Tera Autotech Corporation (6234) AI Stock Analysis

Tera Autotech Corporation

(TPEx:6234)

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Rating:40Underperform

Price Target:TWD 39.00▼(-27.91% Downside)

Action:initiatedcoverage

Date:11/09/26

Tera Autotech scores low primarily because of a severe operating downturn: revenue is roughly one-third of its 2022 peak, margins have compressed to near break-even, the company recorded an operating loss, and it is now burning cash after five consecutive years of positive free cash flow. Valuation compounds the concern, with a P/E of 43.6 and a minimal 0.61% dividend yield leaving little margin for error. Partially offsetting these risks is a conservative balance sheet — two-thirds equity-funded, stable 0.38 debt-to-equity and still EBITDA-positive — which buys management time to work through the cycle. Technicals are neutral: the shares hold above their 50-, 100- and 200-day averages, but a sharp drop below the 20-day average and subdued RSI/Stochastic readings signal weakening near-term momentum. A sustained recovery in revenue and operating cash flow is the key catalyst to watch.

Positive Factors

Stable Balance SheetModerate leverage and a sizable equity base provide financial resilience as the company navigates weaker operating results. This cushion can help absorb volatility, preserve funding flexibility, and reduce the risk that a temporary downturn immediately creates balance-sheet stress.

Negative Factors

Revenue ContractionRepeated annual revenue declines indicate weakening demand, reduced business activity, or adverse customer and product mix trends rather than a single isolated fluctuation. Continued contraction would limit operating leverage, reduce investment capacity, and make a sustained earnings recovery more difficult.

Tera Autotech Corporation (6234) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.42B
Dividend Yield: 0.46%
Average Volume (3M): 2.71M
Price to Earnings (P/E): 51.6
Beta (1Y): 1.19
Revenue Growth: -0.22%
EPS Growth: ―
Country: TW
Employees: 184
Sector: General
Sector Strength: 55
Industry: Manufacturing - Tools & Accessories

Tera Autotech Corporation Business Overview & Revenue Model

Company Description

Tera Autotech Corporation specializes in the complete lifecycle of industrial automation, from research and development and design to manufacturing, sales, and international trade, serving clients in both Taiwan and mainland China. The company's exte...

Tera Autotech Corporation Financial Statement Overview

Summary

A weak income statement (25) and deteriorating cash flow (23) dominate, only partially offset by a solid balance sheet (65). Revenue has fallen three years running — from NT$1.34bn in 2022 to NT$478m — with gross margin collapsing to 5.2% and an operating loss of NT$9.9m. Operating cash flow turned negative (-NT$28.4m) and free cash flow swung to -NT$43.5m after five straight positive years. The cushion is capital structure: equity funds roughly two-thirds of the NT$4.17bn asset base, debt-to-equity is a stable 0.38, and the business remains EBITDA-positive (NT$45.5m). Return on equity near 0.2% highlights a badly underutilized asset base.

Income Statement

25Negative

Balance Sheet

65Positive

Cash Flow

23Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	519.66M	478.26M	649.96M	1.07B	1.34B	1.24B
Gross Profit	30.39M	24.90M	107.74M	199.72M	222.66M	211.33M
EBITDA	89.93M	45.47M	207.10M	227.82M	278.19M	189.39M
Net Income	104.28M	4.96M	105.46M	127.76M	183.63M	124.95M
Balance Sheet
Total Assets	4.24B	4.17B	4.25B	4.25B	4.31B	4.01B
Cash, Cash Equivalents and Short-Term Investments	794.48M	1.81B	1.87B	1.86B	1.80B	1.36B
Total Debt	1.10B	1.06B	1.11B	1.09B	870.73M	832.17M
Total Liabilities	1.44B	1.39B	1.42B	1.48B	1.62B	1.43B
Stockholders Equity	2.81B	2.77B	2.83B	2.76B	2.69B	2.58B
Cash Flow
Free Cash Flow	69.66M	-43.46M	218.13M	230.72M	224.83M	173.99M
Operating Cash Flow	78.30M	-28.42M	231.71M	264.05M	260.24M	206.02M
Investing Cash Flow	-97.37M	7.13M	-208.13M	-63.41M	-100.55M	-74.00M
Financing Cash Flow	-176.31M	-102.93M	-35.52M	124.19M	-36.73M	-268.52M

Tera Autotech Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6234 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6577	73Outperform	TWD 4.70B	10.75	―	6.44%	3.66%	36.60%
TW:6983	63Neutral	TWD 4.34B	56.94	―	2.07%	―	―
TW:6922	58Neutral	TWD 5.00B	15.74	―	2.62%	34.63%	57.37%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:4569	54Neutral	TWD 4.24B	16.13	―	2.27%	12.32%	150.98%
TW:3594	49Neutral	TWD 3.85B	33.07	―	0.95%	30.92%	271.46%
TW:6234	40Underperform	TWD 4.94B	51.58	―	0.46%	-0.22%	―

* General Sector Average

Performance Comparison

TW:6234 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6234	Tera Autotech Corporation	54.10	31.81	142.69%
TW:3594	ARBOR Technology Corp.	41.90	1.37	3.38%
TW:4569	Sixxon Tech Co Ltd	143.00	-3.59	-2.45%
TW:6577	Promate Solutions Corp.	77.70	12.21	18.64%
TW:6922	Neousys Technology, Inc.	184.00	-7.40	-3.86%
TW:6983	HUA YANG Precision Machinery Co., Ltd.	241.00	113.78	89.43%

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

Tera Autotech Corporation AI Stock Analysis