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Taihei Machinery Works, Ltd. (JP:6342)
:6342
Japanese Market
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Taihei Machinery Works, Ltd. (6342) AI Stock Analysis

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JP:6342

Taihei Machinery Works, Ltd.

(6342)

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Neutral 65 (OpenAI - Gpt-5.6Sol)
Rating:65Neutral
Price Target:
¥3,168.00
▲(12.30% Upside)
Action:Reiterated
Date:08/18/26
The score is held back primarily by the sharp deterioration in operating and free cash flow despite continued profitability, partially offset by a conservative low-leverage balance sheet. Technicals are supportive with the stock trading above key moving averages and positive momentum indicators, while valuation is a clear positive with a low P/E and a reasonable dividend yield.
Positive Factors
Conservative Balance Sheet
Very low leverage and a substantial equity base reduce balance-sheet risk, preserve borrowing capacity, and give the company greater resilience if industrial demand remains uneven over the next several quarters.
Negative Factors
Revenue Contraction
Sustained revenue weakness signals softer demand or reduced activity in the company’s machinery markets. Lower sales can limit operating leverage, weaken capacity utilization, and make a durable earnings recovery more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage and a substantial equity base reduce balance-sheet risk, preserve borrowing capacity, and give the company greater resilience if industrial demand remains uneven over the next several quarters.
Read all positive factors

Taihei Machinery Works, Ltd. (6342) vs. iShares MSCI Japan ETF (EWJ)

Taihei Machinery Works, Ltd. Business Overview & Revenue Model

Company Description
Founded in 1925 and based in Komaki, Japan, Taihei Machinery Works, Limited is a dedicated manufacturer and supplier of specialized equipment for both the plywood and general woodworking industries. Their extensive catalog includes various plywood...
How the Company Makes Money
null...

Taihei Machinery Works, Ltd. Financial Statement Overview

Summary
Financials are mixed. Profitability remains positive but weakened in 2026 with revenue down 13.9% and margin compression versus 2024; the balance sheet is conservative with low leverage (debt-to-equity ~0.11). The main drag is cash flow: operating cash flow turned sharply negative in 2026 (-881.5M) and free cash flow was deeply negative (-1.85B), raising near-term consistency risk despite reported profits.
Income Statement
63
Positive
Balance Sheet
82
Very Positive
Cash Flow
34
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue6.49B6.36B7.86B8.84B6.44B4.94B
Gross Profit1.67B1.58B2.25B2.66B1.77B1.19B
EBITDA830.88M708.11M1.02B1.53B837.59M284.93M
Net Income529.05M438.44M576.75M1.07B683.29M223.41M
Balance Sheet
Total Assets9.94B9.56B10.56B12.19B10.08B8.66B
Cash, Cash Equivalents and Short-Term Investments3.82B2.91B5.02B5.99B5.11B4.25B
Total Debt755.46M779.94M795.05M821.40M1.15B1.18B
Total Liabilities2.54B2.31B3.66B5.34B4.24B3.41B
Stockholders Equity7.40B7.24B6.90B6.85B5.84B5.25B
Cash Flow
Free Cash Flow0.00-1.85B-250.02M1.56B1.42B-478.54M
Operating Cash Flow0.00-881.54M60.88M1.69B1.44B-463.26M
Investing Cash Flow0.00-880.03M306.95M-1.17B-787.10M68.29M
Financing Cash Flow0.00-223.97M-629.64M-479.87M-164.64M-76.84M

Taihei Machinery Works, Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2821.00
Price Trends
50DMA
2852.16
Positive
100DMA
2807.42
Positive
200DMA
2852.02
Positive
Market Momentum
MACD
34.22
Positive
RSI
47.71
Neutral
STOCH
6.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6342, the sentiment is Neutral. The current price of 2821 is below the 20-day moving average (MA) of 2954.60, below the 50-day MA of 2852.16, and below the 200-day MA of 2852.02, indicating a neutral trend. The MACD of 34.22 indicates Positive momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 6.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6342.

Taihei Machinery Works, Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥81.51B16.492.67%-0.03%30.67%
66
Neutral
¥3.94B3.719.19%
65
Neutral
¥4.12B7.164.26%-12.06%146.04%
65
Neutral
¥30.16B9.363.72%0.40%167.42%
57
Neutral
¥53.12B9.732.17%2.31%-8.09%76.25%
57
Neutral
¥8.94B6.971.90%7.74%82.31%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6342
Taihei Machinery Works, Ltd.
2,903.00
-34.93
-1.19%
JP:3864
Mitsubishi Paper Mills
1,199.00
528.49
78.82%
JP:3708
Tokushu Tokai Paper Co., Ltd.
2,191.00
812.12
58.90%
JP:3877
Chuetsu Pulp & Paper Co., Ltd.
2,241.00
596.03
36.23%
JP:3878
Tomoegawa Corporation
877.00
142.73
19.44%
JP:3896
AWA PAPER & TECHNOLOGICAL COMPANY, Inc.
412.00
20.00
5.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 18, 2026