TEAC CORPORATION (6803) AI Stock Analysis

TEAC CORPORATION

(TSE/TYO:6803)

Select Model

Rating:74Outperform

Price Target:JPY 108.00▲(18.68% Upside)

Action:upgraded

Date:08/10/26

TEAC Corporation earns a solid overall score primarily driven by a highly successful financial turnaround, robust cash flow generation, and an exceptionally attractive valuation. However, these strong fundamental strengths are currently offset by pronounced bearish technical momentum, suggesting the stock is fundamentally undervalued but still facing near-term market headwinds.

Positive Factors

Profitability recoveryMargins have meaningfully improved into 2026, with TTM net and operating margins indicating durable profit restoration. Sustained mid-single-digit margins suggest better cost control and product mix, supporting ongoing operating cash flow and resilience versus prior losses.

Negative Factors

Modest top-line growthRevenue growth has been tepid, roughly 3% TTM after several flat years. Limited organic expansion constrains operating leverage and scale benefits, making margin improvements more dependent on cost control or margin mix rather than robust market-driven volume growth.

TEAC CORPORATION (6803) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.62B
Dividend Yield: 1.10%
Average Volume (3M): 292.39K
Price to Earnings (P/E): 3.2
Beta (1Y): 1.17
Revenue Growth: 4.23%
EPS Growth: 287.17%
Country: Japan
Employees: 524
Sector: Technology
Sector Strength: 61
Industry: Computer Hardware

TEAC CORPORATION Business Overview & Revenue Model

Company Description

Teac Corporation, operating both in Japan and globally, specializes in a diverse range of audio and information technology products. Its audio division offers a spectrum of items, from high-fidelity and consumer-grade audio equipment to professional...

How the Company Makes Money

TEAC makes money primarily by selling hardware products and related services across consumer and professional markets. Key revenue streams include: (1) Consumer audio product sales—revenue from branded audio products such as home audio components and...

TEAC CORPORATION Financial Statement Overview

Summary

TEAC Corporation displays a highly successful financial turnaround with stabilizing revenues, a robust cash generation profile, and an improving balance sheet highlighted by a declining debt-to-equity ratio and excellent return on equity.

Income Statement

76Positive

Balance Sheet

82Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	16.07B	15.94B	15.67B	15.67B	15.70B	14.59B
Gross Profit	6.91B	6.84B	6.80B	7.01B	6.87B	6.26B
EBITDA	1.10B	908.00M	877.00M	912.00M	980.00M	920.00M
Net Income	508.00M	578.00M	81.00M	-53.00M	305.00M	301.00M
Balance Sheet
Total Assets	11.29B	10.59B	10.81B	11.87B	10.96B	9.65B
Cash, Cash Equivalents and Short-Term Investments	1.70B	2.17B	1.55B	1.23B	1.20B	1.87B
Total Debt	4.39B	3.58B	4.21B	4.75B	4.26B	3.71B
Total Liabilities	7.48B	6.52B	7.26B	8.30B	7.85B	7.81B
Stockholders Equity	3.81B	4.07B	3.56B	3.57B	3.11B	1.84B
Cash Flow
Free Cash Flow	1.49B	1.46B	1.06B	10.00M	180.00M	697.00M
Operating Cash Flow	1.63B	1.61B	1.18B	116.00M	294.00M	866.00M
Investing Cash Flow	-134.00M	-150.00M	-115.00M	-106.00M	-102.00M	-263.00M
Financing Cash Flow	-1.07B	-883.00M	-706.00M	-69.00M	-333.00M	-215.00M

TEAC CORPORATION Technical Analysis

Technical Analysis SentimentNegative

Last Price91.00

Price Trends

50DMA97.56Negative

100DMA97.47Negative

200DMA103.03Negative

Market Momentum

MACD-1.66Positive

RSI31.18Neutral

STOCH4.76Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6803, the sentiment is Negative. The current price of 91.00 is below the 20-day moving average (MA) of 95.30, below the 50-day MA of 97.56, and below the 200-day MA of 103.03, indicating a bearish trend. The MACD of -1.66 indicates Positive momentum. The RSI at 31.18 is Neutral, neither overbought nor oversold. The STOCH value of 4.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6803.

TEAC CORPORATION Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:6803 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6750	86Outperform	JPY 177.49B	7.18	20.97%	3.08%	15.44%	115.43%
JP:6737	80Outperform	JPY 119.04B	14.26	―	3.87%	3.16%	170.14%
JP:6727	74Outperform	JPY 109.79B	11.13	26.51%	3.28%	-2.51%	70.38%
JP:6803	74Outperform	JPY 2.62B	3.22	―	1.10%	4.23%	287.17%
JP:7751	73Outperform	JPY 4.58T	11.47	―	3.37%	3.90%	132.03%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:6724	60Neutral	JPY 1.03T	42.16	2.90%	2.38%	8.34%	-41.57%

* Technology Sector Average

Performance Comparison

JP:6803 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6803	TEAC CORPORATION	91.00	-7.14	-7.27%
JP:6750	Elecom Co	1948.00	202.93	11.63%
JP:6724	Seiko Epson Corp	3233.00	1336.39	70.46%
JP:6727	Wacom Co	824.00	13.63	1.68%
JP:6737	EIZO Corp.	2909.00	814.22	38.87%
JP:7751	Canon Inc.	4744.00	467.24	10.93%

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 10, 2026

TEAC CORPORATION AI Stock Analysis