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Right Way Industrial Co (1506) Fair Value & Analysis

Consumer Cyclical · TW · Market cap 3.2B TWD

RW Right Way Industrial Co 1506 · TW
Price10.50 TWD
Fair Value1.34 TWD
Upside-87.2%
Quality35/100
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Expensive Growth
Thin margins · 1.8% net margin
Low debt · negative free cash flow
Trails peers (4/13)
Narrow moat 22/100
Evidence: Medium Range 1.01 TWD – 1.68 TWD Share as image

Fair value as of: Jul 21, 2026

From 10 valuation models · updated 20 days ago

Share price −0.5% over the past month.

Below-average quality, and screening another 87% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (1.68 TWD). The favourable scenario is already priced in.
  • Weak quality (35/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

23.25 TWD 9.10 TWD Fair Value 1.34 TWD Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range 9.10 TWD – 23.25 TWD · fair‑value band 1.01 TWD – 1.68 TWD · the 10.50 TWD price screens above the 1.34 TWD fair value. Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Right Way Industrial Co (1506) currently trades at 10.50 TWD, while our model-based Fair Value estimate is 1.34 TWD, implying the stock looks roughly 87.2% overvalued today. The Quality Score stands at 35/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Right Way Industrial Co generated revenue of 1.1B TWD at a net margin of 1.8%. Revenue grew 15.3% year over year. It earns a return on equity of 0.7%. The balance sheet holds a net cash position of 156M TWD. Fundamentals as of Jul 21, 2026

Our scenario range runs from 1.01 TWD (bear case) to 1.68 TWD (bull case); at 10.50 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 30% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -44% fair-value upside, at -87%, 1506 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (0.0500 TWD to 6.23 TWD). Read the values as a conservative anchor, not as a price target.
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
Residual Income 6.16 TWD 5.58 TWD 3.89 TWD 76
Gordon GGM 0.0400 TWD 0.0500 TWD 0.0500 TWD 70
Growth-Adj P/E 0.7100 TWD 1.01 TWD 1.32 TWD 68
All 10 models by family
Earnings-Based
Graham-Dodd 0.4100 TWD 0.5100 TWD 0.5700 TWD 54
Dividend Discount
Gordon GGM 0.0400 TWD 0.0500 TWD 0.0500 TWD 70
DDM Multi-Stage 0.0400 TWD 0.0500 TWD 0.0700 TWD 61
Multiples
P/E Multiple 1.01 TWD 1.34 TWD 1.68 TWD 63
P/S Multiple 0.7800 TWD 1.04 TWD 1.30 TWD 58
P/B Multiple 0.7800 TWD 1.04 TWD 1.30 TWD 55
EV/EBITDA 2.25 TWD 2.76 TWD 3.27 TWD 54
Asset-Based
NCAV (Graham) 4.65 TWD 6.23 TWD 9.29 TWD 50
Economic Profit
Residual Income 6.16 TWD 5.58 TWD 3.89 TWD 76
Growth Earnings
Growth-Adj P/E 0.7100 TWD 1.01 TWD 1.32 TWD 68

Widest divergence: Asset-Based (6.23 TWD) versus Dividend Discount (0.0500 TWD). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 1.1B TWD
Revenue growth (YoY) +15.3%
Net margin 1.8%
Return on equity 0.7%
Free cash flow −82.7M TWD FY2025
P/E ratio 180.0
More key figures
Operating margin 2.1%
EPS (TTM) 0.0600 TWD
EPS growth (YoY) +72.4%
Net cash 156M TWD FY2025

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 35/100

Of which business quality 39 · Market factors (momentum, volatility) 43

Profitability 16
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 59
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 31
Price trend over the last 3–12 months (market factor)
52W Momentum 18
Distance to the 52-week high (market factor)
Net Issuance 9
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.

About the company

Right Way Industrial Co.,Ltd manufactures and sells casting and forging parts to original equipment manufacturers and aftermarket.

