DARWIN PRECISIONS Corporation (6120) AI Stock Analysis

DARWIN PRECISIONS Corporation

(TWSE:6120)

Select Model

Rating:47Neutral

Price Target:TWD 10.50▼(-6.67% Downside)

Action:initiatedcoverage

Date:11/09/26

Darwin Precisions scores below average, driven primarily by weak operating performance: revenue fell about 18%, gross margin of roughly 5% leaves no buffer, EBIT is negative and the company reported a net loss, while free cash flow barely stayed positive. This is partly offset by a genuinely strong balance sheet, with debt cut to NT$1.22B and debt-to-equity of only 0.14, giving the company staying power through the cycle. Technicals add further pressure, with the share price below all major moving averages and a negative MACD, though oversold RSI and Stochastic readings suggest scope for a near-term bounce. A low P/E of 8.7 and a 12.8% dividend yield make the stock optically cheap, but the payout's sustainability is uncertain given current losses and thin cash generation. Stabilizing margins and revenue are the key items for investors to watch.

Positive Factors

Lower LeverageThe substantial reduction in debt relative to equity strengthens the capital structure and gives DARWIN greater financial flexibility. Lower leverage can reduce balance-sheet pressure, improve resilience during operating weakness, and preserve capacity for investment or other capital-allocation needs.

Negative Factors

Revenue Decline and VolatilityThe uneven revenue record makes the company’s growth trajectory difficult to rely on over the next several quarters. A 2025 decline following earlier swings suggests demand or business activity has not yet become consistently expanding, limiting operating leverage and visibility into future earnings.

DARWIN PRECISIONS Corporation (6120) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.71B
Dividend Yield: 12.09%
Average Volume (3M): 3.50M
Price to Earnings (P/E): 8.8
Beta (1Y): 0.90
Revenue Growth: -6.71%
EPS Growth: 426.59%
Country: TW
Employees: 10,467
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

DARWIN PRECISIONS Corporation Business Overview & Revenue Model

Company Description

Darwin Precisions Corporation, headquartered in Hsinchu City, Taiwan, was founded in 1989. This Taiwanese firm is dedicated to the creation, production, and distribution of sophisticated optoelectronic solutions, intricate components, and LCD display...

DARWIN PRECISIONS Corporation Financial Statement Overview

Summary

A solid balance sheet (score 70) is the clear strength: debt cut from NT$4.09B in 2022 to NT$1.22B, debt-to-equity of just 0.14, and equity funding about 55% of assets. However, the operating business is weak (income statement score 28): revenue fell roughly 18% to NT$17.1B, gross margin is near 5%, EBIT turned negative, and the company swung back to a net loss of about NT$121M. Cash flow (score 45) is positive but thin — operating cash flow dropped to NT$581M from NT$2.02B, leaving free cash flow barely above break-even at about NT$41M. Overall: low solvency risk, but poor earnings quality and negative returns on capital.

Income Statement

28Negative

Balance Sheet

70Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.76B	17.11B	20.87B	17.77B	14.47B	20.28B
Gross Profit	777.84M	860.88M	1.07B	852.21M	-27.72M	-3.71M
EBITDA	499.54M	913.72M	1.42B	960.17M	1.41B	645.73M
Net Income	815.11M	-120.69M	187.02M	114.66M	125.66M	-649.23M
Balance Sheet
Total Assets	17.40B	16.10B	17.99B	18.23B	18.18B	19.86B
Cash, Cash Equivalents and Short-Term Investments	6.27B	5.45B	6.68B	6.20B	4.30B	5.97B
Total Debt	1.10B	1.22B	1.75B	2.93B	4.09B	3.77B
Total Liabilities	7.48B	7.29B	8.38B	9.00B	8.86B	10.64B
Stockholders Equity	9.92B	8.81B	9.62B	9.22B	9.33B	9.21B
Cash Flow
Free Cash Flow	-1.25B	40.79M	1.53B	-99.64M	-1.33B	-85.48M
Operating Cash Flow	-351.03M	581.41M	2.02B	317.81M	-162.53M	722.86M
Investing Cash Flow	627.50M	-354.31M	-315.80M	2.32B	-2.10B	279.00M
Financing Cash Flow	-1.19B	-1.32B	-1.29B	-1.26B	294.64M	6.76M

DARWIN PRECISIONS Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6120 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3622	72Outperform	TWD 6.11B	7.91	―	7.97%	7.76%	5.37%
TW:3441	61Neutral	TWD 7.01B	75.92	―	0.47%	26.87%	117.51%
TW:7728	60Neutral	TWD 6.94B	80.88	―	0.96%	10.53%	12.26%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6120	47Neutral	TWD 6.68B	8.77	―	12.09%	-6.71%	426.59%
TW:3504	46Neutral	TWD 6.38B	1375.00	―	―	6.51%	-89.54%
TW:6168	41Neutral	TWD 6.21B	102.86	―	―	7.81%	17188.89%

* General Sector Average

Performance Comparison

TW:6120 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6120	DARWIN PRECISIONS Corporation	11.25	0.09	0.80%
TW:3441	Unique Opto-Electronics Co.,Ltd	179.00	146.71	454.37%
TW:3504	Young Optics Inc.	57.00	5.00	9.62%
TW:3622	Young Fast Optoelectronics Co., Ltd	40.15	-23.59	-37.01%
TW:6168	Harvatek Corporation	31.35	11.35	56.75%
TW:7728	Enli Technology Co Ltd	512.00	198.42	63.27%

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 09, 2026

DARWIN PRECISIONS Corporation AI Stock Analysis