Waste Recovery Technology Inc (6894) AI Stock Analysis

Waste Recovery Technology Inc

(TPEx:6894)

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Rating:67Neutral

Price Target:TWD 353.00▲(1.73% Upside)

Action:initiatedcoverage

Date:11/09/26

Waste Recovery Technology earns an above-average score driven by excellent fundamentals: a virtually debt-free balance sheet, rapid revenue and profit growth, and strong margins, tempered by four straight years of margin compression and a sharp decline in operating and free cash flow despite higher earnings. The main drag is technicals — the stock sits below all key moving averages with negative MACD and oversold momentum readings, signalling a persistent downtrend. Valuation is supportive, with a moderate 21.2x P/E and a 2.6% dividend yield backed by a cash-rich, self-funding business. Earnings call and corporate event data were unavailable and excluded, with their weight redistributed to the remaining components.

Positive Factors

Strong Revenue GrowthSustained revenue expansion and renewed acceleration indicate growing scale and continued demand for the company’s waste treatment and resource recovery offerings. This growth can strengthen market position, support operating leverage, and provide a durable base for future earnings over the next several quarters.

Negative Factors

Weak Cash ConversionThe gap between reported profit and operating cash generation reduces near-term earnings quality and may constrain internally funded investment. If weak conversion persists, the company could have less flexibility for growth spending, shareholder returns, or absorbing unexpected operating requirements.

Waste Recovery Technology Inc (6894) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 8.31B
Dividend Yield: 2.45%
Average Volume (3M): 112.31K
Price to Earnings (P/E): 22.5
Beta (1Y): 0.94
Revenue Growth: 57.88%
EPS Growth: 81.74%
Country: TW
Employees: 130
Sector: General
Sector Strength: 55
Industry: Industrial - Pollution & Treatment Controls

Waste Recovery Technology Inc Business Overview & Revenue Model

Company Description

Waste Recovery Technology Inc., established in 1990 and headquartered in Taichung, Taiwan, specializes in delivering advanced electrolytic recycling solutions. The company primarily serves Taiwan's printed circuit board (PCB) industry by enabling the...

Waste Recovery Technology Inc Financial Statement Overview

Summary

Fundamentals are the core strength. The balance sheet (91) is near pristine: effectively debt-free with only NT$3.1M of debt against NT$1.58B of equity, equity funding ~74% of assets, and ROE improving to 16.6%. The income statement (82) shows powerful growth — revenue up ~41% in the latest year to NT$1.38B with net income up ~29% to NT$262M and healthy 36.5% gross / 26.9% operating margins — though gross margin has compressed every year since 2021 and net margin has fallen from 23.1% to 19.0%. Cash flow (62) is the weak link: operating cash flow dropped to NT$179M from NT$293M despite higher earnings (cash conversion of just ~0.68x), and free cash flow fell to NT$80.5M as capex absorbed over half of operating cash. Overall, a fast-growing, self-funded business with fortress-like safety, offset by margin erosion and deteriorating cash conversion.

Income Statement

82Very Positive

Balance Sheet

91Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	1.82B	1.38B	980.18M	775.78M	807.28M	716.54M
Gross Profit	675.31M	503.17M	370.69M	304.65M	327.00M	302.39M
EBITDA	600.08M	451.29M	359.43M	293.29M	310.39M	282.10M
Net Income	375.13M	261.50M	202.40M	162.85M	186.48M	163.95M
Balance Sheet
Total Assets	3.37B	2.12B	2.01B	1.78B	1.27B	1.07B
Cash, Cash Equivalents and Short-Term Investments	910.94M	794.42M	919.79M	999.07M	681.67M	366.68M
Total Debt	552.06M	3.10M	6.91M	2.36M	3.52M	4.66M
Total Liabilities	1.36B	494.42M	489.60M	326.82M	262.57M	283.21M
Stockholders Equity	1.65B	1.58B	1.47B	1.41B	962.19M	749.23M
Cash Flow
Free Cash Flow	122.20M	80.53M	148.03M	58.90M	256.28M	111.88M
Operating Cash Flow	346.12M	178.97M	293.01M	124.93M	293.40M	207.30M
Investing Cash Flow	-223.03M	14.55M	-223.94M	-557.96M	15.82M	-156.72M
Financing Cash Flow	246.04M	-165.61M	-158.14M	283.37M	18.39M	-39.44M

Waste Recovery Technology Inc Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6894 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6894	67Neutral	TWD 8.26B	22.51	―	2.45%	57.88%	81.74%
TW:8473	64Neutral	TWD 6.98B	9.97	―	2.26%	31.21%	125.14%
TW:3402	61Neutral	TWD 8.01B	16.02	―	5.36%	17.22%	2.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1110	54Neutral	TWD 7.72B	21.65	―	2.21%	-17.31%	17.53%
TW:6873	42Neutral	TWD 7.04B	49.32	―	5.14%	-27.19%	-89.80%
TW:6869	39Underperform	TWD 8.02B	-7.15	―	3.44%	7.77%	-192.71%

* General Sector Average

Performance Comparison

TW:6894 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6894	Waste Recovery Technology Inc	347.00	134.93	63.62%
TW:1110	Southeast Cement Co. Ltd.	13.55	-3.23	-19.24%
TW:3402	Wholetech System Hitech Limited	112.00	-3.48	-3.01%
TW:6869	J&V Energy Technology Co.Ltd.	58.20	-34.69	-37.34%
TW:6873	HD Renewable Energy Co., Ltd.	49.35	-51.28	-50.96%
TW:8473	Forest Water Environmental Engineering Co., Ltd.	34.60	1.85	5.66%

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

Waste Recovery Technology Inc AI Stock Analysis