Standard Chem & Pharm Co Ltd

Standard Chem & Pharm Co Ltd maintains a relatively strong liquidity position, with a current ratio of 1.91 and cash and equivalents amounting to TWD 1,023,124,000. However, the company's net cash position is negative after subtracting total debt, indicating potential liquidity constraints. The price-to-book ratio of 2.08 suggests that the company's market value is moderately higher than its book value, while the price-to-earnings ratio of 43.56 indicates a relatively high valuation compared to its earnings.

In terms of profitability, the company's return on equity (ROE) of 4.77% and return on assets (ROA) of 2.18% are below the typical thresholds for strong performance in the pharmaceutical industry. These figures suggest that the company is generating modest returns relative to its equity and asset base. The gross profit margin of 44.3% and operating margin of 21.1% are in line with industry norms, but the net profit margin of 15.7% indicates that the company is effectively managing its operating expenses.

The company's revenue is primarily concentrated in its domestic market, with no significant international operations disclosed. This concentration may expose the company to regional economic and regulatory risks, which could impact its overall performance. The company's capital structure is relatively conservative, with a debt-to-equity ratio of 0.22, indicating a low reliance on debt financing.

Looking ahead, the company's revenue is expected to grow, supported by its strong operating cash flow of TWD 245,945,000 and free cash flow of TWD 253,558,000. The capital expenditure of TWD -186,254,000 suggests that the company is investing in its operations, which could drive future growth. However, the company's liquidity risk remains a concern, as highlighted by the negative net cash position after accounting for total debt.

The company's risk assessment indicates a medium level of liquidity risk and a low level of dilution risk. The key flag of negative net cash after subtracting total debt underscores the need for careful liquidity management. The company's recent financial performance, including a net income of TWD 252,704,000 and operating income of TWD 340,697,000, suggests that it is maintaining profitability despite the challenges in the pharmaceutical sector.

Free cash flow improved to TWD 674 million in FY2026, showing enhanced liquidity generation capabilities.

Debt-to-equity ratio of 0.22 is below the cohort median of 0.18, reflecting a conservative capital structure.

Cash conversion ratio of 0.97 exceeds the cohort median of 0.95, suggesting efficient working capital management.

Revenue CAGR of -1.6% over four years indicates a long-term decline in top-line growth momentum.

Net income CAGR of -0.6% over four years suggests stagnating profitability despite recent period improvements.

Operating income declined to TWD 1.36 billion in FY2026 from TWD 1.47 billion in FY2025.

Return on equity of 4.77% remains relatively low, indicating modest returns generated on shareholder capital.

Medium liquidity risk flag suggests potential challenges in meeting short-term financial obligations efficiently.

Revenue TWD 1.79B, +6,7% YoY; Operating income +5,2% YoY.

• ▍Revenue TWD 1.79B, +6,7% YoY
• ▍Operating income +5,2% YoY
• ▍Net income +17,8% YoY
• ▍Free cash flow +93,3% YoY
• ▍Net margin 12.8%

Revenue TWD 1.77B, +1,6% YoY; Operating income −17,6% YoY.

• ▍Revenue TWD 1.77B, +1,6% YoY
• ▍Operating income −17,6% YoY
• ▍Net income +41,5% YoY
• ▍Free cash flow +23,8% YoY
• ▍Net margin 17.4%

Revenue TWD 1.83B, +3,9% YoY; Operating income −7,5% YoY.

• ▍Revenue TWD 1.83B, +3,9% YoY
• ▍Operating income −7,5% YoY
• ▍Net income −9,1% YoY
• ▍Free cash flow −31,1% YoY
• ▍Net margin 10.7%

Revenue TWD 1.64B, +1,6% YoY; Operating income −7,0% YoY.

• ▍Revenue TWD 1.64B, +1,6% YoY
• ▍Operating income −7,0% YoY
• ▍Net income −23,0% YoY
• ▍Free cash flow −17,2% YoY
• ▍Net margin 11.9%

Revenue TWD 1.67B; Operating income TWD 335.5M.

• ▍Revenue TWD 1.67B
• ▍Operating income TWD 335.5M
• ▍Net margin 11.6%

Revenue TWD 1.74B; Operating income TWD 422.2M.

• ▍Revenue TWD 1.74B
• ▍Operating income TWD 422.2M
• ▍Net margin 12.5%

Revenue TWD 1.76B; Operating income TWD 373.1M.

• ▍Revenue TWD 1.76B
• ▍Operating income TWD 373.1M
• ▍Net margin 12.3%

Revenue TWD 1.61B; Operating income TWD 340.7M.

• ▍Revenue TWD 1.61B
• ▍Operating income TWD 340.7M
• ▍Net margin 15.7%

Revenue TWD 7.02B, +3,4% YoY; Operating income −7,4% YoY.

• ▍Revenue TWD 7.02B, +3,4% YoY
• ▍Operating income −7,4% YoY
• ▍Net income +5,4% YoY
• ▍Free cash flow +10,9% YoY
• ▍Net margin 13.2%

Revenue TWD 6.79B, +8,8% YoY; Operating income +13,0% YoY.

• ▍Revenue TWD 6.79B, +8,8% YoY
• ▍Operating income +13,0% YoY
• ▍Net income +5,5% YoY
• ▍Free cash flow +42,9% YoY
• ▍Net margin 13.0%

Revenue TWD 6.24B, +6,6% YoY; Operating income +16,4% YoY.

• ▍Revenue TWD 6.24B, +6,6% YoY
• ▍Operating income +16,4% YoY
• ▍Net income +2,4% YoY
• ▍Free cash flow +311,9% YoY
• ▍Net margin 13.4%