Taiwan Surface Mounting Technology Corp. (6278) AI Stock Analysis

Taiwan Surface Mounting Technology Corp.

(TWSE:6278)

Select Model

Rating:59Neutral

Price Target:TWD 189.00▼(-13.30% Downside)

Action:initiatedcoverage

Date:11/09/26

Taiwan Surface Mounting Technology scores moderately. Its main strength is a materially de-risked balance sheet — leverage cut to about 0.30 debt-to-equity, debt at roughly 1.3x EBITDA, and improving ROE of 13.5% — alongside a cyclical recovery in revenue, profits, and operating cash flow. These positives are tempered by structurally thin single-digit margins, revenue still well below the 2022 peak, and capital intensity that keeps free cash flow conversion modest and volatile. The biggest drag is technical: the shares trade sharply below their 20-, 50-, and 100-day moving averages with a negative MACD, signalling a clear downtrend, though deeply oversold RSI and stochastic readings suggest selling pressure may be nearing exhaustion. A reasonable 18.1x P/E and a 3.08% dividend yield provide valuation support and partially offset the weak momentum. Earnings call and corporate event components were excluded due to a lack of data, with their weight redistributed across the remaining factors.

Positive Factors

Revenue and EPS GrowthTTM revenue growth alongside faster EPS growth indicates the business is still expanding while translating sales into earnings. This combination can support reinvestment and strengthen operating resilience over the next several quarters, even if growth is moderate rather than rapid.

Negative Factors

Weak Free Cash Flow ConversionConverting only a limited portion of accounting profit into free cash flow reduces the earnings quality available for debt reduction, dividends, or reinvestment. The gap suggests higher reinvestment needs or working-capital volatility may continue to constrain financial flexibility.

Taiwan Surface Mounting Technology Corp. (6278) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 66.90B
Dividend Yield: 2.55%
Average Volume (3M): 11.67M
Price to Earnings (P/E): 21.0
Beta (1Y): 1.21
Revenue Growth: 5.43%
EPS Growth: 16.09%
Country: TW
Employees: 30,344
Sector: General
Sector Strength: 55
Industry: Semiconductors

Taiwan Surface Mounting Technology Corp. Business Overview & Revenue Model

Company Description

Taiwan Surface Mounting Technology Corp. engages in the design, processing, manufacturing, and trading of TFT-LCD panels, general electronic information products, and PCB surface mount packaging worldwide. The company provides digital camera and cell...

Taiwan Surface Mounting Technology Corp. Financial Statement Overview

Summary

Blending the Income Statement (63), Balance Sheet (71), and Cash Flow (62) scores yields a solid but unspectacular financial profile. The balance sheet is the standout: debt-to-equity has fallen to roughly 0.30 from 0.75 in 2021, borrowings sit at only about 1.3x EBITDA, and ROE has improved to 13.5% TTM. Earnings are in a cyclical recovery, with TTM revenue of about NT$52.3 billion (+5%) and net income of NT$3.14 billion, while operating cash flow of NT$5.47 billion covers net income roughly 1.7x, signalling good earnings quality. Offsetting these strengths are razor-thin margins (12.6% gross, 6.0% net) typical of assembly-oriented manufacturing, revenue still well below the 2022 peak of NT$68.5 billion, and heavy capital spending that absorbs about two-thirds of operating cash flow, leaving free cash flow conversion at just 36% of net income.

Income Statement

63Positive

Balance Sheet

71Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	52.33B	49.88B	45.29B	46.50B	68.45B	65.72B
Gross Profit	6.60B	6.39B	6.05B	5.28B	8.83B	8.10B
EBITDA	5.51B	5.36B	5.50B	5.43B	8.66B	6.62B
Net Income	3.14B	2.75B	2.91B	2.51B	4.04B	3.71B
Balance Sheet
Total Assets	57.01B	51.65B	52.12B	48.63B	55.17B	55.45B
Cash, Cash Equivalents and Short-Term Investments	16.23B	16.80B	17.23B	17.41B	16.18B	9.82B
Total Debt	7.24B	7.05B	7.31B	7.58B	9.16B	11.85B
Total Liabilities	32.78B	28.66B	29.51B	28.79B	35.54B	39.60B
Stockholders Equity	24.21B	22.97B	22.59B	19.82B	19.62B	15.86B
Cash Flow
Free Cash Flow	1.97B	1.59B	786.03M	4.49B	8.21B	-2.38B
Operating Cash Flow	5.47B	4.82B	3.13B	6.35B	10.52B	3.94B
Investing Cash Flow	-2.45B	-1.67B	680.83M	-7.47B	-3.51B	-6.18B
Financing Cash Flow	-3.52B	-1.89B	-1.89B	-3.53B	-4.78B	3.15B

Taiwan Surface Mounting Technology Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6278 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3596	66Neutral	TWD 29.87B	10.47	―	6.57%	4.32%	5.74%
TW:2385	64Neutral	TWD 63.95B	9.80	―	8.20%	-8.44%	-23.86%
TW:6191	63Neutral	TWD 41.64B	14.41	―	3.11%	38.15%	-5.47%
TW:6278	59Neutral	TWD 63.74B	20.97	―	2.55%	5.43%	16.09%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6282	49Neutral	TWD 30.18B	28.90	―	2.27%	24.20%	―
TW:2352	44Neutral	TWD 47.26B	30.20	―	10.69%	1.60%	19.60%

* General Sector Average

Performance Comparison

TW:6278 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6278	Taiwan Surface Mounting Technology Corp.	218.00	116.41	114.58%
TW:2352	Qisda Corporation	29.90	2.63	9.64%
TW:2385	Chicony Electronics Co. Ltd.	87.80	-32.71	-27.15%
TW:3596	Arcadyan Technology Corporation	137.00	-42.42	-23.64%
TW:6191	Global Brands Manufacture Limited	83.70	-35.78	-29.95%
TW:6282	AcBel Polytech Inc.	35.25	-5.95	-14.44%

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

Taiwan Surface Mounting Technology Corp. AI Stock Analysis