Teco Image Systems Co., Ltd. (5438) AI Stock Analysis

Teco Image Systems Co., Ltd.

(TPEx:5438)

Select Model

Rating:58Neutral

Price Target:TWD 19.50▲(5.41% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily constrained by weak profitability and declining cash generation despite a strong, low-debt balance sheet. Positive technical momentum provides support, while the negative P/E ratio and overbought RSI remain notable risks.

Positive Factors

Conservative balance sheetLow leverage and a larger equity base provide financial resilience and reduce dependence on external funding. This gives the company more capacity to absorb operating volatility, preserve solvency, and support investment in its automation business while profitability remains subdued.

Negative Factors

Revenue contractionSharp revenue contraction and a history of swings in growth make the company’s near-term business scale less predictable. Sustained volatility can reduce operating leverage, complicate resource planning, and make it harder to build consistent earnings power from the automation portfolio.

Teco Image Systems Co., Ltd. (5438) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.97B
Dividend Yield: 4.05%
Average Volume (3M): 155.08K
Price to Earnings (P/E): -5.6
Beta (1Y): 0.45
Revenue Growth: -32.73%
EPS Growth: -411.13%
Country: TW
Employees: 268
Sector: General
Sector Strength: 55
Industry: Business Equipment & Supplies

Teco Image Systems Co., Ltd. Business Overview & Revenue Model

Company Description

Teco Image Systems Co., Ltd. serves as a global original equipment and design manufacturer (OEM/ODM), catering to the imaging and communication product sectors. The company's expertise spans the entire lifecycle – from design and development to manuf...

Teco Image Systems Co., Ltd. Financial Statement Overview

Summary

The balance sheet is strong, supported by low debt and growing equity, but weak revenue and margin trends, negative operating profit, low return on equity, and declining cash generation materially reduce the financial score.

Income Statement

40Negative

Balance Sheet

82Very Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	952.19M	1.30B	1.33B	1.20B	1.72B	1.77B
Gross Profit	134.71M	199.44M	237.13M	184.72M	256.50M	299.62M
EBITDA	2.57M	18.91M	61.18M	3.17M	144.12M	98.98M
Net Income	-13.32M	40.67M	86.90M	7.12M	64.38M	51.83M
Balance Sheet
Total Assets	3.69B	3.98B	3.81B	3.15B	3.04B	3.16B
Cash, Cash Equivalents and Short-Term Investments	576.44M	798.51M	417.38M	482.90M	400.81M	271.87M
Total Debt	76.90M	300.69M	132.76M	289.01M	431.91M	341.79M
Total Liabilities	451.99M	653.23M	600.89M	621.23M	964.85M	939.39M
Stockholders Equity	3.24B	3.33B	3.21B	2.53B	2.08B	2.22B
Cash Flow
Free Cash Flow	61.04M	2.80M	7.29M	-42.42M	-62.97M	-107.26M
Operating Cash Flow	65.42M	19.35M	26.57M	-27.69M	-38.22M	-83.49M
Investing Cash Flow	185.93M	137.92M	138.94M	295.31M	240.35M	-191.31M
Financing Cash Flow	-298.22M	92.89M	-283.83M	-192.06M	-74.42M	115.88M

Teco Image Systems Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5438 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2070	60Neutral	TWD 2.26B	15.25	―	2.70%	24.08%	90.56%
TW:5438	58Neutral	TWD 2.12B	-5.59	―	4.05%	-32.73%	-411.13%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:3346	40Underperform	TWD 2.21B	-13.12	―	0.60%	-13.27%	-1332.38%
TW:3437	35Underperform	TWD 2.44B	-6.36	―	―	-22.27%	-58.73%
TW:5484	33Underperform	TWD 2.03B	23.32	―	―	77.09%	―

* General Sector Average

Performance Comparison

TW:5438 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5438	Teco Image Systems Co., Ltd.	18.50	-1.86	-9.14%
TW:2070	Ching Chan Optical Technology Co., Ltd.	55.50	16.31	41.62%
TW:3346	Laster Tech Co., Ltd.	18.40	-1.69	-8.39%
TW:3437	Advanced Optoelectronic Technology, Inc.	17.40	2.55	17.17%
TW:5484	EverFocus Electronics Co. Ltd.	30.80	-6.40	-17.20%
TW:7772	Morrison Opto Electronics Ltd.	88.30	20.74	30.71%

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 10, 2026

Teco Image Systems Co., Ltd. AI Stock Analysis