TAIYO TECHNOLEX CO. LTD. (6663) AI Stock Analysis

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TAIYO TECHNOLEX CO. LTD.

(TSE/TYO:6663)

Select Model

Rating:63Neutral

Price Target:JPY 308.00▲(7.32% Upside)

Action:reiterated

Date:11/07/26

The overall score is anchored by a highly attractive valuation and a low-leverage balance sheet. However, the stock's rating is heavily constrained by an ongoing bearish price trend and significant cash burn in recent operations. While the low P/E ratio and return to reported profitability are promising, the disconnect between net income and operating cash flow remains a primary risk factor.

Positive Factors

Revenue and margin recoveryThe return to profitability alongside higher revenue and improving margins indicates that the operating model can recover when demand and product mix improve. If this progress persists, it can rebuild earnings power, support reinvestment, and strengthen the company’s position across electronics-related markets.

Negative Factors

Negative recent cash generationThe reversal into negative operating and free cash flow weakens confidence in earnings quality and near-term self-funding capacity. Continued cash volatility could restrict investment, increase reliance on balance-sheet resources, and make it harder to convert reported profitability into durable financial strength.

TAIYO TECHNOLEX CO. LTD. (6663) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 1.74B
Dividend Yield: 2.08%
Average Volume (3M): 33.74K
Price to Earnings (P/E): 7.2
Beta (1Y): 1.17
Revenue Growth: 19.01%
EPS Growth: ―
Country: Japan
Employees: 192
Sector: Technology
Sector Strength: 61
Industry: Hardware, Equipment & Parts

TAIYO TECHNOLEX CO. LTD. Business Overview & Revenue Model

Company Description

Taiyo Technolex Co.,Ltd., headquartered in Wakayama, Japan, and established in 1960, specializes in the engineering, production, and distribution of electronic circuit boards, specialized board testing equipment, and prober devices, primarily serving...

How the Company Makes Money

Taiyo Technolex makes money primarily by manufacturing and selling electronic components and related products, with revenue generated through (1) product sales of items such as flexible printed circuits (FPC) and other electronics-related components...

TAIYO TECHNOLEX CO. LTD. Financial Statement Overview

Summary

The company shows a mixed financial performance with a robust balance sheet and a return to profitability driven by 11% revenue growth. However, this is significantly offset by weak cash flow generation, as operating and free cash flows both turned negative, raising concerns about earnings quality.

Income Statement

68Positive

Balance Sheet

82Very Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.02B	3.75B	3.52B	3.41B	3.63B	3.92B
Gross Profit	1.31B	1.12B	1.01B	944.31M	1.04B	1.19B
EBITDA	428.40M	269.08M	86.20M	-24.08M	78.17M	248.07M
Net Income	240.77M	136.69M	-79.78M	-126.54M	39.76M	241.19M
Balance Sheet
Total Assets	5.12B	4.57B	4.57B	4.58B	4.79B	4.83B
Cash, Cash Equivalents and Short-Term Investments	1.87B	1.26B	1.49B	1.33B	1.53B	1.51B
Total Debt	848.65M	571.25M	883.15M	891.58M	974.63M	1.04B
Total Liabilities	2.19B	1.87B	2.04B	2.04B	2.13B	2.22B
Stockholders Equity	2.89B	2.67B	2.50B	2.51B	2.64B	2.59B
Cash Flow
Free Cash Flow	0	-104.79M	231.80M	-163.69M	176.66M	157.20M
Operating Cash Flow	0	-61.66M	248.70M	-27.47M	233.13M	165.18M
Investing Cash Flow	0	164.67M	-5.05M	-64.84M	-76.79M	-7.86M
Financing Cash Flow	0	-204.02M	-158.98M	-141.04M	-146.00M	60.50M

TAIYO TECHNOLEX CO. LTD. Technical Analysis

Technical Analysis SentimentNeutral

Last Price287.00

Price Trends

50DMA304.52Negative

100DMA306.83Negative

200DMA318.42Negative

Market Momentum

MACD-8.40Positive

RSI44.91Neutral

STOCH62.52Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6663, the sentiment is Neutral. The current price of 287.00 is below the 20-day moving average (MA) of 297.15, below the 50-day MA of 304.52, and below the 200-day MA of 318.42, indicating a bearish trend. The MACD of -8.40 indicates Positive momentum. The RSI at 44.91 is Neutral, neither overbought nor oversold. The STOCH value of 62.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6663.

TAIYO TECHNOLEX CO. LTD. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:6663 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6806	70Outperform	JPY 718.01B	20.75	9.35%	2.32%	20.52%	17.77%
JP:6658	69Neutral	JPY 7.87B	8.57	―	6.73%	6.21%	-50.19%
JP:6663	63Neutral	JPY 1.75B	7.16	―	2.08%	19.01%	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:6976	60Neutral	JPY 950.61B	51.75	―	1.27%	9.27%	298.16%
JP:6664	46Neutral	JPY 3.36B	-5.08	―	―	1.67%	38.95%
JP:6666	42Neutral	JPY 4.92B	59.64	―	1.79%	2.57%	―

* Technology Sector Average

Performance Comparison

JP:6663 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6663	TAIYO TECHNOLEX CO. LTD.	287.00	33.22	13.09%
JP:6806	HIROSE ELECTRIC CO	22440.00	5115.37	29.53%
JP:6658	Shirai Electronics Industrial Co., Ltd.	520.00	-124.58	-19.33%
JP:6664	Optoelectronics Co., Ltd.	221.00	-46.00	-17.23%
JP:6666	RIVER ELETEC CORPORATION	560.00	199.67	55.41%
JP:6976	Taiyo Yuden Co., Ltd.	7095.00	3859.95	119.32%

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

TAIYO TECHNOLEX CO. LTD. AI Stock Analysis