Taiwan Steel Union Co., Ltd. (6581) AI Stock Analysis

Taiwan Steel Union Co., Ltd.

(TWSE:6581)

Select Model

Rating:76Outperform

Price Target:TWD 122.00▲(12.96% Upside)

Action:initiatedcoverage

Date:11/09/26

Taiwan Steel Union scores well on the strength of its financial profile: sector-leading margins, a nearly debt-free balance sheet, 20.6% ROE and operating cash flow that exceeds reported profits. Valuation adds to the appeal, with a 13.3 P/E and a 4.9% dividend yield. The score is held back by technicals, where price is drifting just below its short-term moving averages with weak momentum readings, and by the underlying business cyclicality — revenue and margins have swung sharply year to year, and uneven capital spending has compressed free cash flow conversion.

Positive Factors

High ProfitabilityVery strong gross, operating, and net margins indicate substantial earnings power relative to revenue. This profitability provides a durable buffer against operating pressure, supports internal reinvestment, and gives the company greater flexibility to sustain returns through changing steel and materials-market conditions.

Negative Factors

Uneven Revenue GrowthThe uneven top-line trajectory creates uncertainty about the durability of future earnings expansion, despite the company’s strong margins. Repeated periods of declining revenue can make operating performance more dependent on profitability levels rather than broad-based business growth.

Taiwan Steel Union Co., Ltd. (6581) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 12.13B
Dividend Yield: 4.91%
Average Volume (3M): 19.32K
Price to Earnings (P/E): 13.3
Beta (1Y): 0.28
Revenue Growth: 5.53%
EPS Growth: 19.55%
Country: TW
Employees: 86
Sector: General
Sector Strength: 55
Industry: Waste Management

Taiwan Steel Union Co., Ltd. Business Overview & Revenue Model

Company Description

Taiwan Steel Union Co., Ltd operates as a manufacturer and distributor of various non-ferrous metals, including zinc oxide, as well as non-metallic mineral products. Furthermore, the company offers extensive industrial waste management solutions thro...

Taiwan Steel Union Co., Ltd. Financial Statement Overview

Summary

Financials are a clear strength. TTM revenue of NT$2.47 billion rose 4.8% with exceptional margins (56.5% gross, 46.3% operating, 36.5% net) and net income rebounding to NT$904 million. The balance sheet is near debt-free (debt-to-equity 0.13) with equity of NT$4.61 billion and ROE of 20.6%, while operating cash flow of NT$1.25 billion comfortably exceeds earnings. Offsetting factors are pronounced revenue cyclicality (swinging from +42% to -22.6% in recent years) and lumpy capital spending that holds free cash flow conversion near 43% of net income.

Income Statement

81Very Positive

Balance Sheet

88Very Positive

Cash Flow

77Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.47B	2.21B	2.38B	2.04B	2.64B	1.85B
Gross Profit	1.40B	1.13B	1.27B	873.67M	1.51B	1.01B
EBITDA	1.43B	1.12B	1.25B	863.50M	1.41B	921.97M
Net Income	903.77M	686.75M	831.09M	504.62M	984.15M	564.87M
Balance Sheet
Total Assets	5.62B	5.42B	5.44B	4.55B	4.95B	4.41B
Cash, Cash Equivalents and Short-Term Investments	515.37M	677.95M	778.39M	683.49M	1.19B	746.21M
Total Debt	591.09M	519.79M	561.21M	0	195.00M	295.00M
Total Liabilities	1.02B	934.73M	969.24M	437.49M	621.12M	621.51M
Stockholders Equity	4.61B	4.49B	4.47B	4.11B	4.33B	3.79B
Cash Flow
Free Cash Flow	542.39M	623.84M	-2.71M	465.00M	998.29M	646.13M
Operating Cash Flow	1.25B	987.38M	1.06B	684.56M	1.21B	827.15M
Investing Cash Flow	-688.82M	-358.50M	-937.16M	2.22M	-630.03M	100.74M
Financing Cash Flow	-530.35M	-709.42M	78.15M	-920.71M	-535.30M	-1.21B

Taiwan Steel Union Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6581 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6581	76Outperform	TWD 12.07B	13.28	―	4.91%	5.53%	19.55%
TW:8936	64Neutral	TWD 10.12B	9.40	―	7.40%	27.31%	26.91%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2009	44Neutral	TWD 12.10B	33.24	―	1.18%	14.59%	476.02%
TW:8027	41Neutral	TWD 15.56B	468.75	―	―	38.03%	―

* General Sector Average

Performance Comparison

TW:6581 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6581	Taiwan Steel Union Co., Ltd.	108.00	4.18	4.03%
TW:2009	First Copper Technology Co., Ltd.	34.00	-8.33	-19.69%
TW:7792	AM-Power Machine International Enterprise Co Ltd	289.00	100.50	53.31%
TW:7934	ReTech Environmental Solutions Co., Ltd.	554.00	153.00	38.15%
TW:8027	E&R Engineering Corp.	149.00	57.10	62.13%
TW:8936	Kuo Toong International Co., Ltd.	40.55	-18.19	-30.97%

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 Steel Union Co., Ltd. AI Stock Analysis