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Tongtai Machine & Tool Co (4526) Fair Value & Analysis

Industrials · TW · Market cap 8.0B TWD

TM Tongtai Machine & Tool Co 4526 · TW
Price30.40 TWD
Fair Value18.64 TWD
Upside-38.7%
Quality50/100
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Weak Growth
Thin margins · 5.3% net margin
Low debt · negative free cash flow
Trails peers (4/11)
Narrow moat 22/100
Evidence: Medium Range 16.74 TWD – 31.78 TWD Share as image

Fair value as of: Jul 21, 2026

From 10 valuation models · updated 20 days ago

Fair value updated Jul 21, 2026, revised from 18.67 TWD to 18.64 TWD (−0.2%) since Jul 11, 2026. Share price −19.5% over the past month.

A solid business, but screening 39% overvalued on our models.

What matters now

  • Solid but not exceptional quality (50/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (16.74 TWD to 31.78 TWD) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

44.70 TWD 12.97 TWD Fair Value 18.64 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 12.97 TWD – 44.70 TWD · fair‑value band 16.74 TWD – 31.78 TWD · the 30.40 TWD price screens above the 18.64 TWD fair value. Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Tongtai Machine & Tool Co (4526) currently trades at 30.40 TWD, while our model-based Fair Value estimate is 18.64 TWD, implying the stock looks roughly 38.7% overvalued today. The Quality Score stands at 50/100 (solid quality), in the Industrials 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, Tongtai Machine & Tool Co generated revenue of 4.9B TWD at a net margin of 5.3%. Revenue declined 29.2% year over year. It earns a return on equity of 5.3%. Net debt stands at 3.8B TWD. Fundamentals as of Jul 21, 2026

Our scenario range runs from 16.74 TWD (bear case) to 31.78 TWD (bull case); at 30.40 TWD, the current price sits within 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 34% below its 52-week high and 27% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -39%, 4526 screens cheaper 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
Residual Income 16.21 TWD 17.79 TWD 25.53 TWD 76
Gordon GGM 1.78 TWD 1.94 TWD 2.18 TWD 70
Growth-Adj P/E 20.27 TWD 28.96 TWD 37.65 TWD 68
All 10 models by family
DCF Models
Owner Earnings 16.04 TWD 21.74 TWD 31.97 TWD 31
Earnings-Based
Graham-Dodd 12.39 TWD 15.15 TWD 17.04 TWD 54
Dividend Discount
Gordon GGM 1.78 TWD 1.94 TWD 2.18 TWD 70
DDM Multi-Stage 1.78 TWD 2.20 TWD 2.77 TWD 61
Multiples
P/E Multiple 28.71 TWD 38.28 TWD 47.85 TWD 63
P/S Multiple 23.24 TWD 30.99 TWD 38.73 TWD 58
P/B Multiple 23.24 TWD 30.99 TWD 38.73 TWD 55
Asset-Based
NCAV (Graham) 9.51 TWD 12.74 TWD 19.01 TWD 50
Economic Profit
Residual Income 16.21 TWD 17.79 TWD 25.53 TWD 76
Growth Earnings
Growth-Adj P/E 20.27 TWD 28.96 TWD 37.65 TWD 68

Widest divergence: Multiples (30.99 TWD) versus Dividend Discount (1.94 TWD). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 4.9B TWD
Revenue growth (YoY) -29.2%
Net margin 5.3%
Return on equity 5.3%
Free cash flow −1.1B TWD FY2025
P/E ratio 21.4
More key figures
Operating margin -16.0%
EPS (TTM) 1.81 TWD
EPS growth (YoY) -89.7%
Net debt 3.8B TWD FY2025

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

Quality Score breakdown

Overall quality 50/100

Of which business quality 46 · Market factors (momentum, volatility) 35

Profitability 31
Margins and returns on capital today
Quality Growth 66
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 34
Balance sheet, leverage, solvency risk
Investment 94
Disciplined investing over empire-building
Low Volatility 49
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 22
Distance to the 52-week high (market factor)
Net Issuance 98
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

Tongtai Machine & Tool Co., Ltd. manufactures and sells machine tools, computer components, computer numerical control lathes, and cutting centers in Taiwan, China, rest of Asia, Europe, and internationally. It operates through Equipment Manufacturing, Parts and Components, and Other segments.

