Formosa Electronic Industries Inc. (8171) AI Stock Analysis

Formosa Electronic Industries Inc.

(TPEx:8171)

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Rating:27Underperform

Price Target:TWD 14.50▼(-20.11% Downside)

Action:initiatedcoverage

Date:11/09/26

The score is driven primarily by severe financial deterioration: revenue has fallen roughly two-thirds, gross margin has turned negative, and the net loss now exceeds annual revenue, while free cash flow has been negative every year for six years. Operations are funded by rising debt and new equity rather than internal cash generation, creating dilution and funding risk. Technical signals compound the concern, with the share price below all major moving averages and negative MACD momentum, though extremely low RSI and Stochastic readings suggest the stock is oversold and could see a short-lived bounce. Valuation provides no cushion, as earnings are negative and no dividend is paid. The one meaningful strength is a still-moderate balance sheet — debt-to-equity of 0.47 and equity funding over half of assets — which gives management some runway. A return to positive gross margins and revenue stabilization would be the key signals for improvement.

Positive Factors

Moderate LeverageModerate leverage means the company is not currently carrying an excessive debt burden relative to equity. This provides more financial flexibility than a highly indebted structure and may help management address operational challenges without immediate balance-sheet pressure.

Negative Factors

Persistent LossesSeveral consecutive loss-making years indicate that weak profitability is structural rather than a single-period setback. The 2025 negative gross margin is especially concerning because it suggests sales were insufficient to cover direct costs, limiting the credibility of near-term earnings recovery.

Formosa Electronic Industries Inc. (8171) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 2.03B
Dividend Yield: ―
Average Volume (3M): 176.84K
Price to Earnings (P/E): -9.4
Beta (1Y): 0.65
Revenue Growth: -21.44%
EPS Growth: 63.14%
Country: TW
Employees: 125
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Formosa Electronic Industries Inc. Business Overview & Revenue Model

Company Description

Formosa Electronic Industries Inc. manufactures and sells single-string battery modules, mobile power supplies, wireless charging devices, green energy battery modules, and distributed energy storage systems. The company provides renewable energy sit...

Formosa Electronic Industries Inc. Financial Statement Overview

Summary

Financials are deeply distressed. Revenue collapsed to NT$315 million from NT$954 million, and the company now operates at a negative gross margin of -31.7%, meaning products are being sold below production cost. The net loss of NT$538 million exceeds annual revenue, driving return on equity to -28%. Cash flow is equally weak: operating cash flow of -NT$64 million and free cash flow of -NT$237 million, with negative free cash flow in all six years reviewed and over NT$1.2 billion of cumulative cash burn. The lone offset is a still-reasonable balance sheet — debt-to-equity of 0.47, equity funding roughly 56% of assets, and a growing asset base — but equity is being sustained by external funding rather than profits, raising dilution risk and signaling a deteriorating trend.

Income Statement

9Very Negative

Balance Sheet

44Neutral

Cash Flow

8Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Dec 2024	Mar 2024	Mar 2023	Dec 2021
Income Statement
Total Revenue	412.63M	315.43M	953.70M	914.67M	1.48B	905.57M
Gross Profit	-63.44M	-99.84M	36.20M	96.93M	223.73M	51.36M
EBITDA	-167.92M	-477.04M	-42.08M	-5.94M	174.93M	-49.99M
Net Income	-226.32M	-537.77M	-98.42M	-36.33M	135.29M	-68.18M
Balance Sheet
Total Assets	3.72B	3.41B	2.41B	2.42B	2.33B	1.62B
Cash, Cash Equivalents and Short-Term Investments	462.04M	913.31M	558.61M	777.95M	937.07M	727.00M
Total Debt	1.29B	899.08M	648.85M	597.30M	526.36M	559.84M
Total Liabilities	1.46B	1.06B	830.85M	832.66M	1.04B	745.71M
Stockholders Equity	1.85B	1.92B	1.58B	1.59B	1.29B	877.44M
Cash Flow
Free Cash Flow	194.74M	-236.97M	-190.90M	-375.92M	-11.51M	-252.55M
Operating Cash Flow	342.75M	-64.14M	-43.18M	-167.10M	43.62M	-232.91M
Investing Cash Flow	-1.50B	-644.76M	-1.75M	-191.77M	-324.17M	-58.67M
Financing Cash Flow	538.47M	981.80M	107.87M	255.59M	203.38M	625.92M

Formosa Electronic Industries Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8171 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:6204	54Neutral	TWD 2.02B	83.02	―	0.57%	2.29%	-22.84%
TW:6134	43Neutral	TWD 1.74B	29.31	―	0.92%	37.45%	―
TW:3092	40Underperform	TWD 1.92B	-4.22	―	―	-6.23%	12.14%
TW:8085	32Underperform	TWD 1.73B	-10.08	―	―	0.80%	-102.86%
TW:8171	27Underperform	TWD 2.04B	-9.43	―	―	-21.44%	63.14%

* General Sector Average

Performance Comparison

TW:8171 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8171	Formosa Electronic Industries Inc.	18.15	-7.10	-28.12%
TW:3092	Hotron Precision Electronic Industrial Co. Ltd.	16.90	0.85	5.30%
TW:6134	Wanshih Electronic Co., Ltd	21.75	-1.02	-4.50%
TW:6204	Taiwan Alpha Electronic Co., Ltd.	87.30	13.92	18.96%
TW:6737	Solidyear Co. Ltd.	28.65	-16.27	-36.22%
TW:8085	Forward Electronics Co., Ltd.	12.35	-6.15	-33.24%

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 Electronic Industries Inc. AI Stock Analysis