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IDEC Corporation (JP:6652)
:6652
Japanese Market
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IDEC Corporation (6652) AI Stock Analysis

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JP:6652

IDEC Corporation

(6652)

Rating:73Outperform
Price Target:
¥2,580.00
▲(11.25% Upside)
The overall stock score of 73.3 reflects a strong balance sheet and positive technical indicators, offset by challenges in profitability and a high P/E ratio. The attractive dividend yield provides some support, but addressing revenue and profitability declines will be crucial for future performance.

IDEC Corporation (6652) vs. iShares MSCI Japan ETF (EWJ)

IDEC Corporation Business Overview & Revenue Model

Company DescriptionIDEC 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 MoneyIDEC Corporation generates revenue primarily through the sale of its industrial automation and control products. The company's key revenue streams include direct sales to manufacturing and industrial clients, as well as distribution through a network of partners and resellers. IDEC benefits from long-term relationships with clients in various industries, which contributes to a steady demand for its products. Additionally, IDEC's focus on research and development allows it to introduce innovative products that meet the evolving needs of its customers, thereby driving sales growth. The company may also engage in strategic partnerships and collaborations that enhance its market presence and support its revenue streams.

IDEC Corporation Financial Statement Overview

Summary
IDEC Corporation exhibits a stable financial position with strengths in its balance sheet due to a robust equity structure and manageable debt levels. Despite these positives, challenges are present in the income statement, such as declining revenue and profitability margins. Cash flows are strong, particularly with operating cash generation, although free cash flow is affected by increased capital expenditures. Overall, the company needs to address profitability declines and focus on revenue growth.
Income Statement
73
Positive
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
85
Very Positive
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
78
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue67.38B72.71B83.87B70.79B53.98B
Gross Profit28.45B31.02B37.38B30.31B22.78B
EBITDA8.75B11.72B18.49B13.83B7.81B
Net Income1.78B4.41B10.14B7.90B2.80B
Balance Sheet
Total Assets107.22B107.14B104.23B94.96B88.25B
Cash, Cash Equivalents and Short-Term Investments19.21B17.63B18.41B17.90B16.78B
Total Debt26.22B25.24B25.49B25.49B29.12B
Total Liabilities43.40B41.13B45.42B45.95B45.14B
Stockholders Equity63.81B66.01B58.81B48.97B43.11B
Cash Flow
Free Cash Flow2.39B2.94B4.08B7.65B4.05B
Operating Cash Flow11.25B5.50B7.01B9.65B7.44B
Investing Cash Flow-4.10B-1.92B-3.11B-1.39B-3.15B
Financing Cash Flow-2.90B-4.46B-4.40B-8.58B-3.67B

IDEC Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2319.00
Price Trends
50DMA
2279.24
Positive
100DMA
2285.91
Positive
200DMA
2361.16
Negative
Market Momentum
MACD
14.23
Positive
RSI
49.39
Neutral
STOCH
24.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6652, the sentiment is Negative. The current price of 2319 is above the 20-day moving average (MA) of 2306.40, above the 50-day MA of 2279.24, and below the 200-day MA of 2361.16, indicating a neutral trend. The MACD of 14.23 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 24.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6652.

IDEC Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥64.80B34.93
5.63%-4.74%-40.20%
66
Neutral
£2.67B12.983.30%3.25%2.40%-23.01%
€497.99M8.319.64%
76
Outperform
¥82.79B13.83
2.36%-5.05%-1.62%
74
Outperform
¥61.44B14.79
2.91%0.52%-8.88%
70
Outperform
¥55.40B12.73
2.49%2.55%1.34%
66
Neutral
¥54.26B22.23
2.90%9.31%-62.88%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6652
IDEC Corporation
2,319.00
-194.35
-7.73%
DE:TOA
Shibaura Machine Co., Ltd.
22.60
0.80
3.67%
JP:6237
Iwaki Co. Ltd.
2,506.00
-303.72
-10.81%
JP:6277
Hosokawa Micron Corporation
5,620.00
1,417.35
33.73%
JP:6363
Torishima Pump Mfg.Co., Ltd.
2,097.00
-682.86
-24.56%
JP:6381
ANEST IWATA Corp.
1,560.00
301.18
23.93%

