Semitec Corporation (6626) AI Stock Analysis

• Market Cap: ¥33.58B
• Dividend Yield: 1.78%
• Average Volume (3M): 23.20K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.99
• Revenue Growth: 4.47%
• EPS Growth: 12.28%
• Country: JP
• Employees: 3,655
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 80.99
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 261.1
• Revenue Forecast (FY): ¥25.50B

• Rating: 73 Outperform
• Price Target: ¥3,325.00 ▲(43.07% Upside)
• Action: Reiterated Date: 10/22/25
• Date: Action: Reiterated 10/22/25

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 & Margin Durability

Semitec's consistent revenue growth and durable margin profile (notably 11.7% top-line growth and mid-to-high 30s gross margins) indicate sustained product demand and operational efficiency. Stable margins across years support predictable earnings and capacity to reinvest in product qualification cycles.

Strong Balance Sheet

A very strong equity base and minimal leverage provide durable financial flexibility, lowering refinancing and solvency risk. This capital structure supports long-term investments, absorbs cyclical downturns, and preserves capacity to fund design-in activities without reliance on costly external debt.

High Quality Cash Generation

Rising free cash flow and strong cash conversion indicate high-quality earnings and internal funding capability. Reliable cash generation enables sustained R&D and capital expenditure for product development, supports working capital for OEM programs, and reduces dependence on external financing.

Negative Factors

Rising Liabilities

A sharp rise in total liabilities, if persistent, can erode financial flexibility and increase funding costs over time. If liabilities grow faster than revenue or cash flow, the company may face pressure on margins and limited room for strategic investments critical for long-term OEM design wins.

Heavy Reinvestment Needs

Sustained negative investing cash flow reflects heavy capex/R&D to secure future growth. While strategic, prolonged high reinvestment can strain liquidity during downturns and raises capital allocation risk if free cash flow weakens, potentially forcing trade-offs between growth and returns.

Product & End-Market Concentration

Concentration on thermistors and dependence on OEM design-in cycles creates structural revenue volatility. Long sales qualification timelines and exposure to consumer, appliance and automotive cycles increase sensitivity to demand swings and customer program losses, affecting recurring order stability.

Semitec Corporation Business Overview & Revenue Model

Company Description

SEMITEC Corporation manufactures and sells electronic components in Japan and internationally. It offers temperature sensors, such as thermistors, as well as sensor assemblies for use in office automation, automotive, medical, home appliances, industrial appliances, and standard assemblies applications. The company also provides IR sensors, such as NC sensors and thermopiles; pressure sensors for use in endoscopy devices, remote body probes, and catheters; and sensing vision products. In addition, it offers semiconductor devices comprising surge absorbers, such as transient voltage suppressors and Zenamic; current regulating diodes; and power thermistors. The company was formerly known as Ishizuka Electronics Corporation and changed its name to SEMITEC Corporation in 2011. SEMITEC Corporation was incorporated in 1958 and is headquartered in Tokyo, Japan.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 2324.00
• 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:6626, the sentiment is Positive. The current price of 2324 is below the 20-day moving average (MA) of 2576.15, below the 50-day MA of 2440.12, and above the 200-day MA of 2255.24, indicating a bullish trend. The MACD of 137.85 indicates Negative momentum. The RSI at 88.23 is Negative, neither overbought nor oversold. The STOCH value of 97.58 is Negative, 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	¥31.93B	16.29	―	2.89%	6.15%	2.98%
6800	74 Outperform	¥79.61B	38.22	―	2.20%	4.75%	164.54%
6626	73 Outperform	¥33.58B	10.25	―	1.78%	4.47%	12.28%
6989	71 Outperform	¥22.03B	11.30	―	3.15%	2.48%	39.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6844	58 Neutral	¥41.54B	11.20	―	1.95%	6.10%	―