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

• Market Cap: ¥37.30B
• Dividend Yield: 4.54%
• Average Volume (3M): 102.20K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.96
• Revenue Growth: -20.75%
• EPS Growth: 7.75%
• Country: JP
• Employees: 564
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 62.24
• 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: 78 Outperform
• Price Target: ¥1,433.00 ▲(43.16% Upside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is driven primarily by very attractive valuation (low P/E and high dividend yield) and solid overall financial performance (improved profitability and low leverage). Technicals are supportive but only moderately strong, while historical cyclicality and cash-flow volatility keep the score from being higher.

Positive Factors

Improved Profitability / Margins

Sustained gross and net margins near 41% and 15% indicate durable pricing power and operational efficiency in the core cash-handling business. Higher trailing net income provides recurring earnings capacity, supporting reinvestment in product development and steady cash returns over the medium term.

Conservative, Improving Balance Sheet

Low and declining leverage plus rising equity give the company financial flexibility to fund capex, support leasing or service programs, and withstand downturns. A conservative balance sheet reduces refinancing risk and preserves capacity for strategic investments without stressing cash flow.

Positive Cash Generation (TTM)

Recent TTM operating and free cash flow levels demonstrate the company can convert earnings into real cash, funding maintenance capex and services while supporting dividends or buybacks. Robust cash generation in the trailing period underpins solvency and optionality for long-term investments.

Negative Factors

Top-line Weakness

Material negative revenue growth in the fundamentals metric signals pressure on core equipment sales or reduced deployment of cash-handling systems. Persistent top-line contraction would erode scale benefits, constrain recurring service revenue, and limit long-term margin expansion opportunities.

Cash Flow Volatility

Large swings to deeply negative OCF and FCF in prior years highlight working-capital sensitivity and timing risk from project flows. Such volatility undermines planning, creates stress on liquidity in adverse periods, and raises the hurdle for reliably funding growth and shareholder returns.

Cyclicality & Earnings Volatility

Historic earnings cycles, including a fiscal-year loss, point to sensitivity of revenues and margins to investment cycles or customer capex patterns. This cyclicality complicates forecasting, can depress longer-term return consistency, and may require larger reserves or countercyclical planning.

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

Profitability has improved with solid TTM margins (gross ~41%, net ~15%) and higher net income (~¥4.7B vs ~¥3.8B last annual). Balance sheet leverage is conservative and improving (debt-to-equity ~0.27) with healthy TTM ROE (~14%). Offsetting this, TTM revenue is slightly down (~1%) and both earnings and cash flows have shown historical cyclicality/volatility (including a FY2021 loss and deeply negative OCF/FCF in FY2023–FY2024).

Income Statement

Profitability has improved materially versus earlier years, with solid margins in TTM (Trailing-Twelve-Months) (gross margin ~41%, net margin ~15%) and higher earnings than the last annual period (net income ~¥4.7B vs ~¥3.8B). However, the top line softened in TTM (Trailing-Twelve-Months) (revenue down ~1%), and results have shown cyclicality historically (including a loss in FY2021), which tempers confidence in smooth growth.

Balance Sheet

Leverage looks conservative and improving, with debt-to-equity down to ~0.27 in TTM (Trailing-Twelve-Months) from ~0.34 in the latest annual period, and equity building over time (~¥35.1B TTM vs ~¥32.0B last annual). Returns on equity are healthy in TTM (Trailing-Twelve-Months) (~14%), though the business has experienced weaker return periods in the past, indicating performance can swing with the cycle.

