Seika Corporation (8061) AI Stock Analysis

• Market Cap: ¥102.66B
• Dividend Yield: 3.38%
• Average Volume (3M): 195.42K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.09
• Revenue Growth: 10.74%
• EPS Growth: -26.50%
• Country: JP
• Employees: 1,040
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): N/A
• Shares Outstanding: 36,961,950
• 10 Day Avg. Volume: 302,540
• 30 Day Avg. Volume: 195,420
• PEG Ratio: 0.09
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 6.96
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥3,257.00 ▲(37.25% Upside)
• Action: Reiterated Date: 11/30/25
• Date: Action: Reiterated 11/30/25

Seika Corporation's overall stock score reflects strong financial performance and positive technical indicators. The company's robust revenue and profit growth, stable financial position, and strong cash generation are significant strengths. The technical analysis supports a bullish outlook, although caution is advised due to potential overbought conditions. The valuation is fair, with an attractive dividend yield enhancing the investment appeal.

Positive Factors

Revenue & Margin Strength

Consistent revenue growth with robust gross (26.84%) and improved net margins (8.32%) indicates the company converts sales into sustainable profits. Persistent margin strength supports reinvestment, dividend capacity, and operational resilience across business cycles.

Strong Free Cash Flow

A nearly 294% jump in free cash flow and an OCF-to-net-income ratio above 1 signal high-quality cash generation. Durable cash flow reduces dependence on external financing and supports capex, dividends, and strategic investment over the medium term.

Very Low Leverage & Improving ROE

Extremely low leverage and an improving ROE indicate a conservative capital structure and efficient use of shareholders' capital. This lowers financial risk, preserves borrowing capacity, and provides flexibility for M&A or downturns over the next several months.

Negative Factors

EPS Contraction

EPS declined materially despite revenue gains, indicating earnings per share compression that may stem from higher costs, dilution, or one-off items. Persistent EPS weakness can pressure payout capacity and investor returns unless margin or capital-structure drivers are addressed.

Equity Growth Lag

Management note that equity growth could be improved signals a relatively slow expansion of the capital base. Limited equity accretion can constrain long-term funding capacity, reduce strategic optionality, and limit the balance sheet cushion for larger investments or shocks.

Limited Forward Disclosure

Absence of guidance and empty earnings highlights reduce visibility into management's near-term plans and targets. That lack of forward commentary raises forecasting uncertainty and can obscure detection of emerging structural risks or pivots in strategy.

Seika Corporation Business Overview & Revenue Model

Company Description

Seika Corporation imports, sells, and exports plants, machinery, and environmental protection and electronic information system equipment in Asia, Europe, the United States, and internationally. The company offers flywheel uninterruptible power supply equipment; gas turbine combined cycle power generation and cogeneration systems; and wind, thermal, hydraulic, biomass, and solar power generation equipment. It also provides environmental equipment, such as explosion control systems, solder paste recycling units, VR line mixers, air diffusers, VOC recovery equipment, SO3 analyzers, and laser gas monitors; and chemical equipment/materials, including binary oriented films, chemical synthetic fiber manufacturing equipment, deodorants nozepal, anti-spatters, and tank repair coating machinery, as well as HYPOX, a polymer removal systems. It also provides cooking and sterilizing devices, UHT sterilization systems, temperature data loggers, and vacuum steam distillation equipment, as well as food packaging materials; electronics equipment; measurement equipment, including in-line concentration and viscosity meters, and desktop viscosity meters, as well as air, coal, and UBC measuring equipment; general industrial machinery, such as UT drones, book inspection and sorting machines, envelope stuffing and film wrapping machines, automatic labelers, opti sorters, 3D printers, and packaged software intramart and purchasing workflow templates. In addition, the company offers raw materials and parts comprising void-less pressurization ovens, connectors, heavy copper printed circuit boards, rigid and flexible printed circuit boards, and customized printed circuit boards. Further, it provides wastewater treatment equipment, submersible pump for construction applications, electronics mounting equipment, and textiles machinery and equipment. Seika Corporation was incorporated in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Seika Corporation generates revenue through multiple streams, primarily focusing on the sale of electronic components and materials to manufacturers in various sectors. The company has established a diversified portfolio of products, which allows it to cater to a wide range of customers and industries. Key revenue streams include direct sales of electronic parts, materials for manufacturing processes, and specialized equipment. Additionally, Seika benefits from strategic partnerships with leading manufacturers and suppliers, enhancing its product offerings and market reach. The company's ability to adapt to technological advancements and maintain competitive pricing also contributes to its revenue generation, as it positions itself favorably in the fast-evolving electronics market.

