OFCO Industrial Corporation (5011) AI Stock Analysis

OFCO Industrial Corporation

(TPEx:5011)

Select Model

Rating:37Underperform

Price Target:TWD 15.50▼(-11.43% Downside)

Action:initiatedcoverage

Date:11/09/26

The score sits at the low end of the range, primarily because the company remains fundamentally unprofitable: negative gross and operating margins mean rising revenue is producing larger losses, equity is being eroded, and leverage near 1.0x equity leaves little margin for error. Technicals reinforce the caution, with the share price below all major moving averages and a negative MACD signalling a sustained downtrend, despite deeply depressed oscillator readings. Valuation offers no support given negative earnings and only a modest 1.19% dividend yield. The partial offsets — revenue growth, a return to positive operating cash flow, a roughly 90% reduction in cash burn and modest debt repayment — show a turnaround is underway, but confirmation through positive gross margins is still needed.

Positive Factors

Positive Equity BaseA sizeable positive equity base provides a financial cushion against current losses and supports continued operations. Although leverage has increased, this capital foundation means the company is not described as distressed and retains some capacity to manage obligations.

Negative Factors

Deep Profitability DeteriorationNegative gross profit and deeper operating and net losses indicate that current revenue is not covering the company’s cost base. Persistent losses can erode equity, limit reinvestment, and make financial recovery dependent on a meaningful improvement in margins.

OFCO Industrial Corporation (5011) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.75B
Dividend Yield: 1.14%
Average Volume (3M): 395.39K
Price to Earnings (P/E): -45.7
Beta (1Y): 0.91
Revenue Growth: -8.66%
EPS Growth: 79.34%
Country: TW
Employees: 334
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

OFCO Industrial Corporation Business Overview & Revenue Model

Company Description

OFCO Industrial Corporation specializes in the production and distribution of various fastener solutions within Taiwan. Its diverse product line encompasses items such as screws, nuts, bolts, and components tailored for structural applications. The c...

OFCO Industrial Corporation Financial Statement Overview

Summary

Weak overall, driven by a very poor income statement (score 21): revenue rebounded to roughly NT$5.06bn from NT$4.14bn, but the company is selling below cost with a negative gross margin near -3.3%, an operating margin of about -7.5%, and a widening net loss of roughly NT$162m (net margin -3.2%). The balance sheet (41) is adequate but eroding — equity of about NT$1.99bn supports NT$5.37bn of assets, debt-to-equity near 0.95 after a constructive NT$280m debt reduction, yet accumulated losses are shrinking equity and ROE is about -8.1%. Cash flow (36) is improving but not self-sustaining: operating cash flow turned positive at roughly NT$93m after a NT$759m outflow, and free cash flow narrowed to about -NT$94m, though FCF has been negative in five of the past six years. Direction of travel is encouraging, but the core business must restore positive gross margins before the profile can be considered sound.

Income Statement

21Negative

Balance Sheet

41Neutral

Cash Flow

36Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.51B	5.06B	4.14B	4.32B	4.82B	3.76B
Gross Profit	44.37M	-165.23M	-141.07M	85.39M	450.52M	294.62M
EBITDA	-160.81M	-202.94M	45.48M	196.86M	420.49M	215.64M
Net Income	-146.74M	-161.98M	-36.01M	150.84M	284.29M	129.87M
Balance Sheet
Total Assets	5.57B	5.37B	5.68B	5.20B	4.17B	3.64B
Cash, Cash Equivalents and Short-Term Investments	1.09B	882.30M	702.92M	1.08B	1.38B	1.17B
Total Debt	1.94B	1.88B	2.16B	1.24B	808.00M	789.23M
Total Liabilities	2.96B	3.24B	3.08B	2.59B	1.55B	1.60B
Stockholders Equity	1.94B	1.99B	2.21B	2.32B	2.34B	1.87B
Cash Flow
Free Cash Flow	131.11M	-93.66M	-1.02B	-592.08M	-92.63M	-308.09M
Operating Cash Flow	260.94M	92.82M	-759.36M	-302.21M	214.86M	137.62M
Investing Cash Flow	267.91M	-156.46M	-748.42M	-322.58M	-40.09M	-582.47M
Financing Cash Flow	-186.88M	242.76M	1.03B	247.64M	372.26M	858.84M

OFCO Industrial Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5011 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4581	62Neutral	TWD 1.61B	11.55	―	6.40%	8.55%	-19.58%
TW:1521	56Neutral	TWD 1.85B	14.15	―	3.10%	9.34%	174.14%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4543	53Neutral	TWD 1.46B	9.82	―	0.84%	15.97%	―
TW:5014	40Underperform	TWD 1.67B	-12.18	―	5.33%	8.02%	14.29%
TW:5011	37Underperform	TWD 1.76B	-45.69	―	1.14%	-8.66%	79.34%

* General Sector Average

Performance Comparison

TW:5011 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5011	OFCO Industrial Corporation	17.50	6.70	62.04%
TW:1521	Ta Yih Industrial Co., Ltd.	24.20	-0.03	-0.12%
TW:2249	Young Shine Electric Co., Ltd.	56.40	-16.29	-22.42%
TW:4543	Man Zai Industrial Co., Ltd.	23.85	1.56	6.99%
TW:4581	World Known MFG (Cayman) Limited	46.90	-3.77	-7.43%
TW:5014	Chain Chon Industrial Co., Ltd.	9.38	-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

OFCO Industrial Corporation AI Stock Analysis