Tachibana Eletech Co., Ltd. (8159) AI Stock Analysis

• Market Cap: ¥73.80B
• Dividend Yield: 3.17%
• Average Volume (3M): 26.15K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.99
• Revenue Growth: -2.96%
• EPS Growth: 6.43%
• Country: JP
• Employees: 1,436
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 86.52
• Shares Outstanding: 25,025,242
• 10 Day Avg. Volume: 14,640
• 30 Day Avg. Volume: 26,146
• PEG Ratio: -0.59
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 3.51
• 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: 74 Outperform
• Price Target: ¥3,494.00 ▲(13.63% Upside)

Tachibana Eletech Co., Ltd. scores well due to its strong financial performance and attractive valuation metrics. The company's robust cash flow management and low leverage provide a solid foundation for future growth. Technical analysis presents mixed signals, with some bearish momentum indicators, but the overall valuation remains appealing. The absence of earnings call and corporate events data does not impact the score significantly.

Positive Factors

Strong balance sheet

The company's conservative capital structure — rising shareholders' equity to ¥94.99b and a low debt-to-equity ratio — provides durable financial flexibility. This buffer supports capex and R&D spending, absorbs cyclical shocks, and reduces refinancing risk, enabling strategic investments over the medium term.

Improved cash generation

A shift from negative FCF to ¥16.098b in 2025 demonstrates structurally stronger cash conversion and operational efficiency. Sustained free cash flow enhances the company's ability to fund growth, pay dividends or reduce debt without external financing, bolstering long-term financial resilience.

Multi-year revenue and margin gains

Consistent multi-year top-line growth to ¥220.11b and rising operating margins indicate scalable operations and effective cost control. This suggests durable competitive positioning across automotive, industrial and consumer markets, supporting sustainable profitability and resilience to market shifts.

Negative Factors

Recent negative revenue growth

The reported recent revenue growth of -2.96% points to near-term demand softness or sector cyclicality in end markets. If this trend persists, it could erode operating leverage, constrain reinvestment capacity and slow margin recovery despite positive multi-year revenue history.

Declining net profit margin

A slight fall in net profit margin despite improving operating metrics suggests rising costs, higher non-operating expenses, or tax impacts. Continued margin erosion would reduce retained earnings and free cash flow, limiting the firm's ability to finance growth or withstand prolonged downturns.

Limited investor communication

The absence of earnings call disclosures and notable corporate events indicates limited formal investor communication. Over the medium term, this reduces transparency around strategy execution, makes governance assessment harder, and can increase information asymmetry for investors and partners.

Tachibana Eletech Co., Ltd. Business Overview & Revenue Model

Company Description

Tachibana Eletech Co., Ltd. operates as a technology-driven trading company in Japan and internationally. It operates through Factory Automation System, Semiconductors and Electronic Devices, Building Services Systems, Manufacturing Services, and Overseas Operations segments. The Factory Automation Systems segment sells programmable controllers, inverters, AC servos, motors, power distribution control equipment and control devices, industrial robot systems, electric discharge machines, laser beam machines, machine tools, digital connection devices, connectors, factory automation computers, network devices, and touch monitors. The Semiconductors and Electronic Devices segment offers semiconductors comprising microcomputers, ASICs, power devices, memory modules, and analog and logic ICs; and electronic devices, such as memory cards, contact image sensors, and liquid crystals. The Building Services Systems segment provides package air conditioners and other air-conditioning equipment, equipment for electric housing, room air-conditioners, power receiving/transformation equipment, and monitoring and controlling equipment. The Manufacturing Services segment provides metal manufacturing services, such as structural members and pallets for multilevel car parking towers and piping members for ships; and electronics manufacturing services, such as controllers for water heaters, remote controllers for air-conditioners, etc., as well as passenger car truck closures. The Overseas Operations segment sells industrial mechatronics products, including semiconductors, electronic devices, FA equipment, and electric discharge machines. The company was formerly known as Tachibana Shokai Ltd. and changed its name to Tachibana Eletech Co., Ltd. in September 2001. Tachibana Eletech Co., Ltd. was founded in 1921 and is headquartered in Osaka, Japan.

