Seiko Corporation (6286) AI Stock Analysis

• Market Cap: ¥8.16B
• Dividend Yield: 1.86%
• Average Volume (3M): 6.03K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.85
• Revenue Growth: 11.62%
• EPS Growth: 16.48%
• Country: JP
• Employees: 875
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 55.21
• Shares Outstanding: 6,483,323
• 10 Day Avg. Volume: 3,330
• 30 Day Avg. Volume: 6,026
• PEG Ratio: 0.16
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 7.11
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥1,434.00 ▲(18.22% Upside)

Seiko Corporation's strong financial performance is the primary driver of its stock score, supported by solid revenue growth and improved profitability. Technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The valuation suggests the stock is attractively priced, enhancing its investment appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Seiko's expanding market presence and successful product offerings, supporting long-term business sustainability.

Margin Improvement

Improved margins reflect effective cost management and pricing strategies, which enhance profitability and competitive positioning.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for strategic investments and growth.

Negative Factors

Cash Position Decline

A declining cash position could limit Seiko's ability to invest in growth opportunities or manage unexpected expenses, impacting future operations.

Free Cash Flow Volatility

Volatile free cash flow can hinder long-term planning and investment, potentially affecting Seiko's ability to sustain growth and manage financial obligations.

Past Financial Volatility

Past financial volatility, such as net losses, can indicate potential risks in financial management and market conditions, affecting investor confidence.

Seiko Corporation Business Overview & Revenue Model

Company Description

Seiko Corporation (6286) is a Japanese multinational company renowned for its innovation in the watchmaking industry. Established in 1881, Seiko operates primarily in the sectors of precision instruments and consumer electronics, focusing on manufacturing high-quality timepieces, clocks, and optical products. The company's core product offerings include mechanical, quartz, and digital watches, as well as high-end luxury watches under the Seiko, Grand Seiko, and Credor brands. In addition to timekeeping devices, Seiko also produces a range of electronic components and devices that serve various industries.

How the Company Makes Money

Seiko Corporation generates revenue through multiple streams, primarily from the sale of its watches and timekeeping devices. The company targets both the luxury market with its Grand Seiko and Credor brands, and the mass market with its standard Seiko line. This diversification allows Seiko to cater to different consumer segments, enhancing overall sales. Additionally, Seiko earns revenue from the production and sale of electronic components and precision instruments, which are utilized across various industries. The company has established significant partnerships with retailers and distributors globally, ensuring a wide-reaching presence and accessibility to its products. Furthermore, Seiko's emphasis on innovation and quality has solidified its brand reputation, enabling premium pricing strategies that contribute to its profitability.

Seiko Corporation Financial Statement Overview

Summary

Seiko Corporation demonstrates strong financial health with consistent revenue growth, improved profit margins, and effective balance sheet management. Despite past challenges like a net loss in 2021 and fluctuating free cash flow, the company's financial trajectory is positive, indicating resilience and growth potential.

Income Statement

Seiko Corporation has shown strong revenue growth with a consistent upward trajectory from 2020 to 2025. The gross profit margin and net profit margin have improved, indicating enhanced profitability and cost control. EBIT and EBITDA margins have also increased, suggesting better operational efficiency. However, the company experienced a net loss in 2021, highlighting past volatility.

Balance Sheet

The balance sheet reflects a robust equity position with a favorable equity ratio. The debt-to-equity ratio is low, indicating prudent leverage management. The return on equity improved significantly over the period, signifying effective use of equity capital. However, the decrease in cash and equivalents from 2024 to 2025 may require monitoring.

Cash Flow

Operating cash flow has grown steadily, and the free cash flow has turned positive after previous periods of negative figures, indicating improved cash management. The operating cash flow to net income ratio is healthy, but the free cash flow growth rate is inconsistent due to fluctuations in capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.67B	40.10B	36.10B	34.54B	31.40B	31.67B
Gross Profit	9.05B	8.81B	7.72B	7.06B	6.77B	6.60B
EBITDA	2.58B	2.54B	1.99B	1.58B	1.83B	242.25M
Net Income	1.06B	1.05B	779.85M	331.34M	750.84M	-847.08M
Balance Sheet
Total Assets	27.18B	27.68B	28.36B	27.20B	27.05B	24.89B
Cash, Cash Equivalents and Short-Term Investments	6.51B	7.10B	8.48B	8.26B	7.56B	6.49B
Total Debt	2.73B	2.87B	4.98B	5.13B	3.82B	3.33B
Total Liabilities	11.12B	11.73B	13.14B	13.00B	13.22B	11.36B
Stockholders Equity	16.06B	15.95B	15.22B	14.20B	13.82B	13.53B
Cash Flow
Free Cash Flow	0.00	831.48M	924.34M	-502.24M	345.68M	1.30B
Operating Cash Flow	0.00	3.12B	1.68B	790.45M	1.75B	2.51B
Investing Cash Flow	0.00	-2.43B	-1.20B	-1.21B	-889.09M	-1.31B
Financing Cash Flow	0.00	-2.24B	-253.79M	1.16B	310.62M	607.72M

Seiko Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1213.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6286, the sentiment is Positive. The current price of 1213 is above the 20-day moving average (MA) of 1186.70, above the 50-day MA of 1102.46, and above the 200-day MA of 923.48, indicating a bullish trend. The MACD of 24.41 indicates Positive momentum. The RSI at 61.04 is Neutral, neither overbought nor oversold. The STOCH value of 81.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6286.

Seiko Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6286	76 Outperform	¥8.16B	7.72	―	1.86%	11.62%	16.48%
6546	76 Outperform	¥6.51B	21.05	―	2.64%	2.49%	-32.03%
6229	76 Outperform	¥8.35B	13.05	―	2.47%	8.69%	14.63%
6391	69 Neutral	¥5.67B	11.90	―	1.17%	-14.09%	-36.08%
6158	68 Neutral	¥5.52B	14.76	―	4.02%	-11.74%	-46.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6155	58 Neutral	¥5.21B	-8.31	―	2.04%	-0.59%	89.24%