Seika Corporation (8061) AI Stock Analysis

• Market Cap: ¥66.03B
• Dividend Yield: 3.82%
• Average Volume (3M): 84.11K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.90
• Revenue Growth: 12.01%
• EPS Growth: -23.10%
• Country: JP
• Employees: 1,040
• Sector: Industrials
• Sector Strength: 79
• Industry: Industrial - Distribution
• EPS (TTM): 148.85
• Shares Outstanding: 12,320,650
• 10 Day Avg. Volume: 114,260
• 30 Day Avg. Volume: 84,113
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥6,784.00
• Price Target Upside: 15.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥6,784.00 ▲(15.18% Upside)

Seika Corporation's strong financial performance and attractive valuation are the primary drivers of its stock score. The technical analysis indicates strong momentum but also suggests caution due to overbought conditions. The absence of earnings call data and corporate events does not impact the score.

Seika Corporation Business Overview & Revenue Model

Company Description

Seika Corporation (8061) is a diversified Japanese company primarily engaged in the trading and distribution of a broad range of industrial products. The company operates across various sectors including energy, chemicals, machinery, and environmental solutions, providing comprehensive services and products to support industrial operations. Seika Corporation leverages its extensive network and expertise to deliver tailored solutions that meet the specific needs of its clients, ranging from large-scale industrial equipment to specialized environmental technologies.

How the Company Makes Money

Seika Corporation generates revenue through the trading and distribution of industrial products and services. The company's primary revenue streams include the sale and distribution of machinery, chemicals, and energy-related products. Additionally, Seika Corporation earns income by providing engineering and consulting services in sectors such as energy and environmental solutions. The company has established significant partnerships and collaborations with manufacturers and industrial clients, which contribute to its revenue by enabling it to offer a wide range of products and services tailored to the specific needs of various industries. Seika Corporation's ability to adapt to changing market demands and its strategic positioning in key industrial sectors are crucial factors in its earnings model.

Seika Corporation Financial Statement Overview

Summary

Seika Corporation demonstrates strong financial health with consistent revenue growth, robust profitability, minimal leverage, and significant cash flow improvement. While equity growth can be enhanced, the overall financial position is stable and growth-oriented.

Income Statement

Seika Corporation demonstrates strong performance with a consistent increase in revenue over recent years, highlighted by a 7.99% revenue growth from 2024 to 2025. Gross profit margin remains robust at 26.84%, and net profit margin improved to 8.32% in 2025. The company shows healthy profitability with an EBIT margin of 6.92% and an EBITDA margin of 12.71% in 2025. Overall, the income statement reflects a positive growth trajectory and solid profitability.

Balance Sheet

The balance sheet reveals a stable financial position with a low debt-to-equity ratio of 0.004 and a strong equity ratio of 36.45% in 2025. Return on equity (ROE) has improved to 16.51%, indicating efficient use of equity to generate profits. The company's leverage is minimal, reducing financial risk. However, stockholders' equity growth could be further enhanced to sustain long-term growth.

Cash Flow

Seika Corporation's cash flow statement indicates a significant improvement in free cash flow, growing by 293.80% from 2024 to 2025. The operating cash flow to net income ratio of 1.04 in 2025 suggests strong cash generation relative to earnings. The positive trajectory in free cash flow underscores the company's ability to fund operations and investments without relying heavily on external financing.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	93.73B	86.78B	93.31B	85.31B	136.27B
Gross Profit	25.16B	22.66B	19.94B	18.03B	14.67B
EBITDA	11.91B	7.14B	5.23B	4.41B	3.19B
Net Income	7.80B	4.49B	5.00B	2.25B	2.72B
Balance Sheet
Total Assets	129.53B	118.54B	79.99B	104.86B	97.46B
Cash, Cash Equivalents and Short-Term Investments	16.93B	10.53B	10.82B	17.60B	16.04B
Total Debt	200.00M	199.00M	2.14B	5.65B	7.71B
Total Liabilities	81.86B	75.36B	44.26B	73.76B	67.57B
Stockholders Equity	47.21B	42.51B	35.21B	30.39B	29.27B
Cash Flow
Free Cash Flow	7.46B	1.90B	-3.17B	4.45B	3.52B
Operating Cash Flow	8.07B	2.54B	-731.00M	4.97B	4.14B
Investing Cash Flow	790.00M	-88.00M	-1.07B	1.13B	-1.57B
Financing Cash Flow	-2.89B	-3.46B	-4.82B	-3.30B	-1.90B

