Japan Cash Machine Co., Ltd. (6418) AI Stock Analysis

• Market Cap: ¥29.61B
• Dividend Yield: 4.61%
• Average Volume (3M): 102.20K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.95
• Revenue Growth: -20.75%
• EPS Growth: 7.75%
• Country: JP
• Employees: 564
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 118.62
• Shares Outstanding: 29,672,651
• 10 Day Avg. Volume: 85,450
• 30 Day Avg. Volume: 102,203
• PEG Ratio: 0.28
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 3.78
• 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: 71 Outperform
• Price Target: ¥1,085.00 ▲(8.72% Upside)

The overall stock score of 71 reflects strong financial performance with stable profitability and a solid balance sheet. Valuation is attractive with a reasonable P/E ratio and a high dividend yield. Technical analysis indicates some bearish momentum, but the stock is not overbought. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Cash Flow Improvement

Improving cash flow indicates enhanced financial health and operational efficiency, providing more flexibility for investments and debt management.

Strong Profitability

Consistent profitability margins suggest effective cost management and pricing strategies, supporting long-term financial stability and shareholder value.

Stable Balance Sheet

A stable balance sheet with manageable leverage enhances the company's ability to withstand economic fluctuations and invest in growth opportunities.

Negative Factors

Revenue Decline

Declining revenue can signal challenges in market demand or competitive positioning, potentially impacting future growth and profitability.

Earnings Volatility

Significant earnings volatility can undermine investor confidence and affect the company's ability to plan and execute long-term strategies effectively.

Historical Cash Flow Volatility

Volatile cash flow history may indicate operational inefficiencies or external pressures, affecting the company's ability to maintain stable financial operations.

Japan Cash Machine Co., Ltd. Business Overview & Revenue Model

Company Description

Japan Cash Machine Co., Ltd. (6418) is a leading provider of cash handling solutions and automated teller machines (ATMs) in Japan. The company specializes in the design, manufacturing, and maintenance of cash processing equipment used in various sectors, including banking, retail, and transportation. With a strong focus on technological innovation, Japan Cash Machine aims to enhance the efficiency and security of cash transactions, contributing to the modernization of cash handling across different industries.

How the Company Makes Money

Japan Cash Machine generates revenue primarily through the sale of its cash handling equipment, including ATMs and cash recycling machines. Additionally, the company earns income from ongoing maintenance and support services for its installed machines, creating a recurring revenue stream. The company may also engage in partnerships with financial institutions and retail chains to provide customized cash management solutions, further diversifying its revenue sources. Furthermore, advancements in technology allow Japan Cash Machine to explore new markets and expand its offerings, contributing to its overall earnings.

Japan Cash Machine Co., Ltd. Financial Statement Overview

Summary

Japan Cash Machine Co., Ltd. demonstrates strong profitability and a stable balance sheet, with effective management of debt and equity. While recent revenue decline is a concern, the company maintains operational efficiency. Cash flow improvements are promising, but historical volatility suggests a need for cautious monitoring.

Income Statement

The company shows strong profitability with a consistent gross profit margin around 40% and a net profit margin of approximately 10%. However, the recent TTM data indicates a revenue decline of 6.59%, which is a concern. Despite this, EBIT and EBITDA margins remain healthy, reflecting operational efficiency.

Balance Sheet

The balance sheet is stable with a moderate debt-to-equity ratio of 0.34, indicating manageable leverage. Return on equity is solid at 12.35%, suggesting effective use of equity capital. The equity ratio is healthy, showing a strong equity base relative to total assets.

Cash Flow

Cash flow performance is improving, with a 14.13% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is close to 1, indicating good cash generation relative to net income. However, past periods showed negative operating cash flow, highlighting potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.32B	37.82B	31.61B	25.26B	20.04B	17.02B
Gross Profit	13.71B	15.32B	12.19B	8.99B	7.60B	5.29B
EBITDA	3.49B	5.42B	4.06B	3.12B	1.62B	-7.36B
Net Income	1.88B	3.81B	3.28B	3.15B	605.38M	-7.56B
Balance Sheet
Total Assets	47.64B	49.39B	47.70B	38.82B	33.14B	31.77B
Cash, Cash Equivalents and Short-Term Investments	17.35B	17.50B	12.58B	13.71B	14.26B	12.49B
Total Debt	10.20B	10.98B	11.09B	4.35B	5.06B	4.51B
Total Liabilities	17.02B	17.35B	19.04B	11.65B	9.97B	9.66B
Stockholders Equity	30.62B	32.03B	28.66B	27.16B	23.17B	22.11B
Cash Flow
Free Cash Flow	8.22B	7.20B	-5.85B	-1.38B	1.08B	-1.27B
Operating Cash Flow	8.77B	7.64B	-4.93B	-799.70M	1.33B	-843.54M
Investing Cash Flow	-605.69M	-390.29M	-402.68M	522.05M	-255.80M	-34.54M
Financing Cash Flow	-2.97B	-2.79B	4.12B	-1.42B	397.94M	3.99B

Japan Cash Machine Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 998.00
• 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:6418, the sentiment is Negative. The current price of 998 is below the 20-day moving average (MA) of 1007.70, below the 50-day MA of 1001.82, and above the 200-day MA of 976.76, indicating a neutral trend. The MACD of 1.73 indicates Positive momentum. The RSI at 46.86 is Neutral, neither overbought nor oversold. The STOCH value of 33.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6418.

Japan Cash Machine Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7991	76 Outperform	¥15.27B	6.81	―	5.75%	-27.22%	-62.64%
7999	75 Outperform	¥12.37B	22.99	―	4.49%	0.33%	-65.09%
6418	71 Outperform	¥29.61B	5.86	―	4.61%	-20.75%	7.75%
7314	66 Neutral	¥4.15B	-44.63	―	2.16%	23.24%	-111.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7957	61 Neutral	¥2.29B	4.05	―	5.22%	0.34%	―
4051	55 Neutral	¥40.53B	24.61	―	2.04%	-4.16%	66.20%

Japan Cash Machine Co., Ltd. Corporate Events

Japan Cash Machine Co., Ltd. Reports Decline in Financial Results but Increases Shareholder Dividends

Japan Cash Machine Co., Ltd. reported a significant decrease in its consolidated financial results for the six months ended September 30, 2025, with net sales dropping by 30.5% and operating profit plummeting by 78.1% compared to the previous year. Despite these declines, the company managed to increase its profit attributable to owners of the parent by 32.1%, indicating a potential shift in strategic focus or operational efficiency. The company also announced an increase in its annual dividend per share, reflecting a commitment to returning value to shareholders despite the challenging financial performance.

Japan Cash Machine Co., Ltd. Revises Financial Forecast Due to Yen Depreciation

Japan Cash Machine Co., Ltd. announced a revision to its consolidated financial results forecast for the six months ended September 30, 2025. Despite a decrease in net sales, the company expects an increase in ordinary profit and profit attributable to owners due to favorable foreign exchange gains resulting from yen depreciation. This adjustment reflects a strategic response to currency fluctuations, potentially enhancing the company’s financial performance and stakeholder confidence.