IDEC Corporation Corporate Events

IDEC Corporation Reports Q1 Financial Results with Profit Growth
Aug 7, 2025

IDEC Corporation reported its consolidated financial results for the first quarter ending June 30, 2025, showing a slight decline in net sales by 1.4% compared to the previous year. However, the company experienced significant growth in operating profit, ordinary profit, and profit attributable to owners of the parent, with increases of 19.3%, 27.1%, and 54.7% respectively, indicating improved operational efficiency and profitability. The company maintained a stable financial position with a shareholder’s equity ratio of 59.8% and announced no changes in its dividend forecast for the fiscal year ending March 31, 2026. The exclusion of APEM, Inc. from the scope of consolidation was noted, reflecting strategic adjustments in the company’s operations.

IDEC Completes Treasury Share Disposal for Compensation Plan
Jul 18, 2025

IDEC Corporation has completed the payment process for the disposal of 12,720 treasury shares as part of a performance-linked stock compensation plan. This move, resolved in a recent Board of Directors meeting, is aimed at aligning the interests of its directors and executive officers with company performance, potentially enhancing operational efficiency and stakeholder value.

IDEC Completes Treasury Stock Disposal for Executive Remuneration
Jul 18, 2025

IDEC Corporation has completed the payment process for the disposal of treasury stocks as restricted stock remuneration, a decision made during the Board of Directors meeting on June 20, 2025. This move involves the disposal of 3,450 shares of common stock at a price of 2,235 yen per share, totaling 7,710,750 yen, and is aimed at compensating six executive officers, potentially impacting the company’s financial strategy and stakeholder interests.

IDEC Corporation Finalizes Stock Options Issuance Details
Jul 1, 2025

IDEC Corporation has finalized the details regarding the issuance of stock options, initially resolved in a previous Board of Directors meeting. The company will allocate 3,000 stock acquisition rights to 100 employees, with each right corresponding to 100 shares of common stock, totaling 300,000 shares. This move is part of IDEC’s strategy to incentivize employees and align their interests with the company’s growth objectives.

IDEC Corporation Issues Stock Options to Boost Performance
Jun 20, 2025

IDEC Corporation’s Board of Directors has approved the issuance of stock acquisition rights as stock options to employees and directors, aiming to boost motivation and morale. This move is expected to improve the company’s business performance and enhance its international competitiveness by aligning employee interests with corporate goals.

IDEC Corporation Announces Disposal of Treasury Stock as Executive Remuneration
Jun 20, 2025

IDEC Corporation’s Board of Directors has resolved to dispose of 3,450 shares of treasury stock as restricted stock remuneration to six executive officers, aiming to align their interests with shareholders and enhance corporate value. This move is part of a broader strategy to implement a stock-based remuneration plan, which seeks to motivate directors and improve long-term business performance by tying compensation to company stock performance.

IDEC Corporation Announces Disposal of Treasury Stock for Performance Compensation
Jun 20, 2025

IDEC Corporation’s Board of Directors has resolved to dispose of 12,720 shares of its treasury stock as part of a performance-linked stock compensation plan. This initiative aims to align the interests of directors and executive officers with shareholders, enhancing motivation to improve corporate value and business performance over the medium to long term. The plan is part of a broader strategy to strengthen the company’s market positioning and operational effectiveness.

IDEC Corporation Announces Stock Options for Employees to Enhance Performance
May 15, 2025

IDEC Corporation has announced a resolution to issue stock acquisition rights as stock options to its employees and directors, aiming to boost motivation and enhance the company’s performance and international competitiveness. This strategic move is expected to align employee interests with corporate goals, potentially strengthening IDEC’s market position and benefiting stakeholders by fostering a more engaged workforce.

IDEC Corporation Announces Treasury Stock Cancellation
May 15, 2025

IDEC Corporation has announced a resolution to cancel 1.85 million shares of its treasury stock, which constitutes 5.56% of its total issued shares. This decision aligns with its policy to maintain treasury stock holdings below 5% of total shares, reflecting a strategic move to optimize its capital structure and potentially enhance shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 13, 2025