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

• Market Cap: ¥10.15B
• Dividend Yield: 0.74%
• Average Volume (3M): 1.10K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.40
• Revenue Growth: 27.24%
• EPS Growth: -53.52%
• Country: JP
• Employees: 239
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -10.34
• Shares Outstanding: 7,706,100
• 10 Day Avg. Volume: 1,740
• 30 Day Avg. Volume: 1,103
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,894.00
• Price Target Upside: 12.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥1,894.00 ▲(12.00% Upside)

Micron Machinery Co., Ltd. receives a score of 73, driven by strong technical indicators and a robust balance sheet. However, declining revenue and net profit margins, along with liquidity challenges, pose risks. The valuation is fair but not particularly compelling, and the absence of earnings call data limits insights into future prospects.

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. shows financial stability with a strong balance sheet, characterized by low leverage and high equity ratios. However, declining revenue and net profit margins suggest market or operational challenges. The cash flow statement highlights liquidity issues with negative free cash flow, driven by a significant drop in operating cash flow. Overall, while the company is financially stable, the declining operational performance and cash flow issues pose potential risks.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.57B	4.70B	5.18B	5.20B	4.01B	5.42B
Gross Profit	2.19B	1.77B	1.87B	1.68B	1.27B	1.78B
EBITDA	1.10B	1.00B	1.41B	2.09B	885.21M	1.01B
Net Income	740.19M	484.15M	868.24M	1.23B	461.16M	432.58M
Balance Sheet
Total Assets	16.09B	15.12B	15.63B	14.73B	13.25B	12.79B
Cash, Cash Equivalents and Short-Term Investments	8.22B	6.63B	8.37B	6.57B	5.32B	3.51B
Total Debt	521.57M	306.10M	409.40M	0.00	0.00	379.00M
Total Liabilities	2.60B	1.93B	1.61B	1.47B	1.32B	1.36B
Stockholders Equity	13.46B	13.15B	13.98B	13.23B	11.90B	11.39B
Cash Flow
Free Cash Flow	0.00	-208.79M	692.92M	250.58M	1.39B	285.80M
Operating Cash Flow	0.00	47.01M	929.16M	387.15M	1.50B	473.96M
Investing Cash Flow	0.00	585.86M	-259.02M	191.25M	96.44M	68.77M
Financing Cash Flow	0.00	-1.52B	128.30M	-99.84M	-487.50M	-257.06M

Micron Machinery Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1691.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1691 is below the 20-day moving average (MA) of 1693.30, above the 50-day MA of 1639.32, and above the 200-day MA of 1580.34, indicating a bullish trend. The MACD of 18.27 indicates Positive momentum. The RSI at 52.50 is Neutral, neither overbought nor oversold. The STOCH value of 16.15 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6161	74 Outperform	¥10.09B	8.33	11.39%	2.65%	19.26%	16.97%
6159	73 Outperform	¥10.15B	18.92	―	0.74%	27.24%	-53.52%
6203	72 Outperform	¥15.13B	16.44	4.00%	1.64%	29.02%	―
6149	69 Neutral	¥17.11B	8.73	5.26%	1.72%	65.63%	103.99%
6208	68 Neutral	¥10.02B	17.71	7.86%	0.64%	26.23%	81.45%
6210	54 Neutral	¥14.07B	-29.45	-4.93%	5.10%	-1.14%	68.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%