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Li Cheng Enterprise Co Ltd (4426) Fair Value & Analysis

Consumer Cyclical · TW · Market cap 1.4B TWD

LC Li Cheng Enterprise Co Ltd 4426 · TW
Price7.81 TWD
Fair Value4.40 TWD
Upside-43.7%
Quality21/100
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Risks

!Trades 77% ABOVE our fair value of 4.40 TWD
!Weak Growth (revenue 5y −6.3 %/yr)
!Loss-making · -57.3% net margin
!Moderate debt · negative free cash flow
Weak Growth (revenue 5y −6.3 %/yr)
Loss-making · -57.3% net margin
Moderate debt · negative free cash flow
Trails peers (2/10)
Narrow moat 5/100
Evidence: Low Range 3.67 TWD – 5.14 TWD Share as image

Fair value as of: Aug 13, 2026

From 3 valuation models · updated 11 days ago

Fair value updated Aug 13, 2026, revised from 4.71 TWD to 4.40 TWD (−6.6%) since Jul 23, 2026. Share price −5.6% over the past month.

Below-average quality, and trading another 77% above our fair value.

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

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What matters now

  • The price sits above even our optimistic bull case (5.14 TWD). The favourable scenario is already priced in.
  • Weak quality (21/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
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Price vs Fair Value (5 years)

33.30 TWD 7.54 TWD Fair Value 4.40 TWD Mar 2021 Aug 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 7.54 TWD – 33.30 TWD · fair‑value band 3.67 TWD – 5.14 TWD · the 7.81 TWD price screens above the 4.40 TWD fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Li Cheng Enterprise Co Ltd (4426) currently trades at 7.81 TWD, while our model-based Fair Value estimate is 4.40 TWD, implying the stock looks roughly 43.7% overvalued today. The Quality Score stands at 21/100 (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: low).

Over the trailing twelve months, Li Cheng Enterprise Co Ltd generated revenue of 867M TWD at a net margin of -57.3%. Revenue declined 6.0% year over year. It earns a return on equity of -23.7%. Net debt stands at 2.0B TWD. Fundamentals as of Aug 13, 2026

Our scenario range runs from 3.67 TWD (bear case) to 5.14 TWD (bull case); at 7.81 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 33% below its 52-week high and 5% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -26% fair-value upside, at -44%, 4426 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.

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
Gordon GGM 3.48 TWD 4.12 TWD 4.77 TWD 70
DDM Multi-Stage 3.48 TWD 4.40 TWD 5.42 TWD 61
NCAV (Graham) 5.43 TWD 7.27 TWD 10.85 TWD 50
All 3 models by family
Dividend Discount
Gordon GGM 3.48 TWD 4.12 TWD 4.77 TWD 70
DDM Multi-Stage 3.48 TWD 4.40 TWD 5.42 TWD 61
Asset-Based
NCAV (Graham) 5.43 TWD 7.27 TWD 10.85 TWD 50

Widest divergence: Asset-Based (7.27 TWD) versus Dividend Discount (4.12 TWD). Highest evidence: Gordon GGM (70).

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Key figures & financial health

P/S ratio 1.60 TTM
Net margin -57.3% TTM
Return on equity -23.7% TTM
Return on assets -5.2% TTM
Operating margin -22.2% TTM
EPS (TTM) -2.94 TWD
More key figures
Growth
Revenue (TTM) 867M TWD TTM
Revenue growth (YoY) -6.0% 3y avg -14.3%
EPS growth (YoY) -5.1%
Balance sheet & cash flow
Free cash flow −414M TWD FY2025
Net debt 2.0B TWD FY2025

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

Quality Score breakdown

Overall quality 21/100

Of which business quality 22 · Market factors (momentum, volatility) 40

Profitability 1
Margins and returns on capital today
Quality Growth 10
Are margins and returns improving?
Cashflow 2
Earnings quality: real cash, not paper profit
Fin. Strength 31
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 9
Distance to the 52-week high (market factor)
Net Issuance 34
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

Li Cheng Enterprise Co., Ltd. manufactures and sells spacer fabrics in Taiwan, Vietnam, China, and internationally. It offers polyester and nylon monofilaments; and other materials, such as PP and other products used in sport shoes, casual shoes, bags, hats, lingerie, apparel, mattress, sports/medical equipment, and car textiles fields.

