Redwood Group Ltd. AI Stock Analysis
Redwood Group Ltd. (8426) AI Stock Analysis
Redwood Group Ltd.
(TPEx:8426)
Redwood Group earns a middling score. The dominant drag is deteriorating operating performance: revenue turned negative in FY2025 and margins compressed across every line, cutting net income by roughly two-thirds and ROE to 7.3%. This is partly offset by genuine financial resilience — modest leverage, a largely equity-funded asset base, and free cash flow that more than covers reported earnings. Technicals reinforce caution, with the price below all key moving averages and negative MACD, albeit at oversold levels that could invite a short-term bounce. The offset is valuation: a 9.3x P/E, 4.1% dividend yield and low beta provide downside cushion and income. Until gross margin stabilises and revenue growth resumes, the shares look fundamentally sound but cyclically challenged.
Redwood Group Ltd. (8426) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 957.13M
- Dividend Yield
- 4.20%
- Average Volume (3M)
- 23.09K
- Price to Earnings (P/E)
- 8.9
- Beta (1Y)
- 0.34
- Revenue Growth
- -4.61%
- EPS Growth
- -22.18%
- Country
- TW
- Employees
- 1,252
- Sector
- General
- Sector Strength
- 55
- Industry
- Furnishings, Fixtures & Appliances
Redwood Group Ltd. Business Overview & Revenue Model
Company Description
Redwood Group Ltd, along with its various divisions, specializes in providing interior design and fit-out services for luxury retail boutiques across Asia, the Middle East, the United States, and Europe. The company also serves as a bespoke manufactu...
Redwood Group Ltd. Financial Statement Overview
Summary
A solid balance sheet (score 70) is the anchor: debt-to-equity has fallen to 0.40 from 0.94 in 2021, equity funds half of the NT$2.54bn asset base, and the company retains flexibility to ride out a weak cycle. Cash flow (64) is still healthy in absolute terms — NT$243m operating cash flow covered net income 2.6x and free cash flow of NT$162m is self-funding capex — though both metrics more than halved versus 2024. The income statement (52) is the weak link: FY2025 revenue fell 6.6% to NT$2.71bn, gross margin compressed to 26.6% from 32.1%, operating margin halved to 5.9%, and net income dropped ~63% to NT$93m, dragging ROE down to 7.3% from 30.6% in 2023. Financially resilient, but operationally deteriorating.
Income Statement
52NeutralBalance Sheet
70PositiveCash Flow
64Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.70B | 2.71B | 2.87B | 2.86B | 1.70B | 1.42B |
| Gross Profit | 682.85M | 720.49M | 905.20M | 919.18M | 444.27M | 306.53M |
| EBITDA | 254.70M | 246.83M | 453.07M | 524.87M | 163.35M | 106.01M |
| Net Income | 107.14M | 93.00M | 252.69M | 329.03M | 32.32M | 5.82M |
Balance Sheet | ||||||
| Total Assets | 2.28B | 2.54B | 2.36B | 2.31B | 2.21B | 1.85B |
| Cash, Cash Equivalents and Short-Term Investments | 321.35M | 504.47M | 474.37M | 335.99M | 391.11M | 293.20M |
| Total Debt | 505.94M | 510.64M | 493.57M | 599.56M | 655.05M | 675.69M |
| Total Liabilities | 1.12B | 1.27B | 1.07B | 1.23B | 1.43B | 1.13B |
| Stockholders Equity | 1.16B | 1.27B | 1.29B | 1.08B | 779.77M | 716.11M |
Cash Flow | ||||||
| Free Cash Flow | 12.21M | 162.37M | 373.81M | 19.66M | 143.46M | -15.17M |
| Operating Cash Flow | 131.59M | 243.48M | 415.00M | 79.25M | 179.82M | 82.41M |
| Investing Cash Flow | -117.40M | -82.13M | -37.23M | -73.90M | -25.27M | -89.86M |
| Financing Cash Flow | -87.67M | -118.29M | -253.57M | -67.48M | -20.68M | -20.50M |
Redwood Group Ltd. Peers Comparison
Overall Rating
- TW:842658Neutral
TW:842954Neutral
TW:444048Neutral
TW:443339Underperform
TW:293938Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:8426 | 58Neutral | TWD 994.80M | 8.94 | ― | 4.20% | -4.61% | -22.18% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:8429 | 54Neutral | TWD 1.04B | 64.52 | ― | ― | -5.49% | 6.64% |
| TW:4440 | 48Neutral | TWD 1.10B | 8.50 | ― | 5.97% | 6.71% | 77.95% |
| TW:4433 | 39Underperform | TWD 971.60M | 14.03 | ― | 6.31% | -1.86% | ― |
| TW:2939 | 38Underperform | TWD 1.11B | -15.95 | ― | ― | -14.02% | 63.19% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:8426 | Redwood Group Ltd. | 19.05 | -5.95 | -23.81% | |
| TW:2939 | Yong Yi International Group Co., Ltd. | 24.25 | -0.30 | -1.22% | |
| TW:4433 | Singtex Industrial Co., Ltd. | 15.85 | -3.73 | -19.05% | |
| TW:4440 | Yi Shin Textile Industrial Co., Ltd. | 16.75 | -0.98 | -5.52% | |
| TW:7840 | Nice Garden Industrial Co., Ltd. | 30.50 | -6.45 | -17.45% | |
| TW:8429 | Jinli Group Holdings Ltd. | 5.57 | -2.19 | -28.22% |
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