GEM Services, Inc. (6525) AI Stock Analysis

GEM Services, Inc.

(TWSE:6525)

Select Model

Rating:70Outperform

Price Target:TWD 104.00▼(-1.42% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is supported primarily by strong financial performance and an attractive valuation. These strengths are offset by clearly bearish technical indicators and declining, volatile free cash flow.

Positive Factors

Conservative Balance SheetExtremely low leverage gives GEM Services substantial financial flexibility and limits interest burden during semiconductor downturns. The growing equity base and healthy returns indicate that profits are being generated without debt dependence, supporting resilience and internally funded investment.

Negative Factors

Cyclical Earnings VolatilityThe gap between current profitability and earlier peaks indicates that earnings remain exposed to semiconductor demand and pricing cycles. This volatility makes it harder to treat recent margins as a stable baseline and can create uneven earnings performance across the next several quarters.

GEM Services, Inc. (6525) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 13.68B
Dividend Yield: 4.74%
Average Volume (3M): 1.12M
Price to Earnings (P/E): 13.6
Beta (1Y): 1.16
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

Strong profitability and exceptional balance-sheet strength, supported by revenue and EBIT growth and very low leverage. The score is moderated by declining, historically volatile free cash flow and limited net-margin expansion.

Income Statement

86Very Positive

Balance Sheet

93Very Positive

Cash Flow

77Positive

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6525 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6525	70Outperform	TWD 13.55B	13.63	―	4.74%	18.03%	32.50%
TW:5443	60Neutral	TWD 14.48B	28.25	―	2.48%	12.27%	46.93%
TW:3587	59Neutral	TWD 13.84B	23.00	―	2.15%	-15.79%	34.88%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2338	40Underperform	TWD 12.68B	-30.27	―	―	-15.28%	82.42%
TW:3055	40Underperform	TWD 14.19B	-128.44	―	0.36%	3.62%	56.40%
TW:6217	38Underperform	TWD 15.04B	-363.51	―	―	25.51%	87.28%

* General Sector Average

Performance Comparison

TW:6525 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6525	GEM Services, Inc.	105.50	32.11	43.74%
TW:2338	Taiwan Mask Corp.	39.05	4.44	12.82%
TW:3055	Spirox Corporation	137.50	78.89	134.59%
TW:3587	Materials Analysis Technology Inc.	195.50	14.09	7.77%
TW:5443	Gallant Precision Machining Co., Ltd.	88.60	6.47	7.88%
TW:6217	C.C.P. Contact Probes Co., Ltd.	131.00	78.70	150.48%

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

GEM Services, Inc. AI Stock Analysis