Proxene Tools Co., Ltd. (6904) AI Stock Analysis

Proxene Tools Co., Ltd.

(TPEx:6904)

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Rating:62Neutral

Price Target:TWD 121.00▼(-1.63% Downside)

Action:initiatedcoverage

Date:11/09/26

Proxene Tools scores in the moderate range. Financial fundamentals are the biggest driver: record free cash flow, strong cash conversion and a de-levered balance sheet provide a solid cushion, but two consecutive years of revenue decline and a sharp 2025 margin and profit contraction (net margin down to 11.7%, ROE to roughly 9.7%) weigh on the outlook. Valuation support is a positive, with a modest 15x P/E and a 4.37% dividend yield backed by cash generation. The main drag is technical: the stock trades below all key moving averages with negative MACD momentum, reflecting persistent selling pressure. A stabilization in sales and margin recovery would be the key catalysts for a higher score.

Positive Factors

Improving LeverageThe sustained reduction in leverage improves financial resilience and gives the company greater flexibility to fund operations, withstand weaker periods, and allocate capital. A stronger equity base relative to debt also reduces balance-sheet risk and supports stability over the next several quarters.

Negative Factors

Revenue and Margin PressureThe simultaneous revenue decline and sharp net-margin contraction point to weakened earnings momentum rather than isolated noise. If this deterioration continues, it could reduce reinvestment capacity, weaken returns on capital, and make future profit growth more dependent on recovery in demand or efficiency.

Proxene Tools Co., Ltd. (6904) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.36B
Dividend Yield: 4.07%
Average Volume (3M): 2,294
Price to Earnings (P/E): 16.8
Beta (1Y): 0.23
Revenue Growth: 3.45%
EPS Growth: 4.85%
Country: TW
Employees: 151
Sector: General
Sector Strength: 55
Industry: Manufacturing - Tools & Accessories

Proxene Tools Co., Ltd. Business Overview & Revenue Model

Company Description

Proxene Tools Co., Ltd., headquartered in Taichung, Taiwan, has been a producer and seller of a diverse range of adjustable wrenches since its establishment in 1984. In addition to supplying the Taiwanese market, the company also engages in the expor...

Proxene Tools Co., Ltd. Financial Statement Overview

Summary

A mixed profile. Cash flow is the standout strength (score 79): operating cash flow rose about 65% to roughly NT$283 million and free cash flow more than tripled to about NT$268 million, far exceeding net income. The balance sheet is solid (score 69), with debt-to-equity down from roughly 1.02x in 2020 to about 0.56x and equity funding around 59% of assets, though leverage ticked up in 2025 and ROE slid to about 9.7%. The weak link is the income statement (score 54): revenue has declined for two straight years to roughly NT$863 million, gross margin narrowed to 30.8%, operating margin fell to 19.1%, and net profit nearly halved to about NT$101 million. The company remains comfortably profitable and financially stable, but margin compression and shrinking sales cap the score.

Income Statement

54Neutral

Balance Sheet

69Positive

Cash Flow

79Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	892.42M	862.50M	889.65M	915.53M	904.42M	810.00M
Gross Profit	252.11M	265.36M	310.05M	315.45M	297.55M	232.12M
EBITDA	219.15M	203.27M	283.99M	259.88M	254.00M	176.01M
Net Income	140.78M	100.64M	193.70M	170.23M	180.83M	124.61M
Balance Sheet
Total Assets	1.78B	1.76B	1.75B	1.63B	1.36B	1.14B
Cash, Cash Equivalents and Short-Term Investments	458.62M	668.90M	461.32M	451.69M	213.67M	169.05M
Total Debt	402.08M	576.82M	476.06M	489.03M	510.65M	487.86M
Total Liabilities	768.09M	721.85M	660.07M	654.28M	698.15M	618.90M
Stockholders Equity	1.01B	1.03B	1.09B	974.29M	664.75M	520.32M
Cash Flow
Free Cash Flow	156.37M	268.23M	111.88M	125.38M	59.72M	7.00M
Operating Cash Flow	167.51M	283.31M	172.16M	205.88M	209.21M	103.04M
Investing Cash Flow	-57.31M	31.25M	-123.67M	-161.92M	-151.19M	-94.06M
Financing Cash Flow	-58.32M	-48.81M	-88.48M	111.44M	-14.15M	51.48M

Proxene Tools Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6904 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6904	62Neutral	TWD 2.28B	16.75	―	4.07%	3.45%	4.85%
TW:4535	58Neutral	TWD 1.96B	22.41	―	3.09%	-11.46%	-28.88%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2066	49Neutral	TWD 2.08B	13.04	―	4.51%	-2.41%	82.10%
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:4513	26Underperform	TWD 2.16B	-19.14	―	―	89.10%	―

* General Sector Average

Performance Comparison

TW:6904 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6904	Proxene Tools Co., Ltd.	123.00	0.04	0.03%
TW:1586	China Fineblanking Technology Co., Ltd.	17.80	-9.54	-34.88%
TW:2066	Sumeeko Industries Co., Ltd.	47.65	-0.88	-1.82%
TW:3178	Gongin Precision Industrial Co., Ltd.	55.20	5.00	9.96%
TW:4513	Falcon Machine Tools Co., Ltd.	15.00	-2.60	-14.77%
TW:4535	Fine Blanking & Tool Co., Ltd.	25.85	-1.47	-5.40%

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

Proxene Tools Co., Ltd. AI Stock Analysis