Strong Cash GenerationMaterially improved TTM operating and free cash flow, with FCF roughly 0.89x of net income, signals durable internal funding. This strengthens liquidity for capex, product development or debt reduction and provides a buffer through hardware demand cycles versus relying on external financing.

Established Brands And Diversified ChannelsOwning TEAC and TASCAM brands and selling across consumer, pro-audio, retail, ecommerce and B2B channels creates structural resilience. Diversified end-markets and specialized pro distribution help sustain pricing and recurring replacement/service demand over multiple cycles.

Improving ReturnsROE improvement to ~6.6% signals recovery in capital efficiency after prior weakness. Coupled with a stable gross margin base (~42%), modest return improvement suggests incremental operating leverage potential as revenues stabilize, supporting longer-term profitability recovery.

Bears Say

Steep Revenue DeclineA ~64% TTM revenue contraction is a major structural risk: it reduces scale, weakens supplier terms, and strains fixed-cost absorption. Sustained top-line weakness would impair margin recovery, cash generation consistency, and the company’s ability to invest in product cycles.

Thin ProfitabilityVery low net and EBIT margins leave limited buffer against cost inflation, pricing pressure or volume volatility typical in hardware markets. Even modest adverse changes in costs or sales mix could quickly push results negative, constraining reinvestment and strategic flexibility.

Meaningful LeverageLeverage above equity (debt/equity ~1.32x) limits balance-sheet flexibility. High debt amplifies earnings volatility, increases interest burden, and reduces capacity for M&A or R&D spend; it raises refinancing risk if revenue or cash flow underperforms across cycles.

6803 FAQ

What was TEAC CORPORATION’s price range in the past 12 months?

TEAC CORPORATION lowest stock price was ¥59.00 and its highest was ¥127.00 in the past 12 months.

What is TEAC CORPORATION’s market cap?

TEAC CORPORATION’s market cap is ¥3.43B.

When is TEAC CORPORATION’s upcoming earnings report date?

TEAC CORPORATION’s upcoming earnings report date is May 08, 2026 which is in 81 days.

How were TEAC CORPORATION’s earnings last quarter?

TEAC CORPORATION released its earnings results on Feb 06, 2026. The company reported ¥10.36 earnings per share for the quarter, beating the consensus estimate of N/A by ¥10.36.

Is TEAC CORPORATION overvalued?

According to Wall Street analysts TEAC CORPORATION’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does TEAC CORPORATION pay dividends?

TEAC CORPORATION pays a Annually dividend of ¥1 which represents an annual dividend yield of 1.08%. See more information on TEAC CORPORATION dividends here

What is TEAC CORPORATION’s EPS estimate?

TEAC CORPORATION’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does TEAC CORPORATION have?

TEAC CORPORATION has 28,931,711 shares outstanding.

What happened to TEAC CORPORATION’s price movement after its last earnings report?

TEAC CORPORATION reported an EPS of ¥10.36 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -5.932%.

Which hedge fund is a major shareholder of TEAC CORPORATION?

Currently, no hedge funds are holding shares in JP:6803

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

TEAC CORPORATION

Teac Corporation engages in the audio and information product businesses in Japan and internationally. Its audio products comprise high-end and general audio products; audio equipment for music production and broadcasting; and contract/professional audio products. The company's information products include recording and reproducing equipment for aircraft, medical image recording and reproducing products, and optical drives for industrial market, as well as measurement products, such as sensors/transducers, and data recorders; and in-flight entertainment, data storage, and disc publishing products. It also provides commissioned design and contract manufacturing solutions; business solutions; and repair and maintenance services. The company was incorporated in 1948 and is headquartered in Tokyo, Japan. Teac Corporation is a subsidiary of Global Acoustic Partners LLC.