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

• Market Cap: ¥36.65B
• Dividend Yield: 1.56%
• Average Volume (3M): 429.12K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.96
• 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: ¥1,710.00 ▼(-8.06% Downside)
• 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

A large revenue rebound in 2025 indicates renewed end-market demand and stronger equipment deliveries through dealer channels. Sustained higher top-line provides scale benefits for manufacturing and distribution, improving the likelihood of steadier aftermarket revenue and investment capacity over the next 2–6 months.

Stable gross margins

Consistent ~30% gross margins show the firm retains product-level pricing power and manufacturing efficiency across cycles. That margin base supports operating leverage if sales remain elevated and helps absorb moderate input cost changes, supporting longer-term margin sustainability versus peers.

Improved cash generation

A strong rebound in operating and free cash flow improves liquidity to fund capex, aftermarket services, and debt reduction. Reliable cash generation strengthens financial flexibility, enabling reinvestment in product development and service networks that underpin durable revenue streams and dealer relationships.

Negative Factors

Thin operating profitability

Very slim EBIT and net margins leave limited buffer against rising input costs, FX moves, or weaker equipment demand. With operating profitability near breakeven, small adverse shocks can rapidly erode earnings and cash flow, constraining sustained capital allocation and making performance fragile over the medium term.

Inconsistent profitability history

Profitability volatility across recent years reduces predictability of earnings and cash flow, complicating investment, dividend, and debt-reduction planning. Cyclical swings tied to agricultural demand raise execution risk for sustaining margins and returning consistent capital to shareholders over time.

Meaningful leverage & low ROE

Although leverage improved, debt remains material relative to thin earnings and low ROE. Continued leverage amplifies downside risk during profit troughs and limits financial flexibility for M&A or capex. Low capital returns signal constrained balance-sheet productivity over the medium term.

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 makes money primarily by selling agricultural machinery and related equipment through domestic and overseas distribution channels. Its core revenue stream is product sales of farm machines (e.g., field and crop-production machinery and other agricultural equipment) and related attachments/implements, where revenue is recognized when machines and equipment are delivered to customers via dealers/distributors or direct channels (where applicable). A recurring/aftermarket component of earnings is generated from maintenance and repair services, replacement parts, and other support provided over the installed base of Iseki equipment, which can contribute ongoing revenue beyond the initial equipment sale. The company’s overall profitability is influenced by factors such as demand for agricultural mechanization, replacement cycles of farm equipment, pricing and product mix (higher value machines vs. smaller equipment), and the performance of its sales and service network. Specific material partnerships or the exact segment-level revenue breakdown are null.

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	134.29B	142.88B	134.14B	121.12B
Stockholders Equity	73.80B	67.58B	69.34B	68.02B	64.80B
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: Negative
• Last Price: 1860.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6310, the sentiment is Negative. The current price of 1860 is above the 20-day moving average (MA) of 1835.15, above the 50-day MA of 1841.90, and above the 200-day MA of 1818.08, indicating a bearish trend. The MACD of -69.27 indicates Positive momentum. The RSI at 36.75 is Neutral, neither overbought nor oversold. The STOCH value of 13.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥30.62B	26.01	―	4.26%	-4.23%	-1.63%
6432	73 Outperform	¥297.56B	12.67	―	2.99%	0.31%	-11.04%
6345	70 Outperform	¥86.64B	15.03	―	4.79%	1.68%	18.85%
6316	68 Neutral	¥10.52B	151.50	―	3.58%	―	―
6326	65 Neutral	¥2.94T	13.56	7.55%	2.22%	-3.22%	-29.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6310	61 Neutral	¥36.65B	15.26	―	1.56%	10.90%	―