MK Seiko Co., Ltd. (5906) AI Stock Analysis

• Market Cap: ¥7.14B
• Dividend Yield: 1.63%
• Average Volume (3M): 40.77K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.30
• Revenue Growth: -0.72%
• EPS Growth: 86.46%
• Country: JP
• Employees: 1,259
• Sector: Technology
• Sector Strength: 90
• Industry: Consumer Electronics
• EPS (TTM): -16.69
• Shares Outstanding: 15,595,050
• 10 Day Avg. Volume: 33,260
• 30 Day Avg. Volume: 40,766
• PEG Ratio: 0.08
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥527.00
• Price Target Upside: 7.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥527.00 ▲(7.55%Upside)

The stock is supported by strong financial performance with robust profitability and a solid balance sheet. Valuation metrics suggest the stock is undervalued, offering an attractive entry point. However, mixed technical signals and sluggish revenue growth pose risks to sustaining growth momentum.

MK Seiko Co., Ltd. Business Overview & Revenue Model

Company Description

MK Seiko Co., Ltd. is a Japanese company specializing in the manufacture and distribution of industrial machinery and equipment. The company operates primarily in the sectors of metal processing machinery, automotive parts, and precision instruments. MK Seiko is known for its innovative engineering solutions and high-quality products that cater to a wide range of industrial applications.

How the Company Makes Money

MK Seiko Co., Ltd. generates revenue through the sale of its industrial machinery and equipment, which are utilized in various sectors including automotive, construction, and general manufacturing. The company's key revenue streams include the sale of new machinery, maintenance services, and the provision of spare parts. Additionally, MK Seiko may engage in partnerships with other companies to enhance its product offerings and expand its market reach. Factors such as technological innovation and a strong reputation for quality contribute significantly to its earnings.

MK Seiko Co., Ltd. Financial Statement Overview

Summary

Strong profitability with stable margins and a solid financial position. The company has reduced leverage and increased ROE, but sluggish revenue growth and slower cash flow growth suggest challenges in sustaining growth momentum.

Income Statement

The company demonstrates strong profitability with a consistent gross profit margin above 30%, and a significant improvement in net profit margin from 2.5% to 4.7% over the past year. However, revenue growth has been sluggish, with a 0.7% decline in the most recent period. The EBIT and EBITDA margins remain stable, showcasing operational efficiency.

Balance Sheet

The company maintains a healthy equity ratio of approximately 63%, indicating a strong capital structure. Debt-to-equity ratio has improved over time, reflecting reduced leverage. Return on equity has increased, indicating improved profitability for shareholders. The balance sheet is solid, though there is room for further debt reduction.

Cash Flow

The cash flow situation is stable, with positive operating cash flow and free cash flow. However, the free cash flow growth rate has declined due to lower operating cash flow in the latest period. The ratios of operating and free cash flow to net income suggest efficient cash conversion, though slightly weaker than previous years.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	28.83B	28.27B	28.47B	27.33B	24.86B	25.63B
Gross Profit	9.60B	8.81B	9.21B	8.68B	8.06B	8.46B
EBITDA	2.12B	2.68B	2.30B	2.63B	1.97B	2.15B
Net Income	782.95M	1.33B	713.57M	1.17B	566.22M	521.80M
Balance Sheet
Total Assets	28.61B	26.28B	26.78B	26.45B	25.50B	25.11B
Cash, Cash Equivalents and Short-Term Investments	4.84B	5.15B	4.87B	4.00B	3.47B	3.47B
Total Debt	3.61B	4.29B	4.09B	5.19B	6.48B	6.44B
Total Liabilities	11.97B	9.59B	11.75B	12.67B	13.10B	13.16B
Stockholders Equity	16.64B	16.69B	15.03B	13.79B	12.41B	11.95B
Cash Flow
Free Cash Flow	0.00	362.29M	2.18B	1.98B	65.57M	1.34B
Operating Cash Flow	0.00	516.56M	2.46B	2.27B	437.38M	1.80B
Investing Cash Flow	0.00	-256.65M	-551.73M	-310.00M	-636.56M	-429.14M
Financing Cash Flow	0.00	-216.60M	-1.42B	-1.56B	-168.16M	-970.17M

MK Seiko Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 490.00
• 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:5906, the sentiment is Positive. The current price of 490 is below the 20-day moving average (MA) of 495.55, above the 50-day MA of 477.40, and above the 200-day MA of 469.30, indicating a neutral trend. The MACD of 2.15 indicates Positive momentum. The RSI at 49.86 is Neutral, neither overbought nor oversold. The STOCH value of 51.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5906.

MK Seiko Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6794	80 Outperform	¥34.60B	8.89		5.14%	12.38%	68.86%
5906	71 Outperform	¥7.14B	5.40		1.63%	-0.72%	86.46%
8144	71 Outperform	¥7.36B	17.29		3.33%	-0.51%	420.31%
6927	66 Neutral	¥15.07B	20.71		4.21%	-9.21%	-68.22%
Sector *	63 Neutral	$33.92B	6.00	-11.84%	1.85%	5.31%	-18.34%
6694	60 Neutral	¥2.91B	72.82		4.53%	-1.04%	-163.70%
6898	58 Neutral	¥1.98B	―		―	-4.72%	-400.98%