Trio Technology International Group Co., Ltd. (6862) AI Stock Analysis

Trio Technology International Group Co., Ltd.

(TWSE:6862)

Select Model

Rating:58Neutral

Price Target:TWD 114.00▼(-4.20% Downside)

Action:initiatedcoverage

Date:11/09/26

Trio Technology earns a middling score. Fundamentals remain the anchor: low leverage, strong operating cash conversion and still-healthy margins keep the financial profile solid, but stalled revenue, three straight years of margin compression, a 20% drop in earnings, halved return on equity and two consecutive years of negative free cash flow temper the picture. The technical backdrop is the biggest drag — the price sits far below all major moving averages with negative MACD, signalling a sustained downtrend despite deeply oversold readings. Partially offsetting this, the reasonable 16.8x P/E and 4.55% dividend yield provide valuation and income support, leaving the stock as a cyclical turnaround candidate that needs its expanded capacity to translate into renewed growth.

Positive Factors

Strong ProfitabilityA gross margin near 40% and solid operating profitability indicate that the company retains meaningful economics in its core business. This provides a foundation for absorbing moderate cost pressure, funding operations, and preserving competitive flexibility over the next several quarters.

Negative Factors

Negative Free Cash FlowSustained and worsening negative free cash flow limits the cash available for reinvestment, debt reduction, dividends, or other shareholder uses. It also suggests that investment or working-capital demands are absorbing operating cash, constraining financial flexibility despite reported earnings.

Trio Technology International Group Co., Ltd. (6862) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 5.97B
Dividend Yield: 4.20%
Average Volume (3M): 167.50K
Price to Earnings (P/E): 17.9
Beta (1Y): 1.75
Revenue Growth: -21.21%
EPS Growth: -20.47%
Country: TW
Employees: 565
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Trio Technology International Group Co., Ltd. Business Overview & Revenue Model

Company Description

Trio Technology International Group Co., Ltd. operates from Taiwan, specializing in the manufacturing and distribution of various inductive components. The company offers a broad range of power inductors, including both surface-mount (SMD) and throug...

Trio Technology International Group Co., Ltd. Financial Statement Overview

Summary

A profitable, conservatively financed business working through a heavy investment cycle. The balance sheet is the standout strength (score 74): equity funds roughly two-thirds of the NT$4.45bn asset base and debt-to-equity is just 0.23. The income statement (63) shows healthy but fading quality — revenue was essentially flat (~+3%) after +38% in 2024, gross margin has compressed for three straight years to 40.2%, and net income fell about 20% to NT$414.5m. Cash flow is the weakest link (56): operating cash flow grew to NT$585.6m and covers net income 1.4x, but capex of ~NT$1.1bn pushed free cash flow to negative NT$511m for a second consecutive year, funded by a tripling of debt. Return on equity has slid from 39.4% in 2021 to 13.9%, so the case now rests on the new capacity delivering growth.

Income Statement

63Positive

Balance Sheet

74Positive

Cash Flow

56Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Sep 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.92B	2.27B	2.20B	1.59B	1.32B	1.52B
Gross Profit	676.47M	911.37M	915.07M	737.32M	579.36M	639.26M
EBITDA	592.19M	666.22M	814.87M	595.01M	523.83M	493.58M
Net Income	338.86M	414.51M	515.62M	392.34M	343.49M	323.75M
Balance Sheet
Total Assets	5.22B	4.45B	3.97B	2.78B	1.87B	1.69B
Cash, Cash Equivalents and Short-Term Investments	1.46B	833.20M	1.17B	867.79M	416.23M	278.45M
Total Debt	1.40B	689.39M	217.89M	701.18M	269.71M	240.54M
Total Liabilities	2.32B	1.47B	1.09B	1.31B	737.93M	865.00M
Stockholders Equity	2.90B	2.98B	2.89B	1.47B	1.14B	821.38M
Cash Flow
Free Cash Flow	-572.91M	-511.33M	-51.87M	145.77M	329.71M	175.80M
Operating Cash Flow	593.61M	585.61M	504.84M	387.31M	513.34M	293.96M
Investing Cash Flow	-1.28B	-1.06B	-477.61M	-461.03M	-189.78M	-108.78M
Financing Cash Flow	840.87M	159.27M	366.43M	301.65M	-190.16M	-103.27M

Trio Technology International Group Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6862 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6862	58Neutral	TWD 5.85B	17.95	―	4.20%	-21.21%	-20.47%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2413	51Neutral	TWD 5.84B	16.63	―	1.04%	7.73%	―
TW:6155	50Neutral	TWD 5.11B	41.31	―	1.34%	21.25%	186.54%
TW:4939	42Neutral	TWD 5.97B	74.65	―	0.39%	11.17%	―
TW:5392	41Neutral	TWD 5.71B	47.39	―	0.63%	-2.04%	―
TW:8121	40Underperform	TWD 5.09B	-274.63	―	―	19.70%	83.81%

* General Sector Average

Performance Comparison

TW:6862 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6862	Trio Technology International Group Co., Ltd.	119.00	-52.97	-30.80%
TW:2413	Universal Microelectronics Co., Ltd.	47.90	27.24	131.84%
TW:4939	Asia Electronic Material Co., Ltd.	63.40	37.37	143.59%
TW:5392	Abico Avy Co., Ltd.	31.90	-14.62	-31.43%
TW:6155	King Core Electronics Inc.	59.60	25.91	76.92%
TW:8121	ACME Electronics Corporation	24.15	-5.00	-17.15%

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

Trio Technology International Group Co., Ltd. AI Stock Analysis