Semitec Corporation (6626) AI Stock Analysis

• Market Cap: ¥29.92B
• Dividend Yield: 1.78%
• Average Volume (3M): 23.20K
• Price to Earnings (P/E): 7.3
• 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: ¥2,934.00 ▲(26.25% 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

Consistent revenue growth

Semitec's multi-year revenue rise, including an 11.7% jump in 2025, reflects durable demand across consumer, appliance, automotive and industrial end markets. Sustained top-line growth supports scale benefits, repeat OEM production orders and longer-term revenue visibility tied to design wins.

Strong profitability margins

Healthy gross and rising net margins indicate structural cost control and pricing power in thermistor components and custom sensor assemblies. Persistent mid-to-high teens gross margin band and improving net margin strengthen sustainable cash generation and reinvestment potential over multiple reporting periods.

Solid balance sheet & cash generation

Very high equity ratio and minimal leverage provide resilience to cyclical demand and financing flexibility. Rising free cash flow and operating cash conversion above one mean the company can fund capex and design-in programs internally, supporting steady operations and lower refinancing risk.

Negative Factors

Rising total liabilities

A notable jump in liabilities can signal growing payables, deferred obligations or short-term funding needs. If liabilities continue to rise faster than equity or cash flow, financial flexibility and credit metrics could weaken, forcing higher funding costs or constrained investment capacity over the medium term.

Heavy reinvestment (negative investing cash flow)

Sustained negative investing flows from meaningful capex or R&D investments support growth but consume cash. If operating cash generation slows, continued high reinvestment could pressure liquidity, limit distributions or necessitate external financing, increasing execution and funding risk over 2–6 months.

Slight margin erosion risk

A downward move in gross margin, even modest, hints at input cost pressure, pricing compression, or less favorable product mix (more standard parts). If this trend persists, it would erode operating leverage and free cash flow, making long-term reinvestment and margin sustainability more challenging.

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	2.65B	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 2792.10, below the 50-day MA of 2576.74, and above the 200-day MA of 2317.17, indicating a neutral trend. The MACD of 37.95 indicates Positive momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of 26.54 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	¥101.26B	15.13	―	3.23%	7.28%	4.16%
6981	74 Outperform	$6.91T	59.16	8.95%	1.88%	2.88%	28.76%
6626	73 Outperform	¥29.92B	7.34	―	1.78%	4.47%	12.28%
6853	73 Outperform	¥19.30B	18.81	―	2.93%	-1.58%	12.24%
6762	67 Neutral	¥4.04T	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	¥898.73B	36.79	2.99%	2.62%	3.51%	―