Seiko Corporation (6286) AI Stock Analysis

• Market Cap: ¥5.40B
• Dividend Yield: 2.38%
• Average Volume (3M): 22.02K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.65
• Revenue Growth: 10.40%
• EPS Growth: 60.55%
• Country: JP
• Employees: 875
• Sector: Industrials
• Sector Strength: 78
• Industry: Industrial - Machinery
• EPS (TTM): 164.08
• Shares Outstanding: 6,483,323
• 10 Day Avg. Volume: 49,600
• 30 Day Avg. Volume: 22,020
• PEG Ratio: 0.08
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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

Seiko Corporation shows strong financial performance with robust income growth and a stable balance sheet. The valuation is attractive, suggesting potential undervaluation. Technical indicators show moderate momentum, with room for improvement. The absence of cash flow data limits a comprehensive assessment, but historical trends are promising.

Seiko Corporation Business Overview & Revenue Model

Company Description

Seiko Corporation (6286) is a Japanese company that operates primarily in the manufacturing and sale of precision instruments, electronic devices, and industrial equipment. Known for its innovation and quality, Seiko is particularly renowned for its watches and clocks, but it also engages in the production of semiconductors, optical products, and various other high-tech components. The company serves a diverse range of industries, including consumer electronics, automotive, and telecommunications, leveraging its expertise in precision engineering and technology development.

How the Company Makes Money

Seiko Corporation makes money through a diversified revenue model that includes several key streams. The company's primary revenue source is the sale of its timepieces, including wristwatches and clocks, which are popular worldwide for their quality and craftsmanship. Additionally, Seiko generates income from its electronics division, which produces semiconductors and other electronic components used in various applications across different industries. The company also benefits from its industrial equipment and precision instrument segments, providing specialized machinery and components to sectors such as automotive and telecommunications. Significant partnerships with other technology firms and ongoing investments in research and development further enhance Seiko's ability to innovate and remain competitive, contributing to its overall earnings.

Seiko Corporation Financial Statement Overview

Summary

Seiko Corporation demonstrates strong income statement performance with notable revenue growth and solid margins. The balance sheet reflects financial stability with low leverage, though ROE suggests potential for improvement. Cash flow analysis is limited due to missing TTM data but historical trends are positive.

Income Statement

Seiko Corporation demonstrates strong performance with a growing revenue trend, evident from a notable 8.33% revenue growth from 2023 to 2024. The company maintains a solid gross profit margin of 22.27% in TTM, with an improved net profit margin reaching 2.71%, indicating effective cost management. The EBIT and EBITDA margins are robust as well, showing effective operational efficiency.

Balance Sheet

The balance sheet reflects a healthy financial position with a favorable debt-to-equity ratio of 0.26, showcasing low leverage and financial stability. The equity ratio is strong at 55.76%, indicating a significant portion of assets financed by equity, which reduces financial risk. However, the ROE of 6.79% in TTM suggests there is room for improvement in generating returns on equity.

Cash Flow

Cash flow analysis shows volatility, with operating cash flow not available in TTM. Historical data indicates a positive trend in free cash flow growth from 2023 to 2024, but the absence of TTM data limits a comprehensive assessment. The company has previously demonstrated good cash flow management, as seen in the significant free cash flow growth from negative figures in earlier years.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
36.10B	34.54B	31.40B	31.67B	33.33B
	Gross Profit
7.72B	7.06B	6.77B	6.60B	6.52B
	EBIT
882.77M	548.46M	559.51M	778.10M	399.63M
	EBITDA
1.99B	1.58B	1.83B	242.25M	1.34B
	Net Income Common Stockholders
779.85M	331.34M	750.84M	-847.08M	268.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.48B	8.26B	7.56B	6.49B	4.66B
	Total Assets
28.36B	27.20B	27.05B	24.89B	23.84B
	Total Debt
4.98B	5.13B	3.82B	3.33B	2.47B
	Net Debt
-3.50B	-3.12B	-3.74B	-3.16B	-2.07B
	Total Liabilities
13.14B	13.00B	13.22B	11.36B	9.84B
	Stockholders Equity
15.22B	14.20B	13.82B	13.53B	14.00B
Cash Flow		Free Cash Flow
924.34M	-502.24M	345.68M	1.30B	-706.18M
	Operating Cash Flow
1.68B	790.45M	1.75B	2.51B	1.11B
	Investing Cash Flow
-1.20B	-1.21B	-889.09M	-1.31B	-1.76B
	Financing Cash Flow
-253.79M	1.16B	310.62M	607.72M	399.54M

Seiko Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 840.00
• 50DMA: Negative
• 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:6286, the sentiment is Positive. The current price of 840 is above the 20-day moving average (MA) of 806.70, below the 50-day MA of 849.73, and above the 200-day MA of 757.09, indicating a neutral trend. The MACD of -1.93 indicates Negative momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 34.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6286.

Seiko Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7741	78 Outperform	$6.23T	31.05	20.56%	0.88%	13.56%	12.76%
6286	77 Outperform	¥5.40B	5.12		2.38%	10.40%	60.55%
6501	77 Outperform	¥16.77T	27.44	10.50%	1.06%	0.56%	5.32%
7751	72 Outperform	¥4.38T	25.34		3.42%	9.08%	-33.61%
6752	70 Outperform	¥3.94T	11.82	7.23%	2.19%	1.72%	-33.60%
6645	66 Neutral	$853.65B	114.83	0.98%	2.29%	-6.57%	-76.15%
Sector *	64 Neutral	$4.27B	11.80	5.31%	249.79%	4.07%	-9.02%