Formosa Advanced Technologies Co., Ltd. (8131) AI Stock Analysis

Formosa Advanced Technologies Co., Ltd.

(TWSE:8131)

Select Model

Rating:65Neutral

Price Target:TWD 53.00▼(-1.67% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is anchored by solid fundamentals: a near debt-free balance sheet, sharply recovering revenue and margins, and net income more than tripling year over year. Valuation also supports the case, with a P/E of 13.0 and a ~2.0% dividend yield. Offsetting these strengths are two meaningful risks. First, cash flow quality is poor — operating cash flow is lagging reported earnings and heavy capex has driven free cash flow deeply negative for a second straight year. Second, technicals are clearly bearish, with the stock trading far below all major moving averages and a negative MACD, although RSI and Stochastic readings show the shares are deeply oversold. The result is a company with sound finances and a reasonable valuation, held back by weak price momentum and cash conversion concerns in a historically volatile cycle.

Positive Factors

Very Low LeverageMinimal leverage gives the company substantial financial flexibility in a cyclical semiconductor environment. A lightly indebted balance sheet can support investment, reduce financing pressure during downturns, and improve resilience while profitability and demand fluctuate.

Negative Factors

Weak Cash ConversionOperating cash flow converting only a modest portion of reported earnings raises concern about the quality and timing of profit realization. Persistent weak conversion could constrain internally funded investment and make reported earnings less dependable for financial planning.

Formosa Advanced Technologies Co., Ltd. (8131) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 24.15B
Dividend Yield: 1.86%
Average Volume (3M): 2.26M
Price to Earnings (P/E): 13.3
Beta (1Y): 1.15
Revenue Growth: 37.20%
EPS Growth: 416.69%
Country: TW
Employees: 2,367
Sector: General
Sector Strength: 55
Industry: Semiconductors

Formosa Advanced Technologies Co., Ltd. Business Overview & Revenue Model

Company Description

Formosa Advanced Technologies Co., Ltd., established in 1990 and headquartered in Douliou City, Taiwan, specializes in a wide array of semiconductor and optoelectronic services. The company's primary offerings encompass comprehensive wafer probing, i...

Formosa Advanced Technologies Co., Ltd. Financial Statement Overview

Summary

Formosa Advanced Technologies is in a strong cyclical upswing: TTM revenue is up about 26% versus fiscal 2025, gross margin nearly doubled to 19.7%, operating margin reached 16.2%, and net income more than tripled to NT$1.80B (Income Statement 76). The balance sheet is the standout strength, with a debt-to-equity ratio of just 0.03, equity funding 85% of assets, and ROE recovering to 12.5% (Balance Sheet 88). Cash flow is the clear weak point (45): operating cash flow covered only 0.39x net income and free cash flow was deeply negative at NT$2.56B on roughly NT$3.6B of capex — a second consecutive year of negative FCF. The spending appears to be a deliberate capacity expansion that the debt-free balance sheet can comfortably fund, but weak cash conversion and the sector's history of sharp downturns (revenue fell 27% in 2023) temper the score.

Income Statement

76Positive

Balance Sheet

88Very Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.52B	9.92B	8.93B	7.65B	10.43B	9.94B
Gross Profit	2.46B	1.03B	1.14B	602.90M	2.19B	2.09B
EBITDA	2.60B	1.42B	2.06B	1.84B	3.81B	3.36B
Net Income	1.80B	602.63M	900.35M	530.22M	2.06B	1.56B
Balance Sheet
Total Assets	20.30B	13.92B	12.52B	13.26B	14.77B	14.23B
Cash, Cash Equivalents and Short-Term Investments	3.61B	5.11B	6.01B	6.44B	7.00B	5.71B
Total Debt	511.66M	436.50M	480.14M	522.55M	558.84M	469.78M
Total Liabilities	3.09B	1.67B	1.62B	1.46B	2.06B	1.93B
Stockholders Equity	17.21B	12.25B	10.91B	11.81B	12.71B	12.30B
Cash Flow
Free Cash Flow	-2.56B	-459.37M	1.15B	1.14B	2.74B	2.58B
Operating Cash Flow	1.03B	427.49M	1.75B	1.85B	3.34B	2.98B
Investing Cash Flow	-3.68B	-857.12M	-693.98M	-948.22M	-629.95M	-342.96M
Financing Cash Flow	-376.50M	-684.76M	-440.80M	-1.50B	-1.14B	-1.05B

Formosa Advanced Technologies Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8131 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8131	65Neutral	TWD 23.84B	13.29	―	1.86%	37.20%	416.69%
TW:3265	58Neutral	TWD 21.46B	22.56	―	2.60%	15.38%	34.04%
TW:2329	56Neutral	TWD 24.47B	14.80	―	2.68%	10.61%	51.02%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:5425	52Neutral	TWD 19.66B	26.95	―	2.55%	7.28%	85.43%
TW:8110	51Neutral	TWD 18.96B	10.01	―	4.00%	11.36%	213.16%
TW:3707	38Underperform	TWD 24.11B	-51.01	―	―	22.70%	38.31%

* General Sector Average

Performance Comparison

TW:8131 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8131	Formosa Advanced Technologies Co., Ltd.	53.90	6.24	13.10%
TW:2329	Orient Semiconductor Electronics, Limited	37.30	-14.60	-28.13%
TW:3265	Winstek Semiconductor Co. Ltd.	157.50	60.56	62.46%
TW:3707	Episil Technologies Inc.	60.20	9.80	19.44%
TW:5425	Taiwan Semiconductor Co., Ltd.	79.20	25.61	47.78%
TW:8110	Walton Advanced Engineering, Inc.	37.35	-3.52	-8.62%

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

Formosa Advanced Technologies Co., Ltd. AI Stock Analysis