Seiko Electric Co., Ltd. (6653) AI Stock Analysis

• Market Cap: ¥31.53B
• Dividend Yield: 1.91%
• Average Volume (3M): 118.66K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.16
• Revenue Growth: 3.14%
• EPS Growth: 11.04%
• Country: JP
• Employees: 985
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 29.14
• Shares Outstanding: 13,908,595
• 10 Day Avg. Volume: 154,880
• 30 Day Avg. Volume: 118,663
• PEG Ratio: 0.36
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -550.77
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥2,495.00 ▲(6.17% Upside)

Seiko Electric Co., Ltd. benefits from strong financial performance and bullish technical indicators. However, cash flow challenges and overbought technical signals temper the overall outlook. The valuation is fair, but not a standout in the current market.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates a strong market position and effective business strategies, enhancing its long-term financial stability.

Balance Sheet Health

Low leverage and efficient equity use provide financial flexibility and reduce risk, supporting sustainable growth and investment capacity.

Profitability

Strong profit margins reflect effective cost management and pricing power, ensuring long-term profitability and competitive advantage.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth indicates potential liquidity issues, which could constrain operational flexibility and investment capacity.

Cash Generation Issues

Low cash conversion efficiency may impact the company's ability to fund operations and growth initiatives, posing a risk to financial health.

Liability Management

Substantial liabilities, if not managed well, could increase financial risk and limit strategic options, affecting long-term sustainability.

Seiko Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Seiko Electric Co., Ltd. primarily operates in the fields of power system, and environmental energy and control system in Japan. It offers supervision and control systems, digitalization control systems, and electric power equipment; water treatment monitoring control systems and water quality monitoring equipment; control and automated systems in industries, such as steel, fertilizer, incineration, plaster board, and stone crushing; home use power storage systems; and cloud services in the fields of finance, education, harbors, manufacturing, and distribution. In addition, it offers control equipment, including cam switches and terminal blocks; electronic equipment comprising earth leakage relays; and functional liquid crystal films for optical shutters. It serves central and various government offices; electric, gas, and environment plant companies; iron, steel, nonferrous metal, and construction companies; automobile, ship building, and electrical machinery plants; science, chemical, food products, and paper manufacturing companies; and construction companies. The company was formerly known as Seiko Shokai and changed its name to Seiko Electric Co., Ltd. in 1960. Seiko Electric Co., Ltd. was founded in 1921 and is headquartered in Fukuoka, Japan.

How the Company Makes Money

Seiko Electric generates revenue primarily through the sale of its electrical and electronic components. Key revenue streams include the production and distribution of circuit breakers, relays, and transformers, which are essential for power distribution and management in various industries. The company also earns income from customized solutions tailored to specific industrial applications, enhancing its appeal to business clients. Moreover, Seiko Electric forms strategic partnerships with other technology firms and industry leaders to expand its market reach and product offerings, contributing to its financial growth. Additionally, the company's focus on research and development enables it to introduce innovative products that meet evolving market demands, further enhancing its revenue potential.

Seiko Electric Co., Ltd. Financial Statement Overview

Summary

Seiko Electric Co., Ltd. shows strong revenue growth and profitability with a solid balance sheet. However, cash flow management is a concern due to negative free cash flow growth and low operating cash flow to net income ratio.

Income Statement

Seiko Electric Co., Ltd. demonstrates strong revenue growth, with an increase from ¥27,071 million in 2023 to ¥29,099 million in 2024, marking a growth rate of 7.48%. The company maintains healthy profit margins with a gross profit margin of 17.85% and a net profit margin of 5.28% in 2024. The EBIT margin stands at 6.93%, and the EBITDA margin is robust at 8.32%. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.17, indicating low leverage, and a return on equity (ROE) of 9.67%, showcasing efficient use of equity. The equity ratio is 52.37%, highlighting a strong equity base relative to total assets. Despite these strengths, the company should monitor its total liabilities, which remain substantial.

Cash Flow

Cash flow analysis reveals challenges, with a significant decrease in free cash flow from ¥2,238 million in 2023 to ¥-26 million in 2024, indicating a negative free cash flow growth rate. The operating cash flow to net income ratio is low at 0.22, suggesting potential issues in cash generation from operations. The company should focus on improving cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.28B	29.10B	27.07B	25.01B	24.60B	23.38B
Gross Profit	5.56B	5.20B	4.67B	4.47B	4.42B	4.17B
EBITDA	2.98B	2.42B	2.24B	1.83B	1.75B	1.66B
Net Income	1.67B	1.54B	1.20B	1.08B	1.06B	1.04B
Balance Sheet
Total Assets	27.93B	30.33B	28.75B	28.05B	25.79B	23.91B
Cash, Cash Equivalents and Short-Term Investments	6.90B	3.17B	2.26B	2.33B	1.85B	1.89B
Total Debt	940.00M	2.71B	3.25B	5.26B	3.71B	3.19B
Total Liabilities	11.18B	14.45B	15.54B	16.49B	14.85B	13.76B
Stockholders Equity	16.75B	15.88B	13.21B	11.56B	10.94B	10.15B
Cash Flow
Free Cash Flow	0.00	-26.00M	2.24B	-626.00M	-112.00M	-1.25B
Operating Cash Flow	0.00	339.00M	3.19B	-79.00M	1.64B	-644.00M
Investing Cash Flow	0.00	160.00M	-771.00M	-498.00M	-1.78B	-617.00M
Financing Cash Flow	0.00	391.00M	-2.50B	1.04B	154.00M	1.52B

Seiko Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2350.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6653, the sentiment is Positive. The current price of 2350 is above the 20-day moving average (MA) of 2326.33, above the 50-day MA of 2272.94, and above the 200-day MA of 1651.07, indicating a neutral trend. The MACD of 36.73 indicates Positive momentum. The RSI at 51.17 is Neutral, neither overbought nor oversold. The STOCH value of 12.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6653.

Seiko Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥24.54B	12.89	―	2.89%	6.15%	2.98%
6800	79 Outperform	¥51.10B	17.12	―	2.20%	4.75%	164.54%
6653	77 Outperform	¥31.53B	17.15	―	1.91%	3.14%	11.04%
6874	72 Outperform	¥22.98B	10.14	―	2.84%	8.78%	16.25%
6989	71 Outperform	¥21.44B	9.17	―	3.15%	2.48%	39.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6844	58 Neutral	¥35.51B	32.83	―	1.95%	6.10%	―

Seiko Electric Co., Ltd. Corporate Events

Seiko Electric Reports Strong Financial Performance for 2025

Seiko Electric Co., Ltd. reported a positive financial performance for the nine months ending September 30, 2025, with net sales increasing by 2.6% and operating profit rising by 33.4% compared to the previous year. The company’s strong financial results indicate a solid market position and potential growth opportunities, benefiting stakeholders and enhancing its competitive edge in the industry.

The most recent analyst rating on (JP:6653) stock is a Buy with a Yen1650.00 price target. To see the full list of analyst forecasts on Seiko Electric Co., Ltd. stock, see the JP:6653 Stock Forecast page.