Capital Securities Corp. (6005) AI Stock Analysis

Capital Securities Corp.

(TWSE:6005)

Select Model

Rating:63Neutral

Price Target:TWD 29.00▲(5.07% Upside)

Action:initiatedcoverage

Date:11/09/26

Capital Securities earns a moderately above-average score driven by solid fundamentals: high margins, net income growth of about 17% despite softer revenue, improving ROE of 12.6%, a steadily growing equity base and reduced leverage. A deeply discounted 5.7x P/E adds valuation appeal. These positives are offset by a weak technical setup — the stock sits below all key moving averages with a negative MACD — and by structural risks including thin equity relative to a NT$357bn asset base, 2.4x debt-to-equity and highly volatile operating cash flow tied to trading and client margin balances. The result is a fundamentally sound, attractively priced franchise whose near-term price trend and cyclical sensitivity keep the score from rising further.

Positive Factors

Recent Earnings GrowthReported revenue growth of 80.7% and EPS growth of 158.3% indicate substantial recent earnings momentum. If sustained, stronger earnings can build capital, support investment in client services, and reinforce the firm's ability to compete across brokerage and capital-markets activities.

Negative Factors

Elevated LeverageDebt-to-equity near 2.4x leaves the company more sensitive to market and funding conditions than a less leveraged securities firm. Higher leverage can constrain financial flexibility, increase pressure during weaker trading periods, and limit room for discretionary capital allocation.

Capital Securities Corp. (6005) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 67.89B
Dividend Yield: 1.45%
Average Volume (3M): 6.36M
Price to Earnings (P/E): 5.7
Beta (1Y): 0.83
Revenue Growth: 80.75%
EPS Growth: 158.29%
Country: TW
Employees: 2,871
Sector: General
Sector Strength: 55
Industry: Financial - Capital Markets

Capital Securities Corp. Business Overview & Revenue Model

Company Description

Established in Taipei, Taiwan, in 1988, Capital Securities Corporation offers a comprehensive range of financial services to clients both domestically and across international markets. The company's operations are structured across several key divisi...

Capital Securities Corp. Financial Statement Overview

Summary

Capital Securities blends strong profitability with structural balance-sheet and cash-flow volatility. The income statement (73) is the standout: operating margin near 54%, EBITDA margin around 56%, and net income up roughly 17% to NT$5.74bn even as revenue eased about 9% to NT$18.5bn, lifting net margin from 24.1% to 31.0% and ROE to 12.6% for a third consecutive year of improvement. The balance sheet (63) shows equity compounding to NT$45.6bn and leverage improving to 2.43x from 2.93x, but equity funds only about 13% of a NT$357bn asset base, leaving exposure to funding costs and market volatility. Cash flow (61) rebounded sharply with NT$18.9bn operating cash flow and NT$18.7bn free cash flow (about 99% of net income), yet prior-year operating outflows of NT$28.2bn and NT$11.8bn underline how swing-prone brokerage cash generation is. Overall, a profitable, improving franchise that remains tied to market cycles.

Income Statement

73Positive

Balance Sheet

63Positive

Cash Flow

61Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	33.16B	18.49B	20.26B	14.03B	7.83B	15.00B
Gross Profit	29.51B	15.55B	17.75B	12.48B	6.20B	13.53B
EBITDA	17.47B	10.44B	9.98B	7.49B	2.89B	6.89B
Net Income	11.67B	5.74B	4.88B	4.13B	840.04M	5.25B
Balance Sheet
Total Assets	526.14B	357.40B	308.69B	246.91B	191.62B	203.69B
Cash, Cash Equivalents and Short-Term Investments	164.71B	126.42B	109.96B	96.77B	67.38B	70.27B
Total Debt	137.37B	110.65B	123.84B	86.60B	57.61B	57.83B
Total Liabilities	469.34B	307.19B	263.05B	203.55B	152.93B	162.22B
Stockholders Equity	51.99B	45.56B	42.27B	40.25B	35.74B	38.73B
Cash Flow
Free Cash Flow	4.26B	18.66B	-28.43B	-12.15B	13.71B	-1.25B
Operating Cash Flow	4.51B	18.90B	-28.20B	-11.83B	13.86B	-998.35M
Investing Cash Flow	-39.65B	-24.30B	-2.32B	-2.39B	-3.46B	-220.17M
Financing Cash Flow	55.39B	10.77B	30.94B	11.57B	-9.36B	2.66B

Capital Securities Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6005 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6023	74Outperform	TWD 35.30B	9.49	―	5.08%	20.43%	16.61%
TW:6005	63Neutral	TWD 66.78B	5.70	―	1.45%	80.75%	158.29%
TW:2838	59Neutral	TWD 88.70B	14.20	―	2.35%	-6.39%	27.60%
TW:2845	58Neutral	TWD 61.30B	12.45	―	4.08%	-13.12%	18.06%
TW:2855	56Neutral	TWD 80.07B	5.27	―	4.13%	592.27%	347.85%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2889	55Neutral	TWD 57.76B	13.10	―	3.13%	65.79%	174.93%

* General Sector Average

Performance Comparison

TW:6005 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6005	Capital Securities Corp.	27.60	6.02	27.90%
TW:2838	Union Bank of Taiwan	19.60	2.04	11.59%
TW:2845	Far Eastern International Bank	12.60	0.52	4.33%
TW:2855	President Securities Corp.	51.10	27.31	114.77%
TW:2889	IBF Financial Holdings Co., Ltd.	15.95	0.68	4.49%
TW:6023	Yuanta Futures Co., Ltd.	78.70	2.26	2.96%

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

Capital Securities Corp. AI Stock Analysis