Taiwan Cooperative Financial Holding Co., Ltd. (5880) AI Stock Analysis

Taiwan Cooperative Financial Holding Co., Ltd.

(TWSE:5880)

Select Model

Rating:66Neutral

Price Target:TWD 30.00▲(8.30% Upside)

Action:initiatedcoverage

Date:11/09/26

The score reflects a stable, income-oriented regional bank with record 2025 earnings, steady asset and equity growth, and a supportive technical backdrop as the stock trades above its key moving averages with positive MACD momentum. Holding the score back are structurally thin profitability (ROE near 7.6%, compressed margins), elevated and rising leverage at 2.6x equity, and highly erratic multi-year cash flows. Valuation is only fair at a 18.7x P/E, though the ~2.87% dividend yield and very low beta add defensive appeal. Earnings call and corporate event data were unavailable and excluded from the calculation.

Positive Factors

Revenue and profitabilityThe multi-year revenue increase, combined with positive and recently stable operating margins, indicates the group continues to generate substantial earnings from its financial-services platform. This supports ongoing investment, customer servicing, and resilience across the next several quarters.

Negative Factors

Higher leverageThe sharp increase in debt relative to equity leaves the group more sensitive to credit conditions, market cycles, and funding costs. Although assets have grown, the higher leverage profile reduces financial flexibility and can amplify pressure on shareholder returns during weaker operating environments.

Taiwan Cooperative Financial Holding Co., Ltd. (5880) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 444.42B
Dividend Yield: 2.89%
Average Volume (3M): 19.65M
Price to Earnings (P/E): 18.7
Beta (1Y): 0.04
Revenue Growth: -2.59%
EPS Growth: 24.94%
Country: TW
Employees: 9,820
Sector: General
Sector Strength: 55
Industry: Banks - Regional

Taiwan Cooperative Financial Holding Co., Ltd. Business Overview & Revenue Model

Company Description

Taiwan Cooperative Financial Holding Co., Ltd. (TCFH) functions as a comprehensive financial services group, delivering a wide array of offerings primarily in Taiwan through its various subsidiaries, while also maintaining an international presence....

Taiwan Cooperative Financial Holding Co., Ltd. Financial Statement Overview

Summary

Taiwan Cooperative Financial Holding shows the steady profile of a large regional bank: record net income of NT$21.3 billion in 2025 (+11% year-over-year), six consecutive years of asset growth to NT$5.38 trillion, and a consistently strengthening equity base of NT$279.3 billion. Offsetting this are meaningful margin erosion since 2021 (net margin down from ~30% to 14.5%, though stabilizing in 2025), a modest return on equity near 7.6%, and a sharp rise in borrowings that lifted debt-to-equity to 2.6x with equity at only ~5% of assets. Cash flow is the weakest link, swinging between large inflows and outflows over six years, though 2025 free cash flow of NT$28.4 billion covered about 95% of net income. Blended income statement (68), balance sheet (64) and cash flow (55) results point to a dependable income story rather than a high-growth one.

Income Statement

68Positive

Balance Sheet

64Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	128.26B	147.31B	141.91B	122.80B	79.35B	67.66B
Gross Profit	73.13B	68.71B	65.78B	61.35B	53.38B	54.34B
EBITDA	32.30B	29.14B	27.84B	24.72B	26.89B	26.71B
Net Income	24.04B	21.29B	19.22B	17.26B	20.25B	20.53B
Balance Sheet
Total Assets	5.45T	5.38T	5.17T	4.80T	4.48T	4.43T
Cash, Cash Equivalents and Short-Term Investments	408.51B	393.84B	477.82B	89.23B	414.62B	496.76B
Total Debt	791.13B	714.65B	644.99B	365.23B	115.72B	114.25B
Total Liabilities	5.15T	5.10T	4.91T	4.56T	4.26T	4.19T
Stockholders Equity	290.22B	279.25B	254.05B	239.89B	215.45B	236.23B
Cash Flow
Free Cash Flow	-22.03B	28.43B	-4.57B	520.22M	45.16B	58.00B
Operating Cash Flow	-20.25B	29.89B	-2.60B	2.16B	46.96B	59.27B
Investing Cash Flow	5.79B	-209.17B	-1.92B	-1.98B	-1.67B	-642.33M
Financing Cash Flow	41.79B	174.27B	-2.33B	2.43B	-102.88B	48.18B

Taiwan Cooperative Financial Holding Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:5880 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2884	71Outperform	TWD 832.12B	19.56	―	2.98%	36.49%	29.38%
TW:2890	66Neutral	TWD 644.31B	15.71	―	2.57%	30.53%	55.89%
TW:5880	66Neutral	TWD 445.22B	18.69	―	2.89%	-2.59%	24.94%
TW:5876	65Neutral	TWD 249.84B	14.39	―	3.53%	-9.72%	14.68%
TW:2801	64Neutral	TWD 333.46B	16.56	―	2.89%	3.20%	20.85%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2883	52Neutral	TWD 597.51B	11.39	―	2.84%	31.98%	143.59%

* General Sector Average

Performance Comparison

TW:5880 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:5880	Taiwan Cooperative Financial Holding Co., Ltd.	27.70	5.00	22.05%
TW:2801	Chang Hwa Commercial Bank, Ltd.	27.65	8.38	43.49%
TW:2883	KGI Financial Holding Co., Ltd.	35.20	19.69	126.98%
TW:2884	E.SUN Financial Holding Co., Ltd.	46.95	17.98	62.05%
TW:2890	SinoPac Financial Holdings Co., Ltd.	42.10	16.59	65.05%
TW:5876	Shanghai Commercial & Savings Bank, Ltd.	51.00	13.63	36.46%

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

Taiwan Cooperative Financial Holding Co., Ltd. AI Stock Analysis