Sports Gear Co., Ltd. (6768) AI Stock Analysis

Sports Gear Co., Ltd.

(TWSE:6768)

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Rating:60Neutral

Price Target:TWD 62.00▲(4.73% Upside)

Action:initiatedcoverage

Date:11/09/26

Sports Gear earns a moderate score. Financial fundamentals carry the most weight and are respectable: a materially de-levered balance sheet, record revenue and a rebound in operating cash flow give the company the flexibility to ride out industry cycles. However, margin compression across gross, operating and net lines, a 15% drop in net income despite higher sales, and persistently thin free cash flow due to heavy capital spending cap the upside. The technical picture is the biggest drag — the stock sits well below all major moving averages with negative MACD, reflecting a sustained downtrend, though oversold RSI and Stochastic readings suggest selling pressure may be nearing exhaustion. Offsetting this, valuation is compelling: a 12.3 P/E, an 8.7% dividend yield and low beta offer value and income appeal, provided the payout remains supported as capital spending moderates.

Positive Factors

Balance Sheet StrengthLow-to-moderate leverage and a sizable equity base provide financial flexibility as the company navigates uneven operating results. Manageable debt reduces balance-sheet strain and preserves capacity to fund operations or respond to changing business conditions over the next several quarters.

Negative Factors

Revenue ContractionRecent revenue weakness indicates that top-line expansion is not yet consistent, with declines interrupting stronger growth years. A choppy revenue trajectory can limit operating leverage, make planning more difficult, and constrain the company’s ability to sustain earnings growth over the coming quarters.

Sports Gear Co., Ltd. (6768) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 12.07B
Dividend Yield: 8.71%
Average Volume (3M): 308.85K
Price to Earnings (P/E): 12.1
Beta (1Y): 0.64
Revenue Growth: -1.95%
EPS Growth: -37.06%
Country: TW
Employees: 1,770
Sector: General
Sector Strength: 55
Industry: Apparel - Footwear & Accessories

Sports Gear Co., Ltd. Business Overview & Revenue Model

Company Description

Sports Gear Co., Ltd. engages in the production and sale of football boots, running shoes, and outdoor footwear in the Americas, Europe, China, Taiwan, rest of Asia, and internationally. The company was founded in 1992 and is based in Taichung, Taiwa...

Sports Gear Co., Ltd. Financial Statement Overview

Summary

A mixed but fundamentally sound picture. The balance sheet is the clear strength (score 76): total debt was cut to NT$3.10 billion from NT$4.47 billion, debt-to-equity fell to a conservative 0.21, and equity funds roughly 68% of assets, providing a genuine cushion against order cycles. The income statement (score 60) shows record revenue of NT$20.37 billion, up about 10%, but profitability moved the wrong way — gross margin fell to 19.0% from 20.7%, operating margin to 8.4% from 11.4%, and net income declined about 15% to NT$1.35 billion. Cash flow (score 58) improved, with operating cash flow rebounding to NT$1.98 billion and covering net income 1.5 times, yet heavy capital spending left free cash flow at just NT$225 million. Highly cyclical revenue and margins limit earnings visibility.

Income Statement

60Neutral

Balance Sheet

76Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.88B	20.37B	18.44B	14.21B	18.52B	12.34B
Gross Profit	3.36B	3.87B	3.82B	2.37B	4.28B	2.43B
EBITDA	1.94B	2.38B	2.77B	1.59B	3.19B	1.71B
Net Income	998.59M	1.35B	1.60B	544.99M	1.81B	647.30M
Balance Sheet
Total Assets	24.00B	21.98B	23.57B	19.93B	20.04B	16.48B
Cash, Cash Equivalents and Short-Term Investments	5.82B	5.37B	9.22B	8.32B	7.64B	7.22B
Total Debt	4.70B	3.10B	4.47B	3.47B	2.65B	1.91B
Total Liabilities	9.29B	6.95B	8.34B	6.33B	5.90B	4.42B
Stockholders Equity	14.71B	15.03B	15.24B	13.59B	14.15B	12.06B
Cash Flow
Free Cash Flow	-583.59M	224.68M	-81.76M	1.22B	-31.99M	1.47B
Operating Cash Flow	1.08B	1.98B	1.35B	2.28B	1.21B	2.21B
Investing Cash Flow	-1.88B	-2.00B	-1.69M	-1.70B	-1.91B	-1.05B
Financing Cash Flow	-569.23M	-2.02B	123.86M	-220.20M	-163.07M	203.45M

Sports Gear Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6768 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4536	67Neutral	TWD 13.71B	10.79	―	5.57%	-5.35%	-33.09%
TW:6768	60Neutral	TWD 11.99B	12.14	―	8.71%	-1.95%	-37.06%
TW:9802	59Neutral	TWD 12.52B	14.45	―	8.36%	10.74%	-42.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1569	48Neutral	TWD 13.70B	-28.45	―	―	-6.07%	33.08%
TW:1563	47Neutral	TWD 11.11B	36.03	―	7.64%	3.41%	-5.16%
TW:8937	39Underperform	TWD 10.58B	183.46	―	0.10%	655.50%	80.09%

* General Sector Average

Performance Comparison

TW:6768 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6768	Sports Gear Co., Ltd.	59.20	-53.61	-47.52%
TW:1563	SuperAlloy Industrial Co., Ltd.	67.60	12.72	23.18%
TW:1569	Bin Chuan Enterprise Co., Ltd.	104.50	44.60	74.46%
TW:4536	Topkey Corporation	143.50	-19.50	-11.96%
TW:8937	Her Chee Industrial Co., Ltd.	23.85	-15.65	-39.62%
TW:9802	Fulgent Sun International (Holding) Co., Ltd.	61.00	-42.69	-41.17%

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

Sports Gear Co., Ltd. AI Stock Analysis