E&R Engineering Corp. (8027) AI Stock Analysis

E&R Engineering Corp.

(TPEx:8027)

Select Model

Rating:41Neutral

Price Target:TWD 120.00▼(-19.46% Downside)

Action:initiatedcoverage

Date:11/09/26

E&R Engineering scores low primarily because profitability and cash generation continue to deteriorate despite modest revenue growth: operating and net losses widened for a second consecutive year, and heavy capital spending has pushed free cash flow to negative NT$200.8 million, steadily drawing down the equity base. The conservative balance sheet — roughly two-thirds equity-funded with moderate 0.36 debt-to-equity — is the main mitigating factor and buys management time through the cycle. Technicals compound the caution, with the price trading far below all key moving averages and negative MACD momentum. Valuation adds no support, as the 423x P/E reflects minimal earnings power and there is no dividend to cushion returns. The investment case depends on recent capacity investments translating into profitable growth; until then, the profile is structurally stable but operationally weakening.

Positive Factors

Revenue ReboundThe return to revenue growth provides a stronger foundation for recovery after weaker prior periods. If the company can sustain this top-line improvement, greater scale could help absorb fixed operating costs and support a path toward restored profitability over the next several quarters.

Negative Factors

Sustained Net LossesThe shift from a 12.1% net margin in 2022 to losses in 2024 and 2025 indicates a material deterioration in earnings quality. Continued operating losses could erode equity, limit internally funded investment, and make the recent revenue rebound less valuable unless costs or other pressure points improve.

E&R Engineering Corp. (8027) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 15.88B
Dividend Yield: ―
Average Volume (3M): 2.40M
Price to Earnings (P/E): 468.8
Beta (1Y): 1.15
Revenue Growth: 38.03%
EPS Growth: ―
Country: TW
Employees: 1,770
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

E&R Engineering Corp. Business Overview & Revenue Model

Company Description

E&R Engineering Corporation engages in the planning, designing, manufacturing, installation, and selling of automatic machines, related components, computer software, and pollution controlling equipment. The company provides automation machines for s...

E&R Engineering Corp. Financial Statement Overview

Summary

A weak earnings profile is only partly offset by a solid balance sheet. Revenue recovered about 10% to roughly NT$1.81 billion in 2025, but remains far below the 2022 peak, and gross margin slipped to ~35% from 39.6%. Operating losses widened for a second straight year (-4.3% operating margin) and the net loss grew to NT$103.9 million from NT$51.1 million (Income Statement score 34). Cash flow is the other pressure point: operations generated NT$136.8 million, down sharply from NT$355.3 million, while capex of ~NT$338 million drove free cash flow to negative NT$200.8 million — the fifth negative year in six (Cash Flow score 36). The balance sheet is the clear strength (score 62), with equity funding ~64% of assets and debt-to-equity of 0.36, providing a cushion to absorb a prolonged downturn, though equity is being eroded by losses and ROE is negative at -3.9%.

Income Statement

34Negative

Balance Sheet

62Positive

Cash Flow

36Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.13B	1.81B	1.64B	1.55B	3.22B	2.54B
Gross Profit	703.20M	637.44M	597.64M	614.28M	1.12B	854.52M
EBITDA	145.41M	100.80M	127.98M	200.13M	631.77M	431.47M
Net Income	30.75M	-103.87M	-51.13M	30.91M	390.79M	243.98M
Balance Sheet
Total Assets	4.47B	4.14B	4.20B	4.16B	4.74B	3.62B
Cash, Cash Equivalents and Short-Term Investments	730.79M	704.63M	1.08B	1.50B	1.79B	992.83M
Total Debt	784.95M	954.22M	829.94M	1.29B	1.21B	213.72M
Total Liabilities	1.57B	1.49B	1.37B	1.81B	2.10B	1.20B
Stockholders Equity	2.88B	2.65B	2.81B	2.31B	2.57B	2.36B
Cash Flow
Free Cash Flow	-125.32M	-200.80M	-139.83M	75.60M	-419.66M	-24.57M
Operating Cash Flow	255.78M	136.77M	355.27M	246.42M	-233.71M	21.45M
Investing Cash Flow	-342.71M	-362.35M	-494.25M	-191.86M	-203.24M	30.79M
Financing Cash Flow	67.99M	-14.32M	22.96M	-272.10M	834.28M	441.69M

E&R Engineering Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8027 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:6788	78Outperform	TWD 12.24B	14.34	―	4.97%	20.87%	29.63%
TW:8064	61Neutral	TWD 17.78B	38.10	―	0.96%	14.21%	1926.95%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8027	41Neutral	TWD 15.56B	468.75	―	―	38.03%	―

* General Sector Average

Performance Comparison

TW:8027 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8027	E&R Engineering Corp.	149.00	57.10	62.13%
TW:6788	Brillian Network & Automation Integrated System Co., Ltd.	302.00	81.56	37.00%
TW:6920	Phoenix Pioneer Technology Co., Ltd.	78.30	45.90	141.67%
TW:7669	Suregiant Technology Co. Ltd.	596.00	276.82	86.73%
TW:7942	Toyo Automation Co. Ltd.	519.00	168.00	47.86%
TW:8064	Contrel Technology Co., Ltd	102.00	60.31	144.65%

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

E&R Engineering Corp. AI Stock Analysis