Takatori Corporation (6338) AI Stock Analysis

• Market Cap: ¥8.08B
• Dividend Yield: 3.26%
• Average Volume (3M): 30.19K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.79
• Revenue Growth: -54.42%
• EPS Growth: -69.81%
• Country: JP
• Employees: 210
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 65.43
• 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: 66 Neutral
• Price Target: ¥1,723.00 ▲(42.87% Upside)

The score is primarily held back by weakening financial performance—especially negative operating and free cash flow and declining revenue—despite a strong balance sheet. Technicals are positive but appear overextended, while valuation (P/E 13.41) and the 2.51% dividend provide moderate support.

Positive Factors

Balance sheet strength

A low debt-to-equity ratio (0.40) and a high equity ratio (~64.5%) provide durable financial resilience. This capital structure supports funding of customer projects, R&D and working capital through cyclical semiconductor downcycles, reducing near-term refinancing risk and preserving strategic optionality.

Healthy operating margins

Sustained gross margin (32.25%) and positive net margin (~8%) indicate structural pricing power and cost control within specialized equipment. These margins suggest the business can remain profitable as volumes recover and that service/parts revenue helps maintain profitability even when new equipment sales are lumpy.

Recurring service and integration revenues

A business model combining equipment sales with engineering, installation and after-sales service produces recurring revenue and strong customer lock-in. Service contracts, spare parts and upgrades provide steadier cash inflows and higher lifetime customer value, supporting more predictable long-term revenue streams.

Negative Factors

Negative operating and free cash flow

Deep negative operating (-916.99m) and free cash flow (-936.87m) indicate weak cash generation that is unlikely to reverse overnight. Persistent cash deficits constrain reinvestment, heighten financing needs, and may force cuts to R&D, capex or dividends, undermining long-term competitiveness and strategic execution.

Declining revenue trend

A 10.33% revenue decline (and large reported RevenueGrowth deterioration) signals weakening demand or lost orders. Sustained top-line contraction erodes fixed-cost absorption, pressures margins and ROE, and limits the company’s ability to invest in product development and service expansion necessary for durable market share recovery.

Revenue cyclicality from project-driven model

A made-to-order, capex-driven sales model creates lumpy, timing-sensitive revenues. This cyclicality complicates capacity planning and working capital management, increases earnings volatility, and makes steady cash generation harder—leaving the company exposed during semiconductor capex downturns.

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 operating/free cash flow were deeply negative, offset by a solid balance sheet (debt-to-equity 0.40, equity ratio 64.52%) and still-positive margins (gross 32.25%, net 7.98%).

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.18B	7.33B	16.08B	16.37B	10.22B	6.53B
Gross Profit	2.37B	2.36B	4.30B	3.98B	2.67B	1.56B
EBITDA	972.64M	988.31M	2.93B	2.75B	1.61B	643.75M
Net Income	515.79M	584.88M	1.94B	1.91B	1.03B	377.73M
Balance Sheet
Total Assets	16.30B	15.91B	17.45B	18.04B	12.66B	10.95B
Cash, Cash Equivalents and Short-Term Investments	5.75B	5.12B	6.47B	4.45B	3.07B	3.08B
Total Debt	4.14B	4.13B	3.72B	1.98B	1.80B	1.71B
Total Liabilities	6.38B	5.65B	7.52B	9.86B	6.26B	5.44B
Stockholders Equity	9.92B	10.27B	9.93B	8.18B	6.41B	5.51B
Cash Flow
Free Cash Flow	0.00	-936.87M	164.58M	1.40B	165.38M	1.09B
Operating Cash Flow	0.00	-916.99M	213.78M	1.50B	252.98M	1.11B
Investing Cash Flow	0.00	-428.88M	146.64M	-114.28M	-290.38M	58.19M
Financing Cash Flow	0.00	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 1438.50, below the 50-day MA of 1338.80, and below the 200-day MA of 1470.14, indicating a bullish trend. The MACD of 49.84 indicates Negative momentum. The RSI at 56.00 is Neutral, neither overbought nor oversold. The STOCH value of 43.82 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	¥16.12B	53.42	―	3.47%	-14.79%	-41.15%
6338	66 Neutral	¥8.08B	13.80	―	3.26%	-54.42%	-69.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6730	61 Neutral	¥13.22B	11.66	―	3.70%	-10.61%	-18.70%
6613	54 Neutral	¥18.96B	-62.03	―	―	18.18%	56.08%
6614	46 Neutral	¥3.34B	-40.34	―	2.25%	-2.80%	-129.64%
6769	43 Neutral	¥8.80B	1,246.75	―	1.86%	-7.54%	―