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

• Market Cap: ¥16.16B
• Dividend Yield: 3.63%
• Average Volume (3M): 11.24K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.41
• Revenue Growth: -8.07%
• EPS Growth: -38.21%
• Country: JP
• Employees: 237
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 2.38
• Shares Outstanding: 8,760,000
• 10 Day Avg. Volume: 5,580
• 30 Day Avg. Volume: 11,236
• 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

• Rating: 74 Outperform
• Price Target: ―

Techno Medica Co., Ltd. exhibits a strong financial foundation with zero debt and high equity levels, contributing significantly to its overall score. However, the stock's current technical indicators suggest a lack of upward momentum, which weighs on the score. The company's valuation appears reasonable, supported by a moderate P/E ratio and a healthy dividend yield, which offers value to investors. In the absence of earnings call and corporate event insights, the score is primarily driven by financial performance and valuation metrics.

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

Techno Medica demonstrates strong financial performance with consistent revenue growth and strong profitability metrics. The balance sheet is particularly robust with zero debt and a high equity ratio, reducing financial risk. While cash flow is solid, there is room for efficiency improvements.

Income Statement

Techno Medica demonstrated commendable financial performance with consistent revenue growth, achieving a 9.8% increase in the latest year. The company maintains strong profitability with a Gross Profit Margin of 50.1% and a Net Profit Margin of 13.1%. Notably, EBIT and EBITDA margins remain robust at 17.9% and 19.0% respectively, indicating efficient cost management. However, slight variations in revenue growth rates over the years suggest potential demand fluctuations.

Balance Sheet

The balance sheet of Techno Medica is exceptionally strong, with zero debt and a Debt-to-Equity Ratio of 0. This positions the company with solid financial stability and low financial risk. The Equity Ratio stands at 79.3%, indicating high shareholder equity in the asset base. The Return on Equity (ROE) is a healthy 9.8%, reflecting good profitability relative to equity. The absence of debt enhances the company’s resilience and operational flexibility.

Cash Flow

Techno Medica's cash flow statements show a positive trajectory, with a significant Free Cash Flow Growth Rate of 39.0%. The Operating Cash Flow to Net Income Ratio is 0.8, slightly indicating room for improvement in cash generation efficiency. The Free Cash Flow to Net Income Ratio is strong at 0.8, suggesting adequate cash conversion from profits. The company’s ability to generate cash while maintaining low capital expenditures is a notable strength.

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: Negative
• Last Price: 1897.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1897 is below the 20-day moving average (MA) of 1923.45, below the 50-day MA of 1977.60, and above the 200-day MA of 1827.47, indicating a neutral trend. The MACD of -15.16 indicates Negative momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 37.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
5187	―	¥9.28B	12.53	―	3.63%	3.38%	88.65%
6678	―	¥16.16B	15.75	―	3.63%	-8.07%	-38.21%
7963	―	¥9.06B	11.80	―	1.88%	9.07%	43.42%
6823	―	¥31.04B	10.51	―	2.78%	7.99%	28.81%
7600	―	¥13.54B	―	―	2.92%	4.84%	-148.94%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Techno Medica Co., Ltd. Corporate Events

Techno Medica Reports Nine-Month Financial Results with Profit Decline

Techno Medica Co., Ltd. reported its non-consolidated financial results for the nine months ended December 31, 2024, showing a slight increase in net sales but significant declines in operating and ordinary profits compared to the previous year. Despite the challenging financial performance, the company maintains a strong equity-to-asset ratio, reflecting financial stability, and plans to maintain its annual cash dividend forecast, indicating a commitment to shareholder returns.