Walsin Lihwa Corporation (1605.TW) stock analysis

In our weekly check, Walsin Lihwa Corporation is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 8 pass, warnings: 6, red flags: 10.

About Walsin Lihwa Corporation

Walsin Lihwa Corporation is a Basic Materials company (Steel) based in Taiwan, listed on TAI as 1605.TW.

What our checks show for 1605.TW

Red flags

• Net debt is 9.3x a year of EBITDA (debt/equity 0.44). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (-0.1x): interest is paid from cash or new debt.
• The gross margin fell by 6.7 points, to 6%: costs are rising faster than prices.
• Operating cash flow is only 0.06x net profit: part of the reported profit does not arrive as cash.
• Revenue fell 1.3% a year over the last 3 years.
• Free cash flow is negative (-4.7% of revenue): the business spends more cash than it brings in.
• The price swings a lot: 56% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 74% from a peak. Would you have held through that?
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin fell by 0.9 points over 5 years, to 8.4%: the company keeps less of each sale as profit.
• Analysts expect earnings per share to shrink about 100% a year.
• Earnings per share fell 15.3% a year over the last 3 years.
• Net profit fell 9% a year over the last 3 years.
• The net margin is only 8.4%: little room if costs rise.
• Recovering from its deepest fall took about 1.6 years.

Strengths

• Analysts expect revenue to grow about 15.3% a year over the next years.
• The dividend takes 14% of profit: there is a cushion.
• The price is 10.9 times earnings (P/E), reasonable for its growth.
• The share count fell by 19.7% in 2 years: the company buys back its own shares.
• Actively traded: about 25.2 million shares a day.

Next earnings report: 2026-11-02

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Questions

What grade does Walsin Lihwa Corporation (1605.TW) have?

In our weekly check, Walsin Lihwa Corporation is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 8 pass, warnings: 6, red flags: 10. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1605.TW stock?

This week's biggest flags for Walsin Lihwa Corporation: High debt, Weak interest cover, Gross margin falling. In total 16 of 24 checks show a warning or a red flag.

What does Walsin Lihwa Corporation do?

Walsin Lihwa Corporation is a Basic Materials company (Steel) based in Taiwan, listed on TAI as 1605.TW.

When does Walsin Lihwa Corporation report earnings next?

The next earnings report is expected on 2026-11-02. 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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