Waffer Technology Corp. (6235) AI Stock Analysis

Waffer Technology Corp.

(TWSE:6235)

Select Model

Rating:59Neutral

Price Target:TWD 31.00▲(2.31% Upside)

Action:initiatedcoverage

Date:11/09/26

Waffer Technology scores in the mid-range. Financial fundamentals are the largest driver and are mixed-to-decent: strong multi-year revenue growth, improving operating cash flow and a first positive free cash flow in three years, supported by moderate leverage — but two consecutive years of margin compression, flat-to-lower earnings and a sharply lower return on equity signal that the heavy investment cycle has yet to pay off. The score is held back most by weak technicals, with the price trading far below all key moving averages and negative MACD confirming a sustained downtrend, though the very low RSI and Stochastic readings indicate the stock is heavily oversold. Valuation offers some offset, with a reasonable P/E near 19 and an attractive 4.1% dividend yield. The investment case rests on whether new capacity begins to restore margins and returns.

Positive Factors

Revenue GrowthStrong multi-year revenue expansion indicates that Waffer has materially increased its business scale and maintained demand growth over time. The 2025 re-acceleration provides support for continued operating leverage and reinforces the company’s ability to build a larger revenue base.

Negative Factors

Margin CompressionProfitability remains positive, but the decline from earlier gross and net margin peaks indicates reduced earnings quality or operating leverage. If this compression persists, revenue growth may translate into slower profit growth and limit the company’s ability to compound returns at prior rates.

Waffer Technology Corp. (6235) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 6.07B
Dividend Yield: 3.96%
Average Volume (3M): 365.51K
Price to Earnings (P/E): 19.1
Beta (1Y): 0.98
Revenue Growth: 8.61%
EPS Growth: -55.59%
Country: TW
Employees: 1,267
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

Waffer Technology Corp. Business Overview & Revenue Model

Company Description

Waffer Technology Corporation specializes in the production and distribution of lightweight metal components. The company provides comprehensive, vertically integrated OEM/ODM processing services, encompassing everything from light-metal solutions ut...

Waffer Technology Corp. Financial Statement Overview

Summary

Blending the Income Statement (62), Balance Sheet (71) and Cash Flow (68) scores gives a moderately solid profile. Revenue has more than tripled since 2020 and operating cash flow rose ~41% to NT$1.35 billion, with free cash flow turning positive (NT$395 million) after two years of burn. Leverage is moderate (debt-to-equity 0.40) with equity funding roughly 48% of assets. Offsetting this, margins have compressed for two straight years (gross 31.1%→26.2%, operating 18.2%→9.7%), net income slipped to NT$580 million despite higher sales, growth has slowed to ~8.7%, and ROE has nearly halved to 11.6% as the asset base outgrew profits. Heavy capex still absorbs ~70% of operating cash flow.

Income Statement

62Positive

Balance Sheet

71Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.72B	6.63B	5.83B	5.77B	4.16B	2.82B
Gross Profit	1.67B	1.73B	1.64B	1.80B	1.14B	733.72M
EBITDA	985.71M	1.20B	1.30B	1.45B	700.88M	473.17M
Net Income	322.06M	579.84M	593.71M	802.56M	323.04M	164.74M
Balance Sheet
Total Assets	10.53B	10.34B	9.60B	8.29B	6.08B	5.13B
Cash, Cash Equivalents and Short-Term Investments	895.18M	1.05B	882.00M	774.56M	853.64M	629.22M
Total Debt	2.36B	1.99B	2.00B	1.53B	710.77M	1.09B
Total Liabilities	5.50B	5.16B	4.84B	4.32B	2.77B	2.66B
Stockholders Equity	5.03B	4.99B	4.76B	3.96B	3.31B	2.47B
Cash Flow
Free Cash Flow	426.47M	394.92M	-423.59M	-902.76M	214.43M	-391.11M
Operating Cash Flow	991.56M	1.35B	958.08M	940.97M	685.97M	298.45M
Investing Cash Flow	-481.40M	-883.03M	-1.27B	-1.83B	-450.28M	-636.25M
Financing Cash Flow	-557.60M	-227.46M	383.50M	716.35M	-36.25M	102.75M

Waffer Technology Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6235 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3679	67Neutral	TWD 6.62B	9.64	―	8.57%	-5.36%	-3.19%
TW:6235	59Neutral	TWD 6.02B	19.11	―	3.96%	8.61%	-55.59%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2387	54Neutral	TWD 5.78B	17.77	―	13.40%	-15.69%	-67.38%
TW:6120	47Neutral	TWD 6.68B	8.77	―	12.09%	-6.71%	426.59%
TW:4912	45Neutral	TWD 5.74B	28.57	―	2.38%	31.01%	2.35%
TW:2236	36Underperform	TWD 5.90B	-12.86	―	0.33%	88.01%	-191.43%

* General Sector Average

Performance Comparison

TW:6235 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6235	Waffer Technology Corp.	30.30	-37.01	-54.99%
TW:2236	Patec Precision Industry Co., Ltd.	92.70	7.57	8.90%
TW:2387	Sunrex Technology Corporation	29.85	-7.24	-19.53%
TW:3679	Nishoku Technology Inc.	105.00	-2.08	-1.95%
TW:4912	Lemtech Holdings Co., Limited	88.50	4.75	5.68%
TW:6120	DARWIN PRECISIONS Corporation	11.25	0.09	0.80%

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

Waffer Technology Corp. AI Stock Analysis