Iseki & Co., Ltd. (6310) AI Stock Analysis

• Market Cap: ¥42.44B
• Dividend Yield: 1.6%
• Average Volume (3M): 429.12K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.72
• Revenue Growth: 10.90%
• EPS Growth: N/A
• Country: JP
• Employees: 5,292
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 37.55
• Shares Outstanding: 22,984,991
• 10 Day Avg. Volume: 482,500
• 30 Day Avg. Volume: 429,116
• PEG Ratio: <0.01
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 6.78
• 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: 45 Neutral
• Price Target: ¥1,872.00 ▼(-0.27% Downside)

The overall stock score reflects significant financial challenges, including declining revenues and profitability, high leverage, and negative net income. Technical analysis indicates bearish momentum, and valuation metrics suggest potential overvaluation. Positive cash flow is a mitigating factor but not enough to offset other weaknesses.

Positive Factors

Cash Flow Improvement

The improvement in free cash flow indicates better cash management and operational efficiency, enhancing financial flexibility and supporting future investments.

Market Position

By emphasizing innovation and sustainability, Iseki strengthens its competitive position in the agricultural machinery market, appealing to environmentally conscious consumers.

Strategic Partnerships

These partnerships expand Iseki's distribution network, increasing sales opportunities and market penetration, which is crucial for long-term growth.

Negative Factors

High Leverage

High leverage can increase financial risk and interest expenses, potentially limiting the company's ability to invest in growth initiatives.

Declining Revenue

Declining revenue growth can hinder the company's ability to scale operations and maintain market share, impacting long-term profitability.

Negative Profit Margins

Sustained negative profit margins reflect operational inefficiencies and could undermine financial stability, affecting future investment capacity.

Iseki & Co., Ltd. Business Overview & Revenue Model

Company Description

Iseki & Co., Ltd., together with its subsidiaries, develops, manufactures, and sells agricultural machinery in Japan and internationally. It offers cultivating machinery, including tractors, tillers, multipurpose vehicles, and mowers; and planting machinery, such as rice and vegetable transplanters, as well as landscaping machinery. The company also provides harvesting machinery comprising combine harvesters and binders; processing machinery consisting of rice hullers, dryers, rice cleaners, rice graders, and vegetable harvesting and processing machinery; and implements and spare parts, as well as repair services. In addition, it is involved in the construction of agricultural facilities; and coin rice milling and rice cooking businesses. The company was founded in 1926 and is headquartered in Matsuyama, Japan.

How the Company Makes Money

Iseki & Co., Ltd. generates revenue primarily through the sale of its agricultural machinery and equipment. Key revenue streams include the manufacturing and distribution of tractors, tillers, and agricultural implements, which are sold both domestically and internationally. The company also earns income from after-sales services, including maintenance, repair, and parts supply, which provide ongoing revenue beyond the initial sale. Strategic partnerships with distributors, agricultural cooperatives, and international dealers enhance Iseki's market reach and sales volume. Additionally, Iseki invests in research and development to innovate and improve its product lineup, which helps to maintain a competitive edge and attract new customers in a rapidly evolving agricultural market.

Iseki & Co., Ltd. Financial Statement Overview

Summary

Iseki & Co., Ltd. is facing challenges with declining revenues and profitability, evidenced by negative net income in 2024 and low profit margins. The balance sheet reveals high leverage and a negative return on equity, raising concerns about financial stability. Cash flow analysis shows improvement with positive free cash flow, a positive sign amidst other challenges.

Income Statement

The company shows a declining trend in total revenue over the recent periods, with a -0.88% revenue growth from 2023 to 2024. Gross profit margin in 2024 is approximately 30.07%, which is moderate but declining compared to previous years. The net profit margin for 2024 is negative, indicating a loss, which is a significant weakness. EBIT margin is low at 1.14% for 2024, and EBITDA margin is also relatively low at 4.37%.

Balance Sheet

The debt-to-equity ratio in 2024 is approximately 1.12, indicating high leverage, which could pose financial risks. Return on equity is negative at -4.47% due to the net loss, which is a concern. The equity ratio is 32.78%, showing that equity finances a reasonable portion of the company's assets but could be better.

Cash Flow

The free cash flow improved significantly from 2023 to 2024, showing strong growth from a deficit to a positive 3.12 billion yen. Operating cash flow to net income ratio is negative due to the net loss, indicating a potential issue in converting operational results to cash. However, free cash flow to net income is positive, thanks to positive free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	183.56B	168.43B	169.92B	166.63B	158.19B	149.30B
Gross Profit	54.92B	50.65B	50.36B	49.89B	46.84B	43.48B
EBITDA	11.50B	7.35B	8.65B	12.03B	11.48B	509.00M
Net Income	1.63B	-3.02B	29.00M	4.12B	3.20B	-5.64B
Balance Sheet
Total Assets	216.21B	206.13B	217.10B	206.49B	187.68B	187.43B
Cash, Cash Equivalents and Short-Term Investments	10.19B	8.20B	9.90B	10.75B	14.85B	10.79B
Total Debt	68.38B	75.48B	76.91B	68.19B	62.18B	69.35B
Total Liabilities	138.26B	134.30B	142.89B	134.15B	121.13B	125.01B
Stockholders Equity	73.52B	67.57B	69.34B	68.01B	64.79B	60.69B
Cash Flow
Free Cash Flow	-1.68B	3.12B	-8.22B	-8.18B	9.59B	3.07B
Operating Cash Flow	504.00M	8.82B	-2.46B	-3.38B	14.23B	9.69B
Investing Cash Flow	-2.05B	-5.84B	-5.42B	-2.98B	-2.04B	-5.17B
Financing Cash Flow	1.78B	-5.10B	6.72B	2.03B	-8.34B	-2.18B

Iseki & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1877.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6310, the sentiment is Neutral. The current price of 1877 is below the 20-day moving average (MA) of 1887.65, below the 50-day MA of 2076.36, and above the 200-day MA of 1603.45, indicating a neutral trend. The MACD of -58.39 indicates Negative momentum. The RSI at 45.18 is Neutral, neither overbought nor oversold. The STOCH value of 58.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6310.

Iseki & Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6306	74 Outperform	¥30.09B	16.63	―	4.32%	-4.23%	-1.63%
6358	70 Outperform	¥17.74B	30.72	―	5.19%	-13.63%	-74.53%
6316	68 Neutral	¥9.99B	11.91	―	3.64%	―	―
6325	65 Neutral	¥4.53B	11.16	―	2.54%	-18.59%	-22.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6310	45 Neutral	¥42.44B	26.04	―	1.60%	10.90%	―
6390	43 Neutral	¥14.86B	-5.59	―	5.52%	-2.22%	18.80%