Full company description

Li Cheng Enterprise Co., Ltd. manufactures and sells spacer fabrics in Taiwan, Vietnam, China, and internationally. It offers polyester and nylon monofilaments; and other materials, such as PP and other products used in sport shoes, casual shoes, bags, hats, lingerie, apparel, mattress, sports/medical equipment, and car textiles fields. Li Cheng Enterprise Co., Ltd. was formerly known as Li-Guan Enterprise Co., Ltd and changed its name to Li Cheng Enterprise Co., Ltd. in 2001. The company was founded in 1992 and is headquartered in Douliou City, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Li Cheng Enterprise Co Ltd reported revenue of 881M TWD in FY2025 versus 643M TWD in FY2021, a compound +8.2%/yr. Reported net income was −508M TWD in FY2025.

Growth Quality 0/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
881M TWD
Latest YoY
−9.2%
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.
−14.3%
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.
−6.3%
Avg. revenue growth/yr (21Y) 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.
+3.7%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Revenue +8.2%/yr
FY21 643M TWD
FY22 1.4B TWD
FY23 1.3B TWD
FY24 970M TWD
FY25 881M TWD
Net income
FY21 −372M TWD
FY22 −79.5M TWD
FY23 −41.8M TWD
FY24 −235M TWD
FY25 −508M TWD

4426 screens 44% overvalued. Compare with Shenzhou International Group →

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Cite: Fair Value Calculator (2026). "Li Cheng Enterprise Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/4426

Peer Group

Textile Manufacturing · 330 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 21 · Bottom 25%
Fair Value upside −44% · Below median
Return on assets -5% · Bottom 25%
Net margin (TTM) -57% · Bottom 25%
Operating margin (TTM) -22% · Bottom 25%
Revenue growth -6% · Below median
Dividend yield (TTM) 5.6% · Top 25%
Debt / equity 0.79× · Higher than 75% of peers

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/S (TTM) 0.05× · Cheaper than 75% of peers

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 8
FUTURE0 · sector 0
PAST0 · sector 15
HEALTH60 · sector 95
DIVIDEND100 · sector 33

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 Textile Manufacturing stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Shenzhou International Group 2313 HK$42.10 HK$68.24 +62%
Tongkun Group 601233 ¥22.67 ¥14.53 -36%
Inner Mongolia ERDOS Resources Co 600295 ¥12.79 ¥14.35 +12%
Far Eastern New Century Corporation 1402 27.55 TWD 25.64 TWD -7%
K.P.R. Mill Limited KPRMILL ₹1,124 ₹467.49 -58%
HMT (Xiamen) New Technical Materials Co 603306 ¥71.55 ¥11.85 -83%
Zhejiang Orient Holdings 600120 ¥4.89 ¥2.21 -55%
Vardhman Textiles Limited VTL ₹591.90 ₹437.53 -26%
Albany International Corp AIN $59.92 $18.40 -69%
Isiklar Enerji ve Yapi Holding IEYHO 174.20 TRY 324.31 TRY +86%

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Frequently asked questions

Is Li Cheng Enterprise Co Ltd (4426) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 4.40 TWD versus a price of 7.81 TWD, about −44% (overvalued).
What is the fair value of 4426?
Our model-based fair value for Li Cheng Enterprise Co Ltd is 4.40 TWD (as of Aug 13, 2026), built from audited fundamentals. The current price: 7.81 TWD.
What is the quality score of 4426?
Li Cheng Enterprise Co Ltd has a Quality Score of 21/100. 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 Li Cheng Enterprise Co Ltd (4426)?
Li Cheng Enterprise Co Ltd reported trailing-twelve-month revenue of about 867M TWD (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 4426?
The net profit margin of Li Cheng Enterprise Co Ltd is about -57.3%, meaning it is currently running at a net loss. 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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