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

• Market Cap: ¥4.04B
• Dividend Yield: 4.14%
• Average Volume (3M): 1.16K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.53
• Revenue Growth: -22.32%
• EPS Growth: -83.88%
• Country: JP
• Employees: 156
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 108.29
• Shares Outstanding: 1,500,000
• 10 Day Avg. Volume: 790
• 30 Day Avg. Volume: 1,160
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 8.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥3,156.00 ▲(8.83% 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, Limited manufactures and sells plywood and woodworking machinery in Japan. It offers plywood machinery, including knife grinding machines, knife honing machines, horizontal and green veneer moisture equalizing press machines, and roll jet dryers, as well as veneer plywood manufacturing plant and LVL manufacturing machines; and industrial machines comprising building material manufacturing machines, veneer dryers, and hydraulic press machines. The company also provides woodworking machines, such as finger joint systems, 6-axle shuklesser products, gang rippers, molders, and rapiers, as well as automatic single, double, triple, and quadruple sided planers; and chip making machines comprising chippers, veneer and underfeed chippers, roller screens, shaving machines, and conveyor systems. In addition, it exports its products to China, Indonesia, Malaysia, the Philippines, Singapore, Korea, Thailand, Myanmar, Laos, Vietnam, Taiwan, the United States, Canada, Ecuador, Brazil, Chili, Bolivia, Columbia, Germany, France, Russia, Greece, Sweden, Austria, Slovenia, Australia, New Zealand, Fiji, Kenya, Uganda, and South Africa. Taihei Machinery Works, Limited was founded in 1925 and is headquartered in Komaki, Japan.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.86B	7.86B	8.84B	6.44B	4.94B	3.54B
Gross Profit	2.25B	2.25B	2.49B	1.59B	892.49M	636.66M
EBITDA	1.04B	1.07B	1.53B	866.91M	380.00M	207.41M
Net Income	576.08M	576.75M	1.07B	683.29M	223.41M	3.79M
Balance Sheet
Total Assets	10.39B	10.39B	12.03B	9.93B	8.59B	8.19B
Cash, Cash Equivalents and Short-Term Investments	5.02B	5.02B	5.99B	5.11B	4.25B	4.81B
Total Debt	795.05M	795.05M	821.40M	1.15B	1.18B	1.20B
Total Liabilities	3.50B	3.50B	5.18B	4.08B	3.34B	3.13B
Stockholders Equity	6.90B	6.90B	6.85B	5.84B	5.25B	5.06B
Cash Flow
Free Cash Flow	0.00	-250.02M	1.56B	1.42B	-478.54M	325.58M
Operating Cash Flow	0.00	60.88M	1.69B	1.44B	-463.26M	336.14M
Investing Cash Flow	0.00	306.95M	-1.17B	-787.10M	68.29M	80.58M
Financing Cash Flow	0.00	-629.64M	-479.87M	-164.64M	-76.84M	360.12M

Taihei Machinery Works, Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2900.00
• 50DMA: Positive
• 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:6342, the sentiment is Neutral. The current price of 2900 is below the 20-day moving average (MA) of 2953.30, above the 50-day MA of 2854.86, and above the 200-day MA of 2837.55, indicating a neutral trend. The MACD of 18.44 indicates Positive momentum. The RSI at 47.98 is Neutral, neither overbought nor oversold. The STOCH value of 30.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥4.04B	17.53	―	4.14%	-22.32%	-83.88%
7808	72 Outperform	¥6.04B	5.22	10.26%	2.45%	-2.18%	-19.34%
7815	57 Neutral	¥1.54B	6.26	18.97%	―	2.14%	―
3896	53 Neutral	¥3.89B	-51.35	0.67%	―	13.57%	62.43%
7897	53 Neutral	¥3.52B	-116.64	0.35%	1.61%	-2.77%	-112.57%
7426	48 Neutral	¥1.40B	-1.00	-66.63%	2.38%	6.92%	-464.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%