Tex Year Industries, Inc. (4720) AI Stock Analysis

Tex Year Industries, Inc.

(TWSE:4720)

Select Model

Rating:51Neutral

Price Target:TWD 27.00▼(-0.92% Downside)

Action:initiatedcoverage

Date:11/09/26

Tex Year Industries scores below average, driven primarily by soft fundamentals: flat revenue, compressed margins, a near-50% drop in net income, and a heavy capex program that pushed free cash flow to NT$-274m while total debt rose more than 50%. Valuation adds further pressure, with a P/E above 50 and only a 1.48% yield for a business in a low-margin, cyclical industry. The offsetting positive is technical strength — the stock trades well above its 50-, 100- and 200-day moving averages with a positive MACD, though momentum indicators have turned neutral and price has eased below its 20-day average. The equity base still funds nearly half of assets and operating cash flow exceeds reported earnings, but a re-rating likely requires the new investments to deliver revenue and margin recovery and bring leverage back down.

Positive Factors

Industrial materials platformThe company serves multiple downstream industrial and consumer applications through hot-melt adhesives and polymer materials. This application breadth can support a durable business base by diversifying end-market exposure and embedding its products in customers’ manufacturing processes.

Negative Factors

Weak free cash flowThe sharp move to negative free cash flow reduces near-term financial flexibility and makes reported earnings less useful as a measure of internally available funds. If sustained, heavy reinvestment or working-capital needs could constrain debt reduction, dividends, and growth investment.

Tex Year Industries, Inc. (4720) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.09B
Dividend Yield: 1.47%
Average Volume (3M): 6.40M
Price to Earnings (P/E): 50.0
Beta (1Y): 0.78
Revenue Growth: 2.43%
EPS Growth: -43.09%
Country: TW
Employees: 505
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Tex Year Industries, Inc. Business Overview & Revenue Model

Company Description

Tex Year Industries Inc. operates as a global manufacturer and supplier, specializing in a broad range of adhesive solutions, specialty chemicals, and infection control products. Established in 1976, the company is headquartered in New Taipei City, T...

Tex Year Industries, Inc. Financial Statement Overview

Summary

Weakest pillar. Revenue has been flat for five years and slipped about 2% to NT$3.59bn, while gross margin narrowed to 21.9%, operating margin halved to 3.4%, and net income fell roughly 47% to NT$85m (Income Statement score 42). Cash flow is the bigger concern: operating cash flow of NT$148m was overwhelmed by NT$422m of capex, turning free cash flow sharply negative at NT$-274m, with FCF negative in three of the past five years (Cash Flow score 40). The balance sheet is the relative bright spot but is trending more aggressive — equity funds 47% of assets, yet debt jumped 52% to NT$1.08bn, lifting debt-to-equity to 0.66 and ROE down to 5.2% from 9.7% (Balance Sheet score 53). The company remains profitable and earnings quality is decent, but low margins, no growth and debt-funded expansion cap the score.

Income Statement

42Neutral

Balance Sheet

53Neutral

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	3.79B	3.59B	3.68B	3.31B	3.66B	3.55B
Gross Profit	785.78M	787.26M	876.04M	656.89M	613.30M	646.11M
EBITDA	210.79M	230.25M	317.99M	242.85M	150.28M	167.99M
Net Income	64.46M	85.14M	161.04M	76.47M	20.24M	28.88M
Balance Sheet
Total Assets	3.80B	3.47B	3.19B	3.01B	3.31B	3.28B
Cash, Cash Equivalents and Short-Term Investments	542.14M	592.72M	576.93M	574.04M	611.22M	497.79M
Total Debt	1.19B	1.08B	708.88M	852.53M	1.24B	1.15B
Total Liabilities	2.01B	1.68B	1.40B	1.52B	1.86B	1.94B
Stockholders Equity	1.63B	1.63B	1.66B	1.36B	1.31B	1.20B
Cash Flow
Free Cash Flow	-326.94M	-274.24M	81.99M	349.05M	-16.16M	-156.74M
Operating Cash Flow	-92.88M	148.04M	145.23M	401.24M	77.82M	-14.49M
Investing Cash Flow	-195.48M	-333.49M	-100.81M	-23.39M	-101.97M	-122.39M
Financing Cash Flow	193.47M	236.07M	-63.26M	-422.06M	112.14M	163.22M

Tex Year Industries, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4720 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1730	71Outperform	TWD 3.19B	10.50	―	5.94%	1.66%	8.74%
TW:1341	62Neutral	TWD 3.05B	11.73	―	6.93%	1.01%	22.95%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8463	53Neutral	TWD 3.19B	10.76	―	3.76%	-3.02%	-15.76%
TW:4720	51Neutral	TWD 3.12B	50.03	―	1.47%	2.43%	-43.09%
TW:6582	44Neutral	TWD 3.38B	45.43	―	―	-55.46%	―

* General Sector Average

Performance Comparison

TW:4720 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4720	Tex Year Industries, Inc.	27.25	13.29	95.19%
TW:1341	Fulin Plastic Industry (Cayman) Holding Co., Ltd.	57.70	2.89	5.27%
TW:1730	Farcent Enterprise Co., Ltd.	50.50	0.39	0.78%
TW:6582	Shin Foong Specialty & Applied Materials Co., Ltd.	31.80	-0.55	-1.70%
TW:6930	Taisic Materials Corp.	35.00	-21.80	-38.38%
TW:8463	Ruentex Materials Co Ltd	21.30	-3.95	-15.65%

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

Tex Year Industries, Inc. AI Stock Analysis