Powerchip Semiconductor Manufacturing Corp. (6770.TW) stock analysis

In our weekly check, Powerchip Semiconductor Manufacturing Corp. is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 7.

About Powerchip Semiconductor Manufacturing Corp.

Powerchip Semiconductor Manufacturing Corp. is a Technology company (Semiconductors) based in Taiwan, listed on TAI as 6770.TW.

What our checks show for 6770.TW

Red flags

• Operating profit does not cover the interest bill (-3.6x): interest is paid from cash or new debt.
• The gross margin fell by 33.9 points, to 8.2%: costs are rising faster than prices.
• Revenue fell 10.1% a year over the last 3 years.
• The price swings a lot: 76.4% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 85% from a peak. Would you have held through that?
• Beta 2.08: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.

Warning signs

• Earnings per share fell 17.3% a year over the last 3 years.
• Net profit fell 13.2% a year over the last 3 years.

Strengths

• Debt is low: 0.23x equity.
• The net margin rose by 1.1 points over 5 years, to 25.6%.
• Operating cash flow is 1.3x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 58.8% a year over the next years.
• Analysts expect revenue to grow about 38.7% a year over the next years.
• Analysts expect the net margin to improve by 9.4 points from today's 25.6%.

Next earnings report: 2027-01-21

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Questions

What grade does Powerchip Semiconductor Manufacturing Corp. (6770.TW) have?

In our weekly check, Powerchip Semiconductor Manufacturing Corp. is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 6770.TW stock?

This week's biggest flags for Powerchip Semiconductor Manufacturing Corp.: Weak interest cover, Gross margin falling, Weak revenue growth. In total 9 of 24 checks show a warning or a red flag.

What does Powerchip Semiconductor Manufacturing Corp. do?

Powerchip Semiconductor Manufacturing Corp. is a Technology company (Semiconductors) based in Taiwan, listed on TAI as 6770.TW.

When does Powerchip Semiconductor Manufacturing Corp. report earnings next?

The next earnings report is expected on 2027-01-21. 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 2026-10-24

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