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

• Market Cap: ¥9.62B
• Dividend Yield: 1.2%
• Average Volume (3M): 13.84K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.26
• Revenue Growth: -6.45%
• EPS Growth: 53.12%
• Country: JP
• Employees: 1,259
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 71.75
• Shares Outstanding: 15,595,050
• 10 Day Avg. Volume: 13,350
• 30 Day Avg. Volume: 13,843
• PEG Ratio: 0.06
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 19.28
• 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: 68 Neutral
• Price Target: ¥570.00 ▼(-13.64% Downside)

The overall stock score of 68 reflects a strong valuation with a low P/E ratio and a reasonable dividend yield, making it attractive for value investors. However, technical indicators suggest weak momentum, and financial performance highlights potential challenges in revenue growth and cash flow. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Balance Sheet Health

A strong equity ratio indicates a solid capital structure, providing financial stability and flexibility for future investments and growth.

Profitability

Strong profitability with stable margins suggests efficient operations and the ability to generate sustainable earnings over time.

Return on Equity

An increase in return on equity reflects better utilization of shareholders' funds, enhancing investor confidence and potential for reinvestment.

Negative Factors

Revenue Decline

A decline in revenue growth can hinder the company's ability to expand and compete effectively, impacting long-term business prospects.

Cash Flow Growth

Slower cash flow growth limits the company's ability to fund new projects, pay down debt, or return capital to shareholders, affecting future growth.

Revenue Growth Trend

Stagnant revenue growth indicates challenges in market expansion and product demand, potentially affecting long-term competitiveness.

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

Company Description

MK Seiko Co., Ltd. develops, produces, and sells automotive service and information equipment, and household products. It offers car washing machines, car tire air filling machines, automatic car cleaning machines, car mat washers, fluid and oil related equipment, air conditioner related equipment, kerosene delivery lorries, pumps, and coolant cleaning machines, as well as LED display for gas stations, stores, construction, public demand information boards, and digital signages. The company also provides food temperature control cabinets; desktop filing machines; and stirring-related equipment, as well as cooking appliances, storage cabinets, and home appliances. MK Seiko Co., Ltd. was incorporated in 1956 and is headquartered in Chikuma, Japan.

How the Company Makes Money

MK Seiko generates revenue through the sale of its precision machinery and equipment, which includes components for the electronics and automotive industries. The company’s revenue model is based on direct sales to manufacturers and businesses that require high-quality industrial materials. Key revenue streams include product sales, maintenance services, and long-term contracts with major industry players. Additionally, strategic partnerships with technology firms and collaborations in research and development contribute to its earnings by expanding its product offerings and market reach.

MK Seiko Co., Ltd. Financial Statement Overview

Summary

MK Seiko Co., Ltd. exhibits strong profitability with stable margins and a healthy balance sheet. The company has managed to reduce its leverage while increasing return on equity, demonstrating financial prudence. However, the recent decline in revenue and slower cash flow growth suggest potential 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.36B	28.27B	28.47B	27.33B	24.86B	25.63B
Gross Profit	8.86B	8.81B	9.21B	8.68B	8.06B	8.46B
EBITDA	2.30B	2.68B	2.30B	2.63B	1.97B	2.15B
Net Income	1.06B	1.33B	713.57M	1.17B	566.22M	521.80M
Balance Sheet
Total Assets	27.08B	26.28B	26.78B	26.45B	25.50B	25.11B
Cash, Cash Equivalents and Short-Term Investments	5.08B	5.15B	4.87B	4.00B	3.47B	3.47B
Total Debt	3.64B	4.29B	4.09B	5.19B	6.48B	6.44B
Total Liabilities	10.74B	9.59B	11.75B	12.67B	13.10B	13.16B
Stockholders Equity	16.34B	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: 660.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 660 is above the 20-day moving average (MA) of 591.30, above the 50-day MA of 559.10, and above the 200-day MA of 514.84, indicating a bullish trend. The MACD of 32.97 indicates Negative momentum. The RSI at 70.65 is Negative, neither overbought nor oversold. The STOCH value of 68.29 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	69 Neutral	¥58.46B	14.11	―	2.73%	6.41%	16.71%
5906	68 Neutral	¥9.62B	5.93	―	1.20%	-6.45%	53.12%
8144	63 Neutral	¥7.57B	19.03	―	3.25%	-0.73%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6927	61 Neutral	¥18.82B	30.13	―	3.42%	-21.21%	-55.72%
6898	58 Neutral	¥2.24B	26.44	―	―	14.60%	―
6694	55 Neutral	¥2.85B	-15.81	―	4.68%	3.64%	37.31%