Volume (3M): 55.27K
Price to Earnings (P/E): 15.0
Beta (1Y): 0.71
Revenue Growth: 6.27%
EPS Growth: 11.27%
Country: TW
Employees: 120
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Arch Meter Corporation Business Overview & Revenue Model

Company Description

Arch Meter Corporation, established in Hsinchu, Taiwan, in 1994, specializes in the production and distribution of electronic measurement devices across Taiwan. The company's diverse product range includes embedded instruments, advanced three-phase m...

Arch Meter Corporation Financial Statement Overview

Summary

Arch Meter remains solidly profitable and cash-generative, with a 32.0% gross margin, 19.8% operating margin, 14.9% net margin, 14.8% ROE, and a second consecutive year of positive free cash flow (NT$172M, roughly 82% of net income). However, the latest year marks a clear slowdown: revenue fell about 14% to NT$920M, net income dropped about 24% to NT$137M, and margins compressed across the board. The balance sheet has improved, with debt-to-equity down to 0.95 from 1.68 in 2023, but debt still nearly matches equity while equity stayed flat, leaving limited cushion if demand stays soft. Operating cash flow also declined from NT$323M to NT$211M, underscoring a still-volatile cash profile.

Income Statement

61Positive

Balance Sheet

63Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	994.70M	920.28M	1.07B	1.04B	715.61M	365.18M
Gross Profit	333.12M	294.88M	375.90M	311.08M	223.93M	143.14M
EBITDA	243.08M	216.43M	272.85M	230.60M	156.33M	95.71M
Net Income	155.20M	137.39M	179.77M	156.76M	103.22M	60.51M
Balance Sheet
Total Assets	2.40B	2.13B	1.97B	1.87B	1.31B	816.95M
Cash, Cash Equivalents and Short-Term Investments	472.32M	415.62M	352.53M	256.48M	231.56M	204.76M
Total Debt	1.07B	878.42M	835.62M	1.06B	564.68M	283.03M
Total Liabilities	1.54B	1.20B	1.05B	1.24B	798.83M	430.75M
Stockholders Equity	858.76M	929.12M	919.40M	631.53M	513.16M	386.20M
Cash Flow
Free Cash Flow	-137.42M	172.42M	239.60M	-426.72M	-197.45M	-160.93M
Operating Cash Flow	-123.26M	211.24M	322.70M	275.43M	-124.92M	-152.10M
Investing Cash Flow	17.75M	-93.81M	-92.38M	-701.63M	-141.88M	-18.94M
Financing Cash Flow	65.33M	-104.34M	-134.28M	442.43M	308.20M	221.85M

Arch Meter Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4588 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3052	69Neutral	TWD 2.12B	9.38	―	5.71%	9.24%	-3.77%
TW:5490	64Neutral	TWD 2.68B	10.00	―	5.39%	17.05%	97.00%
TW:6606	62Neutral	TWD 2.49B	16.27	―	4.34%	19.80%	80.69%
TW:4588	60Neutral	TWD 2.36B	15.01	―	5.50%	6.27%	11.27%
TW:3114	57Neutral	TWD 2.30B	10.87	―	2.92%	3.39%	271.85%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4555	47Neutral	TWD 2.67B	38.80	―	1.31%	8.06%	―

* General Sector Average

Performance Comparison

TW:4588 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4588	Arch Meter Corporation	54.50	-3.29	-5.69%
TW:3052	Apex Science & Engineering Corp.	10.50	-0.29	-2.65%
TW:3114	Howteh Technology Co., Ltd.	34.25	9.36	37.63%
TW:4555	Taiwan Chelic Corp. Ltd.	38.25	-5.76	-13.09%
TW:5490	XAC Automation Corporation	27.85	1.40	5.30%
TW:6606	Kent Industrial Co., Ltd.	23.75	-0.30	-1.24%

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

Arch Meter Corporation AI Stock Analysis