Seiko Epson (6724) AI Stock Analysis

• Market Cap: ¥621.57B
• Dividend Yield: 3.91%
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.86
• Revenue Growth: 0.86%
• EPS Growth: -15.62%
• Country: JP
• Employees: 75,352
• Sector: Technology
• Sector Strength: 84
• Industry: Computer Hardware
• EPS (TTM): 20.64
• Shares Outstanding: 373,573,150
• 10 Day Avg. Volume: 1,239,870
• 30 Day Avg. Volume: 1,393,646
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,050.37
• Price Target Upside: 5.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ¥2,109.00 ▲(8.60% Upside)

Seiko Epson's overall stock score is driven by its solid financial performance and attractive valuation. The company's stable revenue growth and efficient cost management are significant strengths. However, technical indicators suggest potential short-term volatility, which slightly offsets the positive financial and valuation aspects.

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

Epson 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36T	1.36T	1.31T	1.33T	1.13T	995.94B
Gross Profit	493.03B	493.03B	456.67B	466.65B	418.45B	352.38B
EBITDA	147.29B	153.43B	140.70B	173.67B	162.94B	116.13B
Net Income	55.18B	55.18B	52.62B	75.04B	92.29B	30.92B
Balance Sheet
Total Assets	1.46T	1.46T	1.41T	1.34T	1.27T	1.16T
Cash, Cash Equivalents and Short-Term Investments	267.00B	267.00B	328.48B	269.54B	335.24B	305.16B
Total Debt	224.71B	224.71B	204.78B	233.28B	243.15B	265.91B
Total Liabilities	651.57B	651.57B	601.96B	614.10B	600.68B	608.37B
Stockholders Equity	804.75B	804.75B	810.99B	727.35B	665.63B	550.92B
Cash Flow
Free Cash Flow	78.71B	78.71B	108.98B	2.21B	66.96B	77.35B
Operating Cash Flow	138.07B	138.07B	165.57B	61.31B	110.80B	133.22B
Investing Cash Flow	-150.79B	-150.79B	-58.98B	-61.60B	-44.08B	-57.45B
Financing Cash Flow	-45.13B	-45.13B	-65.39B	-79.35B	-51.77B	23.15B

Seiko Epson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1942.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1942 is above the 20-day moving average (MA) of 1905.53, above the 50-day MA of 1896.00, and below the 200-day MA of 2239.44, indicating a neutral trend. The MACD of 2.01 indicates Negative momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 49.18 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6724	73 Outperform	¥621.57B	14.80	5.27%	3.91%	0.86%	-15.62%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%
9EL	―	€974.98M	13.42	11.97%	―	―	―
WACMF	―	$680.81M	24.96	13.28%	2.67%	―	―
TECA	―	€921.20M	6.48	23.27%	―	―	―
7739	75 Outperform	¥109.67B	15.18		2.64%	7.82%	3.26%
6737	71 Outperform	¥96.25B	24.89		6.98%	-0.61%	-16.31%