LEATEC Fine Ceramics Co., Ltd. (6127) AI Stock Analysis

LEATEC Fine Ceramics Co., Ltd.

(TPEx:6127)

Select Model

Rating:38Underperform

Price Target:TWD 42.00▼(-16.17% Downside)

Action:initiatedcoverage

Date:11/10/26

Weak financial performance from margin erosion, high leverage, and cash burn is the dominant factor; unattractive valuation due to negative earnings and bearish technical signals with price below moving averages further pressure the score.

Positive Factors

Specialized Ceramic MaterialsLEATEC operates in a specialized materials niche serving demanding precision and temperature applications across electronics and industrial uses. This technical focus can support customer relevance and create a foundation for durable demand if its products remain qualified in these applications.

Negative Factors

Revenue VolatilityThe sharp 2025 revenue contraction following earlier growth indicates that demand and business momentum remain unstable. Such volatility makes capacity planning and fixed-cost absorption more difficult, while reducing confidence that recent operating performance can be sustained through the next several quarters.

LEATEC Fine Ceramics Co., Ltd. (6127) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.24B
Dividend Yield: ―
Average Volume (3M): 5.99M
Price to Earnings (P/E): -59.2
Beta (1Y): 1.22
Revenue Growth: -6.78%
EPS Growth: -843.88%
Country: TW
Employees: 150
Sector: General
Sector Strength: 55
Industry: Semiconductors

LEATEC Fine Ceramics Co., Ltd. Business Overview & Revenue Model

Company Description

Based in Taiwan, LEATEC Fine Ceramics Co., Ltd. specializes in the manufacturing and distribution of chip alumina fine ceramic substrates. The company's development initiatives encompass specialized substrates tailored for high-voltage, variable, and...

LEATEC Fine Ceramics Co., Ltd. Financial Statement Overview

Summary

Revenue declined 40.7% with gross margins compressed to 12.7%, high debt-to-equity near 1.8, low and volatile ROE, and persistently negative operating and free cash flows signal major operational and liquidity risks.

Income Statement

42Neutral

Balance Sheet

29Negative

Cash Flow

16Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	980.55M	992.14M	1.00B	824.03M	783.51M	1.03B
Gross Profit	62.65M	125.85M	154.81M	123.34M	168.98M	322.16M
EBITDA	-288.77M	-66.09M	108.36M	261.63M	140.76M	245.89M
Net Income	-89.40M	51.00M	-69.30M	61.36M	-33.48M	50.83M
Balance Sheet
Total Assets	3.58B	3.55B	3.51B	3.28B	3.44B	3.20B
Cash, Cash Equivalents and Short-Term Investments	544.66M	593.14M	408.68M	400.21M	525.64M	352.67M
Total Debt	2.12B	2.08B	2.02B	1.71B	1.59B	1.72B
Total Liabilities	2.44B	2.37B	2.38B	2.10B	2.31B	2.05B
Stockholders Equity	1.14B	1.18B	1.13B	1.18B	1.14B	1.15B
Cash Flow
Free Cash Flow	-164.13M	-278.93M	-226.52M	-421.15M	-249.41M	-112.39M
Operating Cash Flow	-67.45M	-148.26M	-52.09M	-262.94M	-28.36M	78.14M
Investing Cash Flow	-61.33M	88.10M	-220.28M	114.23M	214.51M	-207.17M
Financing Cash Flow	48.53M	54.32M	242.03M	139.62M	-133.51M	-31.14M

LEATEC Fine Ceramics Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6127 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6155	50Neutral	TWD 5.11B	41.31	―	1.34%	21.25%	186.54%
TW:6224	45Neutral	TWD 5.15B	50.58	―	2.07%	-8.16%	-47.96%
TW:4939	42Neutral	TWD 5.97B	74.65	―	0.39%	11.17%	―
TW:6124	42Neutral	TWD 4.52B	174.84	―	―	-10.02%	―
TW:6127	38Underperform	TWD 5.14B	-59.17	―	―	-6.78%	-843.88%

* General Sector Average

Performance Comparison

TW:6127 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6127	LEATEC Fine Ceramics Co., Ltd.	50.10	20.90	71.58%
TW:3585	Advance Materials Corporation	48.30	35.05	264.53%
TW:4939	Asia Electronic Material Co., Ltd.	63.40	38.42	153.78%
TW:6124	Yeh-Chiang Technology Corp.	24.60	0.00	0.00%
TW:6155	King Core Electronics Inc.	59.60	22.54	60.84%
TW:6224	Polytronics Technology Corp.	60.30	15.69	35.17%

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

LEATEC Fine Ceramics Co., Ltd. AI Stock Analysis