Eternal Precision Mechanics Co., Ltd. (7795) AI Stock Analysis

Eternal Precision Mechanics Co., Ltd.

(TWSE:7795)

Select Model

Rating:54Neutral

Price Target:TWD 350.00▼(-5.91% Downside)

Action:initiatedcoverage

Date:11/10/26

The score is constrained primarily by sharply negative cash flow, weak price momentum, and an elevated P/E ratio. A substantially improved balance sheet and solid operating margins provide support, but they do not fully offset the cash-generation deterioration and demanding valuation.

Positive Factors

Healthy Operating MarginsHealthy gross and operating margins indicate the company retains meaningful profitability in its core operations. If maintained, this margin structure can support internal investment, provide resilience against moderate cost pressure, and preserve earnings quality over the next several quarters.

Negative Factors

Negative Cash GenerationThe reversal to negative operating and free cash flow is a significant fundamental weakness despite continued accounting profitability. Persistent cash-conversion pressure could reduce funding available for operations, investment, and shareholder returns, weakening financial flexibility over coming quarters.

Eternal Precision Mechanics Co., Ltd. (7795) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 28.38B
Dividend Yield: 0.58%
Average Volume (3M): 1.10M
Price to Earnings (P/E): 152.5
Beta (1Y): 1.25
Revenue Growth: ―
EPS Growth: ―
Country: TW
Employees: 120
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Eternal Precision Mechanics Co., Ltd. Business Overview & Revenue Model

Company Description

Eternal Precision Mechanics Co., Ltd. is a Taiwan-based company that produces and supplies sophisticated vacuum lamination equipment to markets around the world. Their advanced machinery plays a vital role in various cutting-edge technological sector...

Eternal Precision Mechanics Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet and materially reduced debt support the score, while moderate revenue recovery and healthy margins are offset by sharply negative 2025 operating and free cash flow. The component score reflects the provided income statement score of 67, balance sheet score of 82, and cash flow score normalized to the required minimum of 37.

Income Statement

67Positive

Balance Sheet

82Very Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.92B	1.90B	2.23B	2.36B	3.88B	2.96B
Gross Profit	808.29M	850.21M	995.67M	1.06B	1.90B	1.35B
EBITDA	426.13M	498.86M	647.02M	641.34M	1.38B	1.03B
Net Income	177.89M	219.97M	298.75M	295.56M	285.22M	510.76M
Balance Sheet
Total Assets	4.02B	2.58B	3.20B	3.86B	3.47B	3.19B
Cash, Cash Equivalents and Short-Term Investments	2.34B	1.13B	1.72B	1.86B	1.07B	667.65M
Total Debt	176.82M	395.62M	597.42M	1.13B	1.32B	153.51M
Total Liabilities	1.17B	993.37M	1.60B	2.36B	2.61B	1.36B
Stockholders Equity	2.84B	1.59B	1.61B	1.50B	859.63M	1.83B
Cash Flow
Free Cash Flow	-15.10M	-129.82M	572.29M	597.84M	675.46M	500.64M
Operating Cash Flow	37.55M	-92.87M	582.98M	628.05M	705.98M	578.67M
Investing Cash Flow	-49.76M	-36.47M	-9.95M	105.13M	-30.32M	-46.17M
Financing Cash Flow	901.05M	-457.04M	-658.42M	182.28M	-228.08M	-246.09M

Eternal Precision Mechanics Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:7795 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4583	75Outperform	TWD 27.58B	24.59	―	2.84%	13.85%	24.76%
TW:6670	66Neutral	TWD 36.24B	10.80	―	6.06%	10.09%	6.62%
TW:6640	64Neutral	TWD 22.20B	38.13	―	1.79%	38.95%	50.60%
TW:6584	63Neutral	TWD 22.35B	29.73	―	0.75%	44.48%	204.25%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:7795	54Neutral	TWD 28.85B	152.48	―	0.58%	―	―
TW:2464	44Neutral	TWD 35.47B	49.24	―	0.29%	19.16%	―

* General Sector Average

Performance Comparison

TW:7795 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:7795	Eternal Precision Mechanics Co., Ltd.	372.00	173.02	86.96%
TW:2464	Mirle Automation Corp.	163.00	101.63	165.60%
TW:4583	Apex Dynamics, Inc.	352.00	-311.09	-46.92%
TW:6584	NAN JUEN INTERNATIONAL CO., LTD.	324.50	9.75	3.10%
TW:6640	Gallant Micro Machining Co. Ltd.	840.00	253.00	43.10%
TW:6670	Fusheng Precision Co. Ltd.	264.00	34.07	14.82%

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

Eternal Precision Mechanics Co., Ltd. AI Stock Analysis