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Rechi Precision Co (4532) Fair Value & Analysis

Industrials · TW · Market cap 12.0B TWD

RP Rechi Precision Co 4532 · TW
Price24.00 TWD
Fair Value42.21 TWD
Upside+75.9%
Quality45/100
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Weak Growth
Thin margins · 4.5% net margin
Low debt · generates free cash flow
6.07% dividend yield
Ranks above peers (9/14)
Narrow moat 39/100
Evidence: Medium Range 30.24 TWD – 54.17 TWD Share as image

Fair value as of: Jul 23, 2026

From 26 valuation models · updated 18 days ago

Share price −7.9% over the past month.

Below-average quality, screening 76% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (30.24 TWD). The market is more pessimistic than our downside scenario.
  • Solid quality (45/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

31.85 TWD 14.43 TWD Fair Value 42.21 TWD Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 23, 2026.

How to read this chart

60‑month range 14.43 TWD – 31.85 TWD · fair‑value band 30.24 TWD – 54.17 TWD · the 24.00 TWD price screens below the 42.21 TWD fair value. Dashed = 300-day average. As of Jul 23, 2026.

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Analysis

Rechi Precision Co (4532) currently trades at 24.00 TWD, while our model-based Fair Value estimate is 42.21 TWD, implying the stock looks roughly 75.9% undervalued today. The Quality Score stands at 45/100 (below-average quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Rechi Precision Co generated revenue of 19.7B TWD at a net margin of 4.5%. Revenue declined 8.9% year over year. It earns a return on equity of 8.5%. Net debt stands at 2.7B TWD. Fundamentals as of Jul 23, 2026

Our scenario range runs from 30.24 TWD (bear case) to 54.17 TWD (bull case); at 24.00 TWD, the current price sits below 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 13% below its 52-week high and 9% 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 76%, 4532 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
Growth DCF 24.20 TWD 28.12 TWD 33.68 TWD 80
Residual Income 18.79 TWD 20.74 TWD 28.53 TWD 76
Rev-Margin DCF 34.39 TWD 47.80 TWD 62.79 TWD 74
All 26 models by family
DCF Models
FCF DCF 24.03 TWD 28.41 TWD 34.97 TWD 38
Owner Earnings 43.27 TWD 57.78 TWD 79.54 TWD 31
5Y Revenue Exit 34.39 TWD 48.04 TWD 65.59 TWD 39
5Y EBITDA Exit 43.89 TWD 65.59 TWD 90.90 TWD 41
5Y P/E Exit 37.53 TWD 53.84 TWD 70.86 TWD 38
10Y Revenue Exit 29.75 TWD 41.31 TWD 56.95 TWD 36
10Y EBITDA Exit 36.55 TWD 53.41 TWD 76.04 TWD 37
10Y P/E Exit 32.51 TWD 45.31 TWD 60.93 TWD 35
Earnings-Based
Graham-Dodd 14.21 TWD 41.36 TWD 54.62 TWD 54
Lynch FV 8.59 TWD 12.27 TWD 15.95 TWD 50
PEG = 1.0 8.59 TWD 12.27 TWD 15.95 TWD 46
EPV 34.27 TWD 37.37 TWD 40.07 TWD 59
Dividend Discount
Gordon GGM 14.03 TWD 29.17 TWD 46.27 TWD 70
DDM Multi-Stage 14.03 TWD 22.53 TWD 30.61 TWD 61
Multiples
P/E Multiple 32.92 TWD 43.89 TWD 54.86 TWD 63
P/S Multiple 26.65 TWD 35.53 TWD 44.41 TWD 58
P/B Multiple 26.65 TWD 35.53 TWD 44.41 TWD 55
EV/EBIT 51.59 TWD 63.55 TWD 75.52 TWD 53
EV/EBITDA 59.70 TWD 74.37 TWD 89.03 TWD 54
EV/Revenue 41.32 TWD 52.30 TWD 63.27 TWD 43
Asset-Based
NCAV (Graham) 10.66 TWD 14.29 TWD 21.33 TWD 50
Growth DCF
Growth DCF 24.20 TWD 28.12 TWD 33.68 TWD 80
Rev-Margin DCF 34.39 TWD 47.80 TWD 62.79 TWD 74
Economic Profit
Residual Income 18.79 TWD 20.74 TWD 28.53 TWD 76
ROIC Compounder 35.28 TWD 39.81 TWD 44.69 TWD 72
Growth Earnings
Growth-Adj P/E 26.61 TWD 38.01 TWD 49.41 TWD 68

