IDEC Corporation (6652) AI Stock Analysis

• Market Cap: ¥93.04B
• Dividend Yield: 4.45%
• Average Volume (3M): 137.29K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 0.96
• Revenue Growth: 0.59%
• EPS Growth: -10.60%
• Country: JP
• Employees: 3,087
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 38.30
• Shares Outstanding: 31,374,485
• 10 Day Avg. Volume: 116,350
• 30 Day Avg. Volume: 137,289
• PEG Ratio: -0.68
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 30.06
• 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): 138.85
• Revenue Forecast (FY): ¥71.25B

• Rating: 76 Outperform
• Price Target: ¥3,738.00 ▲(28.01% Upside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

The overall stock score for IDEC Corporation is driven primarily by its strong technical indicators and robust balance sheet. While the stock shows bullish momentum, the high P/E ratio suggests potential overvaluation. The company's financial performance is stable, but challenges in revenue and profitability need to be addressed to improve future prospects.

Positive Factors

Balance-sheet strength

A ~59.5% equity ratio and manageable debt-to-equity (~0.41) provide durable financial flexibility. This capital structure supports continued capex, R&D and dividend capacity, reduces refinancing risk in downturns, and preserves investment optionality over the next several quarters.

Operating cash-flow generation

Doubling of operating cash flow indicates strong underlying cash conversion from operations. Sustained operating cash generation funds working capital, funds strategic investments or maintenance capex, and lowers dependence on external financing for durable growth initiatives.

Diversified industrial product portfolio

A broad product set (switches, PLCs, safety devices) and mixed direct/distributor channels across Japan and overseas creates recurring demand from new builds, retrofits and spares. This diversification reduces single-market reliance and aligns with structural automation trends benefitting long-term revenue stability.

Negative Factors

Sustained revenue declines

Consecutive multi-year revenue declines suggest weakening end-market demand or market share erosion. Persistent top-line contraction limits scale benefits, pressures absolute earnings, and reduces scope for reinvestment—posing a structural headwind for medium-term growth recovery.

Profit-margin compression

Sharply lower net and operating margins materially reduce retained earnings and free cash potential. If driven by structural cost increases or pricing pressure, margin compression undermines long-term profitability, making it harder to fund strategic initiatives or sustain dividends without structural fixes.

Declining return on equity

A meaningful ROE decline signals reduced effectiveness in deploying shareholder capital. Persistently low returns can limit reinvestment appeal, reduce ability to attract capital for expansion, and indicate operating or margin issues that may take multiple quarters to correct.

IDEC Corporation Business Overview & Revenue Model

Company Description

IDEC Corporation provides a range of products and services centering on control and safety technologies. The company offers industrial switches, emergency-stop switches, and joysticks; and industrial relays, terminal blocks, circuit protectors, switching power supplies, and LED illumination units. It also provides automation and sensing products, such as programmable logic controllers, teaching pendants, operator interfaces, and sensors; and safety and explosion protection products, including safety laser scanners, interlock switches, and enabling switches, as well as explosion protection operator interfaces, control boxes, and network camera systems. In addition, the company offers environmental energy-related solutions, next-generation agricultural solutions, and collaborative safety robot systems. It operates in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and Korea. The company was formerly known as Izumi Denki Co., Ltd. IDEC Corporation was founded in 1945 and is headquartered in Osaka, Japan.

How the Company Makes Money

IDEC Corporation generates revenue through the sale of its automation and control products, which are utilized in manufacturing and industrial processes. Key revenue streams include direct sales of hardware such as sensors and PLCs, as well as software solutions for system integration and management. The company also earns income from providing technical support and maintenance services for its products. Significant partnerships with other technology firms and manufacturers in various sectors contribute to IDEC's earnings, enabling the company to expand its market reach and enhance its product offerings.

IDEC Corporation Financial Statement Overview

Summary

IDEC Corporation's financial performance is characterized by a strong balance sheet with a solid equity structure and manageable debt levels. However, there are challenges in the income statement with declining revenue and profitability margins. Cash flows are robust with strong operating cash generation, though free cash flow has been impacted by capital expenditures.

