Takatori Corporation (6338) AI Stock Analysis

• Market Cap: ¥7.78B
• Dividend Yield: 3.26%
• Average Volume (3M): 30.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• 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: ¥1,664.00 ▲(37.98% 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 debt-to-equity of 0.40 and a 64.52% equity ratio provide durable financial flexibility. This capital structure cushions the company through cyclical semiconductor capex cycles, supports financing of bespoke equipment projects and after-sales investments, and reduces refinancing risk over months.

Healthy gross and net margins

Sustained gross margin (~32%) and net margin (~8%) reflect structural pricing power in specialized production equipment and effective cost control. These margins give recurring profitability headroom to fund R&D, service capabilities and selective investments even if revenue growth is uneven.

Recurring after-sales and service revenue

A business model that combines equipment sales with engineering, installation and after-sales service creates recurring, higher-margin revenue streams. Service contracts and parts improve customer stickiness and smooth revenue volatility from lumpy capex cycles, supporting steadier long-term cash flow.

Negative Factors

Declining revenue trend

A meaningful year-over-year revenue decline reduces operating leverage and raises the fixed-cost burden for a custom-equipment manufacturer. Persisting top-line weakness would limit reinvestment ability, pressure margins over time and hinder long-term growth initiatives in semiconductor tooling.

Negative operating and free cash flow

Material negative operating and free cash flow indicate the business is currently consuming cash rather than generating it. Over a multi-month horizon this constrains working capital and capex funding, may force external financing, and undermines ability to capitalize on market opportunities or scale service operations.

Weakened return on equity

A decline in ROE to ~5.7% signals reduced efficiency in converting shareholder capital into profits. If this persists, it reflects structural pressures—such as competitive pricing or lower utilization—and will weigh on investor returns and the company's capacity to justify reinvestment of retained earnings.

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 makes money primarily through the sale of industrial equipment and related services. Key revenue streams typically include: (1) Equipment sales: revenue recognized from delivering custom or semi-custom production systems (the company’s core business), where selling prices reflect the equipment’s specifications, performance requirements, and integration scope. (2) Engineering/installation and commissioning: fees associated with on-site setup, line integration, testing, and ramp-up support to bring delivered equipment into stable production. (3) After-sales support: ongoing income from maintenance, service contracts, repairs, spare parts, consumables, and upgrades that extend equipment life and performance. (4) Customer-driven project work: when equipment is made-to-order, revenue timing and magnitude are influenced by customers’ capital-expenditure cycles and project acceptance milestones. Specific segment breakdowns, major customer/partner names, and the exact contribution of each stream are null.

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	15.97B	17.49B	18.08B	12.69B	10.99B
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	5.71B	7.57B	9.90B	6.28B	5.48B
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: Negative
• Last Price: 1206.00
• 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:6338, the sentiment is Negative. The current price of 1206 is below the 20-day moving average (MA) of 1657.55, below the 50-day MA of 1572.64, and below the 200-day MA of 1511.03, indicating a neutral trend. The MACD of -6.56 indicates Positive momentum. The RSI at 44.05 is Neutral, neither overbought nor oversold. The STOCH value of 22.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥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%
6769	56 Neutral	¥8.93B	-25.29	―	1.86%	-7.54%	―
6614	53 Neutral	¥3.39B	-16.93	―	2.25%	-2.80%	-129.64%