Redwood Group Ltd. (8426) AI Stock Analysis

Redwood Group Ltd.

(TPEx:8426)

Select Model

Rating:65Neutral

Price Target:TWD 21.00▲(10.24% Upside)

Action:initiatedcoverage

Date:11/09/26

Solid balance sheet strength and attractive valuation are the main positives, offset by recent revenue weakness and bearish technical signals.

Positive Factors

Improving leverageLower leverage gives Redwood a healthier capital structure and greater resilience than earlier in the cycle. Reduced debt relative to equity can preserve financial flexibility, support investment, and lessen the pressure of financing costs during periods of weaker operating performance.

Negative Factors

Revenue contractionRevenue contraction signals weaker demand or reduced business activity and limits the company’s ability to spread fixed costs across a growing sales base. If the decline persists, it could constrain reinvestment, weaken operating leverage, and delay a return to stronger earnings growth.

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

Strong balance sheet with debt-to-equity reduced to 0.40 and positive free cash flow support stability, though recent 6.6% revenue decline and net margin compression to 3.4% highlight near-term weakness.

Income Statement

58Neutral

Balance Sheet

84Very Positive

Cash Flow

70Positive

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8426 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:8426	65Neutral	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

TW:8426 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8426	Redwood Group Ltd.	19.05	-8.45	-30.73%
TW:2939	Yong Yi International Group Co., Ltd.	24.25	-0.05	-0.21%
TW:4433	Singtex Industrial Co., Ltd.	15.85	-3.49	-18.05%
TW:4440	Yi Shin Textile Industrial Co., Ltd.	16.75	-0.50	-2.93%
TW:7840	Nice Garden Industrial Co., Ltd.	30.50	-6.45	-17.45%
TW:8429	Jinli Group Holdings Ltd.	5.57	-2.25	-28.77%

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

Redwood Group Ltd. AI Stock Analysis