EBM Technologies Incorporated (8409) AI Stock Analysis

EBM Technologies Incorporated

(TPEx:8409)

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Rating:45Neutral

Price Target:TWD 17.00▼(-6.08% Downside)

Action:initiatedcoverage

Date:11/09/26

EBM Technologies scores in the lower range, driven primarily by weak financial performance. The decisive negative is cash generation: a swing from NT$118.7 million of free cash flow in 2024 to a NT$75.3 million outflow in 2025 despite positive net income raises real questions about earnings quality and working-capital strain. Revenue continues to shrink and margins remain razor-thin, leaving profitability fragile. The offsetting strength is a conservatively financed balance sheet — equity covers ~73% of assets and debt-to-equity has fallen to 0.21 — giving the company room to absorb another weak year. Technicals add further pressure, with the share price below all major moving averages and negative MACD, though deeply oversold RSI and Stochastic readings suggest scope for a near-term bounce. Valuation at 17x earnings with no dividend is neutral at best, given the low 2.4% return on equity. Investors should look for sustained revenue growth and better conversion of profit into cash before the outlook improves.

Positive Factors

Conservative LeverageLower leverage gives EBM Technologies greater financial flexibility and reduces balance-sheet risk over the next several quarters. A sizeable equity base can help absorb earnings volatility, preserve borrowing capacity, and support ongoing operations without excessive dependence on external financing.

Negative Factors

Revenue Volatility and DeclineUnstable and declining revenue reduces visibility into the company’s durable demand profile and makes operating results harder to plan. Prolonged top-line weakness could limit scale benefits, weaken reinvestment capacity, and prevent the strong gross margin from translating into consistently stronger earnings.

EBM Technologies Incorporated (8409) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 576.00M
Dividend Yield: ―
Average Volume (3M): 8,627
Price to Earnings (P/E): 47.4
Beta (1Y): 0.30
Revenue Growth: -31.90%
EPS Growth: -73.49%
Country: TW
Employees: 150
Sector: General
Sector Strength: 55
Industry: Medical - Healthcare Information Services

EBM Technologies Incorporated Business Overview & Revenue Model

Company Description

Established in 1988 and headquartered in Taipei, Taiwan, EBM Technologies Incorporated is dedicated to developing and commercializing sophisticated software and integrated solutions for the global healthcare sector. The company's core offerings inclu...

EBM Technologies Incorporated Financial Statement Overview

Summary

A mixed and ultimately weak profile. The balance sheet is the clear strength (score 66): equity of NT$319.0 million funds ~73% of assets, debt-to-equity has fallen to 0.21 from 0.27, and leverage has declined for multiple years. However, the income statement (score 44) shows revenue shrinking to NT$253.1 million from NT$281.0 million and far below the 2022 peak of NT$383.9 million, with only razor-thin margins (3.9% operating, 3.1% net) and losses in three of the past six years, despite gross margin improving to 68.9% and net income nearly quadrupling to NT$7.8 million. Cash flow is the biggest risk (score 27): the company swung from NT$118.7 million of free cash flow in 2024 to a NT$75.3 million outflow in 2025 despite positive reported earnings, pointing to poor earnings quality and lumpy, project-driven revenue. Return on equity of just 2.4% underlines that the conservative capital base is not being worked hard.

Income Statement

44Neutral

Balance Sheet

66Positive

Cash Flow

27Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	283.98M	253.11M	280.95M	206.15M	383.88M	194.93M
Gross Profit	201.60M	174.46M	178.04M	154.94M	184.43M	131.29M
EBITDA	96.85M	23.18M	20.68M	3.77M	22.71M	-9.68M
Net Income	32.64M	7.80M	2.14M	-14.01M	4.00M	-21.86M
Balance Sheet
Total Assets	422.35M	436.02M	559.67M	486.23M	468.51M	600.04M
Cash, Cash Equivalents and Short-Term Investments	138.16M	130.83M	223.86M	149.91M	142.12M	156.71M
Total Debt	77.76M	66.16M	84.32M	125.49M	87.16M	123.23M
Total Liabilities	122.15M	117.05M	246.22M	179.57M	148.91M	290.16M
Stockholders Equity	300.21M	318.97M	313.45M	306.66M	319.60M	309.88M
Cash Flow
Free Cash Flow	14.37M	-75.31M	118.69M	-12.13M	10.23M	-29.81M
Operating Cash Flow	15.88M	-72.96M	121.79M	-9.84M	19.95M	-19.20M
Investing Cash Flow	-1.17M	1.25M	-4.20M	-13.37M	-3.75M	9.48M
Financing Cash Flow	-7.68M	-19.89M	-45.80M	29.48M	-34.58M	71.96M

EBM Technologies Incorporated Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8409 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:8409	45Neutral	TWD 568.00M	47.37	―	―	-31.90%	-73.49%

* General Sector Average

Performance Comparison

TW:8409 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8409	EBM Technologies Incorporated	18.10	-3.60	-16.59%
TW:6665	Healthconn Corp.	15.60	-5.15	-24.83%
TW:6758	A-SPINE Asia Co., Ltd.	29.45	-8.22	-21.81%
TW:6999	Han Biomedical, Inc.	24.45	-6.02	-19.75%
TW:7726	CARILEX MEDICAL INC.	32.15	-3.95	-10.94%
TW:7835	H2U Corporation	14.55	-25.40	-63.58%

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

EBM Technologies Incorporated AI Stock Analysis