Low Leverage And Strong Equity BaseVery low leverage and a high equity ratio provide durable financial resilience, reducing default risk and preserving access to capital. This structural balance sheet strength supports investment, volatility absorption, and long-term strategic flexibility even through cyclical industry downturns.

Healthy Operating MarginsSustained mid-to-high single-digit EBIT and double-digit gross margins indicate structural operational efficiency in core manufacturing. These margins create a buffer against revenue shocks, allow reinvestment in the business, and support durable cash generation if sales stabilize or recover.

Positive Operating Cash FlowOngoing positive operating cash flow shows the business still generates cash from core operations, providing a foundation to fund working capital, support necessary capex, and service obligations. This underlying cash generation helps manage through periods of negative free cash flow.

Bears Say

Recent Revenue DeclineAn over-11% year-on-year revenue drop signals weakening demand or market share loss in core segments. Sustained top-line contraction pressures fixed-cost absorption, limits scale benefits, and reduces the firm's ability to rebuild margins or fund strategic initiatives without restoring sales.

Free Cash Flow Turned NegativeA shift to negative free cash flow constrains the firm's capacity to self-fund capex, dividends, or debt repayment. If persistent, it can force external financing, reduce strategic optionality, and weaken balance-sheet resilience despite positive operating cash flow.

Declining Returns To Shareholders (ROE Drop)A near-halving of ROE within one year reflects diminished profitability or capital efficiency. Persistently lower ROE undermines long-term shareholder value creation, signals challenges converting equity into earnings, and may indicate structural margin or demand pressures needing strategic remedy.

6342 FAQ

What was Taihei Machinery Works, Ltd.’s price range in the past 12 months?

Taihei Machinery Works, Ltd. lowest stock price was ¥2453.00 and its highest was ¥4390.00 in the past 12 months.

What is Taihei Machinery Works, Ltd.’s market cap?

Taihei Machinery Works, Ltd.’s market cap is ¥4.17B.

When is Taihei Machinery Works, Ltd.’s upcoming earnings report date?

Taihei Machinery Works, Ltd.’s upcoming earnings report date is Feb 13, 2026 which is in 9 days.

How were Taihei Machinery Works, Ltd.’s earnings last quarter?

Taihei Machinery Works, Ltd. released its earnings results on Nov 12, 2025. The company reported ¥145.03 earnings per share for the quarter, beating the consensus estimate of N/A by ¥145.03.

Is Taihei Machinery Works, Ltd. overvalued?

According to Wall Street analysts Taihei Machinery Works, Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Taihei Machinery Works, Ltd. pay dividends?

Taihei Machinery Works, Ltd. pays a Semiannually dividend of ¥40 which represents an annual dividend yield of 4.26%. See more information on Taihei Machinery Works, Ltd. dividends here

What is Taihei Machinery Works, Ltd.’s EPS estimate?

Taihei Machinery Works, Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Taihei Machinery Works, Ltd. have?

Taihei Machinery Works, Ltd. has 1,500,000 shares outstanding.

What happened to Taihei Machinery Works, Ltd.’s price movement after its last earnings report?

Taihei Machinery Works, Ltd. reported an EPS of ¥145.03 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 7.782%.

Which hedge fund is a major shareholder of Taihei Machinery Works, Ltd.?

Currently, no hedge funds are holding shares in JP:6342

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Taihei Machinery Works, Ltd.

Taihei Machinery Works, Limited manufactures and sells plywood and woodworking machinery in Japan. It offers plywood machinery, including knife grinding machines, knife honing machines, horizontal and green veneer moisture equalizing press machines, and roll jet dryers, as well as veneer plywood manufacturing plant and LVL manufacturing machines; and industrial machines comprising building material manufacturing machines, veneer dryers, and hydraulic press machines. The company also provides woodworking machines, such as finger joint systems, 6-axle shuklesser products, gang rippers, molders, and rapiers, as well as automatic single, double, triple, and quadruple sided planers; and chip making machines comprising chippers, veneer and underfeed chippers, roller screens, shaving machines, and conveyor systems. In addition, it exports its products to China, Indonesia, Malaysia, the Philippines, Singapore, Korea, Thailand, Myanmar, Laos, Vietnam, Taiwan, the United States, Canada, Ecuador, Brazil, Chili, Bolivia, Columbia, Germany, France, Russia, Greece, Sweden, Austria, Slovenia, Australia, New Zealand, Fiji, Kenya, Uganda, and South Africa. Taihei Machinery Works, Limited was founded in 1925 and is headquartered in Komaki, Japan.