TAIYO TECHNOLEX CO. LTD. (6663) AI Stock Analysis

• Market Cap: ¥1.52B
• Dividend Yield: 1.18%
• Average Volume (3M): 223.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: -7.80%
• EPS Growth: -4418.51%
• Country: JP
• Employees: 209
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 5.95
• Shares Outstanding: 5,992,400
• 10 Day Avg. Volume: 640,310
• 30 Day Avg. Volume: 223,020
• PEG Ratio: 0.53
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 7.54
• 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: 50 Neutral
• Price Target: ¥281.00 ▲(10.63% Upside)

The overall stock score of 50 reflects a mix of strong revenue growth and improving cash flow management, offset by significant challenges in profitability and valuation. The technical indicators suggest a bearish trend, and the negative P/E ratio highlights concerns about the company's current financial health. The lack of earnings call data and notable corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for TAIYO TECHNOLEX's products, suggesting effective market penetration and potential for future expansion.

Cash Flow Management

Improving cash flow management enhances the company's ability to reinvest in growth opportunities and manage financial obligations, supporting long-term stability.

Conservative Leverage

A low debt-to-equity ratio provides financial stability, reducing risk and increasing flexibility to invest in strategic initiatives.

Negative Factors

Negative Profitability

Negative profitability metrics highlight operational inefficiencies, which could hinder the company's ability to sustain growth and return value to shareholders.

Negative Return on Equity

A negative ROE indicates poor utilization of shareholder funds, which could impact investor confidence and long-term capital raising ability.

Unprofitability

Ongoing unprofitability suggests the need for strategic improvements to achieve sustainable growth and financial health, affecting long-term viability.

TAIYO TECHNOLEX CO. LTD. Business Overview & Revenue Model

Company Description

Taiyo Technolex Co.,Ltd. engages in the design, manufacture, and sale of electronic boards, board test systems, and prober products primarily in Japan. The company offers prototypes and develops flexible printed circuit (FPC) boards, including single-sided fine pitch, double-sided fine pitch, multilayered, bump, bare chip mounted, and component mounted FPCs, as well as provides ACF crimping services; assembles printed wiring boards; and designs electronic circuits by CAD. It also offers test systems, such as bare board test systems; continuity test systems and final visual inspection systems for printed circuit boards; and function test systems. In addition, the company develops and manufactures film contact fixtures; and electroformed products. Further, it is involved in the manufacture, sale, import, and export of grinders; sale and service support of board testing systems; sale of FPC prototypes; and import, export, and sale of FPC boards, inspection equipment, and industrial instruments. The company was formerly known as Taiyo Industrial Co., LTD. and changed its name to Taiyo Technolex Co.,Ltd. in December 2023. Taiyo Technolex Co.,Ltd. was incorporated in 1960 and is headquartered in Wakayama, Japan.

How the Company Makes Money

TAIYO TECHNOLEX generates revenue through the sale of its electronic components and systems, which include semiconductors and printed circuit boards. The company's revenue model is primarily based on direct sales to manufacturers and businesses in various sectors. Key revenue streams include bulk sales to large enterprises, contracts for custom electronic solutions, and ongoing partnerships with technology firms that require high-quality components for their products. Additionally, TAIYO TECHNOLEX may benefit from research and development collaborations, enabling them to innovate and expand their product offerings, thus enhancing their earnings potential.

TAIYO TECHNOLEX CO. LTD. Financial Statement Overview

Summary

TAIYO TECHNOLEX CO. LTD. demonstrates strong revenue growth and improving cash flow, but faces challenges in profitability and return on equity. The company's conservative leverage is a positive aspect, providing financial stability. However, the negative net income and ROE indicate areas that require strategic focus to enhance shareholder value and operational efficiency.

Income Statement

The company has shown a significant revenue growth rate of 25.72% in the most recent year, indicating strong top-line growth. However, profitability remains a concern with a negative net profit margin of -2.27% and an EBIT margin of -1.12%, reflecting ongoing operational challenges. The gross profit margin is moderate at 28.70%, but the negative net income suggests the company is struggling to convert sales into profits.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.28, indicating a conservative leverage position. However, the return on equity is negative at -3.19%, highlighting inefficiencies in generating returns for shareholders. The equity ratio is stable, suggesting a solid capital structure, but the negative ROE is a concern for long-term value creation.

Cash Flow

The cash flow statement reveals a strong recovery in free cash flow, with a significant growth rate from the previous year. The operating cash flow to net income ratio of 0.29 indicates that the company is generating cash from operations, although the free cash flow to net income ratio of 0.85 suggests that cash generation is not fully translating into profitability. Overall, cash flow management appears to be improving.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.37B	3.52B	3.41B	3.63B	3.92B	3.18B
Gross Profit	974.14M	1.01B	944.31M	1.04B	1.19B	634.31M
EBITDA	63.62M	100.81M	4.63M	158.33M	395.24M	-494.63M
Net Income	-118.87M	-79.78M	-126.54M	39.76M	241.19M	-630.02M
Balance Sheet
Total Assets	4.84B	4.54B	4.58B	4.79B	4.83B	4.43B
Cash, Cash Equivalents and Short-Term Investments	1.87B	1.49B	1.33B	1.53B	1.51B	1.29B
Total Debt	958.23M	692.92M	753.91M	812.80M	870.06M	739.15M
Total Liabilities	2.40B	2.01B	2.04B	2.13B	2.22B	2.03B
Stockholders Equity	2.42B	2.50B	2.51B	2.64B	2.59B	2.37B
Cash Flow
Free Cash Flow	0.00	212.23M	-203.28M	145.85M	146.38M	20.17M
Operating Cash Flow	0.00	248.70M	-27.47M	233.13M	165.18M	50.27M
Investing Cash Flow	0.00	-5.05M	-64.84M	-76.79M	-7.86M	-43.36M
Financing Cash Flow	0.00	-158.98M	-141.04M	-146.00M	60.50M	-74.62M

TAIYO TECHNOLEX CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 254.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6663, the sentiment is Negative. The current price of 254 is below the 20-day moving average (MA) of 254.25, below the 50-day MA of 269.80, and below the 200-day MA of 266.15, indicating a bearish trend. The MACD of -3.71 indicates Negative momentum. The RSI at 41.12 is Neutral, neither overbought nor oversold. The STOCH value of 26.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6663.

TAIYO TECHNOLEX CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6969	68 Neutral	¥2.67B	4.52	―	―	16.21%	3915.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6977	54 Neutral	¥1.18B	-3.38	―	3.14%	-10.07%	-133.40%
6664	53 Neutral	¥1.99B	-4.63	―	―	5.29%	47.66%
6867	52 Neutral	¥2.24B	27.94	―	2.96%	-0.26%	―
6663	50 Neutral	¥1.52B	-14.50	―	1.18%	-7.80%	-4418.51%
6775	45 Neutral	¥1.56B	-7.74	―	―	10.78%	26.78%