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TECO Electric & Machinery Co Ltd (1504) Fair Value & Analysis

Industrials · TW · Market cap 164B TWD (≈ $5.2B) · ISIN TW0001504009

What is TECO Electric & Machinery Co Ltd really worth?

TE TECO Electric & Machinery Co Ltd 1504 · TW
Price72.20 TWD
Fair Value29.70 TWD
Upside−58.9%
Quality47/100

Below-average quality, and trading another 143% above our fair value of 29.70 TWD.

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Strengths

Low debt · generates free cash flow
Ranks above peers (9/15)

Risks

!Mixed Growth (revenue 5y +5.2 %/yr)
!Thin margins · 8.9% net margin
!Narrow moat 41/100
!Evidence only medium, so the estimate is less certain
!Weak on future: 23 out of 100
!Weak on past: 27 out of 100

For context

·2.77% dividend yield
Evidence: Medium Range 21.56 TWD – 39.34 TWD

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 22 days ago

Share price +8.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (39.34 TWD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (21.56 TWD to 39.34 TWD) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

116.17 TWD 23.42 TWD Fair Value 29.70 TWD Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 23.42 TWD – 116.17 TWD · fair‑value band 21.56 TWD – 39.34 TWD · the 72.20 TWD price screens above the 29.70 TWD fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

TECO Electric & Machinery Co Ltd (1504) currently trades at 72.20 TWD, while our model-based Fair Value estimate is 29.70 TWD, implying the stock looks roughly 143.1% overvalued today. The Quality Score stands at 47/100 (below-average quality), in the Industrials sector. Bull case: the Multiples group reads highest at a median of 38.00 TWD per share, and 0 of the 24 models we run sit above the 72.20 TWD price. Bear case: the Growth DCF group reads lowest at 24.25 TWD, and 24 of the 24 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, TECO Electric & Machinery Co Ltd generated revenue of 59.7B TWD at a net margin of 8.9%. Revenue grew 4.5% year over year. It earns a return on equity of 6.7%. The balance sheet holds a net cash position of 3.3B TWD. Fundamentals as of Aug 13, 2026

Our scenario range runs from 21.56 TWD (bear case) to 39.34 TWD (bull case); at 72.20 TWD, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 43% below its 52-week high and 57% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −52% fair-value upside, at −59%, 1504 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly 0.2854 TWD per share, which is 1.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence 19.62 TWD 24.00 TWD 31.18 TWD 82
Growth DCF 20.04 TWD 24.25 TWD 30.74 TWD 80
Owner Earnings 35.66 TWD 46.15 TWD 63.36 TWD 77
All 24 models by family
DCF Models
FCF DCF best evidence 19.62 TWD 24.00 TWD 31.18 TWD 82
Owner Earnings 35.66 TWD 46.15 TWD 63.36 TWD 77
5Y Revenue Exit 24.38 TWD 33.35 TWD 45.37 TWD 73
5Y EBITDA Exit 29.48 TWD 42.15 TWD 57.52 TWD 76
5Y P/E Exit 31.58 TWD 45.77 TWD 61.14 TWD 71
10Y Revenue Exit 21.89 TWD 29.49 TWD 38.56 TWD 68
10Y EBITDA Exit 25.61 TWD 35.35 TWD 46.90 TWD 69
10Y P/E Exit 26.91 TWD 37.76 TWD 49.38 TWD 64
Earnings-Based
Graham-Dodd 15.20 TWD 28.76 TWD 35.79 TWD 66
EPV 23.65 TWD 26.23 TWD 28.49 TWD 74
Dividend Discount
Gordon GGM 18.38 TWD 25.07 TWD 31.87 TWD 69
DDM Multi-Stage 18.38 TWD 25.46 TWD 33.83 TWD 67
Multiples
P/E Multiple 35.20 TWD 46.94 TWD 58.67 TWD 63
P/S Multiple 28.50 TWD 38.00 TWD 47.50 TWD 58
P/B Multiple 28.50 TWD 38.00 TWD 47.50 TWD 55
EV/EBIT 36.88 TWD 46.46 TWD 56.04 TWD 66
EV/EBITDA 39.48 TWD 49.93 TWD 60.38 TWD 67
EV/Revenue 28.65 TWD 37.44 TWD 46.24 TWD 54
Asset-Based
NCAV (Graham) 19.53 TWD 26.18 TWD 39.07 TWD 54
Growth DCF
Growth DCF 20.04 TWD 24.25 TWD 30.74 TWD 80
Rev-Margin DCF 24.38 TWD 33.47 TWD 43.77 TWD 74
Economic Profit
Residual Income 30.90 TWD 32.03 TWD 32.26 TWD 76
ROIC Compounder 23.65 TWD 26.23 TWD 28.49 TWD 72
Growth Earnings
Growth-Adj P/E 25.16 TWD 35.95 TWD 46.73 TWD 67

Widest divergence: Multiples (38.00 TWD) versus Growth DCF (24.25 TWD). Highest evidence: FCF DCF (82).

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Key figures & financial health

P/E ratio 29.8
P/S ratio 2.65 P/E × margin
EPS (TTM) 2.42 TWD price ÷ EPS = P/E 29.8
Dividend yield 2.8% payout 82.6%
Net margin 8.9% FY2025
Return on equity 6.7% TTM
More key figures
Profitability
Return on assets (EBIT) 4.6% avg 5y
Operating margin 8.3% TTM
Growth
Revenue (TTM) 59.7B TWD TTM
Revenue growth (YoY) +4.5% 3y avg +0.4%
EPS growth (YoY) −6.2%
Balance sheet & cash flow
Free cash flow 2.6B TWD FY2025
Net cash 3.3B TWD FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 48 · Market factors (momentum, volatility) 44

Profitability 30
Margins and returns on capital today
Quality Growth 29
Are margins and returns improving?
Cashflow 34
Earnings quality: real cash, not paper profit
Fin. Strength 88
Balance sheet, leverage, solvency risk
Investment 85
Disciplined investing over empire-building
Low Volatility 45
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 49
Distance to the 52-week high (market factor)
Net Issuance 25
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

TECO Electric & Machinery Co., Ltd. engages in the production, sales and installation of various mechanical equipment in Taiwan, the United States, Mainland China, and internationally.

