Ikegami Tsushinki Co., Ltd. (6771) AI Stock Analysis

• Market Cap: ¥4.56B
• Dividend Yield: 2.01%
• Average Volume (3M): 9.85K
• Price to Earnings (P/E): 44.1
• Beta (1Y): 0.73
• Revenue Growth: 13.56%
• EPS Growth: N/A
• Country: JP
• Employees: 818
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 3.57
• Shares Outstanding: 7,285,746
• 10 Day Avg. Volume: 10,190
• 30 Day Avg. Volume: 9,846
• PEG Ratio: -0.26
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -1.04
• 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: 47 Neutral
• Price Target: ¥703.00 ▲(18.15% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is mainly weighed down by weak financial performance, particularly negative operating/free cash flow and declining profitability. Valuation is also a headwind due to a high P/E with only a modest dividend yield. Technicals are mixed and provide limited support, with longer-term trend strength offset by near-term softness.

Positive Factors

Niche broadcast equipment market

Ikegami's focus on professional broadcast and imaging equipment implies high technical barriers, long product lifecycles and strong client relationships with broadcasters and studios. Those structural features support stable institutional demand, aftermarket service needs, and pricing resilience over months.

Diversified revenue streams (products, systems, services)

Sales of cameras and hardware plus integrated systems projects and recurring service/maintenance create multiple revenue channels. This mix smooths earnings through capex cycles, supports higher-margin systems work and provides recurring cash from installed-base services over the medium term.

Manageable leverage on balance sheet

A moderate debt-to-equity profile and a stable equity ratio indicate the company retains financial flexibility to fund projects or withstand cyclical demand. This structural leverage position supports capital access and reduces immediate refinancing pressure over a multi-month horizon.

Negative Factors

Weak cash generation

Negative OCF and FCF signal the company struggles to convert reported earnings into cash. That weak cash generation limits the firm's ability to self-fund capex, service debt, or expand services without relying on external financing, eroding durable financial flexibility.

Low and declining margins

Below-average gross margins and falling net profit point to structural cost or pricing pressure and operational inefficiency. Persistently weak margins reduce reinvestment capacity and limit returns to shareholders, increasing vulnerability to competitive or input-cost shocks over time.

Rising liabilities and declining equity

Eroding equity combined with rising liabilities diminishes the company’s balance-sheet resilience. Over several months this trend can raise borrowing costs, tighten covenant headroom and constrain strategic investments, making recovery from cyclical downturns harder.

Ikegami Tsushinki Co., Ltd. Business Overview & Revenue Model

Company Description

Ikegami Tsushinki Co., Ltd. (6771) is a Japan-based company primarily engaged in the development, manufacturing, and sale of advanced electronic equipment. The company operates in various sectors, including broadcasting, communication, and industrial automation. Ikegami is renowned for its high-quality video equipment, such as professional cameras, broadcast monitors, and signal processing devices, catering to both domestic and international markets. Its commitment to innovation and quality has established it as a key player in the electronics industry.

How the Company Makes Money

Ikegami Tsushinki generates revenue primarily by selling professional video and imaging equipment and by delivering related system solutions to broadcast and professional imaging customers. Key revenue streams include (1) product sales of broadcast cameras and associated production equipment (e.g., studio/field cameras and peripheral hardware used in TV production workflows), (2) sales of integrated systems and solutions where Ikegami designs, supplies, and helps implement end-to-end configurations for studios, outside broadcast, and related facilities (typically including multiple units of equipment along with integration work), and (3) ongoing service-related income such as maintenance, repairs, technical support, and parts for installed equipment bases. The company’s earnings are influenced by capital expenditure cycles at broadcasters and production companies (equipment refresh and facility upgrades), project-based demand for studio/outside-broadcast system builds, and continued aftermarket/service needs from deployed systems. Specific details on customer/partner names, contract structures, and segment-level revenue breakdowns are null.

Ikegami Tsushinki Co., Ltd. Financial Statement Overview

Summary

Income statement weakness (declining revenue, shrinking profitability, low EBIT/EBITDA margins) and especially poor cash flow (negative operating and free cash flow) outweigh the moderately manageable leverage on the balance sheet.

Income Statement

The company has experienced fluctuating revenue over the past few years, with a notable decline in the most recent period. Gross profit margin is below industry average, signaling potential cost management issues. Net profit has also declined significantly, impacting overall profitability. The EBIT and EBITDA margins are relatively low, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage, although it has increased over the years. The equity ratio remains stable, showing a balanced asset-financing structure. However, declining equity levels and increased liabilities highlight potential financial risks.

Cash Flow

Negative operating and free cash flow in the most recent period is a concern, reflecting cash management challenges. The ratio of operating cash flow to net income has deteriorated, signaling inefficiencies in converting earnings to cash. The free cash flow to net income ratio is also negative, indicating insufficient cash generation to cover company investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	20.38B	20.73B	21.60B	22.15B	18.47B	21.85B
Gross Profit	5.80B	6.23B	7.18B	5.17B	5.85B	6.50B
EBITDA	682.00M	761.00M	1.31B	-456.00M	810.00M	1.02B
Net Income	127.00M	235.00M	679.00M	-1.07B	178.00M	444.00M
Balance Sheet
Total Assets	27.11B	28.84B	30.61B	28.96B	27.40B	25.02B
Cash, Cash Equivalents and Short-Term Investments	4.08B	4.20B	6.78B	4.48B	5.66B	6.13B
Total Debt	7.63B	9.70B	8.27B	8.29B	7.81B	5.52B
Total Liabilities	14.37B	15.18B	16.92B	16.25B	13.69B	11.53B
Stockholders Equity	12.74B	13.66B	13.69B	12.71B	13.71B	13.49B
Cash Flow
Free Cash Flow	0.00	-3.85B	2.68B	-1.49B	-2.57B	464.00M
Operating Cash Flow	0.00	-3.52B	2.96B	-1.19B	-1.62B	1.16B
Investing Cash Flow	0.00	-527.00M	-778.00M	-335.00M	-985.00M	-728.00M
Financing Cash Flow	0.00	1.10B	-246.00M	272.00M	2.06B	-708.00M

Ikegami Tsushinki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 595.00
• 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:6771, the sentiment is Positive. The current price of 595 is below the 20-day moving average (MA) of 784.20, below the 50-day MA of 721.08, and below the 200-day MA of 631.21, indicating a bullish trend. The MACD of 27.68 indicates Positive momentum. The RSI at 55.66 is Neutral, neither overbought nor oversold. The STOCH value of 59.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6771.

Ikegami Tsushinki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6718	81 Outperform	¥42.93B	71.35	―	4.43%	0.63%	-24.87%
3773	80 Outperform	¥17.51B	12.45	―	2.54%	6.31%	38.60%
4441	73 Outperform	¥14.67B	19.56	―	1.66%	16.60%	6.60%
6820	70 Outperform	¥41.62B	14.45	―	2.93%	-0.90%	-13.24%
6835	68 Neutral	¥27.51B	9.33	14.95%	0.77%	6.43%	368.06%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6771	47 Neutral	¥4.56B	44.10	―	2.01%	13.56%	―