Micron Machinery Co., Ltd. (6159) AI Stock Analysis

• Market Cap: ¥9.36B
• Dividend Yield: 0.56%
• Average Volume (3M): 606.00
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.43
• Revenue Growth: 9.79%
• EPS Growth: -25.96%
• Country: JP
• Employees: 239
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Machinery
• EPS (TTM): 146.57
• Shares Outstanding: 7,706,100
• 10 Day Avg. Volume: 350
• 30 Day Avg. Volume: 606
• PEG Ratio: 0.47
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥1,674.00 ▲(7.31%Upside)

Micron Machinery Co., Ltd. shows a stable financial position with a strong balance sheet, but operational performance is declining with negative free cash flow. Technical indicators suggest neutral to bearish momentum, and the stock may be undervalued based on its low P/E ratio. The lack of earnings call information limits the assessment of forward-looking insights.

Micron Machinery Co., Ltd. Business Overview & Revenue Model

Company Description

Micron Machinery Co., Ltd. (6159) is a Japanese company specializing in the manufacturing of precision grinding machines. It operates within the machinery sector, focusing on producing high-quality centerless and internal grinders. These machines are utilized in various industries, including automotive, aerospace, and electronics, where precision and reliability are crucial.

How the Company Makes Money

Micron Machinery Co., Ltd. generates revenue primarily through the sale of its precision grinding machines. The company offers a range of products that cater to different industrial needs, ensuring a steady demand from sectors such as automotive and aerospace that require highly accurate machining solutions. Additionally, the company may engage in after-sales services, including maintenance and parts supply, which provide additional revenue streams. Strategic partnerships with distributors and industrial clients also play a significant role in expanding the company's market reach and sales opportunities.

Micron Machinery Co., Ltd. Financial Statement Overview

Summary

The company shows financial stability with a strong balance sheet, characterized by low leverage and high equity ratios. However, the declining revenue and net profit margins, along with negative free cash flow, indicate operational and liquidity challenges.

Income Statement

The gross profit margin remained stable at approximately 37.6% in the latest period, indicating consistent profitability in operations. However, the net profit margin declined significantly from 16.8% in the previous year to 10.3%, driven by a decrease in net income. There is also a noticeable revenue decline of 9.3%, highlighting challenges in maintaining sales growth. Despite a solid EBITDA margin of 21.4%, the drop in revenue and net income margins suggests potential issues in cost management or market conditions.

Balance Sheet

The company maintains a robust financial position with a low debt-to-equity ratio of 0.02, indicating minimal reliance on debt financing. The equity ratio stands strong at 86.9%, reflecting high asset backing by equity. Return on Equity (ROE) decreased from 6.2% to 3.7%, suggesting a reduction in profitability relative to shareholder equity. Generally, the balance sheet displays stability with sufficient cash reserves and low leverage, though the decline in ROE might warrant attention.

Cash Flow

Operating cash flow dropped sharply from ¥929 million to ¥47 million, significantly affecting free cash flow, which turned negative to -¥209 million. The free cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash to cover its net income. While the company has strong cash reserves, the negative free cash flow growth and operating cash flow indicate potential liquidity challenges that need to be addressed.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
4.86B	4.70B	5.18B	5.20B	4.01B	5.42B
	Gross Profit
1.79B	1.77B	1.87B	1.68B	1.27B	1.78B
	EBIT
492.74M	382.93M	445.56M	377.24M	289.64M	583.28M
	EBITDA
968.20M	1.00B	1.41B	2.09B	885.21M	1.01B
	Net Income Common Stockholders
639.26M	484.15M	868.24M	1.23B	461.16M	432.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.90B	6.63B	8.37B	6.57B	5.32B	3.51B
	Total Assets
16.10B	15.12B	15.63B	14.73B	13.25B	12.79B
	Total Debt
774.00M	306.10M	409.40M	0.00	0.00	379.00M
	Net Debt
-5.97B	-5.24B	-6.95B	-6.24B	-4.54B	-2.86B
	Total Liabilities
2.73B	1.93B	1.61B	1.47B	1.32B	1.36B
	Stockholders Equity
13.33B	13.15B	13.98B	13.23B	11.90B	11.39B
Cash Flow		Free Cash Flow
0.00	-208.79M	692.92M	250.58M	1.39B	285.80M
	Operating Cash Flow
0.00	47.01M	929.16M	387.15M	1.50B	473.96M
	Investing Cash Flow
0.00	585.86M	-259.02M	191.25M	96.44M	68.77M
	Financing Cash Flow
0.00	-1.52B	128.30M	-99.84M	-487.50M	-257.06M

Micron Machinery Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1560.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6159, the sentiment is Positive. The current price of 1560 is above the 20-day moving average (MA) of 1537.20, above the 50-day MA of 1510.76, and above the 200-day MA of 1491.52, indicating a bullish trend. The MACD of 7.02 indicates Negative momentum. The RSI at 59.26 is Neutral, neither overbought nor oversold. The STOCH value of 78.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6159.

Micron Machinery Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6208	71 Outperform	¥9.03B	21.35		0.71%	19.16%	67.89%
6159	69 Neutral	¥9.36B	10.64		0.56%	9.79%	-25.96%
6149	69 Neutral	¥11.17B	19.45		2.64%	-10.39%	-43.57%
6161	67 Neutral	¥8.93B	7.58		3.11%	10.57%	4.16%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
6203	64 Neutral	¥13.43B	17.42		1.85%	25.48%	―
6210	58 Neutral	¥12.53B	―		5.73%	-6.30%	34.61%