Semitec Corporation (6626) AI Stock Analysis

• Market Cap: ¥31.93B
• Dividend Yield: 1.78%
• Average Volume (3M): 23.20K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.98
• 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: ¥3,131.00 ▲(34.72% 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

Balance sheet strength

A high equity ratio and minimal debt indicate strong financial resilience and low refinancing risk, allowing the company to fund operations or absorb shocks without relying on costly external borrowing. Sustained ROE near mid-teens shows effective capital deployment over time.

Improving margins & revenue

Double-digit annual revenue growth and healthy gross and net margins point to durable demand and pricing/operational discipline. Margin sustainability supports long-term cash generation and reinvestment capacity, reducing sensitivity to normal cyclical fluctuations.

Strong cash generation

Significant free cash flow growth and efficient conversion of earnings into cash enable self-funding of capex, support for dividends, and buffer for strategic investments. Consistent cash conversion is a durable indicator of financial flexibility.

Negative Factors

Rising liabilities

A sharp rise in total liabilities can erode the company’s conservative capital structure and increase fixed obligations. If liabilities continue to grow faster than earnings, financial flexibility and credit metrics could weaken, limiting room for opportunistic investment.

Heavy reinvestment

Sustained negative investing cash flow indicates sizable capex or investments to support growth. While strategic, elevated reinvestment can pressure liquidity or free cash flow if returns are delayed, requiring careful capital allocation to avoid funding stress.

End-market cyclicality

Concentration in cyclically sensitive markets exposes revenues to demand swings and OEM production cycles. Durable exposure to these sectors means sales and order timing can fluctuate materially over months, challenging steady top-line predictability.

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 makes money primarily by selling temperature sensor components—especially thermistors (temperature-sensitive resistors) and thermistor-based sensor assemblies—to original equipment manufacturers (OEMs) and other electronics/parts manufacturers. Revenue is generated through (1) volume sales of standard/catalog thermistors used across multiple applications, where unit economics are driven by manufacturing scale and customer programs, and (2) sales of customized or application-specific sensor products (e.g., thermistor elements integrated into probes, harnesses, or modules), which typically command higher per-unit prices due to design-in work, qualification requirements, and tighter specifications. The company’s earnings are influenced by customer design wins (once a thermistor is designed into an appliance, electronics device, or automotive platform it can result in recurring production orders), the mix between standard parts and custom sensor assemblies, and demand cycles in the end markets it serves. Specific details such as customer concentration, named partnerships, contract structures (direct vs. via distributors), and segment revenue breakdowns are null.

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: Positive
• 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 2324 is below the 20-day moving average (MA) of 2757.55, below the 50-day MA of 2538.96, and above the 200-day MA of 2297.40, indicating a bullish trend. The MACD of 88.44 indicates Positive momentum. The RSI at 57.51 is Neutral, neither overbought nor oversold. The STOCH value of 52.60 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
6866	79 Outperform	¥104.13B	15.13	―	3.23%	7.28%	4.16%
6981	74 Outperform	$6.86T	59.16	8.95%	1.88%	2.88%	28.76%
6626	73 Outperform	¥31.93B	7.34	―	1.78%	4.47%	12.28%
6853	73 Outperform	¥19.88B	18.81	―	2.93%	-1.58%	12.24%
6762	67 Neutral	¥4.12T	15.03	―	1.41%	7.73%	-1.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6645	57 Neutral	$917.82B	36.79	2.99%	2.62%	3.51%	―