Taihei Machinery Works, Ltd. (6342) AI Stock Analysis

• Market Cap: ¥4.08B
• Dividend Yield: 4.18%
• Average Volume (3M): 1.47K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.52
• Revenue Growth: -22.32%
• EPS Growth: -83.88%
• Country: JP
• Employees: 156
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 108.29
• Shares Outstanding: 1,500,000
• 10 Day Avg. Volume: 1,180
• 30 Day Avg. Volume: 1,473
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,156.00
• Price Target Upside: 5.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥3,156.00 ▲(5.45% Upside)

The overall stock score of 73.6 reflects a strong balance sheet and reasonable valuation, offset by declining revenues and profitability. Technical indicators suggest moderate bullish momentum, but cash flow challenges need to be addressed for sustained growth.

Taihei Machinery Works, Ltd. Business Overview & Revenue Model

Company Description

Taihei Machinery Works, Ltd. (6342) is a Japan-based company primarily engaged in the manufacture and sale of woodworking machinery and related equipment. The company operates within the industrial machinery sector, offering a range of products including veneer and plywood machinery, as well as automation equipment designed to enhance the efficiency and precision of wood processing operations. Taihei Machinery Works is recognized for its innovative solutions and high-quality manufacturing standards, catering to both domestic and international markets.

How the Company Makes Money

Taihei Machinery Works, Ltd. generates revenue through the sale of its woodworking machinery and automation equipment. The company's key revenue streams include the sale of machinery and equipment directly to customers in the woodworking and related industries, as well as providing maintenance and after-sales services to ensure the longevity and operational efficiency of their products. Additionally, Taihei may engage in partnerships or collaborations with other companies to expand its market reach and technological capabilities, although specific partnerships are not detailed. The company's earnings are influenced by factors such as technological advancements, demand within the construction and furniture sectors, and global economic conditions that affect the woodworking industry.

Taihei Machinery Works, Ltd. Financial Statement Overview

Summary

Taihei Machinery Works, Ltd. demonstrates strong balance sheet health, with low leverage and high liquidity. However, declining revenues and profitability in 2025 present challenges, while negative free cash flow signals potential cash management issues. The company needs to address these to sustain long-term growth and stability.

Income Statement

The company exhibits a stable income statement with a gross profit margin of approximately 28.7% in 2025, showcasing efficient cost management. However, the revenue decreased by 11.2% from 2024 to 2025, indicating a decline in sales. The net profit margin also decreased to 7.3% in 2025 from 12.0% in 2024, reflecting challenges in maintaining profitability. Despite the revenue drop, the EBIT margin of 11.6% and EBITDA margin of 13.6% in 2025 remain healthy, demonstrating operational efficiency.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.12, indicating minimal leverage and financial risk. The equity ratio stands at 66.3%, highlighting strong financial stability with ample equity backing. ROE decreased from 15.5% in 2024 to 8.4% in 2025, suggesting reduced profitability for shareholders. However, the high cash and short-term investments position provides significant liquidity.

Cash Flow

Cash flow analysis reveals a concerning decline, with free cash flow turning negative in 2025. The operating cash flow to net income ratio decreased to 0.11, indicating reduced cash generation relative to earnings. The free cash flow to net income ratio turned negative, reflecting cash flow challenges. Despite these issues, the company maintains positive operating cash flow, suggesting some level of operational cash generation.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.86B	8.84B	6.44B	4.94B	3.54B
Gross Profit	2.25B	2.49B	1.59B	892.49M	636.66M
EBITDA	1.07B	1.53B	866.91M	380.00M	207.41M
Net Income	576.75M	1.07B	683.29M	223.41M	3.79M
Balance Sheet
Total Assets	10.39B	12.03B	9.93B	8.59B	8.19B
Cash, Cash Equivalents and Short-Term Investments	5.02B	5.99B	5.11B	4.25B	4.81B
Total Debt	795.05M	821.40M	1.15B	1.18B	1.20B
Total Liabilities	3.50B	5.18B	4.08B	3.34B	3.13B
Stockholders Equity	6.90B	6.85B	5.84B	5.25B	5.06B
Cash Flow
Free Cash Flow	-250.02M	1.56B	1.42B	-478.54M	325.58M
Operating Cash Flow	60.88M	1.69B	1.44B	-463.26M	336.14M
Investing Cash Flow	306.95M	-1.17B	-787.10M	68.29M	80.58M
Financing Cash Flow	-629.64M	-479.87M	-164.64M	-76.84M	360.12M

Taihei Machinery Works, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2993.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6342, the sentiment is Positive. The current price of 2993 is above the 20-day moving average (MA) of 2834.00, above the 50-day MA of 2706.28, and above the 200-day MA of 2815.17, indicating a bullish trend. The MACD of 73.79 indicates Negative momentum. The RSI at 64.88 is Neutral, neither overbought nor oversold. The STOCH value of 86.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6342.

Taihei Machinery Works, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6342	74 Outperform	¥4.08B	18.13		4.18%	-22.32%	-83.88%
7808	70 Outperform	¥6.14B	5.30		2.32%	-2.18%	-19.34%
Sector *	61 Neutral	$10.31B	6.18	0.76%	2.94%	3.30%	-36.34%
3896	59 Neutral	¥3.96B	110.73		―	13.57%	62.43%
7897	56 Neutral	¥3.57B	175.61		1.55%	-2.77%	-112.57%
7426	54 Neutral	¥1.55B	―		2.22%	6.92%	-464.24%
7815	51 Neutral	¥1.54B	6.20		―	2.14%	―