Gamesparcs Co., Ltd. (6542) AI Stock Analysis

Gamesparcs Co., Ltd.

(TPEx:6542)

Select Model

Rating:40Underperform

Price Target:TWD 31.00▼(-1.27% Downside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 40 reflects a high-risk profile. The most significant factor is the severe operational deterioration, with profitability collapsing and cash flows turning negative, which heavily drags down the financial performance score. Technicals reinforce this weakness with strong bearish momentum across all indicators. The company's only meaningful support comes from its fortress-like balance sheet, which buys time, and a high dividend yield, though the latter is at risk given cash burn. Without a rapid operational turnaround, further downside is likely.

Positive Factors

Low LeverageConservative financing gives Gamesparcs meaningful financial flexibility and reduces exposure to interest expense or refinancing pressure. A strong equity base can help the company sustain development investment, absorb operating volatility, and pursue opportunities without relying heavily on additional borrowing.

Negative Factors

Profitability CollapseThe sharp earnings compression shows that strong gross margins are not currently translating into durable operating profits. Near-breakeven performance leaves limited protection against further execution setbacks and reduces internal funding available for game development, marketing, and platform investment.

Gamesparcs Co., Ltd. (6542) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.34B
Dividend Yield: 0.07%
Average Volume (3M): 8,184
Price to Earnings (P/E): 55.4
Beta (1Y): 0.52
Revenue Growth: 20.18%
EPS Growth: ―
Country: TW
Employees: 300
Sector: General
Sector Strength: 55
Industry: Electronic Gaming & Multimedia

Gamesparcs Co., Ltd. Business Overview & Revenue Model

Company Description

Gamesparcs Co.,Ltd. specializes in the comprehensive lifecycle of games, from their initial design and development through to their ongoing operation and the licensing of their intellectual property. The company further extends its activities to incl...

Gamesparcs Co., Ltd. Financial Statement Overview

Summary

Financial performance is deeply concerning. While the balance sheet is exceptionally strong with minimal debt, the income statement shows a collapse in profitability with net margin near zero, and operating cash flow has turned sharply negative. The pristine balance sheet prevents a lower score, but the severe operational deterioration is a major red flag.

Income Statement

18Very Negative

Balance Sheet

82Very Positive

Cash Flow

8Very Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	967.94M	884.01M	802.06M	774.45M	780.65M	735.95M
Gross Profit	754.04M	676.15M	642.93M	608.63M	606.26M	523.77M
EBITDA	21.36M	22.23M	127.77M	148.58M	155.13M	-165.01M
Net Income	18.35M	924.00K	85.46M	102.02M	98.84M	-163.58M
Balance Sheet
Total Assets	941.19M	996.51M	1.11B	1.01B	929.57M	882.84M
Cash, Cash Equivalents and Short-Term Investments	630.82M	688.66M	857.11M	780.08M	709.73M	631.67M
Total Debt	19.03M	14.72M	25.49M	13.43M	13.35M	43.32M
Total Liabilities	156.33M	172.85M	195.00M	154.00M	179.04M	250.76M
Stockholders Equity	704.97M	743.90M	825.24M	770.36M	665.30M	555.54M
Cash Flow
Free Cash Flow	15.39M	-53.91M	123.13M	84.69M	103.58M	-79.81M
Operating Cash Flow	34.44M	-47.32M	124.45M	85.02M	104.05M	-77.46M
Investing Cash Flow	1.21M	75.56M	-70.16M	-30.98M	76.65M	48.88M
Financing Cash Flow	-144.37M	-92.77M	-55.39M	-14.35M	-32.57M	-4.48M

Gamesparcs Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6542 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3687	56Neutral	TWD 1.55B	12.04	―	3.81%	10.56%	116.59%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6542	40Underperform	TWD 1.32B	55.36	―	0.07%	20.18%	―
TW:2926	40Underperform	TWD 1.41B	47.78	―	1.53%	3.89%	-34.95%

* General Sector Average

Performance Comparison

TW:6542 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6542	Gamesparcs Co., Ltd.	31.40	-12.33	-28.20%
TW:2926	Eslite Spectrum Corporation	30.10	-9.52	-24.03%
TW:3687	MacroWell OMG Digital Entertainment Co., Ltd.	52.50	-24.14	-31.50%
TW:6595	Juliens International Entertainment Group	29.40	-5.53	-15.84%
TW:6995	Beast Kingdom Co. Ltd.	49.80	-4.63	-8.51%
TW:8244	DIGITIMES Inc	51.00	-34.00	-40.00%

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

Gamesparcs Co., Ltd. AI Stock Analysis