Takamatsu Machinery Co., Ltd. (6155) AI Stock Analysis

• Market Cap: ¥5.16B
• Dividend Yield: 2.1%
• Average Volume (3M): 10.34K
• Price to Earnings (P/E): 1292.3
• Beta (1Y): 0.26
• Revenue Growth: -0.59%
• EPS Growth: 89.24%
• Country: JP
• Employees: 562
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.11
• Shares Outstanding: 11,020,000
• 10 Day Avg. Volume: 7,250
• 30 Day Avg. Volume: 10,336
• PEG Ratio: -0.51
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 4.02
• 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: 58 Neutral
• Price Target: ¥492.00 ▲(2.71% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

The overall stock score of 58 reflects the company's strong technical momentum and solid balance sheet, but is weighed down by declining financial performance and poor valuation metrics. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Strong balance sheet

A high equity ratio (74.29%) and very low leverage (debt-to-equity 0.11) give the company durable financial flexibility. This supports capital allocation for R&D, service network investment and cushions cyclical downturns without relying on costly external financing.

Improving cash generation

Material improvement in operating cash flow and a significant rise in free cash flow indicate better cash management and working capital control. Stronger cash conversion allows funding of maintenance capex, parts inventory and service expansion independent of operating profitability swings.

Recurring after-sales revenue

A business model that includes maintenance, services and consumables creates recurring, higher-margin revenue tied to an installed base. This reduces revenue cyclicality from machine sales and supports long-term customer relationships and predictable cashflows.

Negative Factors

Revenue decline

Sustained negative revenue growth signals shrinking order flow or market share at the core CNC/machine tool business. Over multiple quarters this erodes scale economies, impedes margin recovery and restricts resources available for service expansion or product development.

Negative profitability

Persistent negative EBIT and net income margins mean the company fails to cover operating costs from core activities. Continued losses depress returns on equity, limit reinvestment capacity and increase reliance on balance-sheet strength rather than operating earnings to fund growth.

Cyclicality from end-market capex

Revenue depends heavily on customer capex cycles, especially automotive and industrial OEMs. Structural cyclicality leads to durable volatility in order books and utilization, making planning, margin stability and long-term revenue visibility challenging for the manufacturing equipment business.

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

Company Description

Takamatsu Machinery Co., Ltd. manufactures and sells machine tools. It offers CNC lathes, collet chucks, automobile part machines, IT-related manufacturing equipment, food processing machines, etc. Takamatsu Machinery Co., Ltd. was founded in 1948 and is headquartered in Hakusan, Japan.

How the Company Makes Money

Takamatsu Machinery generates revenue primarily through the sale of its machinery and equipment, which includes both standard and customized solutions tailored to meet specific client needs. The company's revenue model is built on direct sales, long-term contracts with industrial clients, and ongoing maintenance and support services. Key revenue streams include the sale of new machinery, spare parts, and after-sales services. Additionally, Takamatsu Machinery has formed strategic partnerships with major players in the automotive and electronics sectors, which not only enhances its market reach but also contributes to steady order volumes. The company may also benefit from government contracts or incentives aimed at promoting advanced manufacturing technologies.

Takamatsu Machinery Co., Ltd. Financial Statement Overview

Summary

Takamatsu Machinery Co., Ltd. is experiencing declining revenue and profitability, with negative EBIT and net income margins. Despite a strong balance sheet with low debt and high equity, cash flow improvements are overshadowed by ongoing profitability challenges.

Income Statement

Takamatsu Machinery Co., Ltd. has faced declining revenue and profitability over the past few years. The gross profit margin for the most recent year stands at 23.46%, indicating moderate efficiency in production. However, the company has been experiencing negative EBIT and net income margins, reflecting ongoing operational challenges and inability to cover operating expenses. Revenue has been declining, with a negative revenue growth rate of -2.05% from the previous year.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 74.29%, suggesting financial stability and lower dependence on debt. However, the debt-to-equity ratio is 0.11, which is low, indicating conservative leverage. Return on equity is negative due to net losses, which is a concern for investors looking for profitability.

Cash Flow

There is a substantial improvement in cash flow from operations, with a positive operating cash flow to net income ratio of -2.25, reflecting better cash management despite net losses. Free cash flow has increased significantly, but the free cash flow to net income ratio remains negative, indicating cash flow challenges. The free cash flow growth rate is not applicable due to negative values in prior periods.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.76B	13.89B	14.18B	16.68B	16.72B	13.43B
Gross Profit	3.40B	3.26B	3.19B	4.14B	4.28B	2.86B
EBITDA	443.75M	391.00M	-93.00M	1.20B	1.50B	570.00M
Net Income	-619.00M	-644.00M	-565.00M	489.00M	795.00M	-115.00M
Balance Sheet
Total Assets	21.02B	21.90B	22.31B	24.00B	25.36B	21.56B
Cash, Cash Equivalents and Short-Term Investments	5.61B	5.36B	3.33B	4.11B	6.06B	6.76B
Total Debt	1.59B	1.75B	950.00M	985.00M	1.06B	1.10B
Total Liabilities	5.15B	5.62B	5.70B	7.10B	9.06B	6.06B
Stockholders Equity	15.87B	16.28B	16.61B	16.89B	16.30B	15.50B
Cash Flow
Free Cash Flow	0.00	1.22B	-640.00M	-2.14B	-544.00M	1.56B
Operating Cash Flow	0.00	1.45B	-233.00M	96.00M	825.00M	1.68B
Investing Cash Flow	0.00	-20.00M	-429.00M	-890.00M	-1.42B	-19.00M
Financing Cash Flow	0.00	651.00M	-283.00M	-223.00M	-243.00M	-366.00M

Takamatsu Machinery Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 479.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6155, the sentiment is Negative. The current price of 479 is below the 20-day moving average (MA) of 482.05, below the 50-day MA of 484.80, and below the 200-day MA of 482.52, indicating a bearish trend. The MACD of -4.11 indicates Positive momentum. The RSI at 43.11 is Neutral, neither overbought nor oversold. The STOCH value of 28.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6155.

Takamatsu Machinery Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6104	81 Outperform	¥91.10B	136.93	5.02%	3.23%	-10.00%	-51.92%
6159	76 Outperform	¥13.68B	6.32	―	0.93%	23.05%	89.17%
6258	74 Outperform	¥91.37B	14.21	9.39%	1.68%	9.27%	69.52%
6440	65 Neutral	¥20.89B	10.67	―	―	-2.84%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6125	62 Neutral	¥30.81B	-53.89	―	3.56%	-3.85%	-45.64%
6155	58 Neutral	¥5.16B	1,292.28	―	2.10%	-0.59%	89.24%