TECO Electric & Machinery Co., Ltd. (1504.TW) stock analysis

In our weekly check, TECO Electric & Machinery Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 7, red flags: 2.

About TECO Electric & Machinery Co., Ltd.

TECO Electric & Machinery Co., Ltd. is an Industrials company (Industrial - Machinery) based in Taiwan, listed on TAI as 1504.TW.

What our checks show for 1504.TW

Red flags

• The stock has fallen as much as 68% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 4.4%.

Warning signs

• Operating cash flow is only 0.72x net profit: part of the reported profit does not arrive as cash.
• Revenue grew only 1.3% a year over the last 3 years.
• Free cash flow is only 4.9% of revenue.
• Free cash flow covers the dividend only 0.6 times.
• The price swings a lot: 46.4% annual volatility. Expect large ups and downs.
• Recovering from its deepest fall took about 2.5 years.
• The share count grew by 10.2% in 2 years: each shareholder owns a smaller slice.

Strengths

• Debt is low: 0.23x equity.
• Operating profit covers interest 11.2 times over.
• The net margin rose by 1.1 points over 5 years, to 10.7%.
• Analysts expect earnings per share to grow about 20% a year over the next years.
• Analysts expect revenue to grow about 16.8% a year over the next years.
• Earnings per share grew 19.8% a year over the last 3 years.

Next earnings report: 2026-11-18

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Questions

What grade does TECO Electric & Machinery Co., Ltd. (1504.TW) have?

In our weekly check, TECO Electric & Machinery Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 7, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1504.TW stock?

This week's biggest flags for TECO Electric & Machinery Co., Ltd.: Deep past fall, Low return on capital, Profits not backed by cash. In total 9 of 25 checks show a warning or a red flag.

What does TECO Electric & Machinery Co., Ltd. do?

TECO Electric & Machinery Co., Ltd. is an Industrials company (Industrial - Machinery) based in Taiwan, listed on TAI as 1504.TW.

When does TECO Electric & Machinery Co., Ltd. report earnings next?

The next earnings report is expected on 2026-11-18. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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