Income Statement

The income statement reveals a mixed performance. Gross profit margins have been relatively stable, with a slight decrease from 42.64% in 2024 to 42.22% in 2025. However, net profit margins dropped significantly from 6.06% in 2024 to 2.64% in 2025, indicating pressure on profitability. Revenue growth has been inconsistent, with a decline of 7.32% in 2024, followed by an even steeper decline of 7.33% in 2025. EBIT and EBITDA margins also fell in 2025, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet is robust, with a strong equity base. The debt-to-equity ratio decreased slightly from 0.38 in 2024 to 0.41 in 2025, indicating manageable leverage. Return on equity has decreased from 6.68% in 2024 to 2.79% in 2025, reflecting the decline in net income. The equity ratio remains strong at approximately 59.51% in 2025, showcasing a solid capital structure.

Cash Flow

Cash flow analysis shows positive trends in operating cash flows, which doubled from 2024 to 2025. Free cash flow, however, decreased from 2024 to 2025, indicating increased capital expenditure. The operating cash flow to net income ratio improved significantly, reflecting strong cash generation relative to reported earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	67.15B	67.38B	72.71B	83.87B	70.79B	53.98B
Gross Profit	27.98B	28.45B	31.02B	37.38B	30.31B	22.78B
EBITDA	7.24B	8.75B	11.72B	18.94B	15.56B	8.19B
Net Income	1.94B	1.78B	4.41B	10.14B	7.90B	2.80B
Balance Sheet
Total Assets	105.29B	107.22B	107.14B	104.23B	94.96B	88.25B
Cash, Cash Equivalents and Short-Term Investments	16.42B	19.21B	17.63B	18.41B	17.90B	16.78B
Total Debt	25.55B	26.22B	25.24B	25.49B	25.49B	29.12B
Total Liabilities	41.79B	43.40B	41.13B	45.42B	45.95B	45.14B
Stockholders Equity	63.50B	63.81B	66.01B	58.81B	48.97B	43.11B
Cash Flow
Free Cash Flow	0.00	2.39B	2.94B	4.08B	7.65B	4.05B
Operating Cash Flow	0.00	11.25B	5.50B	7.01B	9.65B	7.44B
Investing Cash Flow	0.00	-4.10B	-1.92B	-3.11B	-1.39B	-3.15B
Financing Cash Flow	0.00	-2.90B	-4.46B	-4.40B	-8.58B	-3.67B

IDEC Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2920.00
• 50DMA: Positive
• 100DMA: Positive
• 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:6652, the sentiment is Positive. The current price of 2920 is below the 20-day moving average (MA) of 3145.60, below the 50-day MA of 3018.18, and above the 200-day MA of 2530.20, indicating a bullish trend. The MACD of 91.29 indicates Negative momentum. The RSI at 69.87 is Neutral, neither overbought nor oversold. The STOCH value of 70.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6652.

IDEC Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6104	81 Outperform	¥101.67B	48.30	5.02%	3.23%	-10.00%	-51.92%
6652	76 Outperform	¥93.04B	32.00	―	4.45%	0.59%	-10.60%
6237	76 Outperform	¥64.73B	14.88	―	2.79%	2.85%	3.17%
6381	75 Outperform	¥69.80B	16.94	―	3.95%	-1.67%	-4.39%
6277	72 Outperform	¥101.87B	28.54	―	2.16%	-8.71%	-17.77%
6363	70 Outperform	¥69.83B	14.83	―	3.09%	6.35%	-34.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

IDEC Corporation Corporate Events

IDEC Posts Strong Profit Rebound and Confirms Full-Year Outlook for FY2026

IDEC Corporation reported solid recovery for the nine months ended December 31, 2025, with consolidated net sales rising 7.2% year on year to ¥53.0 billion and operating profit surging 90.4% to ¥4.38 billion, supported by a sharp improvement in ordinary profit and profit attributable to owners of parent, which climbed 78.6% to ¥2.89 billion. The company’s financial position also strengthened, with total assets and net assets increasing and the shareholders’ equity ratio improving to 61.2%, while IDEC maintained its plan for a stable annual dividend of ¥130 per share for the fiscal year ending March 31, 2026 and kept its full-year earnings forecasts unchanged, implying continued profit growth and nearly doubling full-year net income compared with the prior year; the period also saw a narrowing of the consolidation scope with the exclusion of APEM, Inc. and ongoing share count changes due to treasury share movements.

The most recent analyst rating on (JP:6652) stock is a Hold with a Yen2877.00 price target. To see the full list of analyst forecasts on IDEC Corporation stock, see the JP:6652 Stock Forecast page.