Tesec Corporation (6337) AI Stock Analysis

• Market Cap: ¥13.59B
• Dividend Yield: 3.47%
• Average Volume (3M): 16.82K
• Price to Earnings (P/E): 37.7
• Beta (1Y): 1.17
• Revenue Growth: -14.79%
• EPS Growth: -41.15%
• Country: JP
• Employees: 212
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 5,578,695
• 10 Day Avg. Volume: 12,600
• 30 Day Avg. Volume: 16,820
• PEG Ratio: -0.27
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 4.77
• 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): 52.7
• Revenue Forecast (FY): ¥5.10B

• Rating: 70 Outperform
• Price Target: ¥2,743.00 ▲(33.80% Upside)
• Action: Downgraded Date: 01/29/26
• Date: Action: Downgraded 01/29/26

The score is driven primarily by a very strong balance sheet and supportive cash flow, which help offset cyclical risk. Technicals are bullish but appear overextended, and the high P/E valuation is a meaningful headwind.

Positive Factors

Very low leverage / strong balance sheet

A very low debt load gives Tesec durable financial flexibility through semiconductor capex cycles. With minimal leverage the company can sustain R&D, support customers, and pursue opportunistic investments or buybacks without refinancing risk, reducing downside in downturns.

Solid cash generation

Consistent positive operating and free cash flow (notably strong in FY2025) underpins capital allocation optionality. Reliable cash generation funds maintenance of installed base, service support and modest investments, improving resilience versus peers reliant on external funding.

Capital-equipment model with recurring services

Tesec's business mixes upfront capital-equipment sales with recurring aftermarket service and parts. The installed base drives repeatable revenue and higher lifetime customer value, cushioning cyclical new-equipment swings and supporting margins over multi-year horizons.

Negative Factors

Cyclical revenue weakness

Revenue declines in FY2025 reflect sensitivity to semiconductor capital expenditure cycles. Dependence on customer equipment ordering patterns creates durable top-line volatility, complicating planning and leaving topline growth exposed to broader industry downturns.

Sharp margin compression

Margins swung down materially as volumes and pricing weakened. High fixed-cost leverage in equipment manufacturing means margin resilience is limited in downturns; sustained margin pressure would erode return on capital and reduce ability to self-fund investments.

Inconsistent cash conversion

Variable operating and free cash flow across years signals working-capital and investment swings tied to order timing. This inconsistency raises execution risk for financing operations, dividend consistency, and smooth reinvestment when the equipment order book is lumpy.

Tesec Corporation Business Overview & Revenue Model

Company Description

TESEC Corporation designs, develops, manufactures, and sells semiconductor test equipment in Japan and internationally. It offers various test systems, including discrete device test systems, thermal resistance testers, inductive load testers, dynamic test systems, and IPD/IPM test systems. The company provides various handlers comprising micro electro mechanical systems, film frame test, gravity, and TAB handlers, as well as die sorters. In addition, it offers after-sales services, such as tester calibration, overhaul, and training services, as well as spare parts, warranty, maintenance, and resale services. The company was formerly known as TES Corporation and changed its name to TESEC Corporation in 1980. TESEC Corporation was incorporated in 1969 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tesec makes money primarily by selling semiconductor test equipment (capital equipment) to customers involved in semiconductor device manufacturing. Revenue is generated when customers purchase Tesec’s testing/handling systems; this is typically recognized upon delivery/acceptance depending on contract terms. In addition to upfront equipment sales, the company generally earns recurring revenue from after-sales activities associated with installed equipment—such as maintenance/service support, replacement parts/consumables, and other support offerings tied to customer operation and uptime needs. Earnings are influenced by semiconductor capital-expenditure cycles and demand for testing capacity (which can drive both new equipment orders and follow-on service/parts demand). Specific material partnerships or customer concentration details: null.

Tesec Corporation Financial Statement Overview

Summary

Strong financial foundation with very low leverage (balance sheet strength) and generally solid cash generation, but profitability and revenue cooled sharply in FY2025 with notable margin compression, highlighting cyclical earnings volatility.

Income Statement

Profitability remains positive in the latest year, but fundamentals have clearly cooled versus the prior two years. Revenue fell about 8% in FY2025 and margins compressed sharply (net margin ~7% vs ~18% in FY2024 and ~26% in FY2023), pointing to weaker pricing/volume and/or cost deleverage. Longer term, the company has demonstrated it can be highly profitable in stronger cycles (FY2022–FY2024), but results show meaningful cyclicality with losses in FY2020–FY2021.

Balance Sheet

The balance sheet is a major strength: leverage is very low (debt-to-equity ~0.03 in FY2025, and effectively zero in several prior years), providing flexibility through semiconductor downcycles. Equity is substantial and stable relative to assets, and returns on equity are still positive in FY2025 (~3%), though down materially from FY2022–FY2024 levels—highlighting that earnings volatility, not financial leverage, is the key risk.

Cash Flow

Cash generation is solid overall and improved meaningfully in FY2025, with operating cash flow well above reported earnings (operating cash flow to net income ~2.1x) and free cash flow roughly matching earnings (free cash flow to net income ~1.0x). That said, cash flow conversion has been inconsistent across years (including negative operating and free cash flow in FY2022 and a notably weaker conversion year in FY2024), indicating working-capital and/or investment swings that can amplify cyclicality.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.67B	5.89B	8.62B	8.74B	7.51B	3.45B
Gross Profit	2.16B	2.24B	3.81B	4.07B	3.33B	828.00M
EBITDA	513.00M	557.00M	1.80B	2.20B	1.80B	-402.00M
Net Income	359.00M	427.00M	1.51B	2.25B	1.72B	-290.00M
Balance Sheet
Total Assets	15.23B	15.47B	16.16B	14.34B	12.89B	10.34B
Cash, Cash Equivalents and Short-Term Investments	4.28B	4.55B	4.69B	3.86B	2.61B	3.25B
Total Debt	312.00M	363.00M	0.00	0.00	0.00	0.00
Total Liabilities	1.44B	1.31B	1.68B	1.43B	1.59B	826.00M
Stockholders Equity	13.79B	14.16B	14.48B	12.91B	11.30B	9.51B
Cash Flow
Free Cash Flow	0.00	1.71B	807.00M	1.38B	-147.00M	507.00M
Operating Cash Flow	0.00	1.77B	871.00M	1.45B	-117.00M	542.00M
Investing Cash Flow	0.00	-900.00M	149.00M	-117.00M	-825.00M	30.00M
Financing Cash Flow	0.00	-495.00M	-691.00M	-676.00M	-58.00M	-112.00M

Tesec Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2050.00
• 50DMA: Negative
• 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:6337, the sentiment is Negative. The current price of 2050 is below the 20-day moving average (MA) of 2689.10, below the 50-day MA of 2680.38, and below the 200-day MA of 2085.24, indicating a neutral trend. The MACD of -27.38 indicates Positive momentum. The RSI at 40.95 is Neutral, neither overbought nor oversold. The STOCH value of 46.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6337.

Tesec Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3640	80 Outperform	¥16.77B	3.06	―	1.23%	35.89%	162.00%
6337	70 Outperform	¥13.59B	37.68	―	3.47%	-14.79%	-41.15%
6338	69 Neutral	¥7.78B	-14.86	―	3.26%	-54.42%	-69.81%
8150	67 Neutral	¥11.99B	12.00	11.46%	4.65%	20.51%	66.82%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6730	61 Neutral	¥12.09B	13.17	―	3.70%	-10.61%	-18.70%
6228	60 Neutral	¥8.01B	-31.41	―	2.61%	-25.28%	-434.79%