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

• Market Cap: ¥5.17B
• 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: ¥493.00 ▲(2.92% 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 / high equity ratio

A 74.29% equity ratio and very low leverage provide durable financial flexibility. This capital structure helps the company absorb cyclical downturns, fund selective capex or tooling investments, and support distributor and service operations without relying on external debt.

Improving operating and free cash flow

Material improvement in operating cash flow and higher free cash flow improves internal funding for parts, service, and modest reinvestment. Strong cash conversion even amid losses reduces financing needs and supports the recurring after-sales business long term.

Niche CNC machine-tool franchise with recurring after-sales

Core focus on CNC lathes and an installed base creates recurring service, parts, and maintenance revenue. That mix stabilizes cash flows across capital-expenditure cycles and leverages technical relationships with automotive and component manufacturers over multi-year horizons.

Negative Factors

Declining revenue and negative margins

Sustained revenue declines and persistent negative EBIT/net margins signal operational issues or weak demand. Over months these trends can erode pricing power, reduce R&D or service investment, and impair the firm's ability to restore profitable scale in competitive machine-tool markets.

Negative return on equity despite high equity base

A strong equity base that generates negative ROE indicates capital is underutilized or deployed unprofitably. This structural mismatch can limit shareholder returns, constrain strategic initiatives that require profitable deployment of equity, and raise governance scrutiny over capital allocation.

Free cash flow still weak relative to earnings

Although operating cash flow improved, FCF-to-net-income remains negative, showing cash conversion shortfalls. Persistent negative conversion hampers reinvestment in product upgrades, service networks, and international expansion, limiting durable competitiveness.

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 primarily makes money by selling machine tools—especially CNC lathes—and associated production equipment to manufacturing customers. Revenue is generated from (1) one-time equipment sales (new machines and system/line proposals where applicable), typically the largest source of revenue, (2) recurring after-sales income such as maintenance/repair services, inspection/support contracts, and technical service work performed over the installed base, and (3) sales of consumables and replacement parts used to keep machines operating. Earnings are influenced by capital-expenditure cycles in end markets (e.g., automotive and broader manufacturing), the company’s ability to secure domestic and overseas orders through direct sales and distributors, and the ongoing service/parts demand tied to the size and utilization of its installed base. Specific partnership details are null.

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	3.15B	3.08B	4.04B	4.22B	2.80B
EBITDA	441.00M	318.00M	160.00M	1.07B	1.44B	330.00M
Net Income	-619.00M	-644.00M	-565.00M	489.00M	795.00M	-115.00M
Balance Sheet
Total Assets	21.02B	21.90B	22.64B	24.33B	25.66B	21.84B
Cash, Cash Equivalents and Short-Term Investments	5.61B	5.36B	3.33B	4.11B	6.06B	6.76B
Total Debt	1.59B	1.72B	1.02B	985.00M	1.06B	1.10B
Total Liabilities	5.15B	5.62B	6.01B	7.43B	9.35B	6.33B
Stockholders Equity	15.87B	16.28B	16.61B	16.89B	16.30B	15.50B
Cash Flow
Free Cash Flow	0.00	1.22B	-541.00M	-2.09B	-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: Negative
• 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 above the 20-day moving average (MA) of 477.40, below the 50-day MA of 483.60, and below the 200-day MA of 482.71, indicating a bearish trend. The MACD of -3.06 indicates Negative momentum. The RSI at 45.84 is Neutral, neither overbought nor oversold. The STOCH value of 57.22 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	¥83.95B	136.93	5.02%	3.23%	-10.00%	-51.92%
6159	76 Outperform	¥13.47B	6.32	―	0.93%	23.05%	89.17%
6258	74 Outperform	¥80.08B	14.21	9.39%	1.68%	9.27%	69.52%
6440	65 Neutral	¥20.15B	10.67	―	―	-2.84%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6125	62 Neutral	¥28.84B	-53.89	―	3.56%	-3.85%	-45.64%
6155	58 Neutral	¥5.17B	1,292.28	―	2.10%	-0.59%	89.24%