Kenmec Mechanical Engineering Co., Ltd. AI Stock Analysis
Kenmec Mechanical Engineering Co., Ltd. (6125) AI Stock Analysis
Kenmec Mechanical Engineering Co., Ltd.
(TPEx:6125)
The score is held down primarily by weak fundamentals: persistent operating losses, three consecutive years of gross margin compression, negative free cash flow and an ROE of just 0.6%, despite a welcome revenue rebound, positive operating cash flow and modest deleveraging. Technicals reinforce the caution, with the price well below all major moving averages and a strongly negative MACD, although extremely oversold RSI and Stochastic readings leave room for a relief bounce. Valuation adds little support, as the 271x P/E reflects minimal earnings power and the 1.35% yield is thin relative to the cash burn. This remains a turnaround story with improving momentum but unproven earnings quality and a limited financial cushion.
Kenmec Mechanical Engineering Co., Ltd. (6125) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 10.24B
- Dividend Yield
- 1.26%
- Average Volume (3M)
- 929.88K
- Price to Earnings (P/E)
- 271.4
- Beta (1Y)
- 1.16
- Revenue Growth
- 28.63%
- EPS Growth
- 8.01%
- Country
- TW
- Employees
- 994
- Sector
- General
- Sector Strength
- 55
- Industry
- Industrial - Machinery
Kenmec Mechanical Engineering Co., Ltd. Business Overview & Revenue Model
Company Description
Kenmec Mechanical Engineering Co., Ltd., a Taiwan-based firm, specializes in providing a wide array of engineering solutions and industrial equipment. Their product portfolio features advanced automation systems, including cutting-edge robotics and a...
Kenmec Mechanical Engineering Co., Ltd. Financial Statement Overview
Summary
Kenmec is a fragile early-stage turnaround. Revenue rebounded about 24% to NT$3.34bn after a 51% collapse in 2024, and the company returned to a small NT$26m profit, but gross margin has compressed for three straight years to 14.7% and the core business still posted an operating loss near NT$449m (-13.5% margin), implying profit was driven by non-operating items. The balance sheet is adequate — debt was cut to NT$3.33bn and debt-to-equity improved to 0.75 — yet equity funds under 40% of assets and ROE is a negligible 0.6%. Operating cash flow turned positive at NT$279m, but free cash flow stayed negative for a third consecutive year and covers little of the debt load.
Income Statement
33NegativeBalance Sheet
50NeutralCash Flow
42Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.86B | 3.34B | 2.70B | 5.55B | 5.36B | 4.04B |
| Gross Profit | 752.75M | 491.73M | 476.64M | 1.15B | 998.08M | 168.78M |
| EBITDA | -79.92M | -143.05M | -156.43M | 1.22B | 841.84M | -450.45M |
| Net Income | -19.02M | 26.18M | -143.23M | 796.00M | 470.07M | -287.36M |
Balance Sheet | ||||||
| Total Assets | 12.44B | 11.76B | 11.91B | 11.66B | 11.09B | 10.50B |
| Cash, Cash Equivalents and Short-Term Investments | 3.21B | 2.66B | 2.83B | 2.37B | 2.99B | 2.29B |
| Total Debt | 3.50B | 3.33B | 3.81B | 3.66B | 1.70B | 1.84B |
| Total Liabilities | 5.76B | 5.97B | 6.08B | 5.88B | 5.58B | 5.77B |
| Stockholders Equity | 4.66B | 4.43B | 4.55B | 4.01B | 3.61B | 3.38B |
Cash Flow | ||||||
| Free Cash Flow | -363.18M | -63.14M | -458.23M | -3.02B | 945.84M | 344.24M |
| Operating Cash Flow | -87.81M | 278.56M | -196.86M | -858.68M | 1.22B | 1.53B |
| Investing Cash Flow | 850.61M | -389.50M | 143.15M | -1.10B | -570.10M | -982.77M |
| Financing Cash Flow | -113.99M | -299.07M | 731.55M | 1.56B | 129.49M | -424.73M |
Kenmec Mechanical Engineering Co., Ltd. Peers Comparison
Overall Rating
TW:528460Neutral
TW:643852Neutral
TW:159744Neutral- TW:612540Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:5284 | 60Neutral | TWD 12.88B | 13.81 | ― | 2.13% | 41.38% | 58.01% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:6438 | 52Neutral | TWD 11.34B | 24.48 | ― | 3.57% | 18.41% | -25.67% |
| TW:1597 | 44Neutral | TWD 10.08B | 51.54 | ― | 0.60% | 43.45% | 186.00% |
| TW:6125 | 40Underperform | TWD 10.21B | 271.43 | ― | 1.26% | 28.63% | 8.01% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:6125 | Kenmec Mechanical Engineering Co., Ltd. | 39.80 | -24.74 | -38.33% | |
| TW:1597 | Chieftek Precision Co., Ltd. | 117.00 | 42.99 | 58.08% | |
| TW:4537 | Shuz Tung Machinery Industrial Co., Ltd. | 129.00 | 89.86 | 229.60% | |
| TW:5284 | JPP Holding Co., Ltd. | 231.50 | -63.50 | -21.53% | |
| TW:6438 | Symtek Automation Asia Co., Ltd. | 140.00 | 9.14 | 6.99% | |
| TW:7815 | Sync-Tech System Corp. | 315.00 | 166.93 | 112.73% |
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