Newtech Co., Ltd. (6734) AI Stock Analysis

• Market Cap: ¥3.51B
• Dividend Yield: 2.75%
• Average Volume (3M): 4.96K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.34
• Revenue Growth: 33.70%
• EPS Growth: 36.99%
• Country: JP
• Employees: 78
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 52.10
• Shares Outstanding: 2,081,000
• 10 Day Avg. Volume: 6,140
• 30 Day Avg. Volume: 4,963
• PEG Ratio: -1.29
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 8.02
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ―

Newtech Co., Ltd. demonstrates strong financial health with solid revenue growth and profitability, supported by a robust balance sheet. Technical indicators show positive momentum, although Stochastic implies caution. Valuation appears attractive with a low P/E ratio and a good dividend yield. The company's strong fundamentals and favorable technical setup contribute significantly to the positive stock score, positioning it well in the computer hardware industry.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective product offerings, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, reducing risk and providing flexibility for future investments.

Cash Flow Generation

Significant cash flow growth indicates efficient operations and the ability to fund growth initiatives without relying on external financing.

Negative Factors

EBIT Margin Decline

A decline in EBIT margin suggests potential challenges in operational efficiency, which could impact long-term profitability if not addressed.

Underinvestment Risk

High free cash flow relative to net income may indicate underinvestment in growth areas, potentially limiting future expansion opportunities.

Operational Efficiency

Improving operational efficiency is crucial to maintain competitive margins and ensure sustainable profitability in the long term.

Newtech Co., Ltd. Business Overview & Revenue Model

Company Description

Newtech Co., Ltd. (6734) is a technology company specializing in the development and manufacturing of semiconductor components and electronic devices. The company operates in the technology sector, offering a wide array of products including integrated circuits, sensors, and power management solutions. Newtech Co., Ltd. caters to various industries such as consumer electronics, automotive, and industrial applications, aiming to provide innovative solutions that enhance performance and efficiency.

How the Company Makes Money

Newtech Co., Ltd. generates revenue primarily through the sale of its semiconductor components and electronic devices. The company's key revenue streams include product sales to original equipment manufacturers (OEMs) and direct sales to end-users in various industries. Newtech also engages in strategic partnerships and collaborations with other technology companies to expand its market reach and product offerings. Additionally, the company invests in research and development to create cutting-edge products that meet the evolving demands of its clients, thereby maintaining a competitive edge in the market.

Newtech Co., Ltd. Financial Statement Overview

Summary

Newtech Co., Ltd. exhibits a strong financial position with impressive revenue growth, profitability, and a solid balance sheet. The company maintains low debt levels, a high equity ratio, and strong cash flow generation. Key strengths include robust profit margins and impressive free cash flow growth. However, the slight decline in EBIT margin signals a need for improved operational efficiency.

Income Statement

Newtech Co., Ltd. has shown a robust performance in its income statement. The company achieved a gross profit margin of 25.65% and a net profit margin of 5.69% in 2025, which are strong indicators of profitability. The revenue growth rate from 2024 to 2025 was 26.47%, showing solid growth dynamics. However, the EBIT margin slightly decreased from 9.78% in 2024 to 7.73% in 2025, indicating a slight decline in operating efficiency. Overall, the company maintains strong profitability and growth.

Balance Sheet

The balance sheet of Newtech Co., Ltd. is very strong, with an impressive equity ratio of 57.13% in 2025, highlighting a solid capital structure. The debt-to-equity ratio is low at 0.06, indicating minimal financial leverage, which reduces risk. The return on equity is healthy at 9.89%. The company has maintained a strong equity base with decreasing debt levels over the years, showing financial stability and low risk.

Cash Flow

Cash flow analysis shows a positive trend with a free cash flow growth rate of 2260.38% from 2024 to 2025, indicating improved cash management. The operating cash flow to net income ratio is 1.43 in 2025, reflecting efficient cash generation relative to net income. However, the free cash flow to net income ratio is at a high 1.39, suggesting the company is generating more free cash flow than net income, which is positive but might indicate underinvestment in some areas for growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.43B	4.70B	3.71B	3.66B	2.96B	3.13B
Gross Profit	1.32B	1.20B	1.13B	1.16B	920.17M	1.08B
EBITDA	455.56M	390.75M	410.99M	470.50M	303.21M	434.65M
Net Income	320.86M	267.08M	290.86M	319.95M	195.26M	295.96M
Balance Sheet
Total Assets	4.56B	4.73B	4.13B	3.99B	3.38B	3.24B
Cash, Cash Equivalents and Short-Term Investments	3.15B	2.99B	2.57B	2.71B	2.18B	2.00B
Total Debt	136.00M	150.69M	0.00	46.64M	93.31M	92.78M
Total Liabilities	1.89B	2.03B	1.62B	1.70B	1.34B	1.35B
Stockholders Equity	2.67B	2.70B	2.50B	2.29B	2.04B	1.89B
Cash Flow
Free Cash Flow	0.00	370.49M	11.37M	638.42M	225.90M	408.17M
Operating Cash Flow	0.00	381.15M	29.48M	659.53M	227.49M	419.34M
Investing Cash Flow	0.00	-20.46M	-40.91M	-21.11M	-1.59M	-11.18M
Financing Cash Flow	0.00	54.92M	-123.41M	-113.37M	-47.27M	-176.06M

Newtech Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1814.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6734, the sentiment is Positive. The current price of 1814 is above the 20-day moving average (MA) of 1783.10, below the 50-day MA of 1851.18, and above the 200-day MA of 1709.51, indicating a neutral trend. The MACD of -8.67 indicates Negative momentum. The RSI at 53.83 is Neutral, neither overbought nor oversold. The STOCH value of 92.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6734.

Newtech Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6734	80 Outperform	¥3.51B	10.69	―	2.75%	33.70%	36.99%
6840	73 Outperform	¥3.30B	22.05	―	―	20.86%	―
6803	72 Outperform	¥2.79B	13.30	―	1.01%	7.21%	―
6599	71 Outperform	¥3.85B	10.71	―	1.47%	4.40%	35.86%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
7709	46 Neutral	¥2.67B	-14.37	―	―	-23.14%	-829.31%
6836	42 Neutral	¥4.83B	169.83	―	―	17.29%	―