Takatori Corporation (6338) AI Stock Analysis

• Market Cap: ¥9.32B
• Dividend Yield: 3.26%
• Average Volume (3M): 30.19K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.75
• Revenue Growth: -54.42%
• EPS Growth: -69.81%
• Country: JP
• Employees: 210
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -21.07
• Shares Outstanding: 5,491,490
• 10 Day Avg. Volume: 29,740
• 30 Day Avg. Volume: 30,189
• PEG Ratio: -0.20
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.14
• P/FCF Ratio: -8.89
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥2,018.00 ▲(67.33% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven by strong technical momentum (price above key moving averages with a positive MACD), balanced against weaker financial quality due to declining revenue and notably negative operating/free cash flow. Valuation is supportive with a moderate P/E and a 2.17% dividend yield, but cash-flow improvement is important for a higher score.

Positive Factors

Manageable leverage and strong equity base

A low debt-to-equity ratio and a high equity ratio provide financial resilience for a capital-intensive equipment maker. This structural strength supports funding for bespoke machine builds, R&D and service capacity, helping the company withstand semiconductor cycle troughs without immediate refinancing stress.

Healthy gross and net margins

Sizable gross margins reflect pricing power on specialized production systems and effective cost control on manufacturing. Sustained margins allow reinvestment into engineering and after-sales service capabilities, preserving profitability even if top-line growth is volatile across equipment order cycles.

Recurring after-sales and services revenue

A business model combining one-off equipment sales with installation, maintenance, spare parts and upgrades creates recurring, higher-margin revenue streams. This durable mix smooths cyclical capital expenditures from customers and enhances lifetime customer value and stickiness over multi-year equipment lifecycles.

Negative Factors

Declining revenue trend

A material fall in revenue reduces scale benefits for a specialist equipment maker and weakens fixed-cost absorption. Persistent top-line contractions can erode serviceable installed base, constrain R&D funding, and reflect softer semiconductor capex or competitive order losses that impair medium-term growth.

Negative operating and free cash flow

Sustained negative operating and free cash flows undermine the firm's ability to self-fund equipment builds, working capital and service expansion. Over months this can force external financing, increase funding costs or delay strategic investments, reducing operational flexibility in a cyclical industry.

Weakened returns on equity

A declining ROE signals reduced effectiveness in converting equity into profits and may indicate margin pressure, pricing weakness or under-utilized assets. Persistently low returns can limit reinvestment capacity and make capital allocation decisions harder, affecting long-term competitiveness.

Takatori Corporation Business Overview & Revenue Model

Company Description

Takatori Corporation (6338) is a Japanese company specializing in the development and manufacturing of precision measuring instruments and industrial equipment. Operating primarily in the sectors of optical measurement and automation technology, Takatori produces a range of products, including laser measurement systems, optical sensors, and automation solutions for various industries such as automotive, electronics, and manufacturing. The company is known for its commitment to innovation and quality, providing advanced technologies that enhance productivity and accuracy in industrial processes.

How the Company Makes Money

Takatori Corporation generates revenue through the sale of its precision measuring instruments and automation systems. The company’s primary revenue streams include direct sales of its products to manufacturers across multiple industries, as well as providing maintenance and support services for its installed systems. Additionally, Takatori engages in partnerships with other technology firms and industry leaders to develop integrated solutions, expanding its market reach and enhancing product offerings. Key factors contributing to its earnings include the growing demand for automation in manufacturing, advancements in optical measurement technologies, and the company's reputation for reliability and precision in its products.

Takatori Corporation Financial Statement Overview

Summary

Mixed fundamentals: revenue fell 10.33% and profitability has softened (ROE down to 5.70%). The balance sheet remains solid with manageable leverage (debt-to-equity 0.40; equity ratio 64.52%), but cash generation is a key risk with negative operating cash flow (-916.99 million) and negative free cash flow (-936.87 million).

Income Statement

Takatori Corporation's income statement shows a decline in revenue growth, with a significant drop of 10.33% in the latest year. Despite this, the company maintains a healthy gross profit margin of 32.25% and a net profit margin of 7.98% for 2025. However, the declining revenue and profitability metrics indicate potential challenges in maintaining growth momentum.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 0.40, indicating manageable leverage. The equity ratio stands at 64.52%, suggesting a strong equity base. However, the return on equity has decreased to 5.70%, reflecting reduced profitability on shareholders' investments.

Cash Flow

Cash flow analysis reveals a concerning negative operating cash flow of -916.99 million and free cash flow of -936.87 million in 2025, indicating cash management challenges. The free cash flow to net income ratio is negative, highlighting potential liquidity issues. The company needs to address these cash flow constraints to ensure financial stability.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	7.33B	16.08B	16.37B	10.22B	6.53B
Gross Profit	2.36B	4.30B	3.98B	2.67B	1.56B
EBITDA	988.31M	2.93B	2.75B	1.61B	643.75M
Net Income	584.88M	1.94B	1.91B	1.03B	377.73M
Balance Sheet
Total Assets	15.91B	17.45B	18.04B	12.66B	10.95B
Cash, Cash Equivalents and Short-Term Investments	5.12B	6.47B	4.45B	3.07B	3.08B
Total Debt	4.13B	3.72B	1.98B	1.80B	1.71B
Total Liabilities	5.65B	7.52B	9.86B	6.26B	5.44B
Stockholders Equity	10.27B	9.93B	8.18B	6.41B	5.51B
Cash Flow
Free Cash Flow	-936.87M	164.58M	1.40B	165.38M	1.09B
Operating Cash Flow	-916.99M	213.78M	1.50B	252.98M	1.11B
Investing Cash Flow	-428.88M	146.64M	-114.28M	-290.38M	58.19M
Financing Cash Flow	183.35M	1.48B	-5.16M	11.28M	-462.83M

Takatori Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1206.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6338, the sentiment is Positive. The current price of 1206 is below the 20-day moving average (MA) of 1645.00, below the 50-day MA of 1485.38, and below the 200-day MA of 1505.17, indicating a bullish trend. The MACD of 83.01 indicates Negative momentum. The RSI at 55.91 is Neutral, neither overbought nor oversold. The STOCH value of 59.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6338.

Takatori Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6337	70 Outperform	¥15.23B	52.25	―	3.47%	-14.79%	-41.15%
6338	69 Neutral	¥9.32B	16.25	―	3.26%	-54.42%	-69.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6730	61 Neutral	¥13.47B	11.13	―	3.70%	-10.61%	-18.70%
6614	60 Neutral	¥3.86B	-39.33	―	2.25%	-2.80%	-129.64%
6613	56 Neutral	¥32.53B	-95.45	―	―	18.18%	56.08%
6769	49 Neutral	¥9.37B	-27.68	―	1.86%	-7.54%	―