Groundhog, Inc. (6906) AI Stock Analysis

Groundhog, Inc.

(TWSE:6906)

Select Model

Rating:61Neutral

Price Target:TWD 70.00▲(2.94% Upside)

Action:initiatedcoverage

Date:11/09/26

Groundhog scores in the middle of the range. Its greatest strength is financial resilience: a virtually debt-free balance sheet, gross margins above 80%, and free cash flow that converts nearly all reported earnings. However, the latest year marked a clear downturn — revenue declined for the first time since 2020, operating margin more than halved, net income fell roughly 49%, and return on equity dropped to 8.4%. Technicals compound the caution, with the price trading well below all major moving averages on negative MACD and deeply depressed oscillator readings. A P/E of 27.7 looks rich against shrinking earnings, though a 2.70% dividend yield backed by strong cash generation provides some support. The balance sheet can easily absorb a downturn, but evidence of revenue stabilization and margin recovery is needed before the outlook improves.

Positive Factors

Very Low LeverageVery low leverage reduces financial risk and preserves flexibility during operating weakness. A lightly indebted balance sheet should require less cash for interest and refinancing, allowing the company to protect liquidity and fund priorities internally.

Negative Factors

Revenue ContractionThe latest revenue decline signals weaker demand or reduced business activity, directly limiting the company’s ability to expand its earnings base. If contraction persists, fixed operating costs may be spread over less revenue and recovery in profitability could take longer.

Groundhog, Inc. (6906) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.20B
Dividend Yield: 2.65%
Average Volume (3M): 68.50K
Price to Earnings (P/E): 28.2
Beta (1Y): 0.88
Revenue Growth: -12.07%
EPS Growth: -20.92%
Country: TW
Employees: 137
Sector: General
Sector Strength: 55
Industry: Information Technology Services

Groundhog, Inc. Business Overview & Revenue Model

Company Description

Established in Taipei, Taiwan, in 2001, Groundhog Inc. is a leading provider of mobility intelligence solutions within the Taiwanese market. Its core activities include developing information software, offering data processing services, and supplying...

Groundhog, Inc. Financial Statement Overview

Summary

Groundhog combines an exceptionally clean balance sheet (Score 84) — effectively debt-free with a 0.02 debt-to-equity ratio and equity funding over 80% of assets — with high-quality cash conversion (Score 66), where free cash flow equals roughly 99% of net income and capex is negligible. Offsetting this, the income statement (Score 60) shows a clear inflection: revenue fell to NT$348.2M from a NT$393.8M peak, operating margin more than halved to 16.5%, net income dropped about 49%, free cash flow declined for a third straight year, and return on equity slid to 8.4% from a 21%+ peak. Gross margins above 80% and minimal financial risk provide a strong foundation, but weakening momentum and deteriorating capital efficiency cap the score.

Income Statement

60Neutral

Balance Sheet

84Very Positive

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	349.80M	348.18M	393.78M	371.19M	312.88M	283.65M
Gross Profit	297.07M	291.86M	332.29M	305.06M	255.03M	228.79M
EBITDA	75.82M	69.66M	162.38M	149.13M	150.66M	77.52M
Net Income	77.41M	61.24M	119.15M	109.88M	116.14M	42.57M
Balance Sheet
Total Assets	989.01M	898.56M	1.14B	676.16M	708.75M	587.08M
Cash, Cash Equivalents and Short-Term Investments	814.22M	661.62M	904.33M	500.27M	404.53M	401.55M
Total Debt	9.29M	14.78M	8.94M	19.48M	28.93M	39.10M
Total Liabilities	294.21M	170.49M	188.39M	155.94M	193.05M	173.66M
Stockholders Equity	694.80M	728.07M	954.09M	520.23M	515.69M	413.42M
Cash Flow
Free Cash Flow	199.55M	59.71M	102.12M	110.02M	125.49M	108.90M
Operating Cash Flow	200.70M	60.46M	102.44M	112.11M	125.66M	110.78M
Investing Cash Flow	-153.28M	5.64M	-42.40M	198.66M	-157.83M	64.22M
Financing Cash Flow	-118.42M	-299.68M	299.42M	-113.88M	-27.75M	-62.41M

Groundhog, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:6906 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6590	82Outperform	TWD 2.15B	19.62	―	3.06%	10.69%	-8.66%
TW:2471	80Outperform	TWD 2.57B	12.38	―	5.54%	9.46%	85.40%
TW:6925	77Outperform	TWD 1.99B	34.71	―	1.91%	11.97%	2.55%
TW:6906	61Neutral	TWD 2.26B	28.21	―	2.65%	-12.07%	-20.92%
TW:3521	56Neutral	TWD 2.08B	7.16	―	―	-90.52%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

TW:6906 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:6906	Groundhog, Inc.	68.00	-26.24	-27.84%
TW:2471	Ares International Corp.	59.80	12.42	26.22%
TW:3521	TSG Development Co., Ltd.	11.10	-0.90	-7.50%
TW:6590	Provision Information Co., Ltd.	79.60	15.25	23.70%
TW:6925	Eland Information Co., Ltd	104.50	2.50	2.45%
TW:7811	Minson Integration, Inc.	72.40	-51.70	-41.66%

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

Groundhog, Inc. AI Stock Analysis