Takagi Seiko Corporation (4242) AI Stock Analysis

• Market Cap: ¥4.39B
• Dividend Yield: 2.64%
• Average Volume (3M): 996.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -10.04%
• EPS Growth: -331.24%
• Country: JP
• Employees: 2,505
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 65.11
• Shares Outstanding: 2,822,472
• 10 Day Avg. Volume: 870
• 30 Day Avg. Volume: 996
• PEG Ratio: <0.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 10.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥1,691.00 ▼(-0.70% Downside)

The overall stock score of 64 reflects a mix of strong technical momentum and significant financial challenges. The stock's bullish technical indicators are offset by poor financial performance and unattractive valuation due to negative earnings. The dividend yield offers some support, but strategic improvements are necessary for long-term growth.

Positive Factors

Strategic Partnerships

These partnerships ensure a steady demand for Takagi Seiko's products, providing a reliable revenue stream and enhancing market position.

Commitment to Innovation

A focus on innovation helps maintain competitive pricing and attract new clients, supporting long-term growth and market adaptability.

Moderate Leverage

Moderate leverage suggests manageable debt levels, providing some financial stability and flexibility for future investments.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or competition, potentially impacting long-term growth and profitability.

Negative Profitability Margins

Negative margins reflect operational inefficiencies and could strain financial resources, affecting the company's ability to invest in growth.

Deteriorating Cash Flow

Deteriorating cash flow limits the company's ability to fund operations and invest in future growth, posing a risk to financial health.

Takagi Seiko Corporation Business Overview & Revenue Model

Company Description

Takagi Seiko Corporation (4242) is a Japan-based company primarily engaged in the manufacturing and sales of precision instruments and components. Operating in sectors such as electronics and automotive, the company specializes in producing high-quality metal and plastic parts, including screws, fasteners, and precision machining products. Takagi Seiko is known for its commitment to innovation and quality, serving a diverse range of industries with its advanced manufacturing capabilities.

How the Company Makes Money

Takagi Seiko Corporation generates revenue through the production and sale of precision components and fasteners to various industries, including automotive, electronics, and industrial machinery. The company operates on a B2B model, supplying its products to manufacturers who require high-quality parts for assembly in their own products. Key revenue streams include direct sales to customers, contracts with large manufacturers, and potentially recurring orders from established partners. Strategic partnerships with major companies in the automotive and electronics sectors contribute significantly to its earnings, as they ensure a steady demand for Takagi Seiko's products. Additionally, the company invests in research and development to enhance product offerings, which helps maintain competitive pricing and attract new clients.

Takagi Seiko Corporation Financial Statement Overview

Summary

Takagi Seiko Corporation is facing financial difficulties with declining revenue, negative profitability margins, and deteriorating cash flow. While the balance sheet shows moderate leverage, the negative return on equity and cash flow issues indicate significant operational and profitability challenges. Strategic improvements are needed to restore growth and financial health.

Income Statement

The income statement shows a decline in total revenue from 2024 to 2025, with a revenue decrease of 13.27%. The gross profit margin in 2025 is 15.19%, down from previous years. The net profit margin turned negative in 2025 at -5.08%, indicating profitability challenges. The negative EBIT margin of 0.26% and EBITDA margin of 0.42% in 2025 contribute to this weak performance. Despite past revenue growth, recent declines and negative margins highlight significant financial stress.

Balance Sheet

The balance sheet shows a relatively stable financial position with a debt-to-equity ratio of 0.65 in 2025, indicating moderate leverage. The return on equity (ROE) has turned negative at -19.71% due to the negative net income, reflecting poor profitability. The equity ratio stands at 31.12%, suggesting a fair amount of shareholder equity in the company's asset base. Despite moderate leverage, the negative ROE indicates a need for improved profitability.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow from 2024 to 2025, with a negative growth rate of 86.66%. The operating cash flow to net income ratio is negative due to the loss, while the free cash flow to net income ratio is also negatively impacted. Although operating cash flow remains positive, the sharp decline in free cash flow and negative ratios indicate cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.44B	44.29B	51.07B	48.16B	47.33B	37.14B
Gross Profit	6.42B	6.73B	8.20B	7.13B	7.82B	5.98B
EBITDA	87.50M	184.00M	4.93B	4.30B	4.74B	3.51B
Net Income	-2.12B	-2.25B	1.19B	700.00M	1.01B	-654.00M
Balance Sheet
Total Assets	30.87B	36.67B	39.90B	39.40B	38.34B	35.23B
Cash, Cash Equivalents and Short-Term Investments	3.75B	5.57B	5.28B	4.76B	3.82B	3.89B
Total Debt	5.41B	7.47B	6.61B	8.22B	9.47B	11.02B
Total Liabilities	17.63B	21.03B	21.73B	23.82B	24.33B	24.27B
Stockholders Equity	10.39B	11.41B	13.19B	10.96B	9.77B	7.67B
Cash Flow
Free Cash Flow	0.00	349.00M	2.62B	2.40B	1.88B	812.00M
Operating Cash Flow	0.00	2.21B	4.32B	4.68B	4.61B	2.60B
Investing Cash Flow	0.00	-2.31B	-1.63B	-2.24B	-2.66B	-1.03B
Financing Cash Flow	0.00	-212.00M	-2.37B	-1.65B	-2.32B	-2.01B

Takagi Seiko Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1703.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4242, the sentiment is Positive. The current price of 1703 is above the 20-day moving average (MA) of 1668.55, above the 50-day MA of 1502.18, and above the 200-day MA of 1370.46, indicating a bullish trend. The MACD of 56.83 indicates Positive momentum. The RSI at 63.58 is Neutral, neither overbought nor oversold. The STOCH value of 57.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4242.

Takagi Seiko Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4243	80 Outperform	¥1.86B	9.60	―	2.52%	0.37%	6.53%
8138	79 Outperform	¥4.01B	4.81	―	2.14%	4.29%	240.24%
4625	78 Outperform	¥3.61B	12.88	―	2.47%	1.79%	31.63%
4247	75 Outperform	¥3.28B	26.10	―	2.99%	7.64%	37.45%
4242	64 Neutral	¥4.39B	-2.08	―	2.64%	-10.04%	-331.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5103	52 Neutral	¥3.56B	-13.49	―	―	-3.45%	56.08%