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

• Market Cap: ¥40.72B
• Dividend Yield: 1.67%
• Average Volume (3M): 347.71K
• Price to Earnings (P/E): 45.5
• Beta (1Y): 0.79
• Revenue Growth: 5.63%
• EPS Growth: N/A
• Country: JP
• Employees: 5,292
• Sector: Industrials
• Sector Strength: 75
• Industry: Agricultural - Machinery
• EPS (TTM): 77.70
• Shares Outstanding: 22,984,991
• 10 Day Avg. Volume: 530,280
• 30 Day Avg. Volume: 347,710
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,407.00
• Price Target Upside: -21.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: ¥1,407.00 ▼(-21.88% Downside)

Iseki & Co., Ltd. has a mixed outlook. The technical analysis is the strongest aspect, showing bullish momentum with the stock price above key moving averages. However, financial performance is concerning with declining revenues and profitability, coupled with high leverage. Valuation is weak due to negative earnings, despite a reasonable dividend yield. The overall score reflects these mixed factors.

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

Company Description

Iseki & Co., Ltd. is a Japanese company operating in the agricultural machinery industry. It specializes in the manufacture and distribution of a wide range of farming equipment, including tractors, combine harvesters, rice transplanters, and tillers. The company is known for its innovative products that cater to various agricultural needs, primarily focusing on the mechanization of rice farming. Iseki & Co., Ltd. aims to enhance agricultural productivity and efficiency through its advanced machinery solutions.

How the Company Makes Money

Iseki & Co., Ltd. generates revenue primarily through the sale of its agricultural machinery and equipment. The company's key revenue streams include the domestic market in Japan and international sales, where it exports its products to various countries. It also earns income from providing maintenance services and spare parts for its machinery. Strategic partnerships and collaborations with local distributors and dealers play a significant role in reaching a wider customer base and enhancing sales. Additionally, the company's focus on research and development helps in introducing new and improved products, thus driving sales growth.

Iseki & Co., Ltd. Financial Statement Overview

Summary

Iseki & Co., Ltd. faces 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. However, the cash flow shows improvement with positive free cash flow, providing 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	168.43B	169.92B	166.63B	158.19B	149.30B
Gross Profit	50.65B	50.36B	49.89B	46.84B	43.48B
EBITDA	7.35B	8.65B	9.64B	10.71B	9.07B
Net Income	-3.02B	29.00M	4.12B	3.20B	-5.60B
Balance Sheet
Total Assets	206.13B	217.10B	206.49B	187.68B	187.43B
Cash, Cash Equivalents and Short-Term Investments	8.20B	9.90B	10.75B	14.85B	10.79B
Total Debt	75.48B	76.91B	68.19B	62.18B	69.35B
Total Liabilities	134.30B	142.89B	134.15B	121.13B	125.01B
Stockholders Equity	67.57B	69.34B	68.01B	64.79B	60.69B
Cash Flow
Free Cash Flow	3.12B	-8.22B	-8.18B	9.59B	3.07B
Operating Cash Flow	8.82B	-2.46B	-3.38B	14.23B	9.69B
Investing Cash Flow	-5.84B	-5.42B	-2.98B	-2.04B	-5.17B
Financing Cash Flow	-5.10B	6.72B	2.03B	-8.34B	-2.18B

Iseki & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1801.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 1801 is above the 20-day moving average (MA) of 1532.85, above the 50-day MA of 1392.52, and above the 200-day MA of 1099.40, indicating a bullish trend. The MACD of 127.02 indicates Negative momentum. The RSI at 81.36 is Negative, neither overbought nor oversold. The STOCH value of 78.58 is Neutral, 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	78 Outperform	¥29.93B	18.69		4.08%	4.63%	-1.01%
6358	73 Outperform	¥18.38B	21.43		4.90%	-16.47%	-68.62%
6325	70 Outperform	¥4.86B	10.25		2.39%	-18.43%	-22.39%
6316	68 Neutral	¥10.10B	15.71		3.82%	―	―
Sector *	63 Neutral	$10.80B	16.70	6.58%	2.07%	2.48%	-16.85%
6310	57 Neutral	¥40.72B	45.54		1.67%	5.63%	―
6390	49 Neutral	¥15.77B	―		5.11%	-1.28%	-287.74%