Seibu Giken Co., Ltd. (6223) AI Stock Analysis

• Market Cap: ¥31.45B
• Dividend Yield: 4.56%
• Average Volume (3M): 40.24K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.57
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 779
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Machinery
• EPS (TTM): 45.23
• Shares Outstanding: 20,500,000
• 10 Day Avg. Volume: 28,660
• 30 Day Avg. Volume: 40,236
• PEG Ratio: 0.00
• Price to Book (P/B): 3.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.57
• 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: ¥1,791.00
• Price Target Upside: 16.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥1,759.00 ▲(14.74%Upside)

Seibu Giken Co., Ltd. benefits from a solid financial position, attractive valuation, and moderate technical indicators. Strong revenue growth, robust balance sheet, and significant cash flow improvements are key strengths, while valuation metrics suggest the stock is undervalued with a solid dividend yield. Technical indicators are neutral, which limits the immediate upside potential.

Seibu Giken Co., Ltd. Business Overview & Revenue Model

Company Description

Seibu Giken Co., Ltd. is a Japanese company that specializes in the development, manufacture, and sale of air conditioning and ventilation systems, primarily focusing on energy-efficient desiccant dehumidifiers. The company operates in sectors such as environmental control and energy conservation, offering solutions that are widely used in both industrial and commercial applications to improve air quality and reduce energy consumption.

How the Company Makes Money

Seibu Giken Co., Ltd. generates revenue through the sale of its air conditioning and ventilation products, primarily desiccant dehumidifiers. These products are utilized across various industries to enhance air quality and energy efficiency. The company's revenue model is based on manufacturing these systems and selling them to businesses and organizations seeking to optimize their environmental control capabilities. Key revenue streams include the direct sales of dehumidifiers, maintenance services, and potentially partnerships with distributors or industry-specific clients who require tailored air management solutions. Factors such as advancements in energy-efficient technologies and increasing regulatory standards for environmental control contribute to the company's earnings by driving demand for its innovative products.

Seibu Giken Co., Ltd. Financial Statement Overview

Summary

Seibu Giken Co., Ltd. demonstrates solid financial health with strong revenue growth and profitability metrics, supported by a robust balance sheet and improved cash flow generation. There are minor concerns over declining margins and returns on equity, but the overall financial position remains stable and competitive within the industrial machinery sector.

Income Statement

The company shows strong revenue growth with a notable increase of 11.63% from the previous year. Gross Profit Margin is healthy at 34.00%, and Net Profit Margin stands at a solid 10.41%. However, there is a slight decline in EBIT and EBITDA margins, indicating potential cost pressures. Overall, profitability metrics are strong, showcasing efficient operations and a competitive position in the market.

Balance Sheet

Seibu Giken Co., Ltd. maintains a robust balance sheet with a low Debt-to-Equity Ratio of 0.05, suggesting minimal leverage risk. The Equity Ratio is impressive at 69.91%, indicating a strong equity position relative to total assets. However, there is a slight concern with the declining Return on Equity, now at 11.15%, pointing to potential pressures on equity returns.

Cash Flow

The company exhibits a remarkable turnaround in Free Cash Flow, growing from negative to 4863 million yen. The Operating Cash Flow to Net Income Ratio is 1.97, indicating strong cash generation relative to earnings. Despite the positive cash flow trends, the company should maintain focus on sustaining these levels to ensure ongoing financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.07B	28.73B	24.89B	17.40B
Gross Profit	10.90B	11.17B	10.05B	6.25B
EBITDA	4.99B	5.25B	5.70B	2.97B
Net Income	3.34B	3.43B	3.91B	1.70B
Balance Sheet
Total Assets	42.80B	39.33B	31.11B	25.64B
Cash, Cash Equivalents and Short-Term Investments	14.44B	11.64B	9.80B	7.67B
Total Debt	1.52B	2.60B	5.41B	5.20B
Total Liabilities	12.84B	12.54B	13.36B	11.54B
Stockholders Equity	29.91B	26.79B	17.75B	14.10B
Cash Flow
Free Cash Flow	4.86B	-422.00M	2.77B	2.57B
Operating Cash Flow	6.57B	2.00B	3.35B	3.40B
Investing Cash Flow	-2.50B	-2.34B	-595.00M	268.00M
Financing Cash Flow	-2.06B	1.80B	-818.00M	-876.00M

Seibu Giken Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1533.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6223, the sentiment is Negative. The current price of 1533 is below the 20-day moving average (MA) of 1552.00, below the 50-day MA of 1556.78, and below the 200-day MA of 1627.33, indicating a bearish trend. The MACD of -1.25 indicates Positive momentum. The RSI at 43.70 is Neutral, neither overbought nor oversold. The STOCH value of 24.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6223.

