Seika Corporation (8061) AI Stock Analysis

• Market Cap: ¥85.30B
• Dividend Yield: 3.38%
• Average Volume (3M): 195.42K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.99
• Revenue Growth: 10.74%
• EPS Growth: -26.50%
• Country: JP
• Employees: 1,040
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 37.09
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥2,789.00 ▲(17.98% Upside)

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 Growth

Seika's consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Generation

Improved free cash flow enhances Seika's ability to fund operations and investments, reducing reliance on external financing and supporting sustainable growth.

Profitability

Strong profit margins reflect Seika's effective cost management and pricing strategies, ensuring long-term financial stability and competitiveness.

Negative Factors

EPS Decline

A decline in EPS growth suggests potential challenges in profit generation, which could impact investor confidence and future earnings potential.

Equity Growth

Limited growth in stockholders' equity may constrain Seika's ability to invest in new opportunities, potentially affecting long-term expansion.

Leverage

While low leverage reduces financial risk, it may also limit Seika's capacity to leverage debt for growth opportunities, impacting scalability.

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 significant revenue growth, robust profit margins, and a stable financial position. The income statement shows a positive growth trajectory, while the balance sheet indicates low leverage and efficient equity use. Cash flow improvements further highlight the company's ability to fund operations and investments.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 2364.00
• 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:8061, the sentiment is Positive. The current price of 2364 is above the 20-day moving average (MA) of 2346.30, above the 50-day MA of 2300.50, and above the 200-day MA of 1796.56, indicating a bullish trend. The MACD of 24.99 indicates Positive momentum. The RSI at 53.75 is Neutral, neither overbought nor oversold. The STOCH value of 59.37 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
8061	79 Outperform	¥85.30B	14.45	―	3.38%	10.74%	-26.50%
9932	76 Outperform	¥30.24B	14.56	―	3.84%	2.74%	4.90%
8052	73 Outperform	¥54.53B	10.20	―	3.00%	16.06%	31.78%
3153	71 Outperform	¥62.93B	13.29	―	1.22%	14.41%	85.93%
3176	70 Neutral	¥42.90B	9.33	―	3.87%	2.66%	-11.41%
7128	68 Neutral	¥53.73B	27.06	―	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 Corporation Completes Acquisition of ASAHI SUNAC

Seika Corporation has completed the acquisition of ASAHI SUNAC CORPORATION, a company specializing in coating equipment and precision systems, for 18,000 million yen. This strategic move is expected to enhance Seika’s market position in the industrial equipment sector, although the financial impact on Seika’s fiscal year results is still under review.

Seika Corporation Announces Director Resignation and Appointment

Seika Corporation announced the resignation of Yuko Shirai, a Director serving as a Member of the Audit and Supervisory Committee, effective November 30, 2025, due to personal reasons. Yasutaka Keno, already appointed as a substitute Director, will assume the position to maintain compliance with legal requirements for the number of directors.

Seika Corporation Declares Interim Dividend of 110 Yen Per Share

Seika Corporation announced a decision by its Board of Directors to distribute an interim dividend of 110.00 yen per share, with a record date of September 30, 2025. This decision aligns with the company’s policy of maintaining a stable dividend and reflects its commitment to returning profits to shareholders while targeting a total return ratio of 45%.

Seika Corporation Reports Mixed Financial Results Amid Stock Split

Seika Corporation reported its consolidated financial results for the six months ended September 30, 2025, showing a 16.4% increase in net sales compared to the previous year. However, the company experienced a decline in ordinary profit and profit attributable to owners of the parent by 11.8% and 37.9%, respectively. The company has implemented a 3-for-1 stock split, affecting profit per share calculations. The financial forecast for the fiscal year ending March 31, 2026, anticipates a 12% increase in net sales but a decrease in ordinary profit and profit attributable to owners of the parent by 13.9% and 22.4%, respectively, indicating potential challenges in maintaining profitability.

Seika Corporation Acquires ASAHI SUNAC to Boost Technological Growth

Seika Corporation has announced the acquisition of all shares of ASAHI SUNAC CORPORATION, making it a wholly owned subsidiary. This strategic move aims to leverage Asahi Sunac’s technological capabilities and enhance business growth through deeper collaboration, aligning with Seika’s goal to expand its influence in the machinery trading industry.