Seiko Epson (6724) AI Stock Analysis

• Market Cap: $635.17B
• Dividend Yield: 3.73%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.92
• 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: 0.96
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 1.26
• Enterprise Value/Ebitda: 3.97
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥2,182.00 ▲(9.59% Upside)

Seiko Epson's strong revenue growth and stable gross margins are key strengths, supported by a solid balance sheet with moderate leverage. The stock's valuation is attractive with a low P/E ratio and high dividend yield. However, challenges in profitability and cash flow generation, along with potential overbought technical indicators, slightly temper the overall outlook.

Positive Factors

Revenue Growth

Seiko Epson's strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion.

Stable Gross Margins

Consistent gross margins reflect effective cost control, contributing to sustained profitability and competitive pricing strategies.

Solid Balance Sheet

A moderate debt-to-equity ratio suggests financial stability, providing flexibility for strategic investments and growth opportunities.

Negative Factors

Declining ROE

Declining ROE indicates reduced profitability for shareholders, which may impact investor confidence and long-term value creation.

Cash Flow Challenges

Reduced cash generation efficiency limits the ability to reinvest in growth initiatives or return capital to shareholders, affecting long-term sustainability.

Decreased Net Profit Margin

A declining net profit margin suggests increased pressure on profitability, potentially affecting future earnings and competitive positioning.

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	1.36T	1.36T	1.31T	1.33T	1.13T	995.94B
Gross Profit	483.27B	493.03B	456.67B	466.65B	418.45B	352.38B
EBITDA	154.03B	153.43B	140.70B	173.67B	162.94B	131.51B
Net Income	50.56B	55.18B	52.62B	75.04B	92.29B	30.92B
Balance Sheet
Total Assets	1.45T	1.46T	1.41T	1.34T	1.27T	1.16T
Cash, Cash Equivalents and Short-Term Investments	222.13B	267.00B	328.48B	267.38B	335.24B	305.16B
Total Debt	208.92B	224.71B	204.78B	233.28B	243.15B	265.91B
Total Liabilities	628.08B	651.57B	601.96B	614.10B	600.68B	608.37B
Stockholders Equity	819.21B	804.75B	810.99B	727.35B	665.63B	550.92B
Cash Flow
Free Cash Flow	33.37B	78.71B	108.98B	2.21B	66.96B	77.35B
Operating Cash Flow	92.34B	138.07B	165.57B	61.31B	110.80B	133.22B
Investing Cash Flow	-150.49B	-150.79B	-58.98B	-61.60B	-44.08B	-57.45B
Financing Cash Flow	-34.92B	-45.13B	-65.39B	-79.35B	-51.77B	23.15B

Seiko Epson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1991.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 1991 is above the 20-day moving average (MA) of 1952.92, above the 50-day MA of 1944.12, and above the 200-day MA of 1954.87, indicating a bullish trend. The MACD of 19.58 indicates Negative momentum. The RSI at 57.26 is Neutral, neither overbought nor oversold. The STOCH value of 68.43 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	75 Outperform	$635.17B	12.70	6.07%	3.73%	0.48%	6.92%
6750	72 Outperform	¥162.19B	13.34	12.77%	2.87%	4.48%	22.39%
6737	69 Neutral	¥91.17B	20.99	―	4.82%	1.81%	9.07%
7739	65 Neutral	¥148.73B	21.52	―	1.92%	7.46%	-8.01%
6727	62 Neutral	¥107.26B	18.65	17.33%	4.10%	-8.93%	48.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6588	55 Neutral	¥153.82B	-22.60	-6.22%	1.61%	-4.91%	-136.94%