Turvo International Co Ltd

Turvo International maintains a conservative capital structure, with a debt-to-equity ratio of 0.22, significantly below the industry median of 0.45. The company's liquidity position is mixed, as it reports a current ratio of 2.34, indicating strong short-term liquidity, but its operating cash flow is negative at -149.05 million TWD, while free cash flow stands at 233.08 million TWD. This suggests that capital expenditures and working capital management are key drivers of cash flow dynamics.

Profitability metrics show Turvo underperforming relative to industry benchmarks. Return on equity (ROE) is 4.89%, below the industry median of 6.2%, and return on assets (ROA) is 3.12%, compared to a median of 4.8%. Gross profit margin is 38.04%, while operating margin is 20.0%, both below the industry medians of 42.5% and 24.0%, respectively. These figures suggest Turvo faces pricing pressures or cost inefficiencies relative to peers.

Geographically, Turvo's revenue is concentrated in a single region, with 100% of revenue derived from its domestic market. The company does not disclose segment-level revenue, but its product portfolio is focused on industrial machinery and equipment. This lack of diversification increases exposure to local economic conditions and regulatory shifts.

Growth prospects are modest, with revenue expected to remain flat in the current fiscal year and a marginal increase in the next. Historical revenue growth has been stable, but the absence of a clear expansion strategy or new product pipeline limits upside potential. Analysts have assigned a uniform price target of 196.00 TWD, suggesting limited near-term valuation upside.

Risk factors include liquidity constraints, as net cash is negative after subtracting total debt. The company's dilution risk is low, with no near-term pressure from share issuance or convertible debt. However, the negative operating cash flow raises concerns about the sustainability of its capital structure, particularly if free cash flow does not improve.

Recent filings and transcripts indicate no material changes in strategy or operations. The company has not disclosed any major capital projects or R&D initiatives, and its earnings call transcripts show a focus on cost control and market stabilization. No significant regulatory or geopolitical risks are currently flagged.

Return on equity of 4.89% remains above the 3.56% industry median, indicating efficient capital utilization.

Dilution risk is assessed as low, suggesting minimal threat to existing shareholder equity value.

Long-term debt surged to TWD 1.86 billion in FY2026, nearly doubling from the previous year's level.

Cash conversion ratio of -0.82 places the company in the bottom quartile of its peer cohort.

Revenue TWD 765.9M, −13,9% YoY; Operating income −44,4% YoY.

• ▍Revenue TWD 765.9M, −13,9% YoY
• ▍Operating income −44,4% YoY
• ▍Net income −29,0% YoY
• ▍Free cash flow −9,2% YoY
• ▍Net margin 13.2%

Revenue TWD 793.7M, −17,7% YoY; Operating income −47,2% YoY.

• ▍Revenue TWD 793.7M, −17,7% YoY
• ▍Operating income −47,2% YoY
• ▍Net income −44,8% YoY
• ▍Free cash flow +199,7% YoY
• ▍Net margin 13.0%

Revenue TWD 836.6M, −11,0% YoY; Operating income −39,6% YoY.

• ▍Revenue TWD 836.6M, −11,0% YoY
• ▍Operating income −39,6% YoY
• ▍Net income −57,3% YoY
• ▍Free cash flow −45,2% YoY
• ▍Net margin 9.3%

Revenue TWD 878.7M; Operating income TWD 117.7M.

• ▍Revenue TWD 878.7M
• ▍Operating income TWD 117.7M
• ▍Net margin 13.8%

Revenue TWD 889.5M; Operating income TWD 149.4M.

• ▍Revenue TWD 889.5M
• ▍Operating income TWD 149.4M
• ▍Net margin 16.0%

Revenue TWD 964.0M; Operating income TWD 189.1M.

• ▍Revenue TWD 964.0M
• ▍Operating income TWD 189.1M
• ▍Net margin 19.4%

Revenue TWD 939.8M; Operating income TWD 187.8M.

• ▍Revenue TWD 939.8M
• ▍Operating income TWD 187.8M
• ▍Net margin 19.3%

Revenue TWD 3.27B, −10,5% YoY; Operating income −39,9% YoY.

• ▍Revenue TWD 3.27B, −10,5% YoY
• ▍Operating income −39,9% YoY
• ▍Net income −38,9% YoY
• ▍Free cash flow −76,5% YoY
• ▍Net margin 12.3%

Revenue TWD 3.66B, +9,6% YoY; Operating income +29,5% YoY.

• ▍Revenue TWD 3.66B, +9,6% YoY
• ▍Operating income +29,5% YoY
• ▍Net income +23,8% YoY
• ▍Free cash flow −33,2% YoY
• ▍Net margin 18.1%

Revenue TWD 3.34B, −0,4% YoY; Operating income −2,4% YoY.

• ▍Revenue TWD 3.34B, −0,4% YoY
• ▍Operating income −2,4% YoY
• ▍Net income −14,2% YoY
• ▍Free cash flow +1,0% YoY
• ▍Net margin 16.0%

Revenue TWD 3.35B, +3,6% YoY; Operating income −16,1% YoY.

• ▍Revenue TWD 3.35B, +3,6% YoY
• ▍Operating income −16,1% YoY
• ▍Net income +14,7% YoY
• ▍Free cash flow +17,2% YoY
• ▍Net margin 18.6%

Revenue TWD 3.23B; Operating income TWD 649.2M.

• ▍Revenue TWD 3.23B
• ▍Operating income TWD 649.2M
• ▍Net margin 16.8%