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

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Seiko Electric Co., Ltd.

(TSE/TYO:6653)

Select Model

Rating:70Outperform

Price Target:JPY 1,969.00▲(11.43% Upside)

Action:reiterated

Date:11/07/26

The overall score of 70 reflects a company with strong fundamentals and attractive valuation that is currently under severe technical selling pressure. The primary strengths are the rock-solid balance sheet, consistent earnings growth, a very low P/E ratio, and a high dividend yield. The main risk is the overwhelmingly bearish technical trend, with the stock in a clear downtrend and showing no signs of reversal. The strong financial foundation and cheap valuation provide a potential floor, but the negative momentum is a significant headwind.

Positive Factors

Revenue and Profit GrowthSteady revenue expansion accompanied by improved gross, EBIT, EBITDA, and net margins indicates stronger operating execution and product economics. If sustained, this combination can support reinvestment, improve resilience across industrial demand cycles, and strengthen earnings power over the next several quarters.

Negative Factors

Volatile Cash ConversionAlthough 2025 cash generation was strong, the history of sharp swings shows that profits do not consistently translate into cash. Working-capital movements or investment requirements can therefore constrain liquidity in weaker periods, making internally funded growth and capital allocation less predictable.

Seiko Electric Co., Ltd. (6653) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 23.69B
Dividend Yield: 3.11%
Average Volume (3M): 92.18K
Price to Earnings (P/E): 9.4
Beta (1Y): 1.38
Revenue Growth: 18.22%
EPS Growth: 36.62%
Country: Japan
Employees: 971
Sector: Technology
Sector Strength: 61
Industry: Industrial - Machinery

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

Company Description

Seiko Electric Co., Ltd., a long-standing Japanese enterprise headquartered in Fukuoka, was established in 1921 and adopted its current name in 1960, having previously been known as Seiko Shokai. The company's primary focus in Japan encompasses power...

How the Company Makes Money

Seiko Electric Co., Ltd. generates revenue primarily by selling manufactured electronic/electrical products and related solutions to business customers. Key revenue streams typically include (1) product sales of components/devices and equipment, and...

Seiko Electric Co., Ltd. Financial Statement Overview

Summary

Strong overall financial health. The balance sheet is exceptional (Score 92) with minimal debt and growing equity. The income statement shows consistent revenue growth and expanding margins (Score 85). Cash flow, while historically volatile, has improved significantly in the latest year (Score 70).

Income Statement

85Very Positive

Balance Sheet

92Very Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	34.07B	31.38B	29.10B	27.07B	25.01B	24.60B
Gross Profit	6.46B	6.49B	5.20B	4.69B	4.49B	4.45B
EBITDA	3.42B	3.06B	2.42B	2.01B	1.83B	1.75B
Net Income	2.52B	2.04B	1.54B	1.20B	1.08B	1.06B
Balance Sheet
Total Assets	36.27B	34.72B	30.33B	28.75B	28.05B	25.79B
Cash, Cash Equivalents and Short-Term Investments	8.38B	3.26B	3.17B	2.26B	2.33B	1.85B
Total Debt	989.00M	978.00M	2.84B	3.43B	5.47B	3.93B
Total Liabilities	16.65B	16.62B	14.45B	15.54B	16.49B	14.85B
Stockholders Equity	19.62B	18.09B	15.88B	13.21B	11.56B	10.94B
Cash Flow
Free Cash Flow	0	2.17B	-26.00M	2.26B	-555.00M	-34.00M
Operating Cash Flow	0	3.81B	339.00M	3.19B	-79.00M	1.64B
Investing Cash Flow	0	-1.30B	160.00M	-771.00M	-498.00M	-1.78B
Financing Cash Flow	0	-2.42B	391.00M	-2.50B	1.04B	154.00M

Seiko Electric Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1767.00

Price Trends

50DMA1994.06Negative

100DMA2128.96Negative

200DMA2253.55Negative

Market Momentum

MACD-84.09Negative

RSI41.70Neutral

STOCH72.54Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6653, the sentiment is Negative. The current price of 1767.00 is below the 20-day moving average (MA) of 1816.35, below the 50-day MA of 1994.06, and below the 200-day MA of 2253.55, indicating a bearish trend. The MACD of -84.09 indicates Negative momentum. The RSI at 41.70 is Neutral, neither overbought nor oversold. The STOCH value of 72.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6653.

Seiko Electric Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:6653 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6806	70Outperform	JPY 732.27B	20.95	9.35%	2.30%	20.52%	17.77%
JP:6653	70Outperform	JPY 24.03B	9.44	―	3.11%	18.22%	36.62%
JP:6908	66Neutral	JPY 60.14B	21.59	―	3.89%	9.70%	3.12%
JP:6645	62Neutral	JPY 970.58B	20.61	5.66%	2.12%	-2.61%	63.82%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:6770	61Neutral	JPY 388.53B	22.97	3.75%	3.29%	5.06%	-65.51%
JP:6807	46Neutral	JPY 160.28B	29.17	3.74%	2.38%	10.23%	-33.88%

* Technology Sector Average

Performance Comparison

JP:6653 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6653	Seiko Electric Co., Ltd.	1767.00	-474.33	-21.16%
JP:6770	Alps Alpine Co	1947.50	29.38	1.53%
JP:6806	HIROSE ELECTRIC CO	22650.00	4909.97	27.68%
JP:6807	Japan Aviation Electronics Industry	2312.00	8.69	0.38%
JP:6645	OMRON Corporation	4910.00	1026.53	26.43%
JP:6908	IRISO Electronics Co., Ltd.	2611.00	-432.13	-14.20%

Seiko Electric Co., Ltd. Corporate Events

Seiko Electric Delivers Double-Digit Profit Growth and Raises Dividend Outlook

Oct 30, 2026

Seiko Electric reported strong consolidated results for the nine months ended September 30, 2026, with net sales rising 17.6% year on year to ¥24.46 billion and profit attributable to owners of parent jumping 36.1% to ¥1.865 billion. Earnings per sha...

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: Nov 07, 2026

Seiko Electric Co., Ltd. AI Stock Analysis