TCI Co., Ltd. (8436) AI Stock Analysis

TCI Co., Ltd.

(TPEx:8436)

Select Model

Rating:55Neutral

Price Target:TWD 94.00▲(3.75% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score is constrained by a sharp divergence between fundamentals and market action. The primary risk is the severe and sustained deterioration in free cash flow, which threatens the high dividend yield and signals poor earnings quality. This is compounded by extremely weak technicals, with the stock in a deep downtrend and oversold. Mitigating these concerns are a very low valuation and a strong balance sheet, which provide a margin of safety. The company's profitability remains intact, but until cash flow and price trends reverse, the stock faces significant headwinds.

Positive Factors

Diversified ODM/OEM Business ModelTCI’s combination of research, formulation, manufacturing, and finished-product capabilities supports multiple revenue channels across brand owners and distributors. This integrated ODM/OEM model can deepen customer relationships, broaden product participation, and provide a durable platform for health-product demand.

Negative Factors

Persistent Revenue DeclineTwo consecutive years of declining revenue point to limited near-term growth momentum and create pressure on the company to restore demand. Prolonged top-line weakness can reduce operating leverage, limit reinvestment capacity, and make it harder to sustain historical earnings levels.

TCI Co., Ltd. (8436) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 10.00B
Dividend Yield: 6.64%
Average Volume (3M): 650.22K
Price to Earnings (P/E): 10.4
Beta (1Y): 0.20
Revenue Growth: -3.82%
EPS Growth: 2.23%
Country: TW
Employees: 1,120
Sector: General
Sector Strength: 55
Industry: Household & Personal Products

TCI Co., Ltd. Business Overview & Revenue Model

Company Description

TCI Co., Ltd. functions as an Original Design Manufacturer (ODM), overseeing the comprehensive process from research and development to the production and distribution of functional health foods, nutritional supplements, and skincare formulations. Th...

TCI Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. Profitability is solid with a 44.1% gross margin and 24.7% EBITDA margin, and the balance sheet is strong with low leverage and a 12.3% ROE. However, these strengths are offset by a 1.1% revenue decline and a severe 72% drop in free cash flow to NT$343 million, indicating poor cash conversion.

Income Statement

55Neutral

Balance Sheet

72Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.96B	6.99B	7.24B	8.02B	7.43B	8.58B
Gross Profit	3.20B	3.08B	3.18B	3.22B	3.14B	3.72B
EBITDA	1.81B	1.73B	1.79B	1.87B	1.95B	2.49B
Net Income	1.04B	954.96M	851.50M	896.26M	713.49M	1.55B
Balance Sheet
Total Assets	14.19B	14.77B	13.71B	14.10B	15.11B	14.71B
Cash, Cash Equivalents and Short-Term Investments	5.64B	5.89B	5.66B	5.65B	5.61B	5.52B
Total Debt	2.36B	3.15B	1.82B	1.47B	2.29B	2.49B
Total Liabilities	5.21B	5.62B	4.23B	4.22B	5.03B	5.47B
Stockholders Equity	7.67B	7.78B	8.10B	8.22B	8.11B	8.12B
Cash Flow
Free Cash Flow	359.53M	342.87M	1.27B	1.57B	553.37M	882.80M
Operating Cash Flow	1.54B	1.50B	1.48B	1.91B	955.64M	1.58B
Investing Cash Flow	-2.07B	-676.34M	-810.51M	-377.96M	488.54M	-1.99B
Financing Cash Flow	-838.74M	-102.27M	-1.23B	-1.97B	-832.62M	238.23M

TCI Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8436 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:1707	73Outperform	TWD 11.66B	10.97	―	7.61%	-5.38%	-12.85%
TW:1720	71Outperform	TWD 10.85B	10.76	―	3.64%	4.62%	9.56%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8436	55Neutral	TWD 10.59B	10.40	―	6.64%	-3.82%	2.23%
TW:6576	42Neutral	TWD 11.50B	514.28	―	―	6.41%	―
TW:6945	40Underperform	TWD 11.46B	-21.11	―	―	―	―

* General Sector Average

Performance Comparison

TW:8436 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8436	TCI Co., Ltd.	90.60	-23.20	-20.38%
TW:1707	Grape King Bio Ltd.	78.80	-44.23	-35.95%
TW:1720	Standard Chemical & Pharmaceutical Co. Ltd.	54.90	1.55	2.90%
TW:6576	Foresee Pharmaceuticals Co., Ltd.	72.00	-13.20	-15.49%
TW:6945	AP Biosciences, Inc.	114.00	3.50	3.17%
TW:7780	Daiken Biomedical Co., Ltd.	14.90	-2.35	-13.61%

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 10, 2026

TCI Co., Ltd. AI Stock Analysis