Full company description

Tongtai Machine & Tool Co., Ltd. manufactures and sells machine tools, computer components, computer numerical control lathes, and cutting centers in Taiwan, China, rest of Asia, Europe, and internationally. It operates through Equipment Manufacturing, Parts and Components, and Other segments. The company offers vertical, horizontal, 5-axis, 5-axis horizontal, and ultra sonic assisted machining center; tapping center; boring and milling, special purpose, and wheel machine; horizontal and vertical CNC lathe; and multi-tasking machining center. It also provides PCB CNC drilling and routing machines. In addition, it offers picosecond laser processing machines, UV laser marking machines, and UV laser processing machines; ultra-fast laser processing equipment comprising femtosecond laser processing machines and nanosecond ultrafast laser processing machines; and laser processing equipment for semiconductor applications. Further it offers additive manufacturing machines consisting of metal powder direct energy deposition and subtractive manufacturing, metal powder, and metal powder bed fusion machines. Additionally, it is involved in the electrical automation assembly and sales; commodity trading; international trade and re-export trade; investment holding; machine tool sales and repair services; and circuit board manufacturing and trading; and maintenance and after-sales services. The company was incorporated in 1969 and is headquartered in Kaohsiung, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tongtai Machine & Tool Co reported revenue of 5.4B TWD in FY2025 versus 9.6B TWD in FY2021, a compound −13.6%/yr. Reported net income was 459M TWD in FY2025, compounding +27.7%/yr from FY2021.

Growth Quality 14/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
5.4B TWD
Latest YoY
−6.6%
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.
−13.5%
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.
−7.2%
Avg. growth/yr (23Y) 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.
+4.8%
Revenue −13.6%/yr
FY21 9.6B TWD
FY22 8.3B TWD
FY23 7.6B TWD
FY24 5.7B TWD
FY25 5.4B TWD
Net income +27.7%/yr
FY21 173M TWD
FY22 91.0M TWD
FY23 50.1M TWD
FY24 −907M TWD
FY25 459M TWD

4526 screens 39% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Tongtai Machine & Tool Co Fair Value". https://www.fairvalue-calculator.com/stock/4526

Peer Group

Specialty Industrial Machinery · 808 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 50 · Below median
Fair Value upside −39% · Above median
Return on equity (TTM) 5% · Below median
Return on assets -4% · Bottom 25%
Net margin (TTM) 5% · Below median
Operating margin (TTM) -16% · Bottom 25%
Revenue growth -29% · Bottom 25%
Debt / equity 0.23× · Higher than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 17.6× · Cheaper than 75% of peers
P/B 1.67× · Cheaper than median
P/S (TTM) 1.63× · 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 0
FUTURE 0 · sector 23
PAST 21 · sector 28
HEALTH 88 · sector 96
DIVIDEND 0 · sector 24

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 Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

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GE Vernova Inc 1GEV €887.60 €186.93 -79%
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Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is Tongtai Machine & Tool Co (4526) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of 18.64 TWD versus a price of 30.40 TWD, about −39% (overvalued).
What is the fair value of 4526?
Our model-based fair value for Tongtai Machine & Tool Co is 18.64 TWD (as of Jul 21, 2026), built from audited fundamentals. The current price is 30.40 TWD.
What is the quality score of 4526?
Tongtai Machine & Tool Co has a Quality Score of 50/100. 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 Tongtai Machine & Tool Co (4526)?
Tongtai Machine & Tool Co reported trailing-twelve-month revenue of about 4.9B TWD (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 4526?
The net profit margin of Tongtai Machine & Tool Co is about 5.3%, meaning it keeps roughly 5.3% 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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