Takeda Machinery Co., Ltd. (6150) AI Stock Analysis

• Market Cap: ¥3.15B
• Dividend Yield: 2.66%
• Average Volume (3M): 853.00
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.50
• Revenue Growth: -17.16%
• EPS Growth: -47.34%
• Country: JP
• Employees: 182
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): N/A
• Shares Outstanding: 1,020,000
• 10 Day Avg. Volume: 920
• 30 Day Avg. Volume: 853
• PEG Ratio: -0.30
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -4.46
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥3,696.00 ▲(16.59% Upside)
• Action: Downgraded Date: 10/10/25
• Date: Action: Downgraded 10/10/25

Takeda Machinery Co., Ltd.'s overall stock score is primarily influenced by its solid balance sheet and attractive valuation, with a low P/E ratio and reasonable dividend yield. However, challenges such as declining revenue, reduced profitability, and negative cash flows weigh on the score. Technical indicators suggest potential bearish momentum, adding to the cautious outlook.

Positive Factors

Strong balance sheet / low leverage

A low debt-to-equity (~0.29) and strong equity ratio give Takeda financial flexibility to fund capital expenditures, R&D and absorb industry cyclicality. Conservative leverage reduces refinancing risk and supports durable operations and strategic initiatives over the next 2-6 months.

Efficient production and healthy gross margin

Sustained gross margin strength indicates operational efficiency in precision machinery manufacturing. Efficient production lowers unit costs and helps preserve profitability under revenue pressure, enabling the company to remain competitive and sustain margins as it pursues recovery and aftermarket growth.

Recurring and diversified revenue streams

Service contracts, custom solutions and partnerships create recurring revenue, deepen client relationships, and raise switching costs. This diversification across sales, services and collaborations supports steadier cash flows and order visibility across automotive, electronics and industrial customers.

Negative Factors

Declining revenue trend

A persistent revenue decline erodes scale and dealer/customer momentum, making it harder to cover fixed costs and invest in R&D. Continued top-line contraction risks margin compression and weaker competitive positioning unless sales stabilize or new markets are secured.

Negative operating and free cash flow

Negative operating and free cash flows constrain internal funding for capex, service infrastructure and working capital. Persisting cash deficits may force external financing or cutbacks, reducing strategic flexibility and increasing liquidity risk over the medium term.

Deteriorating profitability metrics

Falling ROE and a large negative EPS growth rate indicate weakening returns on capital and lower shareholder earnings. This undermines the firm's ability to reinvest profitably, risks dividend pressure, and signals operational or demand weaknesses that could persist absent a clear recovery plan.

Takeda Machinery Co., Ltd. Business Overview & Revenue Model

Company Description

Takeda Machinery Co., Ltd. engages in the manufacturing and sale of forging machines, machine tools, instruments, and molds in Japan. The company offers shaped steel working machines, which includes compact shaped steel working, flat plate drilling, H/I beam drilling, and sheet metal working machines; and circular sawing machines, such as shaped and solid steel cutting, and hollow section cutting machines. It also provides unit dies machine comprising punching, cutting, notching, and bending die machines. The company was founded in 1966 and is headquartered in Nomi, Japan.

How the Company Makes Money

Takeda Machinery generates revenue through the sale of its precision machinery and equipment, which includes CNC machine tools and automated production systems. The company's revenue model is primarily based on direct sales to manufacturers across various sectors, including automotive and electronics. Additionally, Takeda Machinery earns income from maintenance and service contracts, providing ongoing support and upgrades for its machinery. Key revenue streams also include custom machinery solutions, where the company collaborates with clients to design and produce specialized equipment suited to their unique production requirements. Strategic partnerships with industry leaders and participation in joint ventures further enhance its market reach and contribute to revenue growth.

Takeda Machinery Co., Ltd. Financial Statement Overview

Summary

Takeda Machinery Co., Ltd. demonstrates strengths in maintaining a solid balance sheet with low leverage and efficient production processes. However, the company faces challenges with declining revenue, reduced profitability, and negative cash flows, which could impact future growth and financial stability.

Income Statement

Takeda Machinery Co., Ltd. has shown a decline in revenue growth with a negative rate of -10.43% in the most recent year, indicating potential challenges in maintaining sales momentum. However, the company maintains a healthy gross profit margin, suggesting efficient production processes. The net profit margin has decreased, reflecting reduced profitability. Overall, while the company is profitable, the declining revenue and profit margins are areas of concern.

Balance Sheet

The company's balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of approximately 0.29, indicating a conservative approach to leverage. The equity ratio is strong, suggesting a solid capital structure. However, the return on equity has decreased, highlighting a need for improved profitability to enhance shareholder returns.

Cash Flow

The cash flow statement reveals significant challenges, with negative operating and free cash flows in the latest year, indicating potential liquidity issues. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, suggesting difficulties in converting profits into cash. This area requires attention to ensure sustainable cash generation.

Breakdown	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	4.89B	5.46B	4.69B	4.44B	3.50B
Gross Profit	1.44B	1.69B	1.37B	1.31B	924.58M
EBITDA	661.02M	868.09M	706.44M	635.83M	413.68M
Net Income	293.67M	427.08M	316.91M	260.93M	118.97M
Balance Sheet
Total Assets	7.62B	7.91B	7.29B	6.74B	6.35B
Cash, Cash Equivalents and Short-Term Investments	1.48B	2.09B	1.10B	1.34B	789.25M
Total Debt	1.51B	1.42B	1.57B	1.45B	1.67B
Total Liabilities	2.40B	2.91B	2.70B	2.42B	2.28B
Stockholders Equity	5.22B	5.00B	4.59B	4.32B	4.07B
Cash Flow
Free Cash Flow	-612.97M	1.21B	-132.94M	859.71M	-201.72M
Operating Cash Flow	-587.13M	1.27B	-82.56M	991.14M	-138.92M
Investing Cash Flow	-23.04M	-108.28M	-71.95M	-63.41M	8.23M
Financing Cash Flow	4.20M	-197.47M	-116.19M	-321.14M	-67.55M

Takeda Machinery Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3170.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6150, the sentiment is Positive. The current price of 3170 is below the 20-day moving average (MA) of 3346.75, below the 50-day MA of 3258.10, and above the 200-day MA of 3032.47, indicating a bullish trend. The MACD of 37.67 indicates Negative momentum. The RSI at 82.51 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6150.

Takeda Machinery Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6138	77 Outperform	¥3.59B	5.93	―	2.66%	3.89%	―
5603	76 Outperform	¥4.63B	9.20	―	4.79%	-0.27%	59.50%
5922	76 Outperform	¥23.75B	10.47	―	2.78%	2.63%	-3.96%
5994	69 Neutral	¥7.57B	4.62	―	1.06%	6.41%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6150	63 Neutral	¥3.15B	12.41	―	2.66%	-17.16%	-47.34%
5987	59 Neutral	¥3.14B	13.40	―	1.20%	2.94%	―