Seika Corporation Financial Statement Overview

Summary

Seika Corporation demonstrates strong financial performance with robust revenue growth, solid profitability, and significant improvement in free cash flow. The income statement shows a positive growth trajectory, the balance sheet indicates a stable financial position with minimal leverage, and the cash flow statement highlights strong cash generation.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	98.82B	93.73B	86.78B	93.31B	85.31B	136.27B
Gross Profit	25.84B	25.16B	22.66B	19.94B	18.03B	14.67B
EBITDA	9.43B	11.91B	7.14B	7.62B	4.70B	3.19B
Net Income	5.83B	7.80B	4.49B	5.00B	2.25B	2.72B
Balance Sheet
Total Assets	123.12B	129.53B	118.54B	79.99B	104.86B	97.46B
Cash, Cash Equivalents and Short-Term Investments	13.68B	16.93B	10.53B	10.75B	17.49B	15.92B
Total Debt	459.00M	200.00M	199.00M	2.14B	5.65B	7.71B
Total Liabilities	75.88B	81.86B	75.36B	44.26B	73.76B	67.57B
Stockholders Equity	46.76B	47.21B	42.51B	35.21B	30.39B	29.27B
Cash Flow
Free Cash Flow	0.00	7.46B	1.90B	-3.17B	4.45B	3.52B
Operating Cash Flow	0.00	8.07B	2.54B	-731.00M	4.97B	4.14B
Investing Cash Flow	0.00	812.00M	-88.00M	-1.07B	1.13B	-1.57B
Financing Cash Flow	0.00	-2.89B	-3.46B	-4.82B	-3.30B	-1.90B

Seika Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2373.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 2373 is below the 20-day moving average (MA) of 2615.25, below the 50-day MA of 2508.64, and above the 200-day MA of 2049.59, indicating a bullish trend. The MACD of 117.10 indicates Negative momentum. The RSI at 75.29 is Negative, neither overbought nor oversold. The STOCH value of 80.01 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8061	79 Outperform	¥102.66B	16.20	―	3.38%	10.74%	-26.50%
3176	78 Outperform	¥52.13B	10.49	―	3.87%	2.66%	-11.41%
3153	75 Outperform	¥75.51B	14.52	―	1.22%	14.41%	85.93%
8052	73 Outperform	¥58.93B	12.05	―	3.00%	16.06%	31.78%
9932	71 Outperform	¥30.18B	15.45	―	3.84%	2.74%	4.90%
7128	66 Neutral	¥53.82B	29.50	―	3.24%	-2.85%	-56.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Seika Corporation Corporate Events

Seika Releases Briefing on Nine-Month Results and FY2026 Outlook

Seika Corporation has released materials for its financial results briefing covering the first three quarters of the fiscal year ending March 31, 2026, outlining consolidated performance to date. The company also presented its consolidated earnings forecast for the full fiscal year, providing stakeholders with updated guidance on expected business conditions and profitability.

The briefing package signals management’s intent to maintain transparency with investors as it navigates the remainder of the fiscal year, highlighting how current results compare with internal plans. By detailing both year-to-date trends and full-year projections, Seika offers the market a clearer view of its operational trajectory and potential implications for shareholder returns.

The most recent analyst rating on (JP:8061) stock is a Buy with a Yen2515.00 price target. To see the full list of analyst forecasts on Seika Corporation stock, see the JP:8061 Stock Forecast page.

Seika Corporation Reshapes Organization and Leadership Ahead of Fiscal 2026

Seika Corporation has announced an April 1, 2026 reorganization that streamlines its corporate structure and clarifies functional roles. The Secretariat will be folded into the Corporate Planning Department, the Osaka Sub Head Office will be abolished with its general affairs unit absorbed into the General Affairs & Human Resources Department, and several business units will be renamed or split, including the division of the Industrial Energy Plant Department into two units and the reconfiguration of the Food & Beverage Industry Department into a two-section system.

In tandem with the structural overhaul, the company is implementing a slate of executive reappointments, promotions, and new appointments to align leadership with the new organization. President and CEO Akihiko Sakurai and several senior executives are being reappointed, while planning and administration roles are reshuffled and new executive officers are named from key branch and departmental posts, underscoring Seika’s focus on strengthening governance and operational efficiency across its core businesses.

The most recent analyst rating on (JP:8061) stock is a Buy with a Yen2515.00 price target. To see the full list of analyst forecasts on Seika Corporation stock, see the JP:8061 Stock Forecast page.

Seika Lifts FY2026 Earnings Outlook and Boosts Year-End Dividend

Seika Corporation has raised its full-year forecast for the fiscal year ending March 31, 2026, citing stronger-than-expected deliveries in its Energy, Industrial Machinery, and Product Businesses. The company now projects consolidated net sales of ¥108 billion and profit attributable to owners of parent of ¥6.5 billion, marking notable increases versus its prior guidance.

Reflecting the improved earnings outlook and a policy of stable shareholder returns with a 45% payout target, Seika also lifted its year-end dividend forecast from ¥37 to ¥45 per share on a pre-stock-split basis. This will bring the expected annual dividend to ¥245 per share, ¥25 higher than the previous fiscal year, signaling a more generous shareholder return policy supported by robust operating performance.

The most recent analyst rating on (JP:8061) stock is a Buy with a Yen2515.00 price target. To see the full list of analyst forecasts on Seika Corporation stock, see the JP:8061 Stock Forecast page.

Seika Lifts Sales and Operating Outlook but Flags Profit Decline After Stock Split

Seika Corporation reported consolidated net sales of ¥73.7 billion for the nine months ended December 31, 2025, up 8.8% year on year, with operating profit rising 12% to ¥4.8 billion but ordinary profit and profit attributable to owners of parent declining 5.8% and 23.5%, respectively. Total assets expanded to ¥164.3 billion and the equity ratio weakened to 30.1%, while the company revised its full-year forecast upward for sales and operating profit but downward for bottom-line profit, and adjusted its dividend outlook in conjunction with a 3-for-1 stock split.

The most recent analyst rating on (JP:8061) stock is a Buy with a Yen2515.00 price target. To see the full list of analyst forecasts on Seika Corporation stock, see the JP:8061 Stock Forecast page.