TAKAMISAWA CYBERNETICS CO., LTD. (6424) AI Stock Analysis

• Market Cap: ¥4.12B
• Dividend Yield: 2.09%
• Average Volume (3M): 2.91K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.75
• Revenue Growth: -15.50%
• EPS Growth: -56.40%
• Country: JP
• Employees: 555
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 48.74
• Shares Outstanding: 4,525,000
• 10 Day Avg. Volume: 3,240
• 30 Day Avg. Volume: 2,910
• PEG Ratio: 0.09
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 7.16
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,055.00 ▲(12.96% Upside)

The overall stock score is driven primarily by strong financial performance and attractive valuation. The company's robust revenue and profit growth, along with solid cash flow management, provide a strong foundation. Despite neutral technical indicators and potential overbought conditions, the low P/E ratio and reasonable dividend yield enhance the stock's appeal.

Positive Factors

Cash Generation

Strong cash generation capabilities support the company's growth strategies and provide financial flexibility for future investments.

Operational Efficiency

Operational efficiency is reflected in solid profitability metrics, indicating effective management and a positive growth trajectory.

Profit Margins

Sustained profit margins demonstrate the company's ability to maintain pricing power and cost control, supporting long-term profitability.

Negative Factors

Revenue Growth Decline

A decline in revenue growth could signal challenges in market expansion or product adoption, potentially impacting future earnings.

Equity Strength

Lower equity strength may pose risks in volatile markets, limiting the company's ability to withstand financial shocks.

EPS Growth Decline

A significant decline in EPS growth indicates potential profitability issues, which could affect investor confidence and future capital raising.

TAKAMISAWA CYBERNETICS CO., LTD. Business Overview & Revenue Model

Company Description

TAKAMISAWA CYBERNETICS CO., LTD. (6424) is a leading technology company based in Japan, specializing in advanced cybernetics, automation, and information technology solutions. The company operates primarily in sectors such as robotics, artificial intelligence, and industrial automation, providing innovative products and services that enhance operational efficiency and productivity for various industries. Its core offerings include automation systems, AI-based software solutions, and integrated cyber-physical systems designed to optimize manufacturing processes and improve overall business performance.

How the Company Makes Money

TAKAMISAWA CYBERNETICS CO., LTD. generates revenue through several key streams, primarily from the sale of hardware and software solutions in the automation and robotics sectors. The company earns income by providing customized automation systems tailored to specific industrial needs, along with ongoing maintenance and support services. Additionally, revenues are supplemented by licensing agreements for its proprietary software technologies and consulting services aimed at helping businesses implement effective automation strategies. Strategic partnerships with other technology firms and industry stakeholders further enhance its market reach and contribute to its earnings, allowing for collaborative projects that expand its product offerings and customer base.

TAKAMISAWA CYBERNETICS CO., LTD. Financial Statement Overview

Summary

TAKAMISAWA CYBERNETICS CO., LTD. demonstrates strong financial performance with impressive revenue and profit growth. The company's operational efficiency is evidenced by solid margins. While the balance sheet shows manageable leverage, enhancing equity strength could provide more stability. Cash flow metrics indicate excellent liquidity and cash generation, supporting ongoing growth and investment opportunities.

Income Statement

The income statement displays strong growth with a revenue increase of 17.96% year-over-year. Gross profit margin stands at 28.23%, and net profit margin improved to 6.51%, indicating enhanced profitability. The company also shows an impressive EBIT margin of 8.93% and an EBITDA margin of 11.04%, reflecting operational efficiency. Overall, the income statement suggests a positive growth trajectory with solid profitability metrics.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.78, indicating manageable leverage. The return on equity (ROE) is 16.58%, showing efficient use of equity. However, the equity ratio of 35.68% suggests a relatively lower proportion of equity financing, which could pose a risk in volatile markets. The balance sheet is stable but has room for improvement in equity strength.

Cash Flow

The cash flow statement highlights robust free cash flow growth of 318.38%, suggesting strong cash generation capabilities. The operating cash flow to net income ratio is 0.93, and the free cash flow to net income ratio is 0.64, indicating effective cash conversion. Overall, cash flow management appears healthy, supporting the company's growth strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.39B	15.39B	13.05B	10.71B	9.91B	12.75B
Gross Profit	3.96B	4.34B	3.69B	3.14B	2.72B	3.41B
EBITDA	1.23B	1.70B	1.35B	1.09B	781.65M	1.57B
Net Income	682.68M	1.00B	655.25M	451.16M	109.97M	642.84M
Balance Sheet
Total Assets	15.22B	16.92B	17.65B	14.68B	14.05B	14.92B
Cash, Cash Equivalents and Short-Term Investments	3.65B	2.83B	2.94B	2.61B	3.15B	3.06B
Total Debt	3.61B	4.73B	5.01B	4.76B	5.32B	5.74B
Total Liabilities	9.42B	10.88B	12.58B	10.41B	10.23B	11.23B
Stockholders Equity	5.79B	6.04B	5.07B	4.28B	3.82B	3.68B
Cash Flow
Free Cash Flow	0.00	644.56M	154.01M	232.46M	660.14M	662.62M
Operating Cash Flow	0.00	935.61M	348.01M	327.16M	754.47M	792.98M
Investing Cash Flow	0.00	-475.40M	-188.70M	-209.00M	-86.75M	-132.35M
Financing Cash Flow	0.00	-568.82M	169.62M	-651.78M	-576.77M	-552.72M

TAKAMISAWA CYBERNETICS CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 934.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6424, the sentiment is Negative. The current price of 934 is below the 20-day moving average (MA) of 939.15, below the 50-day MA of 936.86, and below the 200-day MA of 985.23, indicating a bearish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 48.28 is Neutral, neither overbought nor oversold. The STOCH value of 32.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6424.

TAKAMISAWA CYBERNETICS CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6424	75 Outperform	¥4.12B	6.03	―	2.09%	-15.50%	-56.40%
6837	65 Neutral	¥5.23B	9.08	―	3.01%	2.03%	-23.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6867	52 Neutral	¥2.29B	-644.42	―	2.95%	-0.26%	―
6666	46 Neutral	¥3.56B	-16.67	―	2.23%	7.71%	-215.42%
6926	46 Neutral	¥4.47B	―	―	―	-6.31%	-64.22%
6721	41 Neutral	¥6.06B	-4.03	―	―	-35.81%	-99.72%