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

• Market Cap: ¥2.79B
• Dividend Yield: 2.68%
• Average Volume (3M): 1.04K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.55
• Revenue Growth: -10.50%
• EPS Growth: -31.23%
• Country: JP
• Employees: 182
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 68.75
• Shares Outstanding: 1,020,000
• 10 Day Avg. Volume: 880
• 30 Day Avg. Volume: 1,036
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,369.00
• Price Target Upside: 12.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥3,369.00 ▲(12.49% Upside)

Takeda Machinery Co., Ltd. scores well due to its attractive valuation and positive technical indicators, suggesting potential for price appreciation. However, financial performance concerns, particularly in cash flow and profitability, pose risks that need to be addressed to ensure long-term stability.

Positive Factors

Business Model Strength

The company's focus on automation and precision engineering positions it well in the industrial machinery sector, catering to diverse industries and enhancing operational efficiency for clients.

Balance Sheet Health

A low leverage ratio indicates a conservative approach to debt, providing financial stability and flexibility to navigate market challenges.

Market Competitiveness

Collaborations with technology firms and suppliers strengthen product innovation and market reach, supporting long-term competitive positioning.

Negative Factors

Revenue Decline

A significant decline in revenue growth indicates challenges in maintaining sales momentum, potentially impacting future earnings and market share.

Profitability Concerns

Decreasing profit margins suggest challenges in cost management or pricing power, which could affect long-term financial health and investor returns.

Negative Cash Flows

Persistent negative cash flows highlight difficulties in converting profits into cash, risking liquidity and the ability to fund operations and growth initiatives.

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

Company Description

Takeda Machinery Co., Ltd. (6150) is a leading manufacturer specializing in the production of industrial machinery and equipment, with a strong focus on automation and precision engineering. The company operates primarily in the manufacturing sector, providing innovative solutions for various industries, including automotive, electronics, and food processing. Takeda Machinery's core products include automated assembly systems, CNC machining tools, and specialized production lines designed to enhance operational efficiency and productivity for its clients.

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. shows a stable balance sheet with low leverage and efficient production processes. However, declining revenue, reduced profitability, and negative cash flows pose significant challenges to 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: Positive
• Last Price: 2995.00
• 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:6150, the sentiment is Positive. The current price of 2995 is below the 20-day moving average (MA) of 3000.15, above the 50-day MA of 2941.68, and above the 200-day MA of 2993.98, indicating a neutral trend. The MACD of 16.43 indicates Positive momentum. The RSI at 53.37 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 is Neutral, 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
5603	80 Outperform	¥4.25B	4.34		4.51%	0.34%	131.10%
5922	76 Outperform	¥17.32B	9.56		3.03%	2.75%	-9.49%
6150	72 Outperform	¥2.79B	9.50		2.68%	-10.50%	-31.23%
6138	72 Outperform	¥3.28B	8.82		2.31%	8.06%	―
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
5994	63 Neutral	¥5.49B	31.36		1.60%	1.07%	―
5987	52 Neutral	¥3.06B	1,058.36		1.08%	1.73%	―