A-One Seimitsu, Inc. (6156) AI Stock Analysis

• Market Cap: ¥7.23B
• Dividend Yield: 5.64%
• Average Volume (3M): 9.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -0.91%
• EPS Growth: -319.62%
• Country: JP
• Employees: 108
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 6.05
• Shares Outstanding: 5,300,000
• 10 Day Avg. Volume: 5,760
• 30 Day Avg. Volume: 9,050
• PEG Ratio: 0.14
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 5.44
• P/FCF Ratio: -166.83
• 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: 55 Neutral
• Price Target: ¥1,814.00 ▲(2.31% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining profitability and inconsistent cash flow generation. Technical analysis shows neutral to slightly positive momentum, but valuation concerns due to a negative P/E ratio offset the high dividend yield.

Positive Factors

Strong Balance Sheet

A-One Seimitsu's strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities and withstand economic downturns.

Market Position

The company's reputation for precision engineering and innovation strengthens its competitive position in the industrial sector, supporting long-term customer relationships and market share.

Diverse Industry Exposure

Diverse industry exposure reduces reliance on any single sector, providing resilience against sector-specific downturns and opportunities for growth across various markets.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in market demand or competitive pressures, which could hinder long-term growth and profitability if not addressed.

Negative Free Cash Flow

Negative free cash flow suggests difficulties in funding operations and growth initiatives internally, potentially leading to increased reliance on external financing.

Declining Return on Equity

A declining return on equity indicates inefficiencies in utilizing shareholder funds, which could impact investor confidence and the company's ability to attract new capital.

A-One Seimitsu, Inc. Business Overview & Revenue Model

Company Description

A-One Seimitsu, Inc. (6156) is a precision machining and manufacturing company based in Japan, specializing in the production of high-quality mechanical components and systems. The company operates primarily in the automotive, aerospace, and industrial equipment sectors, providing advanced engineering solutions and precision parts. Its core products include precision machined parts, molds, and assembly services, which are essential for various applications in high-performance industries.

How the Company Makes Money

A-One Seimitsu, Inc. generates revenue primarily through the sale of its precision machined components and assemblies to manufacturers in the automotive, aerospace, and industrial sectors. The company's revenue model is based on direct sales to clients, long-term contracts, and partnerships with major industry players. Key revenue streams include custom precision parts production, mold manufacturing, and assembly services. Additionally, the company benefits from strategic alliances with technology firms and suppliers, which enhance its market reach and product offerings. Factors contributing to its earnings include the growing demand for precision-engineered components in high-tech industries, investments in advanced manufacturing technologies, and a strong reputation for quality and reliability.

A-One Seimitsu, Inc. Financial Statement Overview

Summary

The company faces challenges in maintaining revenue growth and profitability, with declining margins and inconsistent revenue growth. The balance sheet is strong with low leverage, but declining return on equity is a concern. Cash flow management needs improvement, particularly in generating positive free cash flow.

Income Statement

The income statement shows a declining trend in revenue and profitability over the years. The gross profit margin and net profit margin have decreased, indicating reduced efficiency in cost management and profitability. Revenue growth has been inconsistent, with recent periods showing negative growth. The company needs to address these challenges to improve its financial health.

Balance Sheet

The balance sheet is relatively strong with a low debt-to-equity ratio, indicating minimal leverage and financial risk. The equity ratio is stable, reflecting a solid capital structure. However, the return on equity has been declining, suggesting that the company is not generating sufficient returns on its equity base.

Cash Flow

Cash flow analysis reveals a mixed picture. Operating cash flow is positive, but free cash flow has been negative recently, indicating potential issues in generating cash after capital expenditures. The free cash flow to net income ratio has also been volatile, suggesting inconsistency in cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.59B	1.59B	1.60B	1.76B	1.87B	1.67B
Gross Profit	416.47M	416.53M	473.61M	556.10M	720.22M	638.58M
EBITDA	-147.69M	-144.67M	319.00M	435.43M	587.36M	560.04M
Net Income	-221.91M	-221.29M	120.52M	191.94M	310.44M	268.56M
Balance Sheet
Total Assets	8.06B	8.06B	8.95B	9.21B	9.48B	9.10B
Cash, Cash Equivalents and Short-Term Investments	4.68B	4.68B	5.92B	6.81B	6.97B	6.88B
Total Debt	1.81M	1.81M	2.90M	3.81M	4.71M	5.62M
Total Liabilities	573.05M	573.05M	758.21M	775.48M	790.53M	684.35M
Stockholders Equity	7.49B	7.49B	8.19B	8.43B	8.69B	8.41B
Cash Flow
Free Cash Flow	0.00	-51.87M	104.44M	353.03M	421.01M	256.25M
Operating Cash Flow	0.00	151.44M	342.47M	422.92M	606.19M	392.25M
Investing Cash Flow	0.00	104.75M	-138.94M	-73.09M	-185.12M	-137.54M
Financing Cash Flow	0.00	-501.73M	-500.30M	-501.68M	-336.64M	-240.58M

A-One Seimitsu, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1773.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6156, the sentiment is Positive. The current price of 1773 is above the 20-day moving average (MA) of 1765.30, above the 50-day MA of 1769.40, and above the 200-day MA of 1753.25, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 55.11 is Neutral, neither overbought nor oversold. The STOCH value of 50.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6156.

A-One Seimitsu, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5971	77 Outperform	¥10.18B	11.84	―	1.15%	4.81%	39.74%
6165	73 Outperform	¥13.62B	10.88	―	3.84%	5.57%	89.21%
6157	70 Outperform	¥22.44B	18.21	―	3.31%	0.97%	-10.47%
5966	67 Neutral	¥6.00B	13.77	―	3.24%	1.16%	-31.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5967	61 Neutral	¥10.86B	11.15	―	2.20%	-2.69%	6.29%
6156	55 Neutral	¥7.23B	-43.21	―	5.64%	-0.91%	-319.62%