Seiko Electric Co., Ltd. (6653) AI Stock Analysis

• Market Cap: ¥22.62B
• Dividend Yield: 2.44%
• Average Volume (3M): 118.66K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.05
• Revenue Growth: 1.83%
• EPS Growth: 8.43%
• Country: JP
• Employees: 985
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 29.14
• Shares Outstanding: 13,908,595
• 10 Day Avg. Volume: 154,880
• 30 Day Avg. Volume: 118,663
• PEG Ratio: 0.36
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -550.77
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,650.00 ▼(-10.57% Downside)

Seiko Electric Co., Ltd. is in a strong financial position with robust revenue growth and profitability. The stock's valuation is attractive, supported by a reasonable P/E ratio and a solid dividend yield. Technical indicators suggest positive momentum, although cash flow management remains a concern.

Seiko Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Seiko Electric Co., Ltd. (6653) is a Japanese technology company that specializes in the manufacturing and sale of electrical and electronic components, including circuit breakers, relays, and transformers. The company operates primarily in the industrial and commercial sectors, providing essential infrastructure for power distribution and energy management. Seiko Electric is committed to innovation and quality, and its products are used in various applications, from renewable energy systems to automation in manufacturing processes.

How the Company Makes Money

Seiko Electric generates revenue primarily through the sale of its electrical and electronic components. Key revenue streams include the production and distribution of circuit breakers, relays, and transformers, which are essential for power distribution and management in various industries. The company also earns income from customized solutions tailored to specific industrial applications, enhancing its appeal to business clients. Moreover, Seiko Electric forms strategic partnerships with other technology firms and industry leaders to expand its market reach and product offerings, contributing to its financial growth. Additionally, the company's focus on research and development enables it to introduce innovative products that meet evolving market demands, further enhancing its revenue potential.

Seiko Electric Co., Ltd. Financial Statement Overview

Summary

Seiko Electric Co., Ltd. shows strong financial performance with robust revenue growth and profitability metrics. The balance sheet is solid with low leverage and a strong equity base. However, cash flow management is a concern due to negative free cash flow, indicating a need for improvement in cash generation from operations.

Income Statement

Seiko Electric Co., Ltd. demonstrates strong revenue growth, with an increase from ¥27,071 million in 2023 to ¥29,099 million in 2024, marking a growth rate of 7.48%. The company maintains healthy profit margins with a gross profit margin of 17.85% and a net profit margin of 5.28% in 2024. The EBIT margin stands at 6.93%, and the EBITDA margin is robust at 8.32%. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.17, indicating low leverage, and a return on equity (ROE) of 9.67%, showcasing efficient use of equity. The equity ratio is 52.37%, highlighting a strong equity base relative to total assets. Despite these strengths, the company should monitor its total liabilities, which remain substantial.

Cash Flow

Cash flow analysis reveals challenges, with a significant decrease in free cash flow from ¥2,238 million in 2023 to ¥-26 million in 2024, indicating a negative free cash flow growth rate. The operating cash flow to net income ratio is low at 0.22, suggesting potential issues in cash generation from operations. The company should focus on improving cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.28B	29.10B	27.07B	25.01B	24.60B	23.38B
Gross Profit	5.56B	5.20B	4.67B	4.47B	4.42B	4.17B
EBITDA	2.98B	2.42B	2.24B	1.83B	1.75B	1.66B
Net Income	1.67B	1.54B	1.20B	1.08B	1.06B	1.04B
Balance Sheet
Total Assets	27.93B	30.33B	28.75B	28.05B	25.79B	23.91B
Cash, Cash Equivalents and Short-Term Investments	6.90B	3.17B	2.26B	2.33B	1.85B	1.89B
Total Debt	940.00M	2.71B	3.25B	5.26B	3.71B	3.19B
Total Liabilities	11.18B	14.45B	15.54B	16.49B	14.85B	13.76B
Stockholders Equity	16.75B	15.88B	13.21B	11.56B	10.94B	10.15B
Cash Flow
Free Cash Flow	0.00	-26.00M	2.24B	-626.00M	-112.00M	-1.25B
Operating Cash Flow	0.00	339.00M	3.19B	-79.00M	1.64B	-644.00M
Investing Cash Flow	0.00	160.00M	-771.00M	-498.00M	-1.78B	-617.00M
Financing Cash Flow	0.00	391.00M	-2.50B	1.04B	154.00M	1.52B

Seiko Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1845.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6653, the sentiment is Positive. The current price of 1845 is above the 20-day moving average (MA) of 1749.20, above the 50-day MA of 1686.48, and above the 200-day MA of 1364.02, indicating a bullish trend. The MACD of 28.44 indicates Negative momentum. The RSI at 61.51 is Neutral, neither overbought nor oversold. The STOCH value of 97.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6653.

Seiko Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	―	¥24.38B	12.30	―	4.91%	9.88%	11.83%
6989	―	¥16.61B	10.33	―	4.04%	4.08%	-33.22%
6653	―	¥22.62B	13.24	―	2.44%	1.83%	8.43%
6874	―	¥20.77B	9.31	―	2.75%	11.31%	20.92%
6800	―	¥36.25B	44.26	―	3.09%	4.30%	-66.03%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6844	―	¥34.27B	―	―	1.87%	5.16%	-5946.54%

Seiko Electric Co., Ltd. Corporate Events

Seiko Electric Announces Increased Dividend Forecasts for 2025

Seiko Electric Co., Ltd. has announced an increase in its interim and year-end dividend forecasts for the fiscal year ending December 31, 2025. The decision to raise dividends reflects the company’s commitment to returning profits to shareholders, driven by improved financial performance. The interim dividend is set at ¥25.00 per share, up from the previous forecast of ¥22.50, and the year-end dividend is also revised to ¥25.00 per share, resulting in a total annual dividend of ¥50.00 per share. This move underscores Seiko Electric’s focus on shareholder value and its strategy to align dividend payments with business performance.