Teikoku Tsushin Kogyo Co., Ltd. (6763) AI Stock Analysis

• Market Cap: ¥24.64B
• Dividend Yield: 3.15%
• Average Volume (3M): 11.85K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.75
• Revenue Growth: 12.72%
• EPS Growth: 53.85%
• Country: JP
• Employees: 1,571
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 29.47
• Shares Outstanding: 9,856,107
• 10 Day Avg. Volume: 14,610
• 30 Day Avg. Volume: 11,846
• PEG Ratio: 0.22
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 23.83
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥3,002.00 ▲(15.82% Upside)

Teikoku Tsushin Kogyo Co., Ltd. scores well due to its strong financial performance and reasonable valuation. The technical indicators suggest positive momentum, though caution is advised due to the RSI nearing overbought levels. The absence of earnings call and corporate events data does not impact the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product demand, supporting long-term business sustainability and competitiveness.

Balance Sheet Health

A robust balance sheet with minimal leverage reduces financial risk, providing stability and flexibility for future investments and growth.

Profit Margins

High profit margins reflect operational efficiency and pricing power, enhancing profitability and competitive positioning in the market.

Negative Factors

Decreasing Operating Cash Flow

A decline in operating cash flow can constrain liquidity and limit the ability to fund operations and investments, impacting long-term financial health.

Negative Free Cash Flow Growth

Negative free cash flow growth may indicate challenges in generating sufficient cash to support expansion, potentially affecting future growth initiatives.

Operating Cash Flow to Net Income Ratio

While the ratio suggests effective cash generation, any further decline could impact the company's ability to convert earnings into cash, affecting liquidity.

Teikoku Tsushin Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Teikoku Tsushin Kogyo Co., Ltd. (6763) is a Japanese telecommunications company that specializes in the manufacturing and development of communication equipment and systems. The company operates primarily in the telecommunications sector, providing a range of products including satellite communication systems, wireless communication devices, and network infrastructure solutions. With a strong emphasis on innovation and technology, Teikoku Tsushin Kogyo also engages in research and development to enhance its service offerings and maintain competitiveness in the rapidly evolving communications landscape.

How the Company Makes Money

Teikoku Tsushin Kogyo generates revenue primarily through the sale of its communication equipment and systems to various sectors, including government, military, and commercial enterprises. Key revenue streams include direct sales of hardware, software solutions, and service contracts for installation and maintenance of communication systems. The company also benefits from partnerships and collaborations with other technology firms, enabling it to expand its product offerings and enhance its market reach. Additionally, revenue may be supplemented by government contracts and grants for projects involving advanced communication technologies.

Teikoku Tsushin Kogyo Co., Ltd. Financial Statement Overview

Summary

Teikoku Tsushin Kogyo Co., Ltd. demonstrates strong financial health with robust revenue growth, high profit margins, and solid balance sheet metrics. Despite a decrease in operating cash flow, the company maintains positive free cash flow, indicating sound cash management.

Income Statement

Teikoku Tsushin Kogyo Co., Ltd. has shown strong revenue growth, particularly notable with a 10.28% increase from 2024 to 2025. The company maintains a robust gross profit margin of 30.94% and a commendable net profit margin of 11.97% for 2025. Consistent EBIT and EBITDA margins demonstrate operational efficiency and profitability. Overall, the income statement indicates a well-managed and growing company.

Balance Sheet

The balance sheet reflects a solid financial position, with a low debt-to-equity ratio of 0.002, highlighting minimal leverage and reduced financial risk. A strong equity ratio of 83.06% in 2025 provides stability and indicates the company's reliance on equity rather than debt. Return on equity stands at a healthy 7.23%, showcasing effective use of shareholders' funds to generate profits.