Seika Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5890.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8061, the sentiment is Positive. The current price of 5890 is above the 20-day moving average (MA) of 5474.50, above the 50-day MA of 4985.50, and above the 200-day MA of 4546.03, indicating a bullish trend. The MACD of 254.74 indicates Negative momentum. The RSI at 71.64 is Negative, neither overbought nor oversold. The STOCH value of 64.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8061.

Seika Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3176	80 Outperform	¥44.53B	8.84		3.93%	3.94%	-13.24%
9932	76 Outperform	¥41.49B	20.29		2.30%	6.18%	4.74%
8061	75 Outperform	¥66.03B	11.84		3.82%	12.01%	-23.10%
8052	75 Outperform	¥54.03B	9.75		2.49%	16.43%	52.00%
3153	74 Outperform	¥42.79B	9.95		1.78%	7.34%	60.45%
7128	72 Outperform	¥56.31B	20.58		3.21%	-2.41%	-43.98%
Sector *	65 Neutral	$2.62B	15.24	15.18%	3.49%	0.27%	26.17%

Seika Corporation Corporate Events

Seika Corporation Announces Stock Split and Dividend Revision

Seika Corporation has announced a stock split, amending its Articles of Incorporation, revising its dividend forecast, and altering its shareholder benefit program. The stock split aims to make investment more accessible by reducing the investment unit, thus expanding the investor base. This strategic move is expected to enhance the company’s market positioning and potentially attract more stakeholders.

Seika Corporation Revises Financial Forecast Upward Amid Advanced Order Deliveries

Seika Corporation has revised its financial results forecast for the first half of the fiscal year ending March 31, 2026, upward due to advanced delivery of orders. The company expects increases in net sales, operating profit, and ordinary profit, although it recorded an extraordinary loss due to litigation provisions.

Seika Corporation Reports Decline in Profits and Announces Stock Split

Seika Corporation reported a significant decline in profits for the three months ending June 30, 2025, with profit attributable to owners of the parent dropping by 52.4% year-on-year. Despite an increase in net sales by 24.8%, the company’s ordinary profit fell by 24.4%, indicating challenges in maintaining profitability. The company announced a 3-for-1 stock split effective October 1, 2025, which impacts the forecasted dividends and profit per share. This strategic move aims to enhance stock liquidity and potentially attract more investors, although the overall financial outlook remains cautious with a revised forecast showing a decrease in profits for the fiscal year ending March 31, 2026.

Seika Corporation Proposes Increased Year-End Dividend

Seika Corporation’s Board of Directors has proposed a year-end dividend of 130 yen per share for the fiscal year ending March 31, 2025, reflecting a significant increase from the previous year’s 90 yen. This decision aligns with the company’s policy of maintaining a stable dividend while strengthening its business foundations and responding to funding needs for new business development.

Seika Corporation to Record Extraordinary Income from Cross-Shareholdings Sale

Seika Corporation announced its plan to record extraordinary income from the sale of cross-shareholdings by the end of the first half of the fiscal year ending March 31, 2026. The company aims to reduce its cross-shareholdings to 10% of consolidated net assets by March 31, 2028, using the proceeds for growth investments and shareholder returns, which may impact its financial performance and shareholder value.

Seika Corporation Reports Robust Financial Growth for FY2025

Seika Corporation reported a strong financial performance for the fiscal year ended March 31, 2025, with significant increases in net sales and profits. The company achieved a 73.7% increase in profit attributable to owners of the parent, driven by strategic acquisitions and improved operational efficiencies. The company also announced a forecast for continued growth in the next fiscal year, despite expected challenges in profit margins.