Universal Engeisha Co., Ltd. (6061) AI Stock Analysis

• Market Cap: ¥28.59B
• Dividend Yield: 0.41%
• Average Volume (3M): 4.51K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.74
• Revenue Growth: 18.70%
• EPS Growth: 41.87%
• Country: JP
• Employees: 851
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 69.00
• Shares Outstanding: 5,025,000
• 10 Day Avg. Volume: 4,500
• 30 Day Avg. Volume: 4,513
• PEG Ratio: 1.15
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 1.15
• P/FCF Ratio: 11.26
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥6,712.00 ▲(10.94% Upside)

Universal Engeisha Co., Ltd. scores well due to its strong financial performance, characterized by consistent growth and efficient cash management. Technical indicators suggest a stable long-term trend, although short-term momentum is neutral. The valuation is reasonable, but the low dividend yield may deter some investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Generation

Strong cash generation enhances financial flexibility, enabling reinvestment in growth opportunities and providing a buffer against economic downturns.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk and supports sustainable growth, enhancing investor confidence.

Negative Factors

Debt Increase

Rising debt levels, if unchecked, could strain future cash flows and limit the company's ability to invest in growth, posing a risk to financial stability.

Low Dividend Yield

A low dividend yield may deter income-seeking investors, potentially limiting the stock's appeal and affecting its market performance.

Leverage Monitoring

While leverage is currently low, the trend of increasing debt requires vigilance to prevent future financial strain and maintain balance sheet strength.

Universal Engeisha Co., Ltd. Business Overview & Revenue Model

Company Description

Universal Engeisha Co., Ltd. (6061) is a leading company in the engineering sector, specializing in the manufacturing and development of advanced machinery and industrial equipment. The company operates primarily in the sectors of automation, robotics, and precision engineering, providing innovative solutions that cater to a diverse range of industries including automotive, electronics, and construction. With a commitment to quality and technological advancement, Universal Engeisha delivers high-performance products designed to enhance productivity and efficiency for its clients.

How the Company Makes Money

Universal Engeisha Co., Ltd. generates revenue through multiple streams, primarily through the sale of its machinery and industrial equipment. The company engages in direct sales to large enterprises, as well as through distribution partnerships that expand its market reach. Additionally, Universal Engeisha offers maintenance and support services for its products, creating a recurring revenue model. Key partnerships with major corporations in various industries enhance its market presence and facilitate contract manufacturing opportunities. Furthermore, the company invests in research and development to innovate new products, which not only drives sales but also positions it as a leader in technological advancements within the sector.

Universal Engeisha Co., Ltd. Financial Statement Overview

Summary

Universal Engeisha Co., Ltd. exhibits a strong financial position with consistent revenue and profit growth, stable margins, low leverage, and efficient cash management. These factors collectively suggest a well-managed company with a solid financial foundation.

Income Statement

Universal Engeisha Co., Ltd. has demonstrated strong revenue growth with a 7.4% increase in the latest year, supported by a consistent rise in gross profit and net income. The company maintains healthy profit margins, with a gross profit margin of approximately 61% and a net profit margin of around 8.8% in the latest period. EBIT and EBITDA margins are stable, indicating efficient operational management. The positive revenue trajectory and profitability metrics reflect a robust income statement performance.

Balance Sheet

The balance sheet of Universal Engeisha Co., Ltd. shows a solid equity base with a low debt-to-equity ratio of approximately 0.056, indicating conservative leverage. The return on equity is strong at around 13.5%, showcasing effective utilization of shareholder funds. The equity ratio stands at a healthy level, reflecting financial stability. However, the increase in total debt over the years suggests a need for careful monitoring of leverage levels.

Cash Flow

The cash flow statement reveals a strong operating cash flow to net income ratio, indicating efficient cash generation relative to earnings. Free cash flow has grown significantly, with a notable increase in the latest year, highlighting the company's ability to generate surplus cash after capital expenditures. The free cash flow to net income ratio is robust, further supporting the company's liquidity position. Overall, the cash flow metrics suggest a healthy cash management strategy.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.90B	20.51B	16.86B	13.82B	11.60B	9.57B
Gross Profit	12.34B	12.52B	10.40B	8.30B	7.10B	5.84B
EBITDA	3.48B	3.29B	3.07B	2.41B	2.28B	1.62B
Net Income	1.95B	1.81B	1.64B	1.49B	1.38B	732.88M
Balance Sheet
Total Assets	16.86B	17.04B	15.32B	13.04B	11.38B	9.84B
Cash, Cash Equivalents and Short-Term Investments	4.59B	4.96B	4.54B	5.28B	5.07B	4.11B
Total Debt	750.89M	756.69M	483.90M	338.18M	44.80M	3.22M
Total Liabilities	3.48B	3.59B	3.26B	2.48B	2.09B	1.78B
Stockholders Equity	13.34B	13.41B	12.03B	10.56B	9.29B	8.06B
Cash Flow
Free Cash Flow	0.00	2.10B	1.87B	1.33B	1.10B	1.01B
Operating Cash Flow	0.00	2.59B	2.14B	1.58B	1.49B	1.30B
Investing Cash Flow	0.00	-1.73B	-1.76B	-990.57M	-470.19M	-549.47M
Financing Cash Flow	0.00	-534.54M	-1.42B	-304.21M	-229.73M	-134.06M

Universal Engeisha Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6050.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6061, the sentiment is Positive. The current price of 6050 is above the 20-day moving average (MA) of 5911.50, above the 50-day MA of 5923.60, and above the 200-day MA of 5063.49, indicating a bullish trend. The MACD of 27.60 indicates Negative momentum. The RSI at 58.41 is Neutral, neither overbought nor oversold. The STOCH value of 84.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6061.

Universal Engeisha Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2674	74 Outperform	¥25.34B	11.58	―	3.99%	7.88%	-5.92%
6061	73 Outperform	¥28.59B	15.33	―	0.41%	18.70%	41.87%
3159	69 Neutral	¥30.63B	6.49	―	0.88%	6.29%	114.31%
3134	67 Neutral	¥8.15B	6.78	―	1.81%	25.08%	-11.42%
3179	66 Neutral	¥24.18B	18.80	―	3.18%	-2.73%	-51.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%