Tesec Corporation (6337) AI Stock Analysis

• Market Cap: ¥14.48B
• 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: ¥2,769.00 ▲(35.07% 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

Balance Sheet Strength

Extremely low leverage gives Tesec durable financial flexibility through semiconductor downcycles. With minimal debt, the company can sustain operations, fund R&D or capex, support installed-base service, and preserve optionality for strategic moves without stress from interest or near-term maturities.

Cash Generation

Strong operating cash conversion in the latest year underpins long-term sustainability: reliable cash allows prioritized reinvestment in product development and service capabilities, funds working capital swings in a lumpy capital-equipment market, and supports steady shareholder returns or balance-sheet preservation.

Recurring After‑sales Revenue

Tesec’s business mixes capital equipment sales with recurring service and consumable revenues, creating a backbook of steady, higher-margin income. This installed-base monetization reduces reliance on new orders alone and increases customer stickiness and predictability over multi‑year periods.

Negative Factors

Declining Revenue and EPS

Sharp recent declines in top-line and EPS indicate meaningful demand weakness and margin pressure. Persisting revenue contraction undermines operating leverage, reduces reinvestment capacity, and raises execution risk as management must restore volume while fixed costs remain elevated relative to a smaller revenue base.

Margin Compression

Rapid margin deterioration shows Tesec struggles to preserve pricing or fixed-cost absorption in weaker cycles. Sustained margin volatility impairs long-term return on capital, complicates capital allocation, and makes earnings less predictable even if revenue recovers, reducing the durability of profitability.

Cyclical End‑market Exposure

As a semiconductor test-equipment supplier, Tesec’s order flow is lumpy and linked to customers’ capex cycles. This structural cyclicality produces swings in bookings, working capital needs and cash flow timing, making multi-quarter planning and steady growth challenging without diversification or smoothing mechanisms.

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: Positive
• Last Price: 2050.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6337, the sentiment is Positive. The current price of 2050 is below the 20-day moving average (MA) of 2714.30, below the 50-day MA of 2664.66, and below the 200-day MA of 2075.72, indicating a neutral trend. The MACD of -14.19 indicates Positive momentum. The RSI at 48.54 is Neutral, neither overbought nor oversold. The STOCH value of 80.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6337.

Tesec Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8150	83 Outperform	¥12.34B	12.00	11.46%	4.65%	20.51%	66.82%
3640	80 Outperform	¥17.45B	3.06	―	1.23%	35.89%	162.00%
6337	70 Outperform	¥14.48B	37.68	―	3.47%	-14.79%	-41.15%
6338	69 Neutral	¥8.30B	-14.86	―	3.26%	-54.42%	-69.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6730	61 Neutral	¥12.50B	13.17	―	3.70%	-10.61%	-18.70%
6228	60 Neutral	¥8.35B	-31.41	―	2.61%	-25.28%	-434.79%