Champ-Ray Industrial Co., Ltd. (7642) AI Stock Analysis

Champ-Ray Industrial Co., Ltd.

(TPEx:7642)

Select Model

Rating:50Neutral

Price Target:TWD 57.00▲(2.89% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 50 reflects a company with a strong balance sheet that is currently facing severe operational and market headwinds. The primary positive is the low debt and high dividend yield, which provide a margin of safety. These are outweighed by the primary negatives: a sharp decline in revenue and profitability leading to negative free cash flow, and a deeply bearish technical trend with the stock in a sustained downtrend across all major moving averages.

Positive Factors

Modest LeverageThe sharp reduction in leverage gives Champ-Ray greater financial flexibility and lowers balance-sheet risk than in earlier years. A sizable equity base relative to assets also provides support for operations, investment, and resilience through weaker business conditions.

Negative Factors

Revenue ContractionThe material decline in revenue signals weaker business activity and reduces the scale over which fixed costs and operating capabilities can be leveraged. If the contraction persists, it can constrain earnings recovery, investment capacity, and the company’s ability to sustain prior performance.

Champ-Ray Industrial Co., Ltd. (7642) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.73B
Dividend Yield: 5.42%
Average Volume (3M): 20.45K
Price to Earnings (P/E): 22.2
Beta (1Y): 0.57
Revenue Growth: -29.04%
EPS Growth: -45.59%
Country: TW
Employees: 99
Sector: General
Sector Strength: 55
Industry: Furnishings, Fixtures & Appliances

Champ-Ray Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Champ-Ray Industrial Co., Ltd. is primarily engaged in the research, development, manufacture and sale of aromatic diffusers and related products. Its main products include ultrasonic aromatic diffusers, nebulizing diffusers and related accessories....

Champ-Ray Industrial Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is a fortress with a debt-to-equity of just 0.27, providing excellent stability. However, this is offset by significant operational headwinds: revenue declined 12.4%, net income fell 44%, and free cash flow turned negative at -$15.6M. The company is financially safe but experiencing a sharp cyclical downturn.

Income Statement

42Neutral

Balance Sheet

78Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	659.18M	808.09M	958.28M	914.38M	1.39B	1.02B
Gross Profit	171.89M	217.62M	284.77M	261.92M	333.57M	179.82M
EBITDA	109.36M	144.09M	233.45M	216.37M	394.19M	140.65M
Net Income	74.35M	94.73M	169.70M	145.20M	294.37M	96.23M
Balance Sheet
Total Assets	1.53B	1.41B	1.33B	1.36B	1.34B	960.63M
Cash, Cash Equivalents and Short-Term Investments	239.93M	299.69M	286.96M	389.99M	435.00M	186.01M
Total Debt	358.59M	267.12M	362.03M	440.23M	514.07M	384.95M
Total Liabilities	576.89M	409.40M	547.05M	619.99M	773.07M	626.05M
Stockholders Equity	951.14M	1.00B	782.78M	740.28M	569.83M	334.58M
Cash Flow
Free Cash Flow	-135.06M	-15.59M	104.57M	18.49M	167.04M	-3.50M
Operating Cash Flow	-68.88M	102.44M	164.23M	166.24M	333.67M	101.96M
Investing Cash Flow	-67.12M	-117.88M	-61.16M	-148.80M	-165.09M	-108.10M
Financing Cash Flow	-28.71M	28.17M	-206.11M	-54.44M	72.41M	5.96M

Champ-Ray Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:7642 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4581	62Neutral	TWD 1.59B	11.59	―	6.38%	8.55%	-19.58%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:7642	50Neutral	TWD 1.73B	22.25	―	5.42%	-29.04%	-45.59%
TW:5014	40Underperform	TWD 1.72B	-12.06	―	5.38%	8.02%	14.29%
TW:3230	39Underperform	TWD 1.88B	-10.61	―	1.61%	2.22%	-86.76%
TW:5011	37Underperform	TWD 1.76B	-44.03	―	1.14%	-22.19%	97.25%

* General Sector Average

Performance Comparison

TW:7642 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:7642	Champ-Ray Industrial Co., Ltd.	55.40	-24.89	-31.00%
TW:3230	Jiin Ming Industry Co., Ltd.	22.60	-19.80	-46.70%
TW:4581	World Known MFG (Cayman) Limited	47.05	-3.33	-6.62%
TW:5011	OFCO Industrial Corporation	17.25	6.60	61.97%
TW:5014	Chain Chon Industrial Co., Ltd.	9.29	-0.54	-5.48%
TW:6705	Martas Precision Slide Co. Ltd.	94.40	27.77	41.68%

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 10, 2026

Champ-Ray Industrial Co., Ltd. AI Stock Analysis