Full company description

TECO Electric & Machinery Co., Ltd. engages in the production, sales and installation of various mechanical equipment in Taiwan, the United States, Mainland China, and internationally. It offers electrical equipment products and transformers; power management system, such as mobile prefabricated electrical platform, EV charger, and charging pile power integration hub; low, medium, and high voltage motors; and electric vehicle powertrain products, including high-performance EV motors and drives, electric UAV powertrain, light electric UAV powertrain, and EV vessel powertrain. The company also provides gear reducer products; robotic joint module system; industrial drive systems, and industrial control and automation systems; commercial and home air conditioning products; and smart home appliances. In addition, it offers energy services comprising green energy engineering, electrification, power plant operation and management, industrial control automation, smart commercial HVAC energy, and smart residential HVAC energy solutions; and data center solutions consisting of mechanical and electrical engineering, electric vehicle powertrain, and robot dog power system solutions. Further, the company is involved in production and sale of various bearings; production and sale of keypad phone systems, hostless keypad phones, and billing devices; information software, data processing, and electronic information services; manufacturing of televisions, air conditioners, and refrigerators under the Teco Electric brand; and real estate sales and leasing. Additionally, it engages in production and sale of fiber optic electronic equipment; logistics and delivery services; real estate development and construction; and consulting services. The company was incorporated in 1956 and is headquartered in Taipei, Taiwan.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

TECO Electric & Machinery Co Ltd reported revenue of 59.1B TWD in FY2025 versus 52.6B TWD in FY2021, a compound +3.0%/yr. Reported net income was 5.2B TWD in FY2025, compounding +1.1%/yr from FY2021.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
59.1B TWD
Latest YoY
+7.0%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.4%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.2%
Avg. revenue growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.0%
Value creation/yr (5Y, in TWD) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in TWD: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+7.3% (4.5 + 2.8)
Revenue +3.0%/yr
FY21 52.6B TWD
FY22 58.3B TWD
FY23 59.4B TWD
FY24 55.2B TWD
FY25 59.1B TWD
Net income +1.1%/yr
FY21 5.0B TWD
FY22 3.5B TWD
FY23 5.8B TWD
FY24 5.8B TWD
FY25 5.2B TWD
Character of growth · EPS growth decomposed (2014-2025) +4.1 % p.a.
Revenue per share +0.4 %

of which total revenue +1.5 % · buybacks/dilution −1.0 %

EBIT margin +2.9 %
Tax rate −0.1 %
Residual (interest, one-offs) +0.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

1504 screens 143% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "TECO Electric & Machinery Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1504

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Industrial Machinery · 792 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 47 · Below median
Fair Value upside −59% · Below median
Return on equity (TTM) 7% · Below median
Return on assets 2% · Below median
Net margin (TTM) 9% · Above median
Operating margin (TTM) 8% · Above median
Revenue growth 5% · Above median
Dividend yield (TTM) 2.8% · Top 25%
Debt / equity 0.08× · Lower than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 29.8× · Pricier than median
P/B 1.79× · Cheaper than median
P/S (TTM) 2.75× · Pricier than median
P/FCF 2.0× · Cheaper than median
EV/EBITDA 21.2× · Pricier than median
PEG 0.63× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE23 · sector 21
PAST27 · sector 28
HEALTH96 · sector 96
DIVIDEND55 · sector 27

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc GEV $941.84 $131.95 −86%
SIE SIE €289.85 €139.77 −52%
Eaton Corporation ETN $402.78 $168.65 −58%
Parker-Hannifin Corporation PH $995.02 $398.69 −60%
Atlas Copco AB ATCOA kr 206.60 kr 112.59 −46%
Cummins Inc CMI $564.40 $348.94 −38%
Illinois Tool Works Inc ITW $281.67 $145.84 −48%
Emerson Electric Co EMR $155.18 $58.44 −62%
AMETEK, Inc AME $236.25 $125.80 −47%
Rockwell Automation, Inc ROK $417.53 $125.76 −70%

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Frequently asked questions

Is TECO Electric & Machinery Co Ltd (1504) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 29.70 TWD versus a price of 72.20 TWD, about −59% upside (overvalued).
What is the fair value of 1504?
Our model-based fair value for TECO Electric & Machinery Co Ltd is 29.70 TWD (as of Aug 13, 2026), built from audited fundamentals. The current price: 72.20 TWD.
What is the quality score of 1504?
TECO Electric & Machinery Co Ltd has a Quality Score of 47/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of TECO Electric & Machinery Co Ltd (1504)?
TECO Electric & Machinery Co Ltd reported trailing-twelve-month revenue of about 59.7B TWD (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1504?
The net profit margin of TECO Electric & Machinery Co Ltd is about 8.9%, meaning it keeps roughly 8.9% of revenue as net income. Based on the latest reported figures.
Does TECO Electric & Machinery Co Ltd pay a dividend?
TECO Electric & Machinery Co Ltd currently shows a dividend yield of about 2.77% relative to its recent price (as of Aug 13, 2026).
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