Seiko Corporation (6286) AI Stock Analysis

• Market Cap: ¥8.95B
• Dividend Yield: 1.6%
• Average Volume (3M): 6.03K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.87
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 84 Outperform
• Price Target: ¥1,618.00 ▲(16.32% Upside)

The score is driven primarily by strong financial performance (improving profitability and prudent leverage) and supportive technicals (price above key moving averages with positive MACD). Valuation further boosts the score due to the low P/E and a positive dividend yield, partially offset by prior earnings volatility and mixed free cash flow consistency.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective product strategy, supporting long-term business sustainability.

Margin Improvement

Improved margins reflect efficient cost management and pricing power, which can lead to sustained profitability and competitive advantage.

Low Debt Levels

Low debt levels enhance financial flexibility and reduce risk, allowing the company to invest in growth opportunities and weather economic downturns.

Negative Factors

Cash Decline

A decline in cash reserves could limit the company's ability to fund operations and investments, potentially impacting future growth.

Free Cash Flow Volatility

Volatile free cash flow may hinder the company's ability to consistently reinvest in its business, affecting long-term strategic planning.

Past Earnings Volatility

Past earnings volatility suggests potential challenges in maintaining stable profitability, which could affect investor confidence and strategic initiatives.

Seiko Corporation Business Overview & Revenue Model

Company Description

Seiko Corporation, together with its subsidiaries, engages in the manufacture, sale, repair, and remodeling of packaging machines and cold forged parts in Japan. It operates through five segments: Industrial Machinery Business, Cold Forging Business, Electrical Equipment Business, Vehicle-Related Business, and Real Estate Rental Business. The company's packaging machines include filling/capping machines, container aligning machines, container cleaners, and casers. It also offers electrical equipment, such as FA equipment, air conditioning equipment, refrigeration equipment, etc.; and sterilizers, food processing machines, industrial machines, FA production systems, etc. In addition, the company installs air conditioning equipment; sells vehicles and related products; leases real estate properties; and engages in the parking lot management and automobile rental businesses. Seiko Corporation was incorporated in 1939 and is headquartered in Shizuoka, Japan.

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: 1391.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1391 is above the 20-day moving average (MA) of 1355.65, above the 50-day MA of 1268.94, and above the 200-day MA of 996.94, indicating a bullish trend. The MACD of 39.74 indicates Positive momentum. The RSI at 63.13 is Neutral, neither overbought nor oversold. The STOCH value of 47.00 is Neutral, 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	84 Outperform	¥8.95B	7.65	―	1.60%	11.62%	16.48%
6546	76 Outperform	¥6.30B	20.39	―	2.64%	2.49%	-32.03%
6229	76 Outperform	¥8.37B	12.05	―	2.55%	8.69%	14.63%
6391	69 Neutral	¥6.02B	12.65	―	1.19%	-14.09%	-36.08%
6158	68 Neutral	¥5.78B	19.14	―	4.08%	-11.74%	-46.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6155	58 Neutral	¥5.32B	-40.18	―	2.10%	-0.59%	89.24%