Baso Precision Optics Ltd. (6517) AI Stock Analysis

Baso Precision Optics Ltd.

(TPEx:6517)

Select Model

Rating:45Neutral

Price Target:TWD 52.00▼(-5.80% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score is 45, reflecting a company with a strong balance sheet but significant operational headwinds. The most impactful factor is the deteriorating financial performance, marked by sharply declining margins and cash flow. This is compounded by a very weak technical picture, with the stock in a clear downtrend and showing strong bearish momentum. The valuation is not compelling enough to offset these negatives, as the P/E remains elevated relative to the company's declining earnings trajectory.

Positive Factors

Very Low LeverageExtremely low leverage reduces refinancing and interest-burden risk while preserving financial flexibility. This conservative capital structure gives Baso greater capacity to withstand weaker operating conditions and potentially support investment or shareholder returns without relying heavily on new debt.

Negative Factors

Limited Revenue GrowthA flat-to-declining revenue trend limits operating leverage and makes sustained earnings expansion more difficult. The modest 2025 rebound has not yet demonstrated a durable growth trajectory, leaving the company more dependent on margin recovery and execution to improve its medium-term performance.

Baso Precision Optics Ltd. (6517) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.77B
Dividend Yield: 2.72%
Average Volume (3M): 956.25K
Price to Earnings (P/E): 22.3
Beta (1Y): 0.80
Revenue Growth: -16.82%
EPS Growth: 31.08%
Country: TW
Employees: 256
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Baso Precision Optics Ltd. Business Overview & Revenue Model

Company Description

BASO Precision Optics Co., LTD., established in 1959 and headquartered in Taichung, Taiwan, operates as a global producer and distributor of optical lenses. Their high-precision optics find applications across a diverse range of industries, including...

Baso Precision Optics Ltd. Financial Statement Overview

Summary

Financial performance is weak, driven by a concerning downward trend in profitability. The Income Statement (Score 35) shows compressing margins and a halved net profit margin, while Cash Flow (Score 45) reflects declining free cash flow. These are partially offset by a fortress-like Balance Sheet (Score 85) with virtually no debt, but the overall earning power is deteriorating.

Income Statement

35Negative

Balance Sheet

85Very Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	443.93M	490.32M	498.96M	513.67M	551.34M	438.47M
Gross Profit	155.20M	161.42M	201.04M	219.07M	205.13M	124.04M
EBITDA	87.88M	110.10M	164.77M	165.77M	149.25M	90.38M
Net Income	76.89M	49.73M	112.11M	118.71M	106.74M	60.88M
Balance Sheet
Total Assets	820.73M	778.25M	784.10M	723.67M	671.50M	439.29M
Cash, Cash Equivalents and Short-Term Investments	495.71M	441.55M	426.19M	404.16M	369.63M	153.68M
Total Debt	5.20M	4.00M	3.77M	4.63M	4.61M	11.45M
Total Liabilities	161.67M	107.33M	117.73M	126.10M	155.76M	130.30M
Stockholders Equity	659.06M	670.91M	666.37M	597.57M	515.74M	308.99M
Cash Flow
Free Cash Flow	126.80M	62.14M	68.29M	69.26M	136.21M	46.67M
Operating Cash Flow	133.20M	75.31M	116.26M	144.06M	158.85M	63.67M
Investing Cash Flow	-14.04M	48.29M	122.42M	-281.80M	-20.37M	-26.88M
Financing Cash Flow	-47.30M	-46.77M	-47.31M	-38.59M	82.76M	-24.19M

Baso Precision Optics Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6517 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6527	73Outperform	TWD 1.86B	12.15	―	3.98%	-1.23%	10.20%
TW:6556	68Neutral	TWD 1.75B	7.77	―	5.71%	3.78%	33.16%
TW:3284	62Neutral	TWD 1.84B	7.08	―	2.92%	8.49%	51.70%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6597	55Neutral	TWD 1.85B	19.94	―	1.57%	-11.98%	-96.78%
TW:6517	45Neutral	TWD 1.71B	22.31	―	2.72%	-16.82%	31.08%

* General Sector Average

Performance Comparison

TW:6517 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6517	Baso Precision Optics Ltd.	55.20	-3.17	-5.43%
TW:3284	Top High Image Corp.	17.15	-5.36	-23.79%
TW:6527	Crystalvue Medical Co Ltd	72.90	-5.53	-7.05%
TW:6556	Topview Optronics Corp.	61.30	-4.59	-6.97%
TW:6597	Ecocera Optronics Co., Ltd.	63.80	-8.20	-11.39%
TW:7881	Eyecare Tech, Inc.	73.20	-35.89	-32.90%

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

Baso Precision Optics Ltd. AI Stock Analysis