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Micron Machinery Co., Ltd. (JP:6159)
:6159
Japanese Market

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

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JP

Micron Machinery Co., Ltd.

(6159)

Rating:69Neutral
Price Target:
¥1,674.00
▼(-1.24%Downside)
Micron Machinery Co., Ltd. shows a stable financial position with a strong balance sheet, but operational performance is declining with negative free cash flow. Technical indicators suggest neutral to bearish momentum, and the stock may be undervalued based on its low P/E ratio. The lack of earnings call information limits the assessment of forward-looking insights.

Micron Machinery Co., Ltd. (6159) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionMicron Machinery Co., Ltd. (6159) is a Japanese company specializing in the manufacturing of precision grinding machines. It operates within the machinery sector, focusing on producing high-quality centerless and internal grinders. These machines are utilized in various industries, including automotive, aerospace, and electronics, where precision and reliability are crucial.
How the Company Makes MoneyMicron Machinery Co., Ltd. generates revenue primarily through the sale of its precision grinding machines. The company offers a range of products that cater to different industrial needs, ensuring a steady demand from sectors such as automotive and aerospace that require highly accurate machining solutions. Additionally, the company may engage in after-sales services, including maintenance and parts supply, which provide additional revenue streams. Strategic partnerships with distributors and industrial clients also play a significant role in expanding the company's market reach and sales opportunities.

Micron Machinery Co., Ltd. Financial Statement Overview

Summary
The company shows financial stability with a strong balance sheet, characterized by low leverage and high equity ratios. However, the declining revenue and net profit margins, along with negative free cash flow, indicate operational and liquidity challenges.
Income Statement
70
Positive
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
85
Very Positive
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
60
Neutral
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.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue4.86B4.70B5.18B5.20B4.01B5.42B
Gross Profit1.79B1.77B1.87B1.68B1.27B1.78B
EBITDA968.20M1.00B1.41B2.09B885.21M1.01B
Net Income639.26M484.15M868.24M1.23B461.16M432.58M
Balance Sheet
Total Assets16.10B15.12B15.63B14.73B13.25B12.79B
Cash, Cash Equivalents and Short-Term Investments7.90B6.63B8.37B6.57B5.32B3.51B
Total Debt774.00M306.10M409.40M0.000.00379.00M
Total Liabilities2.73B1.93B1.61B1.47B1.32B1.36B
Stockholders Equity13.33B13.15B13.98B13.23B11.90B11.39B
Cash Flow
Free Cash Flow0.00-208.79M692.92M250.58M1.39B285.80M
Operating Cash Flow0.0047.01M929.16M387.15M1.50B473.96M
Investing Cash Flow0.00585.86M-259.02M191.25M96.44M68.77M
Financing Cash Flow0.00-1.52B128.30M-99.84M-487.50M-257.06M

Micron Machinery Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1695.00
Price Trends
50DMA
1570.50
Positive
100DMA
1554.19
Positive
200DMA
1523.55
Positive
Market Momentum
MACD
33.75
Negative
RSI
67.61
Neutral
STOCH
81.61
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6159, the sentiment is Positive. The current price of 1695 is above the 20-day moving average (MA) of 1631.95, above the 50-day MA of 1570.50, and above the 200-day MA of 1523.55, indicating a bullish trend. The MACD of 33.75 indicates Negative momentum. The RSI at 67.61 is Neutral, neither overbought nor oversold. The STOCH value of 81.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6159.

Micron Machinery Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥10.17B11.56
0.52%9.79%-25.96%
69
Neutral
¥11.55B20.12
2.55%-10.39%-43.57%
68
Neutral
$2.54B13.457.40%4.63%-0.87%8.24%
67
Neutral
¥9.45B8.02
2.84%10.57%4.16%
66
Neutral
¥8.82B20.83
0.73%19.16%68.12%
57
Neutral
¥12.15B15.76
2.04%25.48%
54
Neutral
¥12.68B
5.66%-6.30%34.61%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6159
Micron Machinery Co., Ltd.
1,695.00
130.35
8.33%
JP:6149
Odawara Engineering Co., Ltd.
1,961.00
253.38
14.84%
JP:6161
Estic Corporation
952.00
-47.30
-4.73%
JP:6203
Howa Machinery, Ltd.
979.00
60.21
6.55%
JP:6208
Ishikawa Seisakusho,Ltd.
1,373.00
-518.58
-27.42%
JP:6210
Toyo Machinery & Metal Co., Ltd.
618.00
-82.01
-11.72%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 04, 2025