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Seika Corporation (JP:8061)
:8061
Japanese Market

Seika Corporation (8061) AI Stock Analysis

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JP

Seika Corporation

(8061)

Rating:79Outperform
Price Target:
¥5,187.00
▲(8.74%Upside)
Seika Corporation's overall stock score of 79 reflects strong financial performance and attractive valuation, supported by positive technical indicators. The company's robust revenue growth, solid profitability, and minimal leverage provide a stable foundation. The absence of earnings call insights and corporate events did not impact the overall assessment.

Seika Corporation (8061) vs. iShares MSCI Japan ETF (EWJ)

Seika Corporation Business Overview & Revenue Model

Company DescriptionSeika 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 MoneySeika 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
85
Very Positive
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
77
Positive
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
82
Very Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue93.89B93.73B86.78B93.31B85.31B136.27B
Gross Profit24.74B25.16B22.66B19.94B18.03B14.67B
EBITDA7.97B11.91B7.14B5.23B4.41B3.19B
Net Income8.04B7.80B4.49B5.00B2.25B2.72B
Balance Sheet
Total Assets98.71B129.53B118.54B79.99B104.86B97.46B
Cash, Cash Equivalents and Short-Term Investments14.36B16.93B10.53B10.82B17.60B16.04B
Total Debt238.00M200.00M199.00M2.14B5.65B7.71B
Total Liabilities53.79B81.86B75.36B44.26B73.76B67.57B
Stockholders Equity44.50B47.21B42.51B35.21B30.39B29.27B
Cash Flow
Free Cash Flow0.007.46B1.90B-3.17B4.45B3.52B
Operating Cash Flow0.008.07B2.54B-731.00M4.97B4.14B
Investing Cash Flow0.00790.00M-88.00M-1.07B1.13B-1.57B
Financing Cash Flow0.00-2.89B-3.46B-4.82B-3.30B-1.90B

Seika Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4770.00
Price Trends
50DMA
4563.90
Positive
100DMA
4460.44
Positive
200DMA
4345.14
Positive
Market Momentum
MACD
53.57
Negative
RSI
64.71
Neutral
STOCH
85.54
Negative
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 4770 is above the 20-day moving average (MA) of 4610.50, above the 50-day MA of 4563.90, and above the 200-day MA of 4345.14, indicating a bullish trend. The MACD of 53.57 indicates Negative momentum. The RSI at 64.71 is Neutral, neither overbought nor oversold. The STOCH value of 85.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8061.

Seika Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥41.72B7.60
3.85%5.46%0.90%
79
Outperform
¥54.05B7.26
5.51%8.01%74.26%
76
Outperform
¥38.08B18.06
3.04%6.07%6.17%
75
Outperform
¥46.49B9.58
4.56%5.70%10.65%
70
Outperform
¥35.22B8.75
2.18%1.87%50.73%
68
Neutral
¥54.69B12.28
2.64%-4.11%10.47%
58
Neutral
HK$13.89B4.44-3.01%7.32%3.67%-54.16%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8061
Seika Corporation
4,785.00
769.23
19.16%
JP:3153
Yashima Denki Co., Ltd.
1,661.00
-32.28
-1.91%
JP:3176
Sanyo Trading Co., Ltd.
1,456.00
-66.62
-4.38%
JP:7128
MARUKA FURUSATO Corporation
2,272.00
83.68
3.82%
JP:8052
Tsubakimoto Kogyo Co., Ltd.
2,431.00
357.74
17.25%
JP:9932
Sugimoto & Co., Ltd.
1,783.00
559.59
45.74%

Seika Corporation Corporate Events

Seika Corporation Proposes Increased Year-End Dividend
May 23, 2025

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
May 12, 2025

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
May 12, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025