Pou Chen Corporation AI Stock Analysis
Pou Chen Corporation (9904) AI Stock Analysis
Pou Chen Corporation
(TWSE:9904)
Pou Chen scores in the upper-middle range, driven primarily by a very undemanding valuation (5.5x earnings) paired with a high 5.06% dividend yield and a strengthening balance sheet where debt has fallen sharply and leverage is now a comfortable 0.60x equity. Cash flow quality is a further positive, with operating cash flow roughly 1.7x net income and free cash flow back above NT$11B. The main offsets are deteriorating operating performance — revenue down about 5%, gross margin down four percentage points, and net income down roughly 25% — which highlights sensitivity to brand customers' order cycles and cost pressures on thin margins. Technicals are broadly neutral, with price above its 50- and 100-day averages but still hovering around the 200-day line and momentum indicators mid-range. Earnings call and corporate event components were excluded for lack of data, with their weight redistributed across the remaining factors.
Pou Chen Corporation (9904) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 75.59B
- Dividend Yield
- 5.00%
- Average Volume (3M)
- 14.54M
- Price to Earnings (P/E)
- 5.4
- Beta (1Y)
- 0.25
- Revenue Growth
- -6.54%
- EPS Growth
- 5.99%
- Country
- TW
- Employees
- 268,690
- Sector
- General
- Sector Strength
- 55
- Industry
- Apparel - Footwear & Accessories
Pou Chen Corporation Business Overview & Revenue Model
Company Description
Founded in 1969 and based in Taichung, Taiwan, Pou Chen Corporation is a global powerhouse specializing in the production and sale of athletic and casual footwear. The company acts as a crucial original equipment and design manufacturer (OEM/ODM) for...
Pou Chen Corporation Financial Statement Overview
Summary
A blend of the Income Statement (58), Balance Sheet (68), and Cash Flow (67) scores. The balance sheet is the standout: debt reduced from NT$113.5B in 2020 to NT$84.0B, equity of NT$140.9B exceeding borrowings, and debt-to-equity improved to 0.60. Cash generation also rebounded, with operating cash flow nearly doubling to NT$20.8B (about 1.7x net income) and free cash flow recovering to NT$11.1B. The drag is earnings momentum: revenue fell roughly 5% to NT$251.4B, gross margin compressed from 24.7% to 20.7%, EBITDA nearly halved to NT$23.3B, and net income dropped about 25% to NT$12.1B, leaving a thin 4.8% net margin and ROE of 8.6%. Heavy capex (~NT$9.7B) and volatile free cash flow conversion (~53% of net income) further limit the score.
Income Statement
58NeutralBalance Sheet
68PositiveCash Flow
67Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 247.68B | 251.40B | 263.82B | 246.63B | 267.50B | 239.88B |
| Gross Profit | 51.94B | 52.09B | 65.18B | 61.11B | 64.61B | 58.22B |
| EBITDA | 24.66B | 23.28B | 45.36B | 30.01B | 31.70B | 35.80B |
| Net Income | 13.90B | 12.07B | 16.04B | 10.62B | 12.64B | 14.44B |
Balance Sheet | ||||||
| Total Assets | 411.03B | 355.59B | 351.41B | 327.58B | 324.53B | 366.89B |
| Cash, Cash Equivalents and Short-Term Investments | 57.85B | 60.84B | 65.12B | 72.51B | 61.50B | 60.46B |
| Total Debt | 78.65B | 83.98B | 75.03B | 78.12B | 94.32B | 106.98B |
| Total Liabilities | 140.29B | 131.39B | 126.27B | 124.92B | 142.40B | 159.39B |
| Stockholders Equity | 187.02B | 140.90B | 141.20B | 126.19B | 107.01B | 139.43B |
Cash Flow | ||||||
| Free Cash Flow | -1.99B | 11.11B | 3.84B | 25.08B | 16.94B | 4.06B |
| Operating Cash Flow | 8.05B | 20.84B | 10.77B | 31.82B | 24.05B | 12.63B |
| Investing Cash Flow | -19.81B | -23.33B | -12.15B | -4.41B | 5.37B | -2.97B |
| Financing Cash Flow | 1.50B | 2.13B | -13.14B | -24.93B | -21.71B | -12.74B |
Pou Chen Corporation Peers Comparison
Overall Rating
TW:147775Outperform
TW:991068Neutral- TW:990468Neutral
TW:689066Neutral
TW:619163Neutral
TW:210558Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:1477 | 75Outperform | TWD 53.16B | 14.23 | ― | 6.96% | -2.23% | 0.65% |
| TW:9910 | 68Neutral | TWD 66.95B | 13.66 | ― | 6.05% | -4.34% | -0.53% |
| TW:9904 | 68Neutral | TWD 76.62B | 5.41 | ― | 5.00% | -6.54% | 5.99% |
| TW:6890 | 66Neutral | TWD 35.04B | 13.28 | ― | 6.41% | -6.82% | -24.69% |
| TW:6191 | 63Neutral | TWD 41.64B | 14.41 | ― | 3.11% | 38.15% | -5.47% |
| TW:2105 | 58Neutral | TWD 94.49B | 17.35 | ― | 6.17% | 3.10% | 6.36% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:9904 | Pou Chen Corporation | 26.00 | -2.25 | -7.96% | |
| TW:1477 | Makalot Industrial Co., Ltd. | 215.50 | -61.75 | -22.27% | |
| TW:2105 | Cheng Shin Rubber Ind. Co., Ltd. | 29.15 | -1.53 | -4.99% | |
| TW:6191 | Global Brands Manufacture Limited | 83.70 | -35.78 | -29.95% | |
| TW:6890 | Lai Yih Footwear Co., Ltd. | 140.00 | -94.81 | -40.38% | |
| TW:9910 | Feng Tay Enterprise Co., Ltd. | 67.80 | -51.62 | -43.23% |
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