Founding Construction Development Co., Ltd. (5533) AI Stock Analysis

Founding Construction Development Co., Ltd.

(TWSE:5533)

Select Model

Rating:60Neutral

Price Target:TWD 14.00▲(1.82% Upside)

Action:initiatedcoverage

Date:11/10/26

The score is primarily constrained by declining earnings and revenue, negative operating and free cash flow, and weak technical momentum. A strong, conservatively financed balance sheet and attractive dividend yield provide important support, while the oversold technical readings offer limited rebound potential.

Positive Factors

Conservative LeverageThe sharp reduction in debt-to-equity indicates a substantially less debt-dependent capital structure. Lower leverage should reduce balance-sheet pressure during property-cycle fluctuations, preserve borrowing capacity, and give the company greater flexibility to fund projects or withstand weaker operating periods.

Negative Factors

Multi-Year Revenue ContractionThree consecutive years of revenue contraction indicate weakening business momentum rather than a single-period fluctuation. The sharp 2025 decline could reduce operating scale, limit the contribution from completed projects, and make a sustained earnings recovery more dependent on future development activity.

Founding Construction Development Co., Ltd. (5533) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 3.94B
Dividend Yield: 4.36%
Average Volume (3M): 128.63K
Price to Earnings (P/E): 19.9
Beta (1Y): 0.20
Revenue Growth: -19.87%
EPS Growth: -6.97%
Country: TW
Employees: 1,114
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Founding Construction Development Co., Ltd. Business Overview & Revenue Model

Company Description

Founding Construction Development Corp. engages in the development of public housings and commercial buildings for leasing and selling in Taiwan. The company is also involved in the trading of construction materials and machines; and designing and co...

Founding Construction Development Co., Ltd. Financial Statement Overview

Summary

The average of the income statement, balance sheet, and cash flow scores is 64. Profitability and low leverage are positive, but declining revenue and earnings plus negative 2025 operating and free cash flow materially weaken the outlook.

Income Statement

62Positive

Balance Sheet

85Very Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.15B	1.16B	2.24B	3.76B	4.82B	3.77B
Gross Profit	338.75M	344.00M	699.76M	1.23B	1.30B	1.08B
EBITDA	231.25M	228.88M	585.79M	1.12B	1.34B	885.09M
Net Income	168.47M	158.47M	422.96M	889.54M	1.01B	1.06B
Balance Sheet
Total Assets	11.82B	11.74B	11.93B	11.87B	12.66B	13.11B
Cash, Cash Equivalents and Short-Term Investments	2.76B	2.82B	3.53B	3.34B	3.26B	1.29B
Total Debt	1.47B	1.55B	1.78B	1.89B	2.62B	4.11B
Total Liabilities	2.31B	2.17B	2.23B	2.26B	3.60B	4.78B
Stockholders Equity	9.52B	9.57B	9.70B	9.61B	9.06B	8.33B
Cash Flow
Free Cash Flow	-400.87M	-319.15M	946.43M	1.99B	3.26B	713.81M
Operating Cash Flow	-395.32M	-311.77M	954.26M	2.00B	3.26B	767.18M
Investing Cash Flow	-49.98M	6.49M	-485.75M	-638.52M	580.30M	1.65B
Financing Cash Flow	-455.29M	-524.98M	-499.42M	-1.07B	-1.86B	-1.93B

Founding Construction Development Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5533 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2516	68Neutral	TWD 3.71B	9.59	―	―	-17.80%	82.70%
TW:6212	62Neutral	TWD 3.62B	17.10	―	9.87%	-60.85%	-70.77%
TW:3188	61Neutral	TWD 4.07B	3.04	―	14.83%	460.94%	448.37%
TW:5533	60Neutral	TWD 3.92B	19.93	―	4.36%	-19.87%	-6.97%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2538	48Neutral	TWD 3.64B	13.61	―	6.11%	-36.52%	―
TW:1316	37Underperform	TWD 3.39B	-29.64	―	―	156.96%	75.28%

* General Sector Average

Performance Comparison

TW:5533 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5533	Founding Construction Development Co., Ltd.	13.75	-0.28	-1.97%
TW:1316	Sun Yad Construction Co., Ltd.	9.19	-5.71	-38.32%
TW:2516	New Asia Construction & Development Corp.	16.50	1.65	11.11%
TW:2538	Kee Tai Properties Co., Ltd.	8.18	-2.13	-20.64%
TW:3188	Golden Long Teng Development Co. Ltd.	21.55	-4.49	-17.24%
TW:6212	Li Ming Development Construction Co., Ltd.	35.40	-4.95	-12.27%

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

Founding Construction Development Co., Ltd. AI Stock Analysis