TEAC CORPORATION (6803) AI Stock Analysis

• Market Cap: ¥2.79B
• Dividend Yield: 1.05%
• Average Volume (3M): 800.32K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.77
• Revenue Growth: 2.27%
• EPS Growth: N/A
• Country: JP
• Employees: 571
• Sector: Technology
• Sector Strength: 86
• Industry: Computer Hardware
• EPS (TTM): 0.46
• Shares Outstanding: 28,931,711
• 10 Day Avg. Volume: 1,042,570
• 30 Day Avg. Volume: 800,320
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥108.00
• Price Target Upside: 13.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥108.00 ▲(13.68% Upside)

TEAC CORPORATION's overall stock score is driven by strong technical indicators and a reasonable valuation, despite challenges in profitability and leverage. The company's robust revenue growth and cash flow generation are significant strengths, while the high debt level and low net profit margin present risks. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

The robust revenue growth rate of 50.4% indicates strong sales momentum, suggesting that the company is effectively expanding its market presence and product adoption, which is a positive indicator for long-term business sustainability.

Cash Flow Generation

The strong free cash flow growth rate highlights the company's ability to generate cash efficiently, providing it with the financial flexibility to invest in growth opportunities and weather economic downturns, which is crucial for long-term stability.

Gross Profit Margin

A healthy gross profit margin of 43.38% indicates effective cost management and pricing power, which can support sustainable profitability and provide a buffer against cost fluctuations, enhancing the company's competitive position.

Negative Factors

High Debt Levels

A high debt-to-equity ratio of 1.18 suggests significant leverage, which can strain financial resources and limit the company's ability to invest in growth initiatives or respond to market changes, posing a risk to long-term financial health.

Low Net Profit Margin

A low net profit margin of 0.52% indicates challenges in converting revenue into profit, which could impact the company's ability to reinvest in its operations and compete effectively, potentially hindering long-term growth prospects.

Low Return on Equity

A low return on equity of 2.43% reflects limited profitability on shareholders' investments, which may deter potential investors and limit the company's ability to raise capital for future growth, affecting its competitive edge.

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 demonstrates strong revenue growth and cash flow generation, but faces challenges with profitability and leverage. The company has a solid gross profit margin, but needs to improve its net profit margin and return on equity. The balance sheet reflects a high debt level, which could pose risks if not managed effectively. Cash flow metrics are strong, indicating good liquidity and operational cash generation.

Income Statement

TEAC CORPORATION shows a strong revenue growth rate of 50.4% in the TTM period, indicating robust sales momentum. However, the net profit margin remains low at 0.52%, suggesting profitability challenges. The gross profit margin is healthy at 43.38%, but the EBIT and EBITDA margins are modest at 2.17% and 5.32%, respectively, indicating room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.18, indicating significant leverage. Return on equity is low at 2.43%, reflecting limited profitability on shareholders' investments. The equity ratio stands at 29.57%, suggesting a moderate reliance on equity financing.

Cash Flow

TEAC CORPORATION exhibits a strong free cash flow growth rate of 32.33% in the TTM period, highlighting effective cash generation. The operating cash flow to net income ratio is 0.21, indicating adequate cash flow relative to net income. The free cash flow to net income ratio is high at 0.90, demonstrating efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.75B	15.67B	15.67B	15.70B	16.00B	14.59B
Gross Profit	6.79B	6.80B	7.01B	6.87B	6.77B	6.26B
EBITDA	863.00M	833.00M	718.00M	985.00M	1.14B	1.07B
Net Income	210.00M	81.00M	-53.00M	305.00M	392.00M	301.00M
Balance Sheet
Total Assets	10.70B	10.81B	11.87B	10.96B	10.08B	9.65B
Cash, Cash Equivalents and Short-Term Investments	1.85B	1.55B	1.23B	1.20B	1.30B	1.87B
Total Debt	4.31B	4.21B	4.75B	4.26B	3.47B	3.71B
Total Liabilities	7.53B	7.26B	8.30B	7.85B	7.61B	7.81B
Stockholders Equity	3.16B	3.56B	3.57B	3.11B	2.47B	1.84B
Cash Flow
Free Cash Flow	1.40B	1.06B	10.00M	180.00M	-302.00M	697.00M
Operating Cash Flow	1.49B	1.18B	116.00M	294.00M	-153.00M	866.00M
Investing Cash Flow	-85.00M	-115.00M	-106.00M	-102.00M	-136.00M	-164.00M
Financing Cash Flow	-981.00M	-706.00M	-69.00M	-333.00M	-299.00M	-314.00M

TEAC CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 95.00
• 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 95 is above the 20-day moving average (MA) of 94.40, above the 50-day MA of 92.04, and above the 200-day MA of 82.46, indicating a bullish trend. The MACD of 1.11 indicates Positive momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 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	¥3.71B	11.61		2.57%	47.58%	23.65%
6803	77 Outperform	¥2.79B	13.30		1.05%	2.27%	―
6840	68 Neutral	¥3.04B	20.33		―	21.30%	-15.27%
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%
7709	48 Neutral	¥2.78B	140.33		―	6.75%	-17.60%
6836	42 Neutral	¥6.26B	1,055.47		―	17.90%	―
6731	36 Underperform	¥5.63B	―		―	-11.45%	66.36%