E&E Recycling, Inc. (8440) AI Stock Analysis

E&E Recycling, Inc.

(TPEx:8440)

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Rating:53Neutral

Price Target:TWD 19.00▼(-1.04% Downside)

Action:initiatedcoverage

Date:11/09/26

E&E Recycling scores in the below-average range, driven primarily by deteriorating earnings quality: revenue turned negative in 2025 and margins have compressed for three straight years, leaving net margin under 2% and return on equity at just 2.4%. This is partially offset by a very conservative balance sheet (debt-to-equity of 0.20, equity funding ~80% of assets) and a strong 2025 cash flow rebound that produced NT$110 million of free cash flow, which underpins the 2.95% dividend yield. Technicals are a further drag, with the price below all key moving averages and negative MACD, although deeply oversold RSI and Stochastic readings suggest downside may be near-term stretched. The 19.2x P/E offers little cushion until management stabilizes revenue and rebuilds margins.

Positive Factors

Conservative LeverageLow leverage gives E&E Recycling financial flexibility while profitability is under pressure. A modest debt burden reduces balance-sheet strain, preserves capacity to fund operations or investment, and improves resilience if industry conditions remain difficult over the coming quarters.

Negative Factors

Revenue ContractionThe latest revenue decline indicates weakening business momentum after growth in the prior year. Sustained contraction would reduce operating leverage and make it harder to absorb fixed costs, invest in resource recovery capacity, or rebuild earnings over the next several quarters.

E&E Recycling, Inc. (8440) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 964.90M
Dividend Yield: 2.86%
Average Volume (3M): 54.28K
Price to Earnings (P/E): 18.8
Beta (1Y): 0.51
Revenue Growth: -6.00%
EPS Growth: 659.16%
Country: TW
Employees: 113
Sector: General
Sector Strength: 55
Industry: Waste Management

E&E Recycling, Inc. Business Overview & Revenue Model

Company Description

E&E Recycling, Inc. is an Asian-based company specializing in the reclamation and processing of discarded electrical household appliances and electronic waste. The firm handles a wide array of defunct consumer electronics, from major appliances like...

E&E Recycling, Inc. Financial Statement Overview

Summary

A mixed profile. The income statement is the clear weak point (score 41): revenue fell about 6% in 2025 to NT$913 million after five years of growth, gross margin has slid from 13.8% (2022) to 8.6%, operating margin is just 2.4%, and net income has dropped roughly 70% over two years to NT$15 million. Offsetting this, the balance sheet is a genuine strength (score 74), with equity of NT$643 million funding about 80% of assets and debt-to-equity of only 0.20, though return on equity has fallen to 2.4%, signaling under-utilized capital. Cash flow is also solid (score 73), with operating cash flow rebounding to NT$121 million and free cash flow swinging to a positive NT$110 million, covering net income roughly eight times — though free cash flow has been erratic over the past five years. Net result: low financial risk and healthy cash conversion, but weak and deteriorating earnings power.

Income Statement

41Neutral

Balance Sheet

74Positive

Cash Flow

73Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	878.51M	912.75M	972.06M	910.33M	876.83M	867.83M
Gross Profit	130.78M	78.36M	70.62M	101.74M	121.32M	109.17M
EBITDA	100.39M	54.07M	62.87M	95.48M	81.55M	89.85M
Net Income	49.54M	15.44M	23.43M	50.05M	34.17M	52.19M
Balance Sheet
Total Assets	891.99M	808.18M	769.74M	777.65M	689.68M	694.89M
Cash, Cash Equivalents and Short-Term Investments	237.88M	225.58M	198.41M	207.73M	217.57M	211.10M
Total Debt	155.15M	126.02M	89.72M	92.99M	44.54M	47.51M
Total Liabilities	225.77M	165.55M	134.72M	161.08M	106.57M	124.00M
Stockholders Equity	666.22M	642.63M	635.02M	616.58M	583.11M	570.89M
Cash Flow
Free Cash Flow	120.28M	110.25M	-7.39M	21.03M	67.15M	70.69M
Operating Cash Flow	137.63M	121.47M	11.76M	42.29M	86.64M	103.23M
Investing Cash Flow	-190.62M	-130.70M	-39.00M	57.74M	-63.42M	-33.85M
Financing Cash Flow	54.37M	1.05M	-11.62M	-44.16M	-34.72M	3.02M

E&E Recycling, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:8440 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:4530	57Neutral	TWD 909.19M	-169.33	―	―	74.08%	93.83%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:8440	53Neutral	TWD 967.41M	18.84	―	2.86%	-6.00%	659.16%
TW:6624	49Neutral	TWD 784.64M	62.79	―	0.80%	-31.58%	-81.33%
TW:6971	48Neutral	TWD 986.03M	10.67	―	5.88%	―	―
TW:1337	39Underperform	TWD 1.05B	-2.14	―	―	-13.60%	-6.67%

* General Sector Average

Performance Comparison

TW:8440 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:8440	E&E Recycling, Inc.	19.20	-6.14	-24.22%
TW:1337	Asia Plastic Recycling Holding Limited	3.92	-1.19	-23.29%
TW:4530	Tianyi Water Energy Solutions Inc.	25.40	-3.76	-12.88%
TW:6624	Ever-Clear Environmental Eng. Corp.	36.00	1.24	3.57%
TW:6723	JG Environmental Technology Co., Ltd.	27.85	-12.76	-31.42%
TW:6971	Hui Min Environmental Tech Corp.	25.50	-6.35	-19.94%

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

E&E Recycling, Inc. AI Stock Analysis