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

• Market Cap: ¥48.27B
• Dividend Yield: 1.56%
• Average Volume (3M): 429.12K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.83
• Revenue Growth: 10.90%
• EPS Growth: N/A
• Country: JP
• Employees: 5,292
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): -60.36
• Shares Outstanding: 22,984,991
• 10 Day Avg. Volume: 482,500
• 30 Day Avg. Volume: 429,116
• PEG Ratio: -0.08
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 2.49
• 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): 127.75
• Revenue Forecast (FY): ¥183.37B

• Rating: 61 Neutral
• Price Target: ¥2,252.00 ▲(21.08% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is mainly driven by improved 2025 financial results and stronger 2025 cash generation, tempered by historically inconsistent profitability and thin operating margins. Technical indicators are mildly supportive (positive MACD, RSI near neutral, above short-term moving averages), while valuation is reasonable with a modest dividend yield but not standout.

Positive Factors

Revenue recovery & stable gross margin

A large revenue recovery in 2025 with a stable ~30% gross margin indicates the core equipment business can re-scale without margin erosion. That suggests durable product demand and pricing/mix resilience, improving structural revenue visibility and enabling reinvestment in products and channels.

Stronger cash generation

The recovery to materially positive OCF and FCF provides lasting financial flexibility: it supports deleveraging, targeted capex and aftermarket service investments. Sustained cash generation would reduce reliance on external financing and strengthen funding for growth initiatives over the medium term.

Improving leverage profile

A meaningful decline in leverage in one year signals the balance sheet is becoming more durable. Lower leverage improves interest coverage and reduces default risk during agricultural cycles, increasing the company's ability to invest in R&D, service networks and aftermarket capabilities sustainably.

Negative Factors

Thin, inconsistent profitability

Very low operating and net margins leave limited buffers against cost inflation or demand declines. The swing from loss to slim profit historically shows earnings volatility, constraining the company’s ability to build reserves, sustain dividends, or fund organic expansion without depending on cyclical rebounds.

Volatile cash flow across cycles

Irregular cash conversion undermines planning for capex, maintenance of dealer networks and aftermarket growth. Persistent volatility in FCF increases execution risk for strategic investments and elevates the chance management must choose between debt reduction, capex or shareholder returns when cash weakens.

Low returns on equity

Sub-5% ROE reflects weak capital efficiency and limited value creation for shareholders. Coupled with meaningful debt, low ROE indicates the business struggles to generate strong incremental returns, making long-term shareholder outcomes sensitive to modest improvements in margins or demand.

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

2025 results improved sharply (revenue +120.5% YoY) with stable ~30% gross margin, but profitability remains thin and inconsistent (2025 EBIT margin ~2.3%; net margin only ~1.5% after a 2024 loss). Balance sheet leverage is meaningful though improving (debt-to-equity ~0.84x in 2025 vs. ~1.12x in 2024), and cash flow rebounded strongly in 2025 but has been volatile over multiple years.

Income Statement

Revenue has been modestly volatile but improved in 2025 (+120.5% vs. 2024), with gross margin stable around ~30% over the period. Profitability, however, has been inconsistent: net margin swung from a loss in 2024 (-1.8%) to a small profit in 2025 (1.5%), and earlier years show similarly uneven results (near-breakeven in 2023, profitable in 2021–2022, loss in 2020). Operating profitability remains thin (2025 EBIT margin ~2.3%), suggesting limited buffer if demand or costs move against the company.

Balance Sheet

Leverage is meaningful but improving: debt-to-equity moved down to ~0.84x in 2025 from ~1.12x in 2024, with equity building year-over-year. Returns on equity are low (2025 ~3.7%) and have been negative in down years (2024), reflecting cyclical earnings power and limited balance-sheet productivity. Overall, the balance sheet looks serviceable, but performance remains sensitive to profitability swings given the debt load.

Cash Flow

Cash generation rebounded strongly in 2025 with operating cash flow of ~23.5B and free cash flow of ~16.9B, a clear improvement versus weaker or negative cash flow in 2022–2023. That said, free cash flow has been volatile across the cycle, and cash conversion versus earnings is not consistently strong (2025 free cash flow is ~72% of net income). The recent step-up is a positive signal, but the multi-year variability raises confidence risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	185.77B	168.43B	169.92B	166.63B	158.19B
Gross Profit	55.67B	50.65B	50.36B	49.89B	46.84B
EBITDA	9.43B	7.35B	8.65B	12.03B	11.48B
Net Income	2.76B	-3.02B	29.00M	4.12B	3.20B
Balance Sheet
Total Assets	209.47B	206.13B	217.10B	206.49B	187.68B
Cash, Cash Equivalents and Short-Term Investments	12.89B	8.20B	9.90B	10.75B	14.85B
Total Debt	62.17B	75.48B	76.91B	68.19B	62.18B
Total Liabilities	131.04B	134.30B	142.89B	134.15B	121.13B
Stockholders Equity	73.80B	67.57B	69.34B	68.01B	64.79B
Cash Flow
Free Cash Flow	16.89B	3.12B	-8.22B	-8.18B	9.59B
Operating Cash Flow	23.46B	8.82B	-2.46B	-3.38B	14.23B
Investing Cash Flow	-4.44B	-5.84B	-5.42B	-2.98B	-2.04B
Financing Cash Flow	-15.13B	-5.10B	6.72B	2.03B	-8.34B

Iseki & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1860.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6310, the sentiment is Positive. The current price of 1860 is below the 20-day moving average (MA) of 1914.35, below the 50-day MA of 1868.62, and above the 200-day MA of 1771.02, indicating a bullish trend. The MACD of 58.25 indicates Negative momentum. The RSI at 69.58 is Neutral, neither overbought nor oversold. The STOCH value of 89.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥33.53B	18.23	―	4.26%	-4.23%	-1.63%
6358	70 Outperform	¥19.77B	40.52	―	5.14%	-13.63%	-74.53%
6316	68 Neutral	¥11.27B	10.56	―	3.58%	―	―
6325	65 Neutral	¥4.68B	25.32	―	2.53%	-18.59%	-22.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6310	61 Neutral	¥48.27B	17.52	―	1.56%	10.90%	―
6390	51 Neutral	¥20.89B	4.41	―	5.40%	-2.22%	18.80%