Seika Corporation (8061) AI Stock Analysis

• Market Cap: ¥52.50B
• Dividend Yield: 5.68%
• Average Volume (3M): 65.23K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.84
• Revenue Growth: 8.01%
• EPS Growth: 74.28%
• Country: JP
• Employees: 1,040
• Sector: Industrials
• Sector Strength: 88
• Industry: Industrial - Distribution
• EPS (TTM): 145.89
• Shares Outstanding: 12,320,650
• 10 Day Avg. Volume: 58,780
• 30 Day Avg. Volume: 65,226
• PEG Ratio: 0.04
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.79
• 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

• Rating: 79 Outperform
• Price Target: ¥5,187.00 ▲(13.25%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 Business Overview & Revenue Model

Company Description

Seika Corporation (8061) is a Japan-based company primarily engaged in the import, export, and sale of various industrial machinery and equipment. The company operates through several business segments, including the Machinery and Electronics segment, the Chemicals segment, and the Environment and Energy segment. Seika Corporation's core products and services include industrial machinery, electronic equipment, chemical products, and environmental and energy solutions, catering to a wide range of industries such as manufacturing, infrastructure, and utilities.

How the Company Makes Money

Seika Corporation generates revenue through the sale of industrial machinery, electronic equipment, and chemical products. The Machinery and Electronics segment is a significant contributor to its earnings, involving the trading and distribution of machinery and equipment used in manufacturing and other industries. The Chemicals segment contributes through the distribution of chemical products to various industries, while the Environment and Energy segment focuses on providing solutions and products related to sustainable energy and environmental conservation. The company also benefits from strategic partnerships and relationships with manufacturers and suppliers, enhancing its ability to offer a diverse portfolio of products and services to its clients.

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
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
93.89B	93.73B	86.78B	93.31B	85.31B	136.27B
	Gross Profit
24.74B	25.16B	22.66B	19.94B	18.03B	14.67B
	EBIT
6.45B	6.49B	5.58B	4.64B	3.82B	2.58B
	EBITDA
7.97B	11.91B	7.14B	5.23B	4.41B	3.19B
	Net Income Common Stockholders
8.04B	7.80B	4.49B	5.00B	2.25B	2.72B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.36B	16.93B	10.53B	10.82B	17.60B	16.04B
	Total Assets
98.71B	129.53B	118.54B	79.99B	104.86B	97.46B
	Total Debt
238.00M	200.00M	199.00M	2.14B	5.65B	7.71B
	Net Debt
-14.02B	-16.63B	-10.23B	-8.51B	-11.68B	-8.05B
	Total Liabilities
53.79B	81.86B	75.36B	44.26B	73.76B	67.57B
	Stockholders Equity
44.50B	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	790.00M	-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: 4580.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 4580 is below the 20-day moving average (MA) of 4594.00, above the 50-day MA of 4386.70, and above the 200-day MA of 4270.65, indicating a neutral trend. The MACD of 43.99 indicates Positive momentum. The RSI at 46.91 is Neutral, neither overbought nor oversold. The STOCH value of 5.80 is Positive, 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
3153	81 Outperform	¥35.94B	8.93		2.14%	1.87%	50.77%
8061	79 Outperform	¥52.50B	7.05		5.68%	8.01%	74.28%
3176	76 Outperform	¥41.03B	7.47		3.92%	5.46%	0.90%
9932	76 Outperform	¥36.98B	17.54		3.13%	6.07%	6.17%
8052	75 Outperform	¥43.91B	9.05		4.82%	5.70%	10.65%
7128	73 Outperform	¥54.07B	12.14		4.01%	-4.11%	10.47%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%

Seika Corporation Corporate Events

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.

Seika Corporation to Acquire Significant Stake in TOKYO SANGYO

Seika Corporation has announced its decision to acquire 11.58% of the shares of TOKYO SANGYO CO., LTD., marking a significant move in its strategic operations. This acquisition, scheduled for April 3, 2025, represents a substantial investment and is classified as an act of buying up, indicating Seika’s intention to strengthen its market position and influence within the industry.