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

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JP:6159

Micron Machinery Co., Ltd.

(6159)

Rating:63Neutral
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. (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 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 MoneyMicron 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
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue4.70B5.18B5.20B4.01B5.42B
Gross Profit1.77B1.87B1.68B1.27B1.78B
EBITDA1.00B1.41B2.09B885.21M1.01B
Net Income484.15M868.24M1.23B461.16M432.58M
Balance Sheet
Total Assets15.12B15.63B14.73B13.25B12.79B
Cash, Cash Equivalents and Short-Term Investments6.63B8.37B6.57B5.32B3.51B
Total Debt306.10M409.40M0.000.00379.00M
Total Liabilities1.93B1.61B1.47B1.32B1.36B
Stockholders Equity13.15B13.98B13.23B11.90B11.39B
Cash Flow
Free Cash Flow-208.79M692.92M250.58M1.39B285.80M
Operating Cash Flow47.01M929.16M387.15M1.50B473.96M
Investing Cash Flow585.86M-259.02M191.25M96.44M68.77M
Financing Cash Flow-1.52B128.30M-99.84M-487.50M-257.06M

Micron Machinery Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1485.00
Price Trends
50DMA
1606.16
Negative
100DMA
1562.91
Negative
200DMA
1541.29
Negative
Market Momentum
MACD
-13.17
Positive
RSI
28.09
Positive
STOCH
>-0.01
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥11.61B20.21
2.54%-10.39%-43.57%
67
Neutral
¥9.75B8.27
2.75%10.57%4.16%
67
Neutral
¥9.80B23.13
0.65%19.16%68.12%
66
Neutral
€3.42B24.4011.11%4.25%0.86%-22.22%
63
Neutral
¥8.91B16.61
0.59%27.24%-53.52%
57
Neutral
¥12.46B16.16
1.99%25.48%
54
Neutral
¥13.29B
5.40%-6.30%34.61%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6159
Micron Machinery Co., Ltd.
1,500.00
98.27
7.01%
JP:6149
Odawara Engineering Co., Ltd.
1,970.00
296.34
17.71%
JP:6161
Estic Corporation
982.00
44.89
4.79%
JP:6203
Howa Machinery, Ltd.
1,001.00
119.63
13.57%
JP:6208
Ishikawa Seisakusho,Ltd.
1,536.00
-265.22
-14.72%
JP:6210
Toyo Machinery & Metal Co., Ltd.
648.00
-18.86
-2.83%
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: Jul 23, 2025