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

• Market Cap: ¥16.44B
• Dividend Yield: 3.65%
• Average Volume (3M): 5.40K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.36
• 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: 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.

Positive Factors

Balance Sheet Strength

A zero-debt balance sheet enhances financial stability and operational flexibility, allowing the company to invest in growth opportunities without financial strain.

Cash Flow Generation

Strong cash flow generation supports ongoing operations and strategic investments, ensuring the company can sustain growth and navigate economic fluctuations.

Profitability Margins

High profitability margins indicate efficient cost management and pricing power, contributing to sustained financial health and competitive positioning.

Negative Factors

Revenue Growth Decline

Declining revenue growth and profits suggest potential challenges in market demand or competitive pressures, impacting long-term growth prospects.

Earnings Decline

A decline in earnings can affect the company's ability to reinvest in its business and maintain competitive advantages, posing risks to future profitability.

Revenue Growth Variability

Variability in revenue growth can indicate market instability or competitive challenges, potentially impacting the company's ability to achieve consistent long-term growth.

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

Company Description

Techno Medica Co., Ltd. (6678) is a Japanese company specializing in the development, manufacturing, and sale of medical devices and diagnostic equipment. The company operates primarily in the healthcare sector, focusing on products that enhance clinical testing and diagnostics. Their offerings include automated blood analyzers, laboratory information systems, and other medical devices designed to improve efficiency and accuracy in medical diagnostics.

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: Positive
• Last Price: 1941.00
• 50DMA: Negative
• 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 1941 is above the 20-day moving average (MA) of 1913.20, below the 50-day MA of 1948.38, and above the 200-day MA of 1846.29, indicating a neutral trend. The MACD of 0.82 indicates Negative momentum. The RSI at 52.85 is Neutral, neither overbought nor oversold. The STOCH value of 40.88 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
5187	78 Outperform	¥9.32B	11.43	―	3.63%	4.97%	-10.07%
6678	74 Outperform	¥16.44B	13.56	―	3.65%	-4.36%	-14.92%
7963	74 Outperform	¥9.13B	11.80	―	1.89%	9.47%	37.35%
6823	69 Neutral	¥31.34B	10.06	―	2.78%	6.72%	20.01%
7600	58 Neutral	¥12.61B	―	―	3.13%	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 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.