Seiko Epson (6724) AI Stock Analysis

• Market Cap: $619.65B
• Dividend Yield: 3.82%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.88
• Revenue Growth: 0.86%
• EPS Growth: -15.62%
• Country: JP
• Employees: 75,352
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 20.64
• Shares Outstanding: 373,573,150
• 10 Day Avg. Volume: 1,298,390
• 30 Day Avg. Volume: 1,224,396
• PEG Ratio: 2.23
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 9.91
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 1.25
• Enterprise Value/Ebitda: 4.17
• 1Y Price Target: $2,500.76
• Price Target Upside: 33.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥2,001.00 ▲(7.01% Upside)

Seiko Epson's overall stock score is driven primarily by its financial performance and valuation. The company shows financial stability with a strong balance sheet, but faces challenges in revenue growth and cash flow generation. The technical analysis indicates a bearish trend, which slightly dampens the overall score. The valuation is favorable, with a reasonable P/E ratio and an attractive dividend yield, providing some support to the stock's attractiveness.

Seiko Epson Business Overview & Revenue Model

Company Description

Seiko Epson Corporation is a multinational electronics company headquartered in Japan, primarily known for its innovative imaging and printing solutions. The company operates in several sectors, including printers, projectors, and industrial robots, with a strong emphasis on providing high-quality products for both consumer and business markets. Its core offerings include inkjet printers, dot matrix printers, and large-format printers, as well as visual display solutions and precision machinery.

How the Company Makes Money

Seiko Epson generates revenue through multiple key streams. The largest portion comes from its printer business, which includes sales of inkjet and laser printers, along with consumables such as ink cartridges and paper. The company also earns significant income from its projector division, which sells a range of visual display technologies for both home and professional use. Additionally, Epson has a growing industrial solutions segment, which includes manufacturing robots and precision machinery for various industries. Strategic partnerships with other technology firms and OEMs enhance its market reach and revenue potential. The company invests in research and development to innovate and maintain competitive advantages, which also contributes to its overall earnings.

Seiko Epson Financial Statement Overview

Summary

Seiko Epson presents a solid financial position with stable revenue growth, efficient cost management, and strong leverage ratios. However, there is a slight dip in net profit margin and free cash flow growth, highlighting areas for improvement.

Income Statement

Seiko Epson has shown consistent revenue growth over the years. The revenue growth rate from 2024 to 2025 was approximately 3.7%. Gross profit margin for 2025 is 36.2%, indicating efficient cost control. The net profit margin is healthy at 4.0%, though it has slightly decreased compared to previous years. The EBIT margin is 6.6%, and the EBITDA margin is 11.3%, both reflecting operational efficiency. The company exhibits robust profitability, but the slight decline in net profit margin could be a concern.

Balance Sheet

Seiko Epson's balance sheet is strong with an equity ratio of 55.3% in 2025, indicating financial stability and a lower risk profile. The debt-to-equity ratio is 0.28 for 2025, showcasing effective leverage management. The return on equity (ROE) for 2025 is 6.9%, which is reasonable, but there's room for improvement. The company maintains a solid equity base, which supports its long-term sustainability.

Cash Flow

The cash flow statement reveals a decline in free cash flow from 2024 to 2025, with a negative growth rate of approximately -27.8%. The operating cash flow to net income ratio is 2.5, demonstrating that operating activities are generating ample cash. However, the free cash flow to net income ratio is 1.4, indicating a decrease in free cash flow generation relative to net income. While cash generation is strong, the decline in free cash flow growth raises potential concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.35T	1.36T	1.31T	1.33T	1.13T	995.94B
Gross Profit	489.40B	493.03B	456.67B	466.65B	418.45B	352.38B
EBITDA	146.47B	153.43B	140.70B	173.67B	162.94B	116.13B
Net Income	42.63B	55.18B	52.62B	75.04B	92.29B	30.92B
Balance Sheet
Total Assets	1.42T	1.46T	1.41T	1.34T	1.27T	1.16T
Cash, Cash Equivalents and Short-Term Investments	229.89B	267.00B	328.48B	267.38B	335.24B	305.16B
Total Debt	227.71B	224.71B	204.78B	233.28B	243.15B	265.91B
Total Liabilities	629.44B	651.57B	601.96B	614.10B	600.68B	608.37B
Stockholders Equity	789.32B	804.75B	810.99B	727.35B	665.63B	550.92B
Cash Flow
Free Cash Flow	44.10B	78.71B	108.98B	2.21B	66.96B	77.35B
Operating Cash Flow	105.99B	138.07B	165.57B	61.31B	110.80B	133.22B
Investing Cash Flow	-153.21B	-150.79B	-58.98B	-61.60B	-44.08B	-57.45B
Financing Cash Flow	-44.04B	-45.13B	-65.39B	-79.35B	-51.77B	23.15B

Seiko Epson Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1870.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6724, the sentiment is Negative. The current price of 1870 is below the 20-day moving average (MA) of 1932.35, below the 50-day MA of 1904.64, and below the 200-day MA of 2101.15, indicating a bearish trend. The MACD of 7.79 indicates Positive momentum. The RSI at 42.59 is Neutral, neither overbought nor oversold. The STOCH value of 53.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6724.

Seiko Epson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6750	75 Outperform	€164.46B	14.34	11.97%	2.82%	6.70%	14.87%
7739	75 Outperform	¥116.82B	16.17	―	2.53%	7.82%	3.26%
6588	74 Outperform	€164.00B	7.33	23.27%	1.54%	-1.36%	―
6727	66 Neutral	$108.59B	27.04	13.28%	4.05%	-10.35%	-12.87%
6724	64 Neutral	$619.65B	14.75	5.27%	3.82%	0.86%	-15.62%
6737	62 Neutral	¥90.76B	23.54	―	4.92%	-0.61%	-16.31%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%