Pou Chen Corporation (9904.TW) stock analysis

In our weekly check, Pou Chen Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7.

About Pou Chen Corporation

Pou Chen Corporation is a Consumer Cyclical company (Apparel - Footwear & Accessories) based in Taiwan, listed on TAI as 9904.TW.

What our checks show for 9904.TW

Red flags

• The gross margin fell by 3.3 points, to 21%: costs are rising faster than prices.
• Revenue fell 2.5% a year over the last 3 years.
• Free cash flow is negative (-0.8% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 60% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.8 years.
• Return on capital (ROCE) is only 2.7%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin fell by 0.4 points over 5 years, to 5.6%: the company keeps less of each sale as profit.
• Operating cash flow is only 0.58x net profit: part of the reported profit does not arrive as cash.
• Analysts expect earnings per share to shrink about 6.6% a year.
• Analysts expect only about 3.8% a year of growth in revenue.
• Analysts expect the net margin to shrink by 1.3 points from today's 5.6%.
• The net margin is only 5.6%: little room if costs rise.

Strengths

• The dividend takes 36% of profit: there is a cushion.
• The price is 5.5 times earnings (P/E), reasonable for its growth.
• The price moves calmly: 18.9% annual volatility.
• Beta 0.27: the stock usually moves less than the market.
• Actively traded: about 14.7 million shares a day.

Next earnings report: 2026-11-18

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Questions

What grade does Pou Chen Corporation (9904.TW) have?

In our weekly check, Pou Chen Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 9904.TW stock?

This week's biggest flags for Pou Chen Corporation: Gross margin falling, Weak revenue growth, Weak free cash flow. In total 13 of 25 checks show a warning or a red flag.

What does Pou Chen Corporation do?

Pou Chen Corporation is a Consumer Cyclical company (Apparel - Footwear & Accessories) based in Taiwan, listed on TAI as 9904.TW.

When does Pou Chen Corporation 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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