Strong Cash GenerationMaterially improved operating and free cash flow with FCF roughly 0.89x of net income provides durable liquidity and ability to de-lever or fund product development. Strong cash conversion supports resilience through cycles and capacity to prioritize strategic investments.

Stable Gross MarginsA persistent gross margin near 42% despite sharp top-line deterioration implies structural product-level profitability and pricing power. This margin base acts as a buffer to preserve cash generation as volumes recover, supporting durable operating leverage when demand normalizes.

Diversified Consumer And Professional ChannelsServing both consumer and pro audio markets via TEAC and TASCAM diversifies revenue streams and channels. Professional/B2B sales typically offer higher ASPs and stickier relationships, providing a structural hedge versus consumer cyclicality and enabling cross-sell and aftermarket revenue.

Bears Say

Steep Revenue ContractionA roughly 64% TTM revenue decline materially erodes scale economics and fixed-cost absorption, raising execution risk. Sustained top-line weakness undermines margin stability and cash generation, making recovery essential to restore financial flexibility and fund strategic priorities.

Thin Profitability MarginsVery low EBIT and net margins leave limited capacity to absorb cost inflation or invest in R&D and marketing. Thin profitability constrains reinvestment, magnifies the impact of further revenue declines, and reduces the margin of safety for sustaining operations during downturns.

Meaningful LeverageDebt-to-equity around 1.32x represents meaningful leverage that restricts financial flexibility. Higher debt service can divert cash from growth or capex, increases refinancing risk in adverse markets, and amplifies downside if operating cash flow weakens again.

6803 FAQ

What was TEAC CORPORATION’s price range in the past 12 months?

TEAC CORPORATION lowest stock price was ¥59.00 and its highest was ¥139.00 in the past 12 months.

What is TEAC CORPORATION’s market cap?

TEAC CORPORATION’s market cap is ¥3.51B.

When is TEAC CORPORATION’s upcoming earnings report date?

TEAC CORPORATION’s upcoming earnings report date is May 08, 2026 which is in 62 days.

How were TEAC CORPORATION’s earnings last quarter?

TEAC CORPORATION released its earnings results on Feb 06, 2026. The company reported ¥10.36 earnings per share for the quarter, beating the consensus estimate of N/A by ¥10.36.

Is TEAC CORPORATION overvalued?

According to Wall Street analysts TEAC CORPORATION’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does TEAC CORPORATION pay dividends?

TEAC CORPORATION pays a Annually dividend of ¥1 which represents an annual dividend yield of 1.08%. See more information on TEAC CORPORATION dividends here

What is TEAC CORPORATION’s EPS estimate?

TEAC CORPORATION’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does TEAC CORPORATION have?

TEAC CORPORATION has 28,931,711 shares outstanding.

What happened to TEAC CORPORATION’s price movement after its last earnings report?

TEAC CORPORATION reported an EPS of ¥10.36 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -5.932%.

Which hedge fund is a major shareholder of TEAC CORPORATION?

Currently, no hedge funds are holding shares in JP:6803

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

TEAC CORPORATION

Teac Corporation engages in the audio and information product businesses in Japan and internationally. Its audio products comprise high-end and general audio products; audio equipment for music production and broadcasting; and contract/professional audio products. The company's information products include recording and reproducing equipment for aircraft, medical image recording and reproducing products, and optical drives for industrial market, as well as measurement products, such as sensors/transducers, and data recorders; and in-flight entertainment, data storage, and disc publishing products. It also provides commissioned design and contract manufacturing solutions; business solutions; and repair and maintenance services. The company was incorporated in 1948 and is headquartered in Tokyo, Japan. Teac Corporation is a subsidiary of Global Acoustic Partners LLC.