Takagi Seiko Corporation (4242) AI Stock Analysis

• Market Cap: ¥3.87B
• Dividend Yield: 2.88%
• Average Volume (3M): 1.12K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.29
• Revenue Growth: -12.39%
• EPS Growth: -280.05%
• Country: JP
• Employees: 2,505
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): 73.14
• Shares Outstanding: 2,822,472
• 10 Day Avg. Volume: 360
• 30 Day Avg. Volume: 1,123
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,408.00
• Price Target Upside: 1.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥1,408.00 ▲(1.15% Upside)

The overall stock score reflects significant financial challenges, with declining revenue and profitability impacting the company's performance. Technical analysis shows slight bullish momentum, offering some resilience. However, the negative P/E ratio suggests valuation concerns. The dividend yield is a positive aspect, providing some attraction for income-focused investors.

Takagi Seiko Corporation Business Overview & Revenue Model

Company Description

Takagi Seiko Corporation (4242) is a Japanese company specializing in the manufacturing and sale of precision plastic components. The company operates in sectors including automotive, electronics, and medical devices, providing high-quality molded plastic parts and assemblies. Takagi Seiko is recognized for its advanced molding technologies and commitment to quality, serving a diverse range of industries with innovative solutions.

How the Company Makes Money

Takagi Seiko Corporation generates revenue primarily through the production and sale of precision plastic components. The company's key revenue streams include contracts with automotive manufacturers, electronics companies, and medical device firms that require specialized plastic parts. Takagi Seiko leverages its expertise in precision molding to deliver high-quality products, which in turn attracts long-term partnerships and repeat business. Additionally, the company may engage in research and development activities to continuously innovate and meet the evolving needs of its clients, thus maintaining its competitive edge in the market.

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.

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	44.29B	44.29B	51.07B	48.16B	47.33B	37.14B
Gross Profit	6.73B	6.73B	8.20B	7.13B	7.82B	5.98B
EBITDA	184.00M	184.00M	4.93B	4.30B	4.74B	2.95B
Net Income	-2.25B	-2.25B	1.19B	700.00M	1.01B	-654.00M
Balance Sheet
Total Assets	36.67B	36.67B	39.90B	39.40B	38.34B	35.23B
Cash, Cash Equivalents and Short-Term Investments	5.57B	5.57B	5.28B	4.76B	3.82B	3.89B
Total Debt	7.47B	7.47B	6.61B	8.22B	9.47B	11.02B
Total Liabilities	21.03B	21.03B	21.73B	23.82B	24.33B	24.27B
Stockholders Equity	11.41B	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: 1392.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1392 is above the 20-day moving average (MA) of 1385.90, above the 50-day MA of 1353.78, and above the 200-day MA of 1353.23, indicating a neutral trend. The MACD of 8.36 indicates Positive momentum. The RSI at 54.59 is Neutral, neither overbought nor oversold. The STOCH value of 11.76 is Positive, 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
4625	78 Outperform	¥3.68B	13.12		2.44%	0.68%	5.33%
4243	75 Outperform	¥1.95B	10.04		2.39%	-1.69%	44.67%
8138	74 Outperform	¥3.90B	4.98		2.07%	5.36%	219.26%
4247	74 Outperform	¥3.30B	26.27		3.03%	-1.03%	-30.75%
Sector *	62 Neutral	$10.36B	6.35	0.80%	2.84%	3.10%	-36.03%
4242	60 Neutral	¥3.87B	6.27		2.88%	-12.39%	-280.05%
5103	52 Neutral	¥4.25B	―		―	-2.64%	44.05%