Seiko Corporation (6286) AI Stock Analysis

• Market Cap: ¥10.45B
• Dividend Yield: 1.6%
• Average Volume (3M): 6.03K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.86
• Revenue Growth: 11.62%
• EPS Growth: 16.48%
• Country: JP
• Employees: 875
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 50.95
• 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: 79 Outperform
• Price Target: ¥1,861.00 ▲(33.79% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by strong financial performance (growth and margin expansion with prudent leverage) and attractive valuation (low P/E). Offsetting factors are technicals that look overbought (very high RSI/Stoch), which increases near-term downside risk despite the clear uptrend.

Positive Factors

Revenue & Margin Improvement

Seiko has delivered sustained multi-year revenue growth alongside expanding gross, EBIT/EBITDA and net margins. That combination indicates persistent improvements in pricing, cost control and operating efficiency, supporting stronger long-term profitability and enhanced cash generation capacity.

Prudent Balance Sheet

A strong equity base and low leverage give Seiko financial flexibility to fund operations, absorb cyclical downturns, and invest selectively. Improved ROE signals effective capital use, reducing solvency risk and supporting strategic investments without over-reliance on debt.

Improving Cash Generation

Growing operating cash flow and a return to positive free cash flow reflect better cash conversion and working-capital management. This enhances the company's ability to self-fund maintenance, service installed bases, and invest in product support or selective growth initiatives over time.

Negative Factors

Declining Cash Balances

A year-over-year decline in cash and equivalents reduces liquidity cushions available for cyclical weakness or opportunistic spending. For a capex-linked business, thinner cash reserves can constrain flexibility, making the company more reliant on timely cash generation or external funding during downturns.

Free Cash Flow Volatility

FCF volatility driven by lumpy capital investments limits predictability of internal funding for dividends, debt paydown or strategic projects. Irregular capex cycles increase likelihood of external financing in heavy investment periods, raising execution and funding risk over time.

Cyclical End-Market Exposure

Seiko's revenue mix is closely tied to industrial capex cycles across cyclical end markets. That structural exposure makes revenue and order visibility sensitive to macro and industry investment swings, increasing earnings cyclicality and making consistent multi-year growth dependent on OEM capex trends.

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 primarily makes money by selling industrial products and related services to corporate customers. Key revenue streams include: (1) Sale of machine tools and production equipment—revenue generated from delivering machine tools (e.g., CNC lathes/machining equipment) and associated options to manufacturers; this tends to be driven by capital expenditure cycles in automotive, electronics, general machinery, and other industrial end markets. (2) Sale of precision components/systems—revenue from supplying precision parts and industrial modules used in customers’ production lines or embedded into other equipment; this can provide recurring demand tied to customers’ ongoing production. (3) After-sales services and parts—revenue from maintenance, repair, replacement parts, consumables, and technical support for installed equipment; these services can provide more stable income across equipment cycles. (4) Software/controls and engineering support (where offered)—revenue from machine tool control-related products, integration, and application engineering that accompanies equipment sales. Information on specific significant partnerships, customer concentration, or exact segment revenue mix is null.

Seiko Corporation Financial Statement Overview

Summary

Strong multi-year revenue growth and improving gross/EBIT/EBITDA and net margins indicate better profitability and operating efficiency. Balance sheet leverage is conservative with improved ROE, though declining cash from 2024 to 2025 and a 2021 net loss add some risk. Cash flow is improving with positive free cash flow, but capex-driven variability keeps the score below top-tier.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• 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 Neutral. The current price of 1391 is below the 20-day moving average (MA) of 1699.75, below the 50-day MA of 1533.12, and above the 200-day MA of 1165.44, indicating a neutral trend. The MACD of 23.22 indicates Positive momentum. The RSI at 51.17 is Neutral, neither overbought nor oversold. The STOCH value of 45.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6286.

Seiko Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6286	79 Outperform	¥10.45B	6.75	―	1.60%	11.62%	16.48%
6381	75 Outperform	¥65.23B	13.24	―	3.95%	-1.67%	-4.39%
6482	74 Outperform	¥22.87B	46.66	―	2.77%	-4.47%	-24.47%
6203	65 Neutral	¥19.76B	8.12	―	1.73%	26.09%	―
6440	65 Neutral	¥20.15B	10.67	―	―	-2.84%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6125	62 Neutral	¥28.84B	-53.89	―	3.56%	-3.85%	-45.64%