Micron Machinery Co., Ltd. (6159) AI Stock Analysis

• Market Cap: ¥8.91B
• Dividend Yield: 0.59%
• Average Volume (3M): 1.87K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.39
• Revenue Growth: 27.24%
• EPS Growth: -53.52%
• Country: JP
• Employees: 239
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Machinery
• EPS (TTM): -10.34
• Shares Outstanding: 7,706,100
• 10 Day Avg. Volume: 1,550
• 30 Day Avg. Volume: 1,866
• PEG Ratio: 0.51
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,674.00
• Price Target Upside: 12.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ¥1,682.00 ▲(13.27%Upside)

Micron Machinery Co., Ltd. is supported by a strong balance sheet, but faces challenges with declining revenue and net profit margins, as well as negative cash flow. Technical analysis indicates bearish momentum, while valuation metrics are mixed with a moderate P/E ratio and low dividend yield. These factors contribute to a cautious outlook for the stock.

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

Company Description

Micron Machinery Co., Ltd. (6159) is a Japanese company specializing in the manufacture of precision grinding machines. It operates primarily in the industrial machinery sector, catering to various industries such as automotive, aerospace, and manufacturing. The company's core products include centerless grinding machines and internal grinding machines, designed to deliver high precision and efficiency for its clients' production processes.

How the Company Makes Money

Micron Machinery Co., Ltd. generates revenue primarily through the sale of its precision grinding machines. These machines are sold to a wide range of industrial clients who require high-precision equipment for manufacturing and finishing processes. The company also provides maintenance and servicing for its machines, adding an additional revenue stream. Key factors contributing to its earnings include its reputation for high-quality products, strong customer relationships, and continuous innovation in grinding technology. Significant partnerships with industrial clients and suppliers further enhance its market reach and revenue potential. The company's focus on research and development helps maintain its competitive edge, ensuring a steady demand for its advanced grinding solutions.

Micron Machinery Co., Ltd. Financial Statement Overview

Summary

Micron Machinery Co., Ltd. demonstrates financial stability with a strong balance sheet and low leverage. However, the declining revenue and net profit margins, along with liquidity issues indicated by negative free cash flow, pose potential risks to its financial health.

Income Statement

The gross profit margin remained stable at approximately 37.6% in the latest period, indicating consistent profitability in operations. However, the net profit margin declined significantly from 16.8% in the previous year to 10.3%, driven by a decrease in net income. There is also a noticeable revenue decline of 9.3%, highlighting challenges in maintaining sales growth. Despite a solid EBITDA margin of 21.4%, the drop in revenue and net income margins suggests potential issues in cost management or market conditions.

Balance Sheet

The company maintains a robust financial position with a low debt-to-equity ratio of 0.02, indicating minimal reliance on debt financing. The equity ratio stands strong at 86.9%, reflecting high asset backing by equity. Return on Equity (ROE) decreased from 6.2% to 3.7%, suggesting a reduction in profitability relative to shareholder equity. Generally, the balance sheet displays stability with sufficient cash reserves and low leverage, though the decline in ROE might warrant attention.

Cash Flow

Operating cash flow dropped sharply from ¥929 million to ¥47 million, significantly affecting free cash flow, which turned negative to -¥209 million. The free cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash to cover its net income. While the company has strong cash reserves, the negative free cash flow growth and operating cash flow indicate potential liquidity challenges that need to be addressed.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	4.70B	5.18B	5.20B	4.01B	5.42B
Gross Profit	1.77B	1.87B	1.68B	1.27B	1.78B
EBITDA	1.00B	1.41B	2.09B	885.21M	1.01B
Net Income	484.15M	868.24M	1.23B	461.16M	432.58M
Balance Sheet
Total Assets	15.12B	15.63B	14.73B	13.25B	12.79B
Cash, Cash Equivalents and Short-Term Investments	6.63B	8.37B	6.57B	5.32B	3.51B
Total Debt	306.10M	409.40M	0.00	0.00	379.00M
Total Liabilities	1.93B	1.61B	1.47B	1.32B	1.36B
Stockholders Equity	13.15B	13.98B	13.23B	11.90B	11.39B
Cash Flow
Free Cash Flow	-208.79M	692.92M	250.58M	1.39B	285.80M
Operating Cash Flow	47.01M	929.16M	387.15M	1.50B	473.96M
Investing Cash Flow	585.86M	-259.02M	191.25M	96.44M	68.77M
Financing Cash Flow	-1.52B	128.30M	-99.84M	-487.50M	-257.06M

Micron Machinery Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1485.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6159, the sentiment is Negative. The current price of 1485 is below the 20-day moving average (MA) of 1661.80, below the 50-day MA of 1606.16, and below the 200-day MA of 1541.29, indicating a bearish trend. The MACD of -13.17 indicates Positive momentum. The RSI at 28.09 is Positive, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6159.

Micron Machinery Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6149	69 Neutral	¥11.61B	20.21		2.54%	-10.39%	-43.57%
6161	67 Neutral	¥9.75B	8.27		2.75%	10.57%	4.16%
6208	67 Neutral	¥9.80B	23.13		0.65%	19.16%	68.12%
Sector *	66 Neutral	€3.42B	24.40	11.11%	4.25%	0.86%	-22.22%
6159	63 Neutral	¥8.91B	16.61		0.59%	27.24%	-53.52%
6203	57 Neutral	¥12.46B	16.16		1.99%	25.48%	―
6210	54 Neutral	¥13.29B	―		5.40%	-6.30%	34.61%