Techno Medica Co., Ltd. (6678) AI Stock Analysis

• Market Cap: ¥18.97B
• Dividend Yield: 3.02%
• Average Volume (3M): 5.40K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.42
• Revenue Growth: -4.36%
• EPS Growth: -14.92%
• Country: JP
• Employees: 237
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 26.93
• Shares Outstanding: 8,760,000
• 10 Day Avg. Volume: 4,730
• 30 Day Avg. Volume: 5,400
• PEG Ratio: -0.75
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 12.76
• 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: 78 Outperform
• Price Target: ¥2,559.00 ▲(13.99% Upside)

The score is primarily driven by very strong balance-sheet quality (zero debt) and overall solid financial performance, tempered by recent revenue decline and margin compression. Technicals add support due to a clear uptrend and positive momentum indicators, while valuation is reasonable with a mid-teens P/E and ~3% yield.

Positive Factors

Balance Sheet Strength

A zero-debt balance sheet significantly reduces financial risk, providing resilience and flexibility to navigate economic cycles.

Cash Flow Quality

Strong free cash flow conversion supports earnings quality, indicating that the company can generate cash effectively from its operations.

Financial Stability

A strong equity-to-asset ratio highlights the company's solid financial foundation, enhancing its ability to withstand market fluctuations.

Negative Factors

Revenue Decline

A decline in revenue growth can signal challenges in market demand or competitive pressures, affecting long-term growth prospects.

Margin Compression

Margin compression indicates rising costs or pricing pressures, which can erode profitability if not addressed.

Earnings Volatility

Volatile earnings and cash flow can complicate financial planning and investor confidence, impacting long-term strategic initiatives.

Techno Medica Co., Ltd. Business Overview & Revenue Model

Company Description

Techno Medica Co., Ltd. engages in the research and development, manufacture, sale, import, and export of in-vitro diagnostic analyzers in Japan. The company offers test tube preparation, automatic urine aliquot, RFID specimen management, and RFID blood transfusion management, as well as blood gas, electrolyte, Erythrocyte Sedimentation Rate, nutrient, sugar and acid, and urine chemistry analyzers; electronic medical charts and pre-analytical instruments; and consumables and after sales services. Techno Medica Co., Ltd. was incorporated in 1987 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Techno Medica Co., Ltd. generates revenue through the sale of its medical and diagnostic equipment to hospitals, clinics, and laboratories. The company's key revenue streams are derived from the production and distribution of automated blood analyzers and laboratory information systems, which are crucial for medical diagnostics. Additionally, Techno Medica may establish strategic partnerships with healthcare providers and distributors to expand its market reach and enhance sales. Service and maintenance contracts for their equipment might also contribute to their revenue, ensuring ongoing client support and equipment functionality.

Techno Medica Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals anchored by an exceptionally conservative, zero-debt balance sheet (very low financial risk) and solid profitability. The main offsets are FY2025 revenue decline (-3.9% YoY), meaningful margin compression (net margin ~10.1% vs ~13.1% prior year), and somewhat uneven free-cash-flow momentum despite generally good cash conversion.

Income Statement

Profitability is solid for the industry, with gross margin holding around ~49–50% across the period and healthy operating profitability, but earnings power has softened recently. Revenue slipped in FY2025 (-3.9% YoY) after a stronger FY2024, and margins compressed meaningfully in FY2025 (net margin ~10.1% vs ~13.1% in FY2024), indicating a less favorable mix/cost environment. Overall, the company remains consistently profitable, but near-term growth and margin trajectory are weaker.

Balance Sheet

The balance sheet is exceptionally conservative with zero debt across all years provided, which materially lowers financial risk and improves resilience through cycles. Equity is large relative to the asset base, and returns on equity are steady (roughly ~7–10%), though not particularly high versus best-in-class med-tech peers—suggesting capital is used prudently but with limited leverage-driven upside. The main weakness is that the very strong capital position is not translating into consistently rising returns.

Cash Flow

Free cash flow conversion is generally strong versus reported earnings (free cash flow close to net income in most years, including ~0.97x in FY2025), supporting earnings quality. However, cash generation is somewhat uneven: free cash flow growth has been volatile (strong rebound in FY2022, sharp drop in FY2023), and operating cash flow is modest relative to revenue in recent years, pointing to working-capital or reinvestment variability. Overall cash flow is healthy, but less consistent than the income statement suggests.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.66B	9.91B	10.28B	9.37B	9.70B	9.04B
Gross Profit	4.73B	4.87B	5.15B	4.63B	4.82B	4.45B
EBITDA	1.19B	1.42B	1.95B	1.76B	1.95B	1.75B
Net Income	847.54M	1.00B	1.35B	1.15B	1.28B	1.15B
Balance Sheet
Total Assets	16.66B	17.94B	17.43B	19.44B	18.51B	17.55B
Cash, Cash Equivalents and Short-Term Investments	8.67B	9.06B	8.59B	11.75B	11.52B	10.14B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.73B	3.55B	3.62B	3.06B	2.86B	2.59B
Stockholders Equity	13.93B	14.39B	13.82B	16.39B	15.65B	14.96B
Cash Flow
Free Cash Flow	0.00	952.67M	1.04B	748.50M	1.98B	791.50M
Operating Cash Flow	0.00	977.53M	1.14B	887.24M	2.06B	825.41M
Investing Cash Flow	0.00	-32.34M	-100.72M	-155.37M	2.49B	-153.68M
Financing Cash Flow	0.00	-470.16M	-4.21B	-505.09M	-598.64M	-415.34M

Techno Medica Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2245.00
• 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:6678, the sentiment is Positive. The current price of 2245 is below the 20-day moving average (MA) of 2263.80, above the 50-day MA of 2185.92, and above the 200-day MA of 1962.34, indicating a neutral trend. The MACD of 6.14 indicates Positive momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 18.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6678.

Techno Medica Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6678	78 Outperform	¥18.97B	15.65	―	3.02%	-4.36%	-14.92%
5187	78 Outperform	¥10.24B	12.56	―	3.52%	4.97%	-10.07%
7963	74 Outperform	¥9.35B	12.09	―	1.89%	9.47%	37.35%
6823	69 Neutral	¥33.77B	11.33	―	2.93%	6.72%	20.01%
7600	58 Neutral	¥12.80B	-12.14	―	3.12%	3.59%	-163.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Techno Medica Co., Ltd. Corporate Events

Techno Medica Reports Stable Financial Position Amid Slight Profit Decline

Techno Medica Co., Ltd. reported a slight decrease in net sales and operating profit for the six months ended September 30, 2025, compared to the same period last year. Despite the decline in profits, the company maintains a strong equity-to-asset ratio, indicating financial stability, and has not revised its cash dividend forecast, suggesting confidence in future performance.