FST Corp. Ordinary Shares (KBSX)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach FST Corp. as I would any small industrial: what is the business worth, and what can go wrong? FST sells KBS golf shafts and sports equipment, a niche brand in a discretionary category. The brand may help, but 382 employees and a $66.9M market cap do not suggest a wide moat. The numbers are mixed. FairStock's calculation shows a high return on equity of 35.64%, but return on capital employed is only 1.62%, debt-to-equity is 2.32, and its Altman Z-Score is 1.08—a distress signal, not safety. In the second quarter of 2026, revenue was $12.6M but net income was negative $1.0M, a -8.36% margin. Trailing free cash flow is $4.4M, a 6.6% FCF yield, yet EV/EBITDA is 77.50 and the Graham Number is $0.97, below the $1.40 close on 2026-10-13. FairStock's P/E of 11.71 looks modest, but P/B is 4.01 and the margin of safety is negative 44.85%. Piotroski is 3/9. The provided growth figures are positive, but a loss in the latest quarter makes me question durability. The Lynch category is none because only zero years of filed results are available, needing three. At this price, I see a leveraged, cyclical niche supplier with uncertain earnings quality. I would need a much larger discount to intrinsic value and evidence that the recent loss is temporary.

In plain English: FST Corp. makes golf shafts and other sports gear under the KBS brand, mainly in Taiwan and internationally. The business still produces some cash but lost money in the latest quarter and uses a lot of debt. At the 2026-10-13 close of $1.40, the shares look expensive compared with a conservative value estimate and their accounting value, though they are not expensive on one earnings measure.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer