IDEC Corporation (6652) AI Stock Analysis

• Market Cap: ¥81.13B
• Dividend Yield: 4.51%
• Average Volume (3M): 137.29K
• Price to Earnings (P/E): 38.2
• Beta (1Y): 0.95
• Revenue Growth: 0.59%
• EPS Growth: -10.60%
• Country: JP
• Employees: 3,087
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 43.71
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥3,084.00 ▲(5.65% Upside)

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

Strong Balance Sheet

A strong balance sheet with a solid equity base and manageable debt levels provides financial stability and flexibility for future growth.

Cash Flow Generation

Strong operating cash flow generation indicates effective cash management and supports ongoing operations and potential investments.

Product and Market Diversification

Diversification across multiple industries reduces dependency on a single market, enhancing resilience against sector-specific downturns.

Negative Factors

Declining Revenue

Consistent revenue decline suggests challenges in market demand or competition, potentially impacting long-term growth prospects.

Profitability Pressure

Decreasing profit margins indicate rising costs or pricing pressures, which could undermine profitability and shareholder returns.

High Capital Expenditure

Increased capital expenditure can strain free cash flow, limiting financial flexibility and impacting the ability to invest in growth opportunities.

IDEC Corporation Business Overview & Revenue Model

Company Description

IDEC Corporation (6652) is a Japanese company specializing in the development and manufacturing of automation equipment and control devices. The company operates primarily in the industrial automation sector, providing a range of products such as sensors, relays, circuit breakers, and programmable logic controllers (PLCs). IDEC serves various industries including manufacturing, automotive, and electronics, focusing on enhancing operational efficiency and safety through innovative automation solutions.

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 shows strengths in its balance sheet with a solid equity structure and manageable debt levels. However, challenges are evident 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. Overall, while the company's financial position remains stable, addressing profitability declines and revenue growth will be crucial moving forward.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 2919.00
• 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:6652, the sentiment is Positive. The current price of 2919 is above the 20-day moving average (MA) of 2835.25, above the 50-day MA of 2586.18, and above the 200-day MA of 2358.41, indicating a bullish trend. The MACD of 95.31 indicates Positive momentum. The RSI at 67.59 is Neutral, neither overbought nor oversold. The STOCH value of 39.05 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	€94.96B	17.81	5.02%	3.24%	-10.00%	-51.92%
6652	76 Outperform	¥81.13B	38.24	―	4.51%	0.59%	-10.60%
6237	76 Outperform	¥57.81B	12.63	―	2.77%	2.85%	3.17%
6381	75 Outperform	¥64.35B	15.06	―	4.00%	-1.67%	-4.39%
6277	72 Outperform	¥82.19B	18.17	―	2.16%	-8.71%	-17.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6363	62 Neutral	¥52.11B	14.79	―	3.09%	6.35%	-34.20%

IDEC Corporation Corporate Events

IDEC Corporation Reports Strong Financial Growth in H1 2025

IDEC Corporation reported a notable increase in its financial performance for the six months ending September 30, 2025, with a 3.1% rise in net sales and significant growth in operating and ordinary profits. The company’s strategic decisions, including the exclusion of APEM, Inc. from its consolidation scope, have contributed to a stronger financial position, with a shareholder’s equity ratio of 61.7%. This positive trajectory is expected to continue, as reflected in their forecast for the fiscal year ending March 31, 2026, projecting further growth in net sales and profits, which could enhance stakeholder confidence and market positioning.