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Cheng Fwa Industrial Co., Ltd. (5426) AI Stock Analysis

TW:5426

Cheng Fwa Industrial Co., Ltd.

(TPEx:5426)

Select Model
Rating:55Neutral
Price Target:TWD 26.00â–¼(-7.31% Downside)
Action:initiatedcoverage
Date:11/10/26

The score is constrained primarily by weaker profitability and negative free cash flow, despite a strong balance sheet. Technical momentum is subdued and the elevated P/E with a low dividend yield limits valuation support.

Positive Factors
Conservative Balance SheetVery low leverage gives Cheng Fwa financial resilience through bicycle-industry cycles and reduces interest-related pressure on earnings. A sizable equity base also preserves flexibility to fund operations or investment without relying heavily on additional borrowing.
Negative Factors
Negative Free Cash FlowNegative free cash flow in the latest two years weakens earnings quality because reported profits have not translated into cash available after investment. Persistent cash shortfalls could reduce funding flexibility and make future growth more dependent on balance-sheet resources.

Cheng Fwa Industrial Co., Ltd. (5426) vs. SPDR S&P 500 ETF (SPY)

-25%0%25%50%75%100%125%TW:5426+44.68%SPY+14.30%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 4.44B
Dividend Yield
1.07%
Average Volume (3M)
2.23M
Price to Earnings (P/E)
44.5
Beta (1Y)
0.99
Revenue Growth
7.49%
EPS Growth
-46.09%
Country
TW
Employees
816
Sector
General
Sector Strength
55
Industry
Manufacturing - Metal Fabrication

Cheng Fwa Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Cheng Fwa Industrial Co., Ltd., established in 1964 and headquartered in New Taipei City, Taiwan, is a leading manufacturer and supplier specializing in high-precision metal stamped components. The company produces parts in various configurations and...

Cheng Fwa Industrial Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet and low debt support the score, but weaker 2025 profitability, declining revenue, and negative free cash flow materially reduce financial quality.

Income Statement

55Neutral

Balance Sheet

85Very Positive

Cash Flow

45Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.88B1.76B1.50B1.41B2.07B1.66B
Gross Profit350.69M337.20M272.76M219.09M358.93M155.75M
EBITDA158.87M156.32M265.36M110.87M317.99M-23.43M
Net Income90.91M74.27M142.07M7.46M163.19M-88.70M
Balance Sheet
Total Assets3.18B3.22B3.03B2.68B3.04B3.15B
Cash, Cash Equivalents and Short-Term Investments733.47M959.91M902.27M766.53M718.51M875.82M
Total Debt75.89M204.51M5.38M3.39M204.83M556.15M
Total Liabilities871.70M962.31M749.82M616.88M942.70M1.25B
Stockholders Equity2.30B2.25B2.27B2.06B2.09B1.90B
Cash Flow
Free Cash Flow-190.71M-45.66M-12.11M284.77M187.08M-166.56M
Operating Cash Flow133.31M175.70M61.54M312.23M215.08M-123.17M
Investing Cash Flow-138.54M-125.81M79.38M-253.15M274.56M-111.15M
Financing Cash Flow-4.89M125.77M-1.52M-226.99M-344.29M275.33M

Cheng Fwa Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:5426 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:3046TW:304671OutperformTWD 3.92B10.16―5.96%31.68%27.27%
TW:3287TW:328770OutperformTWD 3.48B9.15―1.99%20.68%―
TW:3556TW:355664NeutralTWD 3.65B14.40―3.15%27.26%133.00%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:5426TW:542655NeutralTWD 3.86B44.45―1.07%7.49%-46.09%
TW:5452TW:545245NeutralTWD 3.70B69.09―1.00%-4.18%-24.42%
TW:6126TW:612644NeutralTWD 3.40B37.25―2.34%43.73%-23.83%

* General Sector Average

Performance Comparison

0%50%100%150%TW:5426TW:3046TW:3287TW:3556TW:5452TW:6126Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:5426 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:5426Cheng Fwa Industrial Co., Ltd.28.058.1240.73%
TW:3046Aopen Incorporated50.304.118.91%
TW:3287KWorld Computer Co., Ltd.75.2044.53145.17%
TW:3556eGalax_eMPIA Technology Inc.61.9024.1463.93%
TW:5452Unic Technology Corp.25.053.6717.15%
TW:6126Singatron Enterprise Co. Ltd.25.60-5.18-16.82%
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