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

• Market Cap: ¥2.76B
• Dividend Yield: 2.72%
• Average Volume (3M): 853.00
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.54
• Revenue Growth: -17.16%
• EPS Growth: -47.34%
• Country: JP
• Employees: 182
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -9.21
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥3,179.00 ▲(8.02% Upside)

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

Solid Balance Sheet

A solid balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities and weather economic downturns.

Efficient Production Processes

Efficient production processes contribute to maintaining healthy margins, which can support profitability and competitive pricing strategies in the long term.

Recurring Revenue Streams

Recurring revenue from services enhances financial predictability and strengthens customer relationships, supporting long-term revenue stability.

Negative Factors

Declining Revenue

Declining revenue growth indicates potential challenges in market demand or competitive positioning, which could hinder future expansion and profitability.

Reduced Profitability

Reduced profitability can impact the company's ability to reinvest in its business and deliver shareholder value, posing a risk to long-term growth.

Negative Cash Flows

Negative cash flows suggest difficulties in converting profits into cash, which can strain liquidity and limit the company's ability to fund operations and growth initiatives.

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 machinery and equipment, which constitutes its primary revenue stream. The company also earns income from providing maintenance, repair, and support services for its products, ensuring long-term client relationships and recurring revenue. Additionally, Takeda Machinery engages in custom engineering projects, allowing it to cater to specific client needs and expand its market reach. Strategic partnerships with other technology firms and suppliers also enhance its product offerings and market competitiveness, contributing to its overall earnings.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.09B	4.89B	5.46B	4.69B	4.44B	3.50B
Gross Profit	1.49B	1.44B	1.69B	1.37B	1.31B	924.58M
EBITDA	649.55M	661.02M	868.09M	706.44M	635.83M	413.68M
Net Income	302.62M	293.67M	427.08M	316.91M	260.93M	118.97M
Balance Sheet
Total Assets	7.71B	7.62B	7.91B	7.29B	6.74B	6.35B
Cash, Cash Equivalents and Short-Term Investments	1.50B	1.48B	2.09B	1.10B	1.34B	789.25M
Total Debt	1.31B	1.51B	1.42B	1.57B	1.45B	1.67B
Total Liabilities	2.56B	2.40B	2.91B	2.70B	2.42B	2.28B
Stockholders Equity	5.15B	5.22B	5.00B	4.59B	4.32B	4.07B
Cash Flow
Free Cash Flow	0.00	-612.97M	1.21B	-132.94M	859.71M	-201.72M
Operating Cash Flow	0.00	-587.13M	1.27B	-82.56M	991.14M	-138.92M
Investing Cash Flow	0.00	-23.04M	-108.28M	-71.95M	-63.41M	8.23M
Financing Cash Flow	0.00	4.20M	-197.47M	-116.19M	-321.14M	-67.55M

Takeda Machinery Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2943.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6150, the sentiment is Negative. The current price of 2943 is below the 20-day moving average (MA) of 2950.15, below the 50-day MA of 2965.24, and below the 200-day MA of 3027.08, indicating a bearish trend. The MACD of -1.52 indicates Negative momentum. The RSI at 47.98 is Neutral, neither overbought nor oversold. The STOCH value of 70.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
5922	81 Outperform	¥18.25B	10.07	―	2.86%	2.63%	-3.96%
5603	76 Outperform	¥4.18B	4.58	―	4.75%	-0.27%	59.50%
5994	69 Neutral	¥7.91B	4.10	―	1.27%	6.41%	―
6138	68 Neutral	¥2.69B	7.48	―	2.75%	3.89%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6150	63 Neutral	¥2.76B	12.44	―	2.72%	-17.16%	-47.34%
5987	59 Neutral	¥2.81B	21.99	―	1.18%	2.94%	―