Epileds Technologies, Inc. (4956) AI Stock Analysis

Epileds Technologies, Inc.

(TWSE:4956)

Select Model

Rating:41Neutral

Price Target:TWD 28.00▼(-12.77% Downside)

Action:initiatedcoverage

Date:11/09/26

Epileds scores poorly overall. The decisive factor is unprofitability: gross margin has compressed to 4.2%, operating and net results are negative, and losses in five of the past six years have steadily eroded equity and total assets. Technicals reinforce the caution, with the price below all major moving averages, a negative MACD and depressed momentum readings. Valuation is unsupportive, with a 62.9x P/E against loss-making earnings and no dividend. The partial offsets are a moderately leveraged balance sheet (0.48 debt-to-equity, equity funding ~60% of assets) and a strong cash flow rebound to NT$267.6m operating and NT$156.1m free cash flow — though these are driven largely by depreciation rather than earnings power. This remains a high-risk, cyclical turnaround candidate requiring clear evidence of margin and utilization recovery.

Positive Factors

Manageable LeverageRelatively stable leverage and sizable equity provide Epileds with a moderate financial base for operating through industry cycles. This reduces balance-sheet strain compared with a highly leveraged structure, although sustained losses could still weaken that resilience over time.

Negative Factors

Sharp Revenue ContractionThe prolonged decline in revenue signals weakening demand, customer activity, or market position across the company’s LED-related business. A shrinking top line can reduce operating leverage, limit investment capacity, and make a return to sustainable profitability more difficult.

Epileds Technologies, Inc. (4956) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.29B
Dividend Yield: ―
Average Volume (3M): 5.90M
Price to Earnings (P/E): 68.5
Beta (1Y): 1.33
Revenue Growth: 1.03%
EPS Growth: ―
Country: TW
Employees: 445
Sector: General
Sector Strength: 55
Industry: Semiconductors

Epileds Technologies, Inc. Business Overview & Revenue Model

Company Description

Epileds Technologies, Inc., established in Tainan City, Taiwan, in 2006, is a global leader specializing in the comprehensive process of researching, developing, designing, manufacturing, and distributing LED wafers and chips. Their product portfolio...

Epileds Technologies, Inc. Financial Statement Overview

Summary

Financial results are dominated by weak profitability (score 24). Gross margin has collapsed from 22.1% in 2021 to 4.2%, with an operating loss of NT$89.1m (-6.6% margin) and a net loss of NT$80.3m, marking losses in five of the past six years. Offsetting this, the balance sheet (56) is conservatively financed — debt-to-equity of 0.48 with equity funding roughly 60% of assets — though accumulated losses have eroded equity from NT$1.97bn to NT$1.62bn and ROE sits at -5.0%. Cash flow (55) rebounded sharply to NT$267.6m operating and NT$156.1m free cash flow, but that strength stems largely from heavy depreciation rather than earnings, and free cash flow has been negative in four of six years. Net: a balance-sheet-supported turnaround story with elevated earnings risk.

Income Statement

24Negative

Balance Sheet

56Neutral

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.41B	1.35B	1.29B	1.13B	1.19B	1.76B
Gross Profit	179.36M	56.12M	145.98M	18.73M	108.40M	389.20M
EBITDA	230.20M	123.19M	218.54M	73.34M	132.87M	341.45M
Net Income	47.02M	-80.28M	-21.26M	-138.75M	-72.30M	144.09M
Balance Sheet
Total Assets	2.95B	2.71B	2.78B	2.77B	3.01B	3.15B
Cash, Cash Equivalents and Short-Term Investments	259.91M	291.50M	177.25M	369.87M	418.16M	309.94M
Total Debt	896.67M	773.15M	816.52M	827.62M	838.96M	873.43M
Total Liabilities	1.26B	1.09B	1.08B	1.05B	1.14B	1.18B
Stockholders Equity	1.69B	1.62B	1.70B	1.72B	1.86B	1.97B
Cash Flow
Free Cash Flow	25.66M	156.08M	-160.81M	-62.63M	176.37M	-192.56M
Operating Cash Flow	145.52M	267.58M	-76.75M	85.79M	343.43M	169.44M
Investing Cash Flow	-119.86M	-110.73M	-89.33M	-16.60M	-242.59M	-360.46M
Financing Cash Flow	7.32M	-41.72M	-27.99M	-22.03M	-84.89M	348.82M

Epileds Technologies, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:4956 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8049	66Neutral	TWD 2.67B	11.43	―	6.19%	4.38%	18.31%
TW:3038	60Neutral	TWD 2.87B	15.54	―	6.38%	-9.99%	1.97%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3591	50Neutral	TWD 3.16B	-167.81	―	4.69%	7.16%	163.81%
TW:3580	47Neutral	TWD 3.49B	52.72	―	1.32%	-19.96%	-63.63%
TW:4956	41Neutral	TWD 3.22B	68.47	―	―	1.03%	―

* General Sector Average

Performance Comparison

TW:4956 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:4956	Epileds Technologies, Inc.	32.10	12.85	66.75%
TW:3038	Emerging Display Technologies Corp	18.80	-1.18	-5.88%
TW:3580	UVAT Technology Co., Ltd.	90.60	32.37	55.60%
TW:3591	Edison Opto Corporation	24.55	5.20	26.84%
TW:6775	Entire Technology Co Ltd	28.80	0.14	0.51%
TW:8049	Ampire Co., Ltd.	22.60	-1.22	-5.11%

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

Epileds Technologies, Inc. AI Stock Analysis