Eclatorq Technology Co., Ltd. (6855) AI Stock Analysis

Eclatorq Technology Co., Ltd.

(TPEx:6855)

Select Model

Rating:68Neutral

Price Target:TWD 113.00▲(2.73% Upside)

Action:initiatedcoverage

Date:11/09/26

Eclatorq earns an above-average score driven primarily by high-quality financials: near-50% gross margins, ~29% net margins, 20% ROE, low leverage, and free cash flow equal to roughly a quarter of revenue. This is reinforced by an attractive valuation — a 10.4 P/E paired with a 5.31% dividend yield. The main drags are a stalled growth profile, with flat revenue, double-digit declines in net income and operating cash flow, and a near doubling of debt, alongside a weak technical picture where the stock trades below all key moving averages with negative MACD momentum. The result is a fundamentally sound, income-oriented holding currently facing growth and price-trend headwinds.

Positive Factors

High ProfitabilityExceptionally high gross and operating margins indicate strong earnings power and provide a substantial buffer against moderate cost or demand pressure. Their improvement over time, including gross margin rising from about 45% in 2020, supports durable profitability over the next several quarters.

Negative Factors

Revenue ContractionThe reversal from multi-year revenue expansion to a 2025 decline signals weaker growth momentum and may limit operating leverage if it persists. Slower sales growth can also make it harder to sustain the company’s historically high margins while continuing investment.

Eclatorq Technology Co., Ltd. (6855) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.56B
Dividend Yield: 5.00%
Average Volume (3M): 9,531
Price to Earnings (P/E): 11.1
Beta (1Y): 0.45
Revenue Growth: -11.74%
EPS Growth: 55.55%
Country: TW
Employees: 102
Sector: General
Sector Strength: 55
Industry: Manufacturing - Tools & Accessories

Eclatorq Technology Co., Ltd. Business Overview & Revenue Model

Company Description

Eclatorq Technology Co., Ltd., established in 2006 and headquartered in Taichung, Taiwan, specializes in the production and distribution of hand tools across the island nation. The company's comprehensive product line prominently features a range of...

Eclatorq Technology Co., Ltd. Financial Statement Overview

Summary

Eclatorq combines best-in-class profitability with a conservative balance sheet. Gross margin near 49.5%, net margin around 29%, and ROE of roughly 20% are well above typical levels for tools and accessories manufacturers, while equity funds about two-thirds of assets and debt-to-equity sits at a modest 0.39. Cash quality is strong, with free cash flow near 24% of revenue and minimal capital spending under NT$4 million. The offset is cooling momentum: revenue was essentially flat in the latest year after a 29% surge, net income fell about 15%, operating cash flow dropped roughly 29%, and total debt nearly doubled to NT$353 million as the asset base expanded — leverage is still low but worth monitoring until the new assets deliver returns.

Income Statement

74Positive

Balance Sheet

80Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	586.39M	626.23M	621.91M	480.06M	448.76M	444.33M
Gross Profit	283.84M	310.04M	306.89M	229.12M	208.65M	206.08M
EBITDA	281.16M	247.00M	285.23M	180.61M	130.26M	128.03M
Net Income	230.26M	182.54M	213.86M	133.04M	127.25M	96.28M
Balance Sheet
Total Assets	1.47B	1.39B	1.21B	1.05B	985.07M	582.58M
Cash, Cash Equivalents and Short-Term Investments	369.61M	275.56M	361.48M	316.60M	349.04M	234.35M
Total Debt	325.64M	352.75M	175.31M	196.37M	186.13M	388.00K
Total Liabilities	589.92M	475.37M	339.00M	320.72M	292.96M	100.25M
Stockholders Equity	883.26M	912.98M	869.92M	730.04M	692.12M	482.32M
Cash Flow
Free Cash Flow	180.18M	148.49M	210.78M	180.44M	50.75M	-10.38M
Operating Cash Flow	182.06M	152.26M	215.08M	183.19M	57.29M	-6.26M
Investing Cash Flow	-150.96M	-115.77M	-210.90M	-262.92M	-136.48M	-1.12M
Financing Cash Flow	-6.22M	37.48M	-94.84M	-86.92M	268.12M	27.39M

Eclatorq Technology Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6855 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6855	68Neutral	TWD 2.56B	11.10	―	5.00%	-11.74%	55.55%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2065	53Neutral	TWD 2.15B	9.26	―	4.42%	8.17%	259.31%
TW:4557	52Neutral	TWD 2.57B	-13.30	―	3.73%	-20.81%	-140.13%
TW:1586	45Neutral	TWD 2.19B	45.26	―	1.63%	4.79%	―
TW:3178	42Neutral	TWD 2.49B	62.49	―	0.91%	2.22%	6041.77%
TW:4545	40Underperform	TWD 2.68B	44.42	―	0.37%	1.97%	1277.45%

* General Sector Average

Performance Comparison

TW:6855 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6855	Eclatorq Technology Co., Ltd.	110.00	1.72	1.59%
TW:1586	China Fineblanking Technology Co., Ltd.	17.80	-9.44	-34.65%
TW:2065	Sheh Fung Screws Co., Ltd.	33.90	6.27	22.70%
TW:3178	Gongin Precision Industrial Co., Ltd.	55.20	3.90	7.60%
TW:4545	Min Aik Precision Industrial Co., Ltd.	34.75	-0.12	-0.34%
TW:4557	Yusin Holding Corp.	53.60	-11.94	-18.22%

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

Eclatorq Technology Co., Ltd. AI Stock Analysis