Seibu Giken Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6247	81 Outperform	¥37.61B	10.16		3.48%	12.21%	60.18%
6144	80 Outperform	¥28.91B	12.31		4.39%	4.40%	18.82%
6223	78 Outperform	¥31.45B	8.29		4.56%	―	―
6240	75 Outperform	¥46.22B	26.65		2.16%	11.54%	121.00%
6145	66 Neutral	¥35.12B	26.30		2.16%	8.00%	-50.92%
6151	65 Neutral	¥34.13B	25.33		1.97%	0.68%	-22.82%
Sector *	63 Neutral	kr59.49B	12.36	1.88%	2.32%	0.55%	-4.48%

Seibu Giken Co., Ltd. Corporate Events

Seibu Giken Secures Major Order for EV Battery Plant

Seibu Giken Co., Ltd. has secured a significant order from a major Japanese automaker for constructing an inert gas environment enclosure for a lithium-ion battery manufacturing plant. The order, valued at approximately JPY 820 million, is expected to impact the company’s financial results for the fiscal years ending December 2025 and 2026, highlighting Seibu Giken’s strong market position and expertise in the EV battery manufacturing sector.

Seibu Giken Secures Major Order for Indian EV Battery Plant

Seibu Giken Co., Ltd. announced that its subsidiary, Seibu Giken (Changshu) Co., Ltd., has secured a significant order for a lithium-ion battery manufacturing plant in India. This order, valued at approximately JPY 1.06 billion, involves the supply of solvent recovery equipment to a leading Indian automotive battery manufacturer. The sales from this order are expected to impact the company’s financial results for the fiscal years ending in December 2025 and 2026, reflecting Seibu Giken’s strong market position and expertise in energy-efficient solutions.

Seibu Giken Expands Operations with New Thai Subsidiary

Seibu Giken Co., Ltd. has announced the establishment of a new subsidiary in Thailand, aiming to expand its total engineering services and enhance sales and maintenance of energy-saving air conditioning equipment across Thailand, the ASEAN region, India, the Middle East, and other emerging markets. This strategic move aligns with their Medium-Term Management Plan 2024-2026 and is expected to have minimal impact on the company’s financial results for the fiscal year ending December 31, 2025, with future impacts to be reflected in subsequent forecasts.

Seibu Giken Secures Major Order for Hybrid Super Capacitor Plant

Seibu Giken Co., Ltd. announced that its subsidiary, Seibu Giken DR Engineering Co., Ltd., has secured a significant order to build a Hybrid Super Capacitor manufacturing plant for a Japanese capacitor manufacturer. This order, valued at approximately JPY 4.83 billion, includes architectural and facility design, construction management, and various equipment works, with delivery expected between Q4 2025 and Q4 2026. This order is anticipated to positively impact Seibu Giken’s financial results for the fiscal years ending in 2025 and 2026, reflecting the company’s strong market position in providing essential equipment for lithium-ion battery and semiconductor manufacturing processes.

Seibu Giken’s Subsidiary Secures Major Order for Hybrid Super Capacitor Plant

Seibu Giken Co., Ltd. announced that its subsidiary, Seibu Giken DR Engineering Co., Ltd., has secured a significant order for a Hybrid Super Capacitor manufacturing plant. The order, valued at approximately JPY 4.83 billion, involves various aspects of factory design and construction, with delivery expected between Q4 2025 and Q4 2026. This order is anticipated to positively impact Seibu Giken’s financial results for the fiscal years ending December 31, 2025, and 2026, reflecting the company’s strong market position in providing essential equipment for lithium-ion battery and semiconductor manufacturing processes.

Seibu Giken Co., Ltd. Reports Strong Q1 2025 Financial Results

Seibu Giken Co., Ltd. reported a strong financial performance for the first quarter of fiscal year 2025, with notable increases in net sales and operating profit driven by higher sales of VOC concentrators in Asia and projects with high gross profit margins. The company’s progress aligns with full-year forecasts, indicating stable operations and a positive outlook for stakeholders.