Cash Flow

Cash generation is currently strong, with positive operating cash flow (~¥6.9B) and free cash flow (~¥6.1B) in TTM (Trailing-Twelve-Months), and free cash flow covering a large portion of net income (~0.88x). The key concern is volatility: operating and free cash flow were deeply negative in FY2023–FY2024, and TTM (Trailing-Twelve-Months) free cash flow growth is slightly negative, suggesting working-capital or investment swings can materially affect cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	30.92B	37.82B	31.61B	25.26B	20.04B	17.02B
Gross Profit	12.64B	15.32B	12.19B	8.99B	7.60B	5.29B
EBITDA	6.90B	5.42B	4.06B	3.12B	1.62B	-7.36B
Net Income	4.69B	3.81B	3.28B	3.15B	605.38M	-7.56B
Balance Sheet
Total Assets	50.24B	49.39B	47.70B	38.82B	33.14B	31.77B
Cash, Cash Equivalents and Short-Term Investments	22.41B	17.50B	12.58B	13.71B	14.26B	12.49B
Total Debt	9.45B	10.98B	11.09B	4.35B	5.06B	4.51B
Total Liabilities	15.11B	17.35B	19.04B	11.65B	9.97B	9.66B
Stockholders Equity	35.13B	32.03B	28.66B	27.16B	23.17B	22.11B
Cash Flow
Free Cash Flow	6.05B	7.20B	-5.85B	-1.38B	1.08B	-1.27B
Operating Cash Flow	6.89B	7.64B	-4.93B	-799.70M	1.33B	-843.54M
Investing Cash Flow	2.28B	-390.29M	-402.68M	522.05M	-255.80M	-34.54M
Financing Cash Flow	-3.14B	-2.79B	4.12B	-1.42B	397.94M	3.99B

Japan Cash Machine Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1001.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6418, the sentiment is Positive. The current price of 1001 is below the 20-day moving average (MA) of 1147.00, below the 50-day MA of 1073.72, and above the 200-day MA of 994.95, indicating a bullish trend. The MACD of 48.92 indicates Negative momentum. The RSI at 74.88 is Negative, neither overbought nor oversold. The STOCH value of 81.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
6418	78 Outperform	¥37.30B	7.27	―	4.54%	-20.75%	7.75%
7991	76 Outperform	¥14.77B	7.83	―	5.73%	-27.22%	-62.64%
7999	66 Neutral	¥34.84B	79.91	―	4.37%	0.33%	-65.09%
4051	64 Neutral	¥44.12B	26.09	―	1.88%	-4.16%	66.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7314	56 Neutral	¥3.79B	39.03	―	2.15%	23.24%	-111.63%
7957	50 Neutral	¥2.28B	-0.84	―	5.27%	0.34%	―

Japan Cash Machine Co., Ltd. Corporate Events

Japan Cash Machine Sharply Ups Profit Forecast on High-Margin Gaming Sales and FX Gains

Japan Cash Machine Co., Ltd. has sharply revised upward its consolidated earnings forecast for the fiscal year ending March 31, 2026, leaving net sales unchanged at ¥31 billion but nearly doubling expected operating profit to ¥2.6 billion and more than tripling ordinary profit to ¥3.5 billion, with profit attributable to owners of parent now projected at ¥5 billion. Despite weaker sales in equipment for the domestic amusement industry, stronger-than-expected sales of high-margin bill validator units for gaming machines in North America and favorable foreign exchange gains from yen depreciation are set to boost profitability, while the company maintains its year-end dividend forecast, signaling confidence in earnings quality and stability for shareholders.

The most recent analyst rating on (JP:6418) stock is a Hold with a Yen1088.00 price target. To see the full list of analyst forecasts on Japan Cash Machine Co., Ltd. stock, see the JP:6418 Stock Forecast page.

Japan Cash Machine Profits Rise Despite Sharp Drop in Sales and Operating Margin

Japan Cash Machine reported a sharp contraction in business momentum for the nine months ended December 31, 2025, with net sales falling 22.7% year on year to ¥23.4 billion and operating profit dropping 52.4% to ¥2.3 billion, even as profit attributable to owners of the parent rose 21.5% to ¥5.0 billion due to non-operating factors. Despite weaker top-line and operating performance, the company’s financial position strengthened, with total assets edging up to ¥50.2 billion, equity ratio improving to 69.9%, and net assets per share increasing, while earnings per share climbed to ¥183.69. The board held its interim dividend at ¥20 per share and maintained a full-year dividend forecast of ¥40, signaling continued shareholder returns, but it revised its earnings outlook downward, now forecasting an 18.0% decline in full-year net sales and a 47.1% drop in operating profit versus the previous year, underscoring pressure on core operations even as full-year profit attributable to owners of parent is projected to grow. This mix of declining sales and operating margins alongside stronger equity and rising per-share earnings highlights a transition phase for the company, with investors watching how it navigates profitability challenges while preserving balance sheet strength and dividends.

The most recent analyst rating on (JP:6418) stock is a Hold with a Yen1088.00 price target. To see the full list of analyst forecasts on Japan Cash Machine Co., Ltd. stock, see the JP:6418 Stock Forecast page.