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Seiko Epson Corp. (JP:6724)
:6724
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Seiko Epson (6724) AI Stock Analysis

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JP:6724

Seiko Epson

(6724)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
¥3,366.00
▲(8.62% Upside)
Action:Reiterated
Date:08/09/26
The score is held back primarily by weakened profitability (very low net margin and ROE) and a high P/E valuation. Offsetting factors are a relatively strong balance sheet with moderate leverage, positive free cash flow generation, and a clearly bullish technical trend with strong momentum.
Positive Factors
Conservative Balance Sheet
Epson’s low leverage and sizable equity base provide durable financial flexibility. Conservative debt-to-equity (~0.27) and ample equity reduce refinancing risk, support continued capex and R&D, and give management optionality to fund strategic investments or weather cyclical hardware downturns.
Negative Factors
Compressed Profitability
Margins and returns have materially weakened versus prior years, leaving a thin earnings cushion. Low net and operating margins make profits vulnerable to cost inflation or demand shifts, constrain reinvestment capacity, and reduce the company’s ability to raise long-term shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Epson’s low leverage and sizable equity base provide durable financial flexibility. Conservative debt-to-equity (~0.27) and ample equity reduce refinancing risk, support continued capex and R&D, and give management optionality to fund strategic investments or weather cyclical hardware downturns.
Read all positive factors

Seiko Epson (6724) vs. iShares MSCI Japan ETF (EWJ)

Seiko Epson Business Overview & Revenue Model

Company Description
Seiko Epson Corporation, founded in 1942 and based in Suwa, Japan, is an international enterprise engaged in the innovation, production, distribution, and maintenance of a broad spectrum of electronic products and services. Its business activities...
How the Company Makes Money
Seiko Epson makes money primarily by selling hardware products and related consumables, supplies, and services across its major business lines. A key revenue driver is its printing solutions business: it generates revenue from the sale of printers...

Seiko Epson Financial Statement Overview

Summary
Revenue is stable to modestly growing, the balance sheet is conservative (debt-to-equity ~0.27), and free cash flow is positive (~¥78B TTM). However, profitability has weakened sharply: TTM net margin is ~1.3% and operating margin ~3.8%, with ROE down to ~2.2%, leaving a thin earnings cushion.
Income Statement
56
Neutral
Balance Sheet
72
Positive
Cash Flow
63
Positive
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue1.46T1.41T1.36T1.31T1.33T1.13T
Gross Profit512.10B500.75B493.03B456.67B466.65B418.45B
EBITDA139.05B131.81B138.33B126.39B158.09B147.83B
Net Income24.57B18.20B55.18B52.62B75.04B92.29B
Balance Sheet
Total Assets1.58T1.53T1.46T1.41T1.34T1.27T
Cash, Cash Equivalents and Short-Term Investments316.86B288.58B267.00B328.48B267.38B335.24B
Total Debt270.04B231.46B154.72B185.20B203.29B225.15B
Total Liabilities714.91B681.22B651.57B601.96B614.10B600.68B
Stockholders Equity865.28B853.50B804.75B810.99B727.35B665.63B
Cash Flow
Free Cash Flow78.05B57.76B78.71B116.00B10.76B72.20B
Operating Cash Flow129.08B112.37B138.07B165.57B61.31B110.80B
Investing Cash Flow-59.28B-65.56B-150.79B-58.98B-61.60B-44.08B
Financing Cash Flow-4.22B-39.60B-45.13B-65.39B-79.35B-51.77B

Seiko Epson Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥118.50B14.204.76%5.48%127.51%
71
Outperform
¥4.27T11.193.37%3.26%121.86%
70
Outperform
¥63.77B13.694.01%4.83%52.94%
62
Neutral
¥944.20B51.942.19%2.39%3.69%-66.26%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
53
Neutral
¥174.18B-73.31-2.43%1.24%-1.34%-107.64%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6724
Seiko Epson
3,175.00
1,324.90
71.61%
JP:6588
Toshiba Tec Corp.
3,260.00
515.46
18.78%
JP:6413
Riso Kagaku Corporation
1,096.00
-62.86
-5.42%
JP:6737
EIZO Corp.
2,969.00
870.93
41.51%
JP:7751
Canon Inc.
4,635.00
389.11
9.16%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 09, 2026