Semitec Corporation (6626) AI Stock Analysis

• Market Cap: ¥25.51B
• Dividend Yield: 1.78%
• Average Volume (3M): 23.20K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.93
• Revenue Growth: 4.47%
• EPS Growth: 12.28%
• Country: JP
• Employees: 3,655
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 58.91
• Shares Outstanding: 11,371,600
• 10 Day Avg. Volume: 19,720
• 30 Day Avg. Volume: 23,203
• PEG Ratio: 0.11
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 5.13
• 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: 73 Outperform
• Price Target: ¥2,563.00 ▲(14.27% Upside)

Semitec Corporation's strong financial performance is the primary driver of its stock score, supported by consistent revenue growth and solid profitability. The undervaluation based on P/E ratio adds to its attractiveness. However, technical indicators suggest caution due to bearish momentum and short-term weakness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Semitec's products across key sectors, enhancing its market position and supporting long-term business expansion.

Profitability Margins

Improved profitability margins demonstrate effective cost management and operational efficiency, which can sustain financial health and support reinvestment in growth initiatives.

Balance Sheet Strength

A strong equity base and low debt levels indicate financial stability and reduced risk, providing flexibility for strategic investments and weathering economic fluctuations.

Negative Factors

Increasing Liabilities

Rising liabilities could strain financial resources and limit flexibility, requiring careful management to ensure sustainable growth without compromising financial stability.

Gross Profit Margin Decline

A decline in gross profit margin may indicate rising costs or pricing pressures, potentially affecting profitability if not managed effectively.

Negative Investing Cash Flow

While reinvestment is crucial for growth, negative investing cash flow could impact liquidity if not balanced with cash generation, necessitating careful financial planning.

Semitec Corporation Business Overview & Revenue Model

Company Description

Semitec Corporation (6626) is a leading manufacturer specializing in temperature sensors and thermistors, primarily serving the automotive, industrial, and consumer electronics sectors. Established in Japan, the company focuses on developing high-quality thermal management solutions, which include a wide range of temperature sensing devices that are critical for various applications, from automotive climate control systems to home appliances and industrial equipment. Semitec is recognized for its innovation in sensor technology, ensuring precision and reliability in its products.

How the Company Makes Money

Semitec Corporation generates revenue primarily through the sale of its temperature sensors and thermistors to various industries, including automotive, industrial, and consumer electronics. The company's revenue model is based on direct sales to manufacturers and suppliers who integrate its products into their systems. Key revenue streams include bulk orders from automotive OEMs (Original Equipment Manufacturers), contracts with industrial equipment manufacturers, and partnerships with electronics companies for the supply of specialized sensing solutions. Additionally, Semitec may benefit from long-term contracts and agreements that provide steady income, as well as ongoing support and maintenance services for its technology. The company also invests in research and development to innovate and expand its product offerings, which can lead to new revenue opportunities.

Semitec Corporation Financial Statement Overview

Summary

Semitec Corporation exhibits robust financial health with consistent revenue growth, strong profitability margins, and a stable balance sheet with low leverage. The company effectively manages its operations and capital, leading to impressive cash flow generation. However, increasing liabilities and reinvestment levels require cautious oversight.

Income Statement

Semitec Corporation demonstrates strong revenue growth with a consistent upward trajectory in total revenue from 2020 to 2025, especially notable in the 11.7% increase from 2024 to 2025. The company maintains healthy profitability margins, with gross profit margin consistently around 38-39%. Net profit margin improved significantly to 12.3% in 2025, reflecting efficient cost management. The EBIT and EBITDA margins are robust, indicating strong operational efficiency. However, the slight dip in gross profit margin from 2024 to 2025 suggests a need for cautious monitoring of cost structures.

Balance Sheet

The balance sheet reflects a strong equity base with an equity ratio improving to 74.4% in 2025, a positive sign of financial stability. The debt-to-equity ratio is low at approximately 0.12, highlighting minimal reliance on debt financing and reduced financial risk. Return on equity is commendable, improving to 13.4% in 2025, indicating effective use of equity capital. However, the rapid increase in total liabilities from 2024 to 2025 necessitates close monitoring to ensure sustainable growth without over-leveraging.

Cash Flow

Semitec Corporation's cash flow position is strong, with a significant increase in free cash flow by 19.5% from 2024 to 2025, enhancing financial flexibility. The operating cash flow to net income ratio remains above one, indicating efficient conversion of earnings into cash. Free cash flow to net income ratio is stable, reflecting the company's ability to generate cash after capital expenditures. However, the negative investing cash flow signifies substantial reinvestment in the business, which, while positive for growth, requires careful management to avoid liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.19B	25.33B	22.68B	23.23B	21.07B	17.87B
Gross Profit	9.72B	9.79B	8.74B	8.77B	7.92B	7.04B
EBITDA	5.45B	5.54B	4.43B	5.40B	4.54B	3.67B
Net Income	3.17B	3.11B	2.15B	3.16B	2.70B	1.93B
Balance Sheet
Total Assets	30.55B	31.20B	28.25B	25.99B	23.72B	19.88B
Cash, Cash Equivalents and Short-Term Investments	11.13B	12.14B	10.56B	8.70B	5.57B	5.26B
Total Debt	2.95B	2.79B	3.05B	3.13B	3.80B	4.05B
Total Liabilities	7.95B	7.97B	6.86B	7.05B	8.13B	8.13B
Stockholders Equity	22.60B	23.22B	21.40B	18.94B	15.59B	11.76B
Cash Flow
Free Cash Flow	0.00	3.55B	2.97B	3.82B	624.11M	1.27B
Operating Cash Flow	0.00	5.19B	3.73B	4.80B	2.11B	2.67B
Investing Cash Flow	0.00	-1.51B	-626.15M	-740.66M	-1.45B	-1.73B
Financing Cash Flow	0.00	-1.82B	-1.67B	-1.03B	-706.72M	-671.80M

Semitec Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2243.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6626, the sentiment is Positive. The current price of 2243 is above the 20-day moving average (MA) of 2159.35, above the 50-day MA of 2220.28, and above the 200-day MA of 2070.42, indicating a bullish trend. The MACD of -1.99 indicates Negative momentum. The RSI at 58.24 is Neutral, neither overbought nor oversold. The STOCH value of 71.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6626.

Semitec Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥24.38B	12.89	―	2.89%	6.15%	2.98%
6800	79 Outperform	¥52.38B	17.38	―	2.18%	4.75%	164.54%
6957	75 Outperform	¥109.67B	33.69	―	2.12%	3.95%	-32.30%
6626	73 Outperform	¥25.51B	8.00	―	1.78%	4.47%	12.28%
6989	71 Outperform	¥21.35B	9.24	―	3.19%	2.48%	39.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6844	58 Neutral	¥34.53B	31.69	―	1.94%	6.10%	―