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

• Market Cap: ¥22.76B
• Dividend Yield: 3.02%
• Average Volume (3M): 5.40K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.53
• Revenue Growth: -4.36%
• EPS Growth: -14.92%
• Country: JP
• Employees: 237
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 37.13
• 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: ¥3,010.00 ▲(34.08% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

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

Zero-debt balance sheet

Zero debt materially lowers financial risk and boosts resilience through cycles. This durable capital structure provides flexibility for R&D, targeted M&A, or sustaining dividends without refinancing pressure, supporting strategic choices over the next several quarters.

Stable gross margins

Consistent gross margins near 49–50% indicate strong product-level economics and pricing power in diagnostics consumables. This durable margin base supports operating profitability and reinvestment capacity even if top-line growth softens over a 2–6 month horizon.

High free cash flow conversion

Free cash flow conversion near parity with net income (~0.97x) shows earnings translate into real cash. Reliable cash generation supports capex, working capital needs, and shareholder returns without dependency on external funding, a durable operational strength.

Negative Factors

Recent revenue decline

A revenue decline in FY2025 of -3.9% signals demand softness or mix issues. Over the medium term this raises questions about sustaining growth and scaling the business, and could force trade-offs between price, volume, and investment if not reversed.

Net margin compression

Net margin compression from ~13.1% to ~10.1% suggests rising costs or an unfavorable sales mix. If structural, lower margins reduce reinvestment capacity and returns on capital, pressuring long-term profitability unless efficiency or pricing actions restore margins.

Volatile cash generation

Volatile free cash flow and modest operating cash flow relative to revenue increase execution risk. Inconsistent cash generation can complicate budgeting for R&D, capex, or dividends and limit the company's ability to fund growth sustainably without higher liquidity buffers.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• RSI: Neutral
• STOCH: Neutral

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 2501.75, below the 50-day MA of 2357.90, and above the 200-day MA of 2036.60, indicating a bullish trend. The MACD of 88.58 indicates Negative momentum. The RSI at 66.73 is Neutral, neither overbought nor oversold. The STOCH value of 58.46 is Neutral, 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	¥22.76B	17.62	―	3.02%	-4.36%	-14.92%
5187	72 Outperform	¥10.84B	14.50	―	3.52%	4.97%	-10.07%
6823	69 Neutral	¥37.79B	12.60	―	2.93%	6.72%	20.01%
7963	67 Neutral	¥10.42B	11.78	―	1.89%	9.47%	37.35%
7600	58 Neutral	¥18.12B	-17.19	―	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 posts higher nine-month earnings and keeps FY dividend plan

For the nine months to December 31, 2025, Techno Medica lifted net sales 12.3% to ¥7.24 billion, boosting operating profit 41.9% to ¥829 million and ordinary profit 46.2% to ¥861 million, while net assets rose to ¥14.47 billion and the equity ratio strengthened to 85.4%; the company maintained its dividend plan of ¥68 per share for the fiscal year ending March 31, 2025.

The most recent analyst rating on (JP:6678) stock is a Buy with a Yen2622.00 price target. To see the full list of analyst forecasts on Techno Medica Co., Ltd. stock, see the JP:6678 Stock Forecast page.