Seiko Epson (6724) AI Stock Analysis

• Market Cap: $626.21B
• Dividend Yield: 3.78%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.87
• Revenue Growth: 0.48%
• EPS Growth: 6.92%
• Country: JP
• Employees: 75,352
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 37.62
• Shares Outstanding: 373,573,150
• 10 Day Avg. Volume: 1,225,370
• 30 Day Avg. Volume: 1,183,960
• PEG Ratio: 2.23
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 9.91
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 1.25
• Enterprise Value/Ebitda: 4.17
• 1Y Price Target: $2,492.31
• Price Target Upside: 29.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: ¥2,168.00 ▲(12.68% Upside)

Seiko Epson's overall stock score reflects a stable financial position with a strong balance sheet and reasonable valuation metrics. The technical analysis indicates a positive short-term trend, although challenges in revenue growth and cash flow generation are areas of concern. The absence of earnings call and corporate events data limits the analysis to financial performance, technical analysis, and valuation.

Seiko Epson Business Overview & Revenue Model

Company Description

Seiko Epson Corporation, together with its subsidiaries, develops, manufactures, sells, and provides services for products in the printing solutions, visual communications, manufacturing-related and wearables, and other businesses. It operates through three segments: Printing Solutions, Visual Communications, and Manufacturing-related and Wearables segments. The Printing Solutions segment offers home and office inkjet printers, serial impact dot matrix printers, page printers, color image scanners, dry process office papermaking systems, commercial and industrial inkjet printers, inkjet printheads, printers for use in POS systems, label printers, printer consumables, and others. The Visual Communications segment provides 3LCD projectors for business, education, the home, and event; smart glasses; and others. The Manufacturing-related and Wearables segment offers wristwatches, watch movements, and others; factory automation products, industrial robots, compact injection molders, and other production systems; and crystal units, crystal oscillators, quartz sensors, and others for consumer, automotive, and industrial equipment applications. This segment also provides CMOS LSIs and other chips primarily for consumer electronics and automotive applications; and metal powders for use as raw materials in the production of electronic components, etc., as well as value-added surface finishing in a range of industrial fields. The company also sells PCs, etc. It has operations in Japan, the Philippines, the United States, Indonesia, China, and internationally. The company was incorporated in 1942 and is headquartered in Suwa, Japan.

How the Company Makes Money

Seiko Epson generates revenue through multiple key streams. The largest portion comes from its printer business, which includes sales of inkjet and laser printers, along with consumables such as ink cartridges and paper. The company also earns significant income from its projector division, which sells a range of visual display technologies for both home and professional use. Additionally, Epson has a growing industrial solutions segment, which includes manufacturing robots and precision machinery for various industries. Strategic partnerships with other technology firms and OEMs enhance its market reach and revenue potential. The company invests in research and development to innovate and maintain competitive advantages, which also contributes to its overall earnings.

Seiko Epson Financial Statement Overview

Summary

Seiko Epson's financial statements present a mixed picture. The income statement shows stable profitability but challenges in revenue growth. The balance sheet is strong, with a healthy equity base and manageable debt levels. However, the cash flow statement highlights concerns with declining free cash flow growth. Overall, the company demonstrates financial stability, but there are areas that require attention, particularly in sustaining revenue growth and improving cash flow generation.

Income Statement

Seiko Epson's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth at -1.15%, which is concerning. However, the company maintains a stable gross profit margin of around 36%, and the net profit margin is at 3.16%. The EBIT and EBITDA margins are moderate, reflecting operational efficiency. The annual data shows fluctuations in revenue growth, with a notable increase in 2022 but a decline in subsequent years. Overall, the company demonstrates stability in profitability but faces challenges in sustaining revenue growth.

Balance Sheet

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.29 in the TTM period, indicating manageable leverage. The return on equity is moderate at 5.29%, suggesting efficient use of equity to generate profits. The equity ratio is strong, with stockholders' equity making up a significant portion of total assets. Over the years, the company has maintained a stable equity base, but the slight increase in debt levels warrants attention. Overall, the balance sheet is robust, with a good balance between debt and equity.

Cash Flow

The cash flow statement reveals some challenges, particularly with free cash flow growth, which declined by 43.97% in the TTM period. The operating cash flow to net income ratio is 0.27, indicating a moderate conversion of net income into cash. The free cash flow to net income ratio is 0.42, showing some efficiency in cash generation. Historically, the company has experienced fluctuations in free cash flow growth, with significant declines in recent periods. While operating cash flow remains positive, the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.35T	1.36T	1.31T	1.33T	1.13T	995.94B
Gross Profit	489.40B	493.03B	456.67B	466.65B	418.45B	352.38B
EBITDA	146.47B	153.43B	140.70B	173.67B	162.94B	131.51B
Net Income	42.63B	55.18B	52.62B	75.04B	92.29B	30.92B
Balance Sheet
Total Assets	1.42T	1.46T	1.41T	1.34T	1.27T	1.16T
Cash, Cash Equivalents and Short-Term Investments	229.89B	267.00B	328.48B	267.38B	335.24B	305.16B
Total Debt	227.71B	224.71B	204.78B	233.28B	243.15B	265.91B
Total Liabilities	629.44B	651.57B	601.96B	614.10B	600.68B	608.37B
Stockholders Equity	789.32B	804.75B	810.99B	727.35B	665.63B	550.92B
Cash Flow
Free Cash Flow	44.10B	78.71B	108.98B	2.21B	66.96B	77.35B
Operating Cash Flow	105.99B	138.07B	165.57B	61.31B	110.80B	133.22B
Investing Cash Flow	-153.21B	-150.79B	-58.98B	-61.60B	-44.08B	-57.45B
Financing Cash Flow	-44.04B	-45.13B	-65.39B	-79.35B	-51.77B	23.15B

Seiko Epson Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1924.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6724, the sentiment is Negative. The current price of 1924 is below the 20-day moving average (MA) of 1951.35, below the 50-day MA of 1933.77, and below the 200-day MA of 2035.44, indicating a bearish trend. The MACD of -6.80 indicates Positive momentum. The RSI at 48.01 is Neutral, neither overbought nor oversold. The STOCH value of 17.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6724.

Seiko Epson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6750	75 Outperform	€167.84B	14.63	11.97%	2.74%	6.70%	14.87%
6588	75 Outperform	€170.05B	7.61	-6.22%	1.48%	-1.36%	―
7739	73 Outperform	¥110.20B	15.94	―	2.65%	7.46%	-8.01%
6724	70 Neutral	$626.21B	14.91	6.07%	3.78%	0.48%	6.92%
6737	69 Neutral	¥92.68B	20.52	―	4.79%	1.81%	9.07%
6727	66 Neutral	¥103.79B	18.05	17.33%	3.94%	-8.93%	48.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%