Widest divergence: DCF Models (48.04 TWD) versus Earnings-Based (12.27 TWD). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 19.7B TWD
Revenue growth (YoY) -8.9%
Net margin 4.5%
Return on equity 8.5%
Free cash flow 362M TWD FY2025
P/E ratio 13.8
More key figures
Operating margin 5.9%
EPS (TTM) 1.79 TWD
Dividend yield 6.1%
EPS growth (YoY) -34.7%
Net debt 2.7B TWD FY2025

Figures from reported company fundamentals · as of Jul 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 44 · Market factors (momentum, volatility) 53

Profitability 36
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 21
Earnings quality: real cash, not paper profit
Fin. Strength 62
Balance sheet, leverage, solvency risk
Investment 83
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 45
Price trend over the last 3–12 months (market factor)
52W Momentum 29
Distance to the 52-week high (market factor)
Net Issuance 35
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

Rechi Precision Co., Ltd. manufactures and sells compressors primarily in Taiwan. It provides rotary compressors, BLDC and induction motors, universal motors, shaded pole motors, and household and commercial heat pumps. The company was formerly known as RECHI INDUSTRIAL CO., LTD. The company was incorporated in 1989 and is based in Taoyuan City, Taiwan.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Rechi Precision Co reported revenue of 20.3B TWD in FY2025 versus 22.6B TWD in FY2021, a compound −2.7%/yr. Reported net income was 1.0B TWD in FY2025, compounding +17.0%/yr from FY2021.

Growth Quality 39/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
20.3B TWD
Latest YoY
−5.8%
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.
+3.3%
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.
+1.0%
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.
+8.7%
Revenue −2.7%/yr
FY21 22.6B TWD
FY22 18.4B TWD
FY23 16.9B TWD
FY24 21.5B TWD
FY25 20.3B TWD
Net income +17.0%/yr
FY21 543M TWD
FY22 688M TWD
FY23 751M TWD
FY24 1.0B TWD
FY25 1.0B TWD
Character of growth · EPS growth decomposed (2014-2025) −2.4 % p.a.
Revenue per share +0.9 pp

of which total revenue +1.5 pp · buybacks/dilution −0.6 pp

EBIT margin −4.4 pp
Tax rate +0.1 pp
Residual (interest, one-offs) +1.0 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).

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Rechi Precision Co · Fair Value
42.21 TWD +76%Fair Value
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Cite: Fair Value Calculator (2026). "Rechi Precision Co Fair Value". https://www.fairvalue-calculator.com/stock/4532

Peer Group

Specialty Industrial Machinery · 806 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 45 · Below median
Fair Value upside +76% · Top 25%
Return on equity (TTM) 9% · Above median
Return on assets 2% · Below median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 6% · Below median
Revenue growth -9% · Bottom 25%
Dividend yield (TTM) 6.1% · Top 25%
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 13.8× · Cheaper than 75% of peers
P/B 1.16× · Cheaper than median
P/S (TTM) 0.61× · Cheaper than 75% of peers
P/FCF 1.0× · Cheaper than median
EV/EBITDA 2.2× · 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.

VALUE 100 · sector 0
FUTURE 0 · sector 23
PAST 34 · sector 28
HEALTH 100 · sector 96
DIVIDEND 100 · sector 24

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.

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Frequently asked questions

Is Rechi Precision Co (4532) overvalued or undervalued?
As of Jul 23, 2026, our model estimates a fair value of 42.21 TWD versus a price of 24.00 TWD, about +76% (undervalued).
What is the fair value of 4532?
Our model-based fair value for Rechi Precision Co is 42.21 TWD (as of Jul 23, 2026), built from audited fundamentals. The current price is 24.00 TWD.
What is the quality score of 4532?
Rechi Precision Co has a Quality Score of 45/100. 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 Rechi Precision Co (4532)?
Rechi Precision Co reported trailing-twelve-month revenue of about 19.7B TWD (latest available figure, as of Jul 23, 2026).
What is the net profit margin of 4532?
The net profit margin of Rechi Precision Co is about 4.5%, meaning it keeps roughly 4.5% of revenue as net income. Based on the latest reported figures.
Does Rechi Precision Co pay a dividend?
Rechi Precision Co currently shows a dividend yield of about 6.22% relative to its recent price (as of Jul 23, 2026).

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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