TEAC CORPORATION (6803) AI Stock Analysis

• Market Cap: ¥2.56B
• Dividend Yield: 1.12%
• Average Volume (3M): 655.42K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.77
• Revenue Growth: -0.03%
• EPS Growth: N/A
• Country: JP
• Employees: 571
• Sector: Technology
• Sector Strength: 89
• Industry: Computer Hardware
• EPS (TTM): -6.84
• Shares Outstanding: 28,931,711
• 10 Day Avg. Volume: 614,200
• 30 Day Avg. Volume: 655,423
• PEG Ratio: 0.02
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.32
• 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: ¥104.00
• Price Target Upside: 19.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥104.00 ▲(19.54%Upside)

The overall stock score of 60 is primarily influenced by TEAC CORPORATION's solid financial performance, characterized by improving profitability metrics and strong cash flow management. Technical analysis suggests bullish momentum, but overbought conditions could limit immediate upside potential. The stock's valuation appears stretched, which constrains the score. No earnings call or corporate events data were available to further influence this evaluation.

TEAC CORPORATION Business Overview & Revenue Model

Company Description

TEAC Corporation, headquartered in Japan, is a renowned company specializing in the manufacturing and distribution of high-quality audio equipment and information products. The company operates across various sectors, including consumer electronics, professional audio equipment, and data recording and storage solutions. TEAC is known for its innovative and reliable products, ranging from hi-fi audio systems and digital recorders to medical image recording devices and computer peripherals.

How the Company Makes Money

TEAC Corporation generates revenue through its diversified range of products across multiple sectors. The company's primary revenue streams include the sale of consumer audio products such as turntables, amplifiers, and speakers, catering to audiophiles and music enthusiasts. Additionally, TEAC earns from its professional audio equipment line, which serves broadcasting, live performance, and studio needs. Another significant portion of TEAC's income comes from its data recording and storage solutions, providing products for both consumer and industrial applications, including medical imaging and data archival. Key partnerships with retailers, distributors, and manufacturers globally enhance its market reach and contribute to its earnings.

TEAC CORPORATION Financial Statement Overview

Summary

TEAC CORPORATION is facing financial difficulties with negative profitability and cash flow. Despite a solid gross profit margin, declining revenues and negative net income highlight growth and profitability challenges. The balance sheet shows moderate leverage but requires better return metrics, and negative cash flow emphasizes the need for strategic improvement.

Income Statement

TEAC CORPORATION's income statement shows a challenging financial position with a negative net income in the TTM period. The gross profit margin stands at 43.27% TTM, indicating healthy cost control relative to revenue. However, the net profit margin is negative at -1.27% TTM, reflecting ongoing losses. Revenue has decreased compared to previous periods, impacting growth prospects. EBIT and EBITDA margins are low at 1.56% and 4.94% TTM, respectively, showing limited operational efficiency.

Balance Sheet

The balance sheet reveals moderate financial stability with a debt-to-equity ratio of 1.52 TTM, indicating a fair level of leverage. The equity ratio is 28.68% TTM, suggesting a reasonable proportion of owner financing. ROE is negative at -5.81% TTM, due to the net loss, highlighting challenges in generating returns for shareholders. Overall, the balance sheet demonstrates moderate leverage and equity levels but lacks strong profitability metrics.

Cash Flow

Cash flow analysis indicates significant challenges, with negative free cash flow of -173 million TTM and a concerning free cash flow to net income ratio. Operating cash flow is negative at -33 million TTM, indicating issues with cash generation from core operations. The company needs to improve its cash management and operating efficiency to stabilize financial health.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	15.50B	15.67B	15.70B	16.00B	14.59B	14.74B
Gross Profit	6.71B	7.01B	6.87B	6.77B	6.26B	6.47B
EBITDA	766.00M	931.00M	985.00M	1.12B	1.07B	825.00M
Net Income	-197.00M	-53.00M	305.00M	392.00M	301.00M	27.00M
Balance Sheet
Total Assets	11.83B	11.87B	10.96B	10.08B	9.65B	9.54B
Cash, Cash Equivalents and Short-Term Investments	1.29B	1.23B	1.20B	1.30B	1.87B	1.48B
Total Debt	5.17B	4.75B	4.26B	3.47B	3.71B	3.71B
Total Liabilities	8.44B	8.30B	7.85B	7.61B	7.81B	8.12B
Stockholders Equity	3.39B	3.57B	3.11B	2.47B	1.84B	1.32B
Cash Flow
Free Cash Flow	-173.00M	10.00M	180.00M	-302.00M	697.00M	-76.00M
Operating Cash Flow	-33.00M	116.00M	294.00M	-153.00M	866.00M	158.00M
Investing Cash Flow	-140.00M	-106.00M	-102.00M	-136.00M	-164.00M	-118.00M
Financing Cash Flow	18.00M	-69.00M	-333.00M	-299.00M	-314.00M	-231.00M

TEAC CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 87.00
• 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:6803, the sentiment is Positive. The current price of 87 is below the 20-day moving average (MA) of 88.75, above the 50-day MA of 86.24, and above the 200-day MA of 80.46, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.10 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6803.

TEAC CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6734	80 Outperform	¥3.42B	10.60		2.83%	26.52%	-8.57%
6803	60 Neutral	¥2.56B	30.94		1.12%	-0.03%	―
6840	60 Neutral	¥2.45B	21.76		―	15.29%	-61.63%
Sector *	50 Neutral	C$2.96B	1.81	-63.12%	2.57%	11.24%	-12.42%
7709	46 Neutral	¥2.78B	140.33		―	27.23%	26.46%
6836	42 Neutral	¥8.04B	636.15		―	14.80%	70.15%
6731	36 Underperform	¥4.27B	―		―	-13.87%	80.85%