Seiko Epson (6724) AI Stock Analysis

• Market Cap: ¥677.58B
• Dividend Yield: 3.69%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.91
• Revenue Growth: 0.48%
• EPS Growth: 6.92%
• Country: JP
• Employees: 75,352
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 52.37
• 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: 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): 135.25
• Revenue Forecast (FY): ¥1.37T

• Rating: 67 Neutral
• Price Target: ¥2,267.00 ▲(13.10% Upside)
• Action: Downgraded Date: 02/05/26
• Date: Action: Downgraded 02/05/26

The score reflects solid technical strength (price above major moving averages with positive momentum) and a supportive valuation (P/E ~15 with ~3.66% yield), offset by mixed fundamentals—profitability and returns have declined versus prior years and cash conversion has weakened despite a resilient balance sheet.

Positive Factors

Recurring consumables/installed-base monetization

Epson’s business model captures durable recurring revenue from consumables tied to a large installed base. High-frequency purchases of ink and supplies create a predictable, repeat revenue stream that smooths cycles and supports long-term gross-margin stability and cash flow visibility.

Low and improving leverage / strong equity cushion

Leverage has materially improved versus prior years, leaving a relatively low debt-to-equity ratio and sizable equity base. This balance-sheet strength provides durable financial flexibility to fund capex, sustain dividends, or weather cyclical pressure without forcing rapid deleveraging.

Positive operating and free cash flow

Epson generates positive operating and free cash flow in absolute terms, supplying internal funding for investment, maintenance of the installed base, and shareholder payouts. Even if conversion has weakened, sustained positive FCF underpins medium-term financial resilience and strategic optionality.

Negative Factors

Compressed net margins

Net margin erosion versus prior years signals reduced earnings power. Sustained margin compression—whether from pricing pressure, mix shifts toward lower-margin segments, or higher input costs—diminishes long-term free cash flow potential and constrains the company’s ability to restore prior returns.

Weaker cash conversion (FCF vs. earnings)

Free cash flow at ~40% of net income represents a meaningful step down in cash conversion. Lower conversion reduces discretionary cash available for reinvestment or shareholder returns and may indicate higher working-capital needs or heavier reinvestment requirements over the medium term.

Modest revenue growth and cooling returns

Top-line growth is only modest while ROE has declined meaningfully, reflecting weaker profitability and slower business momentum. Persistently low growth and reduced returns make it harder to accelerate scale-driven margin improvement or justify higher reinvestment without structural product or market shifts.

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

Balance sheet is comparatively strong with moderate/improving leverage (debt-to-equity ~0.26) and a solid equity cushion, but operating performance has softened: net margin is down to ~3.1% TTM (vs ~4.0% FY2024 and ~8.2% FY2022) and ROE has cooled to ~5.3% TTM. Cash conversion is also weaker, with free cash flow about ~40% of net income.

Income Statement

Revenue has been relatively stable with modest growth in TTM (Trailing-Twelve-Months) (~2%), but profitability has compressed versus prior years: net margin is ~3.1% in TTM versus ~4.0% in FY2024 and ~8.2% in FY2022. Operating profitability is still positive (TTM EBIT margin ~5.3%), yet down meaningfully from FY2022–FY2023 levels, pointing to weaker pricing/premix and/or higher costs. Overall: steady top line, but a clear downshift in earnings power.

Balance Sheet

Leverage appears moderate and improving: debt-to-equity is ~0.26 in TTM (Trailing-Twelve-Months), better than the ~0.48 level seen in FY2021 and below FY2022–FY2023. Equity base is sizable relative to assets, supporting balance-sheet resilience. Returns on equity are positive but have cooled (TTM ~5.3% vs ~10.3% in FY2023 and ~13.9% in FY2022), suggesting weaker profitability rather than balance-sheet strain.

Cash Flow

Cash generation is positive but less supportive recently. TTM (Trailing-Twelve-Months) operating cash flow (~¥91B) and free cash flow (~¥36B) are solidly positive, and TTM free cash flow growth is positive, but free cash flow is low relative to reported earnings (TTM free cash flow is ~40% of net income). This is a step down from FY2022–FY2024, when free cash flow more consistently tracked earnings, implying higher reinvestment needs and/or working-capital drag.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.38T	1.36T	1.31T	1.33T	1.13T	995.94B
Gross Profit	496.04B	493.03B	456.67B	466.65B	418.45B	352.38B
EBITDA	150.10B	153.43B	140.70B	173.67B	162.94B	131.51B
Net Income	43.24B	55.18B	52.62B	75.04B	92.29B	30.92B
Balance Sheet
Total Assets	1.52T	1.46T	1.41T	1.34T	1.27T	1.16T
Cash, Cash Equivalents and Short-Term Investments	253.97B	267.00B	328.48B	267.38B	335.24B	305.16B
Total Debt	222.55B	224.71B	204.78B	233.28B	243.15B	265.91B
Total Liabilities	668.67B	651.57B	601.96B	614.10B	600.68B	608.37B
Stockholders Equity	855.96B	804.75B	810.99B	727.35B	665.63B	550.92B
Cash Flow
Free Cash Flow	36.27B	78.71B	108.98B	2.21B	66.96B	77.35B
Operating Cash Flow	91.46B	138.07B	165.57B	61.31B	110.80B	133.22B
Investing Cash Flow	-62.89B	-150.79B	-58.98B	-61.60B	-44.08B	-57.45B
Financing Cash Flow	-42.34B	-45.13B	-65.39B	-79.35B	-51.77B	23.15B

Seiko Epson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2004.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2004.5 is below the 20-day moving average (MA) of 2093.28, below the 50-day MA of 2040.16, and above the 200-day MA of 1930.21, indicating a bullish trend. The MACD of 21.72 indicates Positive momentum. The RSI at 58.36 is Neutral, neither overbought nor oversold. The STOCH value of 64.13 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
7739	76 Outperform	¥148.33B	22.80	―	1.92%	7.46%	-8.01%
7751	69 Neutral	¥4.57T	12.97	―	3.27%	4.02%	-41.52%
6737	69 Neutral	¥93.75B	18.89	―	4.76%	1.81%	9.07%
6724	67 Neutral	¥677.58B	15.69	6.07%	3.69%	0.48%	6.92%
6413	66 Neutral	¥77.14B	17.87	―	4.01%	0.31%	-11.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6588	55 Neutral	¥177.76B	-28.23	-6.22%	1.61%	-4.91%	-136.94%