Cash Flow

Cash flow analysis reveals a decrease in operating cash flow from 2024 to 2025. However, the company maintains a positive free cash flow in 2025, ensuring flexibility in investments and operations. The operating cash flow to net income ratio is 0.90, suggesting effective cash generation from operations. While free cash flow growth is negative compared to 2024, the overall cash management remains solid.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.14B	16.79B	15.22B	16.49B	15.11B	12.02B
Gross Profit	5.44B	5.20B	4.65B	5.22B	5.03B	3.92B
EBITDA	2.66B	3.19B	2.64B	2.87B	2.81B	1.58B
Net Income	1.68B	2.01B	1.36B	1.39B	1.58B	755.37M
Balance Sheet
Total Assets	32.56B	33.46B	32.09B	30.31B	29.09B	27.27B
Cash, Cash Equivalents and Short-Term Investments	12.64B	13.14B	12.34B	10.57B	10.04B	9.06B
Total Debt	1.86B	46.89M	98.88M	41.78M	43.39M	47.26M
Total Liabilities	4.99B	5.05B	4.68B	4.61B	4.74B	4.21B
Stockholders Equity	27.01B	27.79B	26.78B	25.13B	23.82B	22.63B
Cash Flow
Free Cash Flow	0.00	948.44M	2.34B	767.10M	1.19B	-656.81M
Operating Cash Flow	0.00	1.81B	2.92B	1.63B	1.79B	409.21M
Investing Cash Flow	0.00	228.10M	-87.21M	-534.70M	-757.38M	-973.27M
Financing Cash Flow	0.00	-1.28B	-1.27B	-750.66M	-648.70M	-467.75M

Teikoku Tsushin Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2592.00
• 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:6763, the sentiment is Positive. The current price of 2592 is above the 20-day moving average (MA) of 2570.55, above the 50-day MA of 2548.04, and above the 200-day MA of 2346.15, indicating a bullish trend. The MACD of 40.31 indicates Negative momentum. The RSI at 63.72 is Neutral, neither overbought nor oversold. The STOCH value of 75.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6763.

Teikoku Tsushin Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6763	80 Outperform	¥24.64B	13.93	―	3.15%	12.72%	53.85%
6643	78 Outperform	¥19.81B	8.84	―	3.10%	6.60%	0.27%
6994	77 Outperform	¥28.64B	12.08	―	2.42%	5.15%	480.70%
6668	71 Outperform	¥10.76B	5.35	―	1.66%	12.23%	65.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7480	61 Neutral	¥22.93B	13.81	―	6.09%	-1.22%	-7.71%
6619	41 Neutral	¥8.66B	-0.67	―	―	―	―

Teikoku Tsushin Kogyo Co., Ltd. Corporate Events

Teikoku Tsushin Kogyo Acquires Treasury Shares to Boost Shareholder Value

Teikoku Tsushin Kogyo Co., Ltd. announced the acquisition of 32,400 treasury shares for approximately 81.9 million yen during November 2025, as part of a broader plan to acquire up to 200,000 shares by March 2026. This strategic move is aimed at enhancing shareholder value and optimizing capital structure, reflecting the company’s commitment to efficient financial management.

Teikoku Tsushin Kogyo Reports Mixed Financial Results for H1 2025

Teikoku Tsushin Kogyo Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a 6.6% increase in net sales compared to the previous year. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with respective decreases of 25.1%, 16.7%, and 36.2%. The company also revised its financial forecast for the fiscal year ending March 31, 2026, anticipating minimal growth in net sales and significant declines in profits, reflecting challenges in maintaining profitability.

Teikoku Tsushin Kogyo Revises Financial Forecast Amid Order Delays

Teikoku Tsushin Kogyo Co., Ltd. announced a discrepancy between its previously forecasted and actual financial results for the second quarter of the fiscal year ending March 31, 2026, citing delays in customer orders and increased costs as reasons for the shortfall. Consequently, the company has revised its full-year financial forecast downward, anticipating challenges in recovering from the first-half shortfall due to market conditions and other factors.

Teikoku Tsushin Kogyo Co., Ltd. Announces Treasury Stock Acquisition

Teikoku Tsushin Kogyo Co., Ltd. announced the acquisition of 39,600 of its common shares for approximately 100.67 million yen, as part of a broader plan approved by its Board of Directors to acquire up to 200,000 shares. This strategic move, conducted through a market purchase trust system, is aimed at optimizing capital structure and enhancing shareholder value.