GEM Services, Inc. AI Stock Analysis
GEM Services, Inc. (6525) AI Stock Analysis
GEM Services, Inc.
(TWSE:6525)
GEM Services earns a moderately above-average score driven primarily by its strong financial foundation: a virtually debt-free balance sheet, record 2025 revenue with margin expansion across all levels, and operating cash flow that comfortably exceeds reported profit. Valuation adds further support, with a modest 13.6x P/E and a high 5.28% dividend yield backed by positive free cash flow. The key offset is poor price action — the shares trade well below all major moving averages with a sharply negative MACD, and the deeply oversold RSI and Stochastic readings underline how severe the sell-off has been. Cyclicality remains the structural risk, with margins still below 2020-2021 highs and rising capex compressing free cash flow.
GEM Services, Inc. (6525) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 13.68B
- Dividend Yield
- 4.76%
- Average Volume (3M)
- 1.13M
- Price to Earnings (P/E)
- 13.4
- Beta (1Y)
- 1.14
- Revenue Growth
- 18.03%
- EPS Growth
- 32.50%
- Country
- TW
- Employees
- 1,200
- Sector
- General
- Sector Strength
- 55
- Industry
- Semiconductors
GEM Services, Inc. Business Overview & Revenue Model
Company Description
GEM Services, Inc. functions as a specialized contractor within the semiconductor sector, delivering comprehensive manufacturing solutions for power management semiconductors through its assembly and testing expertise. The company's service offerings...
GEM Services, Inc. Financial Statement Overview
Summary
GEM Services shows a solid financial profile. Income statement (74) reflects a convincing 2025 recovery with record revenue of NT$5.33bn (+14%), gross margin recovering to 26.0% and net income up ~14%, though margins remain below 2020-2021 peaks and revenue history is choppy. The balance sheet (86) is the standout strength: essentially debt-free with a debt-to-equity ratio near 0.01, equity funding ~69% of assets, and ROE improving to 16.2%. Cash flow (76) is healthy, with operating cash flow of NT$1.30bn covering net income 1.7x and free cash flow positive at NT$881m, though FCF declined ~16% as capex stepped up. Overall, a fortress balance sheet and dependable cash generation offset the cyclicality inherent to the semiconductor industry.
Income Statement
74PositiveBalance Sheet
86Very PositiveCash Flow
76Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.73B | 5.33B | 4.67B | 4.42B | 5.22B | 4.76B |
| Gross Profit | 1.53B | 1.38B | 1.06B | 952.54M | 1.25B | 1.41B |
| EBITDA | 1.79B | 1.63B | 1.48B | 1.36B | 1.68B | 1.45B |
| Net Income | 927.42M | 758.64M | 664.20M | 566.09M | 930.32M | 857.99M |
Balance Sheet | ||||||
| Total Assets | 7.23B | 6.82B | 6.62B | 6.15B | 6.91B | 6.68B |
| Cash, Cash Equivalents and Short-Term Investments | 2.65B | 2.74B | 2.47B | 1.73B | 1.97B | 1.65B |
| Total Debt | 49.32M | 63.90M | 98.39M | 36.31M | 67.88M | 92.61M |
| Total Liabilities | 2.52B | 2.13B | 2.10B | 1.99B | 2.57B | 2.55B |
| Stockholders Equity | 4.71B | 4.69B | 4.52B | 4.16B | 4.34B | 4.13B |
Cash Flow | ||||||
| Free Cash Flow | 892.25M | 881.37M | 1.05B | 445.65M | 730.77M | -131.95M |
| Operating Cash Flow | 1.33B | 1.30B | 1.30B | 1.02B | 1.59B | 1.05B |
| Investing Cash Flow | -1.41B | -1.09B | -422.90M | -572.22M | -841.79M | -1.18B |
| Financing Cash Flow | -612.88M | -522.55M | -485.41M | -679.45M | -562.71M | -66.97M |
GEM Services, Inc. Peers Comparison
Overall Rating
- TW:652569Neutral
TW:544360Neutral
TW:358759Neutral
TW:233840Underperform
TW:305540Underperform
TW:621738Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:6525 | 69Neutral | TWD 13.55B | 13.38 | ― | 4.76% | 18.03% | 32.50% |
| TW:5443 | 60Neutral | TWD 14.48B | 27.69 | ― | 2.48% | 12.27% | 46.93% |
| TW:3587 | 59Neutral | TWD 13.84B | 27.88 | ― | 2.18% | -15.79% | 34.88% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:2338 | 40Underperform | TWD 12.68B | -29.73 | ― | ― | -15.28% | 82.42% |
| TW:3055 | 40Underperform | TWD 14.19B | -121.10 | ― | 0.38% | 3.62% | 56.40% |
| TW:6217 | 38Underperform | TWD 15.04B | -355.40 | ― | ― | 25.51% | 87.28% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:6525 | GEM Services, Inc. | 105.00 | 28.92 | 38.02% | |
| TW:2338 | Taiwan Mask Corp. | 38.35 | 1.91 | 5.24% | |
| TW:3055 | Spirox Corporation | 131.50 | 72.49 | 122.84% | |
| TW:3587 | Materials Analysis Technology Inc. | 193.00 | -3.12 | -1.59% | |
| TW:5443 | Gallant Precision Machining Co., Ltd. | 88.80 | 2.47 | 2.86% | |
| TW:6217 | C.C.P. Contact Probes Co., Ltd. | 129.50 | 76.10 | 142.51% |
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