Full company description

Right Way Industrial Co.,Ltd manufactures and sells casting and forging parts to original equipment manufacturers and aftermarket. The company offers various casting and forging parts with steel or aluminum alloy materials, including pistons, connecting rods, steering knuckles and system parts, suspension control arms, industrial compressor housings, industrial pump chambers, die casting parts, cast iron parts, balance shafts, and suspension components for vehicle and industrial applications. It also provides engine brackets for engines, tie rod joints, and side rod assemblies; ball joints of chassis, steering system parts, balance beam, and other forging parts; and refrigeration compressor components and outboard motor related components, etc. In addition, the company offers system furniture-related products, such as cabinets, low cabinets, and TV cabinets. The company was founded in 1964 and is based in Tainan City, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Right Way Industrial Co reported revenue of 1.1B TWD in FY2025 versus 1.1B TWD in FY2021, a compound +0.2%/yr. Reported net income was 18.3M TWD in FY2025, compounding −19.1%/yr from FY2021.

Growth Quality 36/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
1.1B TWD
Latest YoY
+3.4%
Avg. 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.
−2.1%
Avg. 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.
+4.6%
Avg. 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.
+0.1%
Revenue +0.2%/yr
FY21 1.1B TWD
FY22 1.1B TWD
FY23 1.1B TWD
FY24 1.0B TWD
FY25 1.1B TWD
Net income −19.1%/yr
FY21 42.9M TWD
FY22 95.2M TWD
FY23 86.7M TWD
FY24 41.7M TWD
FY25 18.3M TWD
Character of growth · EPS growth decomposed (2014-2025) +2.0 % p.a.
Revenue per share −13.4 pp

of which total revenue −4.2 pp · buybacks/dilution −9.3 pp

EBIT margin +6.2 pp
Tax rate −2.2 pp
Residual (interest, one-offs) +11.6 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

1506 screens 87% overvalued. Compare with Hyundai Mobis Co →

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Cite: Fair Value Calculator (2026). "Right Way Industrial Co Fair Value". https://www.fairvalue-calculator.com/stock/1506

Peer Group

Auto Parts · 642 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 35 · Bottom 25%
Fair Value upside −87% · Bottom 25%
Return on equity (TTM) 1% · Bottom 25%
Return on assets 0% · Bottom 25%
Net margin (TTM) 2% · Below median
Operating margin (TTM) 2% · Bottom 25%
Revenue growth 15% · Above median
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 180.0× · Pricier than 75% of peers
P/B 1.16× · Cheaper than median
P/S (TTM) 2.92× · Pricier than 75% of peers
EV/EBITDA 54.1× · Pricier than 75% of peers
PEG 0.95× · Cheaper than median

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.

VALUE 0 · sector 16
FUTURE 77 · sector 23
PAST 3 · sector 26
HEALTH 100 · sector 95
DIVIDEND 0 · sector 30

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto Parts stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
Hyundai Mobis Co 012330 482,000 KRW 678,420 KRW +41%
Magna International Inc MGAN 1,122 MXN 1,172 MXN +4%
Samvardhana Motherson International Limited MOTHERSON ₹144.17 ₹80.63 -44%
Bosch Limited BOSCHLTD ₹41,110 ₹14,004 -66%
Bharat Forge Limited BHARATFORG ₹2,117 ₹441.74 -79%
Uno Minda Limited UNOMINDA ₹1,158 ₹426.57 -63%
Schaeffler India Limited SCHAEFFLER ₹4,135 ₹1,412 -66%
Hankook Tire & Technology Co 161390 73,600 KRW 196,479 KRW +167%
MRF Limited MRF ₹131,025 ₹125,849 -4%
Sona BLW Precision Forgings Limited SONACOMS ₹792.00 ₹207.06 -74%

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Frequently asked questions

Is Right Way Industrial Co (1506) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of 1.34 TWD versus a price of 10.50 TWD, about −87% (overvalued).
What is the fair value of 1506?
Our model-based fair value for Right Way Industrial Co is 1.34 TWD (as of Jul 21, 2026), built from audited fundamentals. The current price is 10.50 TWD.
What is the quality score of 1506?
Right Way Industrial Co has a Quality Score of 35/100. 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 Right Way Industrial Co (1506)?
Right Way Industrial Co reported trailing-twelve-month revenue of about 1.1B TWD (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 1506?
The net profit margin of Right Way Industrial Co is about 1.8%, meaning it keeps roughly 1.8% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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