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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

(OTC:6724)

Rating:79Outperform
Price Target:
¥2,239.00
▲(14.50%Upside)
Seiko Epson's stock presents a compelling investment opportunity primarily due to its strong technical performance and attractive valuation. While the financial performance is solid, the slight dip in net profit margin and free cash flow growth suggests some caution. However, these are outweighed by the overall stability and growth prospects of the company.

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

Seiko Epson Business Overview & Revenue Model

Company DescriptionSeiko Epson Corporation, commonly known as Epson, is a Japanese electronics company specializing in imaging-related products. It operates in several sectors, including printing solutions, visual communications, wearable and industrial products. Its core products include printers, scanners, projectors, industrial robots, and smart glasses. Epson is recognized for its innovation in printing technology and continues to expand its product offerings to meet diverse customer needs across the globe.
How the Company Makes MoneyEpson generates revenue primarily through the sale of its printing solutions, which include inkjet printers, laser printers, and associated consumables such as ink cartridges and toner. In addition to printing solutions, Epson earns income from its visual communications segment, which comprises projectors and smart glasses. The company also capitalizes on its wearable and industrial products, including watches and industrial robots, to bolster its earnings. Epson's strategic partnerships and collaborations with other technology companies further enhance its market reach and contribute to its revenue streams. Key factors such as a strong global distribution network, continuous innovation, and a focus on sustainability also play a significant role in driving Epson's financial performance.

Seiko Epson Financial Statement Overview

Summary
Seiko Epson presents a solid financial position with stable revenue growth, efficient cost management, and strong leverage ratios. However, there is a slight dip in net profit margin and free cash flow growth, highlighting areas for improvement.
Income Statement
75
Positive
Seiko Epson has shown consistent revenue growth over the years. The revenue growth rate from 2024 to 2025 was approximately 3.7%. Gross profit margin for 2025 is 36.2%, indicating efficient cost control. The net profit margin is healthy at 4.0%, though it has slightly decreased compared to previous years. The EBIT margin is 6.6%, and the EBITDA margin is 11.3%, both reflecting operational efficiency. The company exhibits robust profitability, but the slight decline in net profit margin could be a concern.
Balance Sheet
80
Positive
Seiko Epson's balance sheet is strong with an equity ratio of 55.3% in 2025, indicating financial stability and a lower risk profile. The debt-to-equity ratio is 0.28 for 2025, showcasing effective leverage management. The return on equity (ROE) for 2025 is 6.9%, which is reasonable, but there's room for improvement. The company maintains a solid equity base, which supports its long-term sustainability.
Cash Flow
70
Positive
The cash flow statement reveals a decline in free cash flow from 2024 to 2025, with a negative growth rate of approximately -27.8%. The operating cash flow to net income ratio is 2.5, demonstrating that operating activities are generating ample cash. However, the free cash flow to net income ratio is 1.4, indicating a decrease in free cash flow generation relative to net income. While cash generation is strong, the decline in free cash flow growth raises potential concerns.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.36T1.31T1.33T1.13T995.94B
Gross Profit493.03B456.67B466.65B418.45B352.38B
EBITDA153.43B140.70B173.67B162.94B116.13B
Net Income55.18B52.62B75.04B92.29B30.92B
Balance Sheet
Total Assets1.46T1.41T1.34T1.27T1.16T
Cash, Cash Equivalents and Short-Term Investments267.00B328.48B269.54B335.24B305.16B
Total Debt224.71B204.78B233.28B243.15B265.91B
Total Liabilities651.57B601.96B614.10B600.68B608.37B
Stockholders Equity804.75B810.99B727.35B665.63B550.92B
Cash Flow
Free Cash Flow78.71B108.98B2.21B66.96B77.35B
Operating Cash Flow138.07B165.57B61.31B110.80B133.22B
Investing Cash Flow-150.79B-58.98B-61.60B-44.08B-57.45B
Financing Cash Flow-45.13B-65.39B-79.35B-51.77B23.15B

Seiko Epson Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1955.50
Price Trends
50DMA
1874.29
Positive
100DMA
2036.42
Negative
200DMA
2354.90
Negative
Market Momentum
MACD
2.26
Negative
RSI
61.35
Neutral
STOCH
41.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6724, the sentiment is Positive. The current price of 1955.5 is above the 20-day moving average (MA) of 1880.73, above the 50-day MA of 1874.29, and below the 200-day MA of 2354.90, indicating a neutral trend. The MACD of 2.26 indicates Negative momentum. The RSI at 61.35 is Neutral, neither overbought nor oversold. The STOCH value of 41.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6724.

Seiko Epson Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
¥169.57B15.6110.97%2.58%7.11%-0.27%
79
Outperform
¥625.89B11.596.70%3.78%3.72%6.12%
76
Outperform
$92.33B18.7415.32%3.17%-2.62%24.89%
74
Outperform
¥103.38B14.31
2.77%7.82%3.26%
73
Outperform
¥169.50B5.3830.22%1.46%5.27%
71
Outperform
¥92.55B21.58
7.20%0.03%-23.96%
68
Neutral
¥232.03B14.767.50%2.61%9.28%6.75%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6724
Seiko Epson
1,942.00
-528.66
-21.40%
JP:6737
EIZO Corp.
2,186.00
-129.50
-5.59%
JP:7739
Canon Electronics Inc.
2,557.00
418.59
19.57%
JP:6750
Elecom Co
1,884.00
293.00
18.42%
JP:6588
Toshiba Tec Corp.
3,080.00
-290.76
-8.63%
JP:6727
Wacom Co
705.00
5.25
0.75%
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: Jul 24, 2025