Tesec Corporation (6337) AI Stock Analysis

• Market Cap: ¥12.10B
• Dividend Yield: 3.58%
• Average Volume (3M): 14.55K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.25
• Revenue Growth: -14.79%
• EPS Growth: -41.60%
• Country: JP
• Employees: 212
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 36.92
• Shares Outstanding: 5,778,695
• 10 Day Avg. Volume: 25,370
• 30 Day Avg. Volume: 14,550
• PEG Ratio: -0.27
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 4.77
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ―

Tesec Corporation scores well due to strong financial performance characterized by robust profitability and low leverage, though cash flow challenges persist. The valuation is appealing with a low P/E ratio and high dividend yield. However, technical indicators suggest bearish momentum, reflected in the stock's underperformance against key moving averages and negative market sentiment indicators. Addressing cash flow issues and improving market momentum could enhance the stock's overall attractiveness.

Tesec Corporation Business Overview & Revenue Model

Company Description

Tesec Corporation (6337) is a company that specializes in the manufacturing and distribution of testing equipment for semiconductors. The company operates within the technology sector, focusing on providing high-quality testing solutions that ensure the reliability and functionality of semiconductor devices. Tesec's core products include a variety of testers and handlers used in the semiconductor production process.

How the Company Makes Money

Tesec Corporation generates revenue through the sale of its testing equipment and related services to semiconductor manufacturers. The company's key revenue streams include product sales of testers and handlers, as well as after-sales services such as maintenance and support. Tesec may also engage in partnerships with semiconductor companies to provide customized testing solutions, which can contribute to its earnings. The demand for semiconductor testing equipment is driven by the growth of the semiconductor industry, technological advancements, and the need for higher performance and reliability in electronic devices.

Tesec Corporation Financial Statement Overview

Summary

Tesec Corporation demonstrates financial strength with solid profitability and minimal leverage. The income statement reflects strong margins despite a decline in revenue growth, while the balance sheet is robust with high equity and low debt. However, cash flow management appears to have challenges, with recent data showing volatility. Overall, the company is well-positioned but should address cash flow management to ensure sustained financial health.

Income Statement

Tesec Corporation has demonstrated strong performance with a solid gross profit margin of 42.08% for TTM, though slightly lower than the previous year's 44.31%. The net profit margin stands at 13.81% TTM, showcasing profitability despite a decrease from 17.58% in the previous annual report. Revenue has seen a year-on-year decline of 1.42% from 2023 to 2024, indicating a slight downturn. The EBIT and EBITDA margins are healthy at 13.86% and 13.15% respectively, reflecting efficient cost management.

Balance Sheet

The company's balance sheet is robust, with a strong equity ratio of 90.22% TTM, up from 89.56% the previous year, indicating financial stability. The debt-to-equity ratio is remarkably low at 0.03, showcasing minimal leverage. Return on equity is substantial at 6.15% TTM, though it has decreased from 10.47% the previous year, suggesting a slight reduction in shareholder return efficiency.

Cash Flow

Cash flow performance is moderate, with significant fluctuations. TTM data shows zero operating, investing, and financing cash flow, reflecting potential gaps in cash management or reporting. Historically, free cash flow growth has fluctuated, with a 55.65% decline from 2023 to 2024. The operating cash flow to net income ratio was 0.58 last year, indicating reasonable cash conversion from net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.67B	5.89B	8.62B	8.74B	7.51B	3.45B
Gross Profit	2.17B	2.23B	3.83B	4.09B	3.35B	842.00M
EBITDA	691.00M	787.00M	1.80B	2.20B	1.80B	-208.00M
Net Income	359.00M	427.00M	1.51B	2.25B	1.72B	-290.00M
Balance Sheet
Total Assets	15.23B	15.47B	16.16B	14.34B	12.89B	10.34B
Cash, Cash Equivalents and Short-Term Investments	4.28B	4.55B	4.69B	3.86B	2.61B	3.25B
Total Debt	312.00M	363.00M	0.00	0.00	0.00	0.00
Total Liabilities	1.44B	1.31B	1.68B	1.43B	1.59B	828.00M
Stockholders Equity	13.79B	14.16B	14.48B	12.91B	11.30B	9.51B
Cash Flow
Free Cash Flow	0.00	1.71B	576.00M	1.30B	-152.00M	506.00M
Operating Cash Flow	0.00	1.77B	871.00M	1.45B	-117.00M	542.00M
Investing Cash Flow	0.00	-900.00M	149.00M	-117.00M	-825.00M	30.00M
Financing Cash Flow	0.00	-495.00M	-691.00M	-676.00M	-58.00M	-112.00M

Tesec Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1956.00
• 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:6337, the sentiment is Positive. The current price of 1956 is below the 20-day moving average (MA) of 2009.15, above the 50-day MA of 1952.86, and above the 200-day MA of 1641.37, indicating a bullish trend. The MACD of 42.73 indicates Negative momentum. The RSI at 63.61 is Neutral, neither overbought nor oversold. The STOCH value of 74.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6337.

Tesec Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6855	79 Outperform	¥54.90B	15.34	―	1.38%	32.53%	182.70%
6627	77 Outperform	¥52.95B	17.75	―	2.00%	-0.46%	-25.32%
6337	72 Outperform	¥12.10B	22.97	―	3.58%	-14.79%	-41.60%
6338	70 Outperform	¥9.20B	17.78	―	2.53%	-55.31%	-78.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6707	56 Neutral	¥142.54B	3.27	―	―	-58.24%	―