How the Company Makes Money

Tachibana Eletech generates revenue through the sale of its electronic components and systems to various sectors, including automotive, industrial, and consumer electronics. Key revenue streams include direct sales to manufacturers and distributors, as well as long-term contracts with corporate clients for bulk orders. The company also benefits from strategic partnerships with leading technology firms, which enhance its product offerings and expand its market reach. Additionally, Tachibana Eletech invests in research and development to create cutting-edge products that meet evolving industry demands, thereby driving sales growth.

Tachibana Eletech Co., Ltd. Financial Statement Overview

Summary

Tachibana Eletech Co., Ltd. exhibits a strong financial profile with consistent revenue growth, efficient operations, and a solid balance sheet. The company effectively manages its cash flows, positioning itself well for future growth and investment opportunities. While there are minor concerns regarding the slight decline in net profit margins, the company's low leverage and strong equity position provide a buffer against potential risks.

Income Statement

Tachibana Eletech Co., Ltd. has shown a stable financial performance with a steady increase in revenue from ¥161.44 billion in 2021 to ¥220.11 billion in 2025. The gross profit margin has been consistent, and the company has improved its EBIT and EBITDA margins over time, indicating strong operational efficiency. However, the net profit margin has slightly decreased from 2024 to 2025, suggesting rising costs or expenses.

Balance Sheet

The company's balance sheet reflects strong financial health with a consistently increasing stockholders' equity, reaching ¥94.99 billion in 2025. The debt-to-equity ratio remains low, indicating a conservative leverage approach, which minimizes financial risk. The equity ratio has also been stable, demonstrating a strong asset base relative to liabilities.

Cash Flow

Tachibana Eletech Co., Ltd. has demonstrated robust cash flow management with significant improvements in free cash flow, reaching ¥16.098 billion in 2025 from a negative position in 2023. The operating cash flow has also improved substantially, highlighting efficient cash generation from operations. The company maintains a strong free cash flow to net income ratio, reinforcing its ability to generate cash relative to accounting profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	216.53B	220.11B	231.04B	227.27B	193.43B	161.44B
Gross Profit	28.91B	28.79B	31.77B	30.90B	25.93B	21.11B
EBITDA	10.24B	10.98B	12.40B	11.55B	8.03B	5.26B
Net Income	6.42B	7.05B	8.47B	7.84B	5.14B	3.46B
Balance Sheet
Total Assets	159.34B	165.42B	178.28B	153.63B	135.17B	120.27B
Cash, Cash Equivalents and Short-Term Investments	20.33B	24.27B	14.95B	11.60B	11.32B	19.09B
Total Debt	10.71B	10.52B	14.60B	6.88B	5.05B	2.12B
Total Liabilities	64.39B	70.42B	85.71B	69.00B	57.93B	45.06B
Stockholders Equity	94.94B	94.99B	92.57B	84.64B	77.24B	75.20B
Cash Flow
Free Cash Flow	0.00	16.10B	718.00M	-681.00M	-8.38B	4.35B
Operating Cash Flow	0.00	16.46B	2.13B	-285.00M	-7.59B	4.95B
Investing Cash Flow	0.00	-830.00M	-1.29B	210.00M	-968.00M	-1.30B
Financing Cash Flow	0.00	-9.35B	2.27B	88.00M	702.00M	-1.83B

Tachibana Eletech Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3075.00
• 50DMA: Negative
• 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:8159, the sentiment is Neutral. The current price of 3075 is below the 20-day moving average (MA) of 3122.75, above the 50-day MA of 3059.22, and above the 200-day MA of 2774.58, indicating a neutral trend. The MACD of -7.39 indicates Positive momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of 18.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8159.

Tachibana Eletech Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6866	79 Outperform	¥84.06B	15.28	―	3.23%	7.28%	4.16%
6814	76 Outperform	¥224.89B	13.88	―	1.88%	6.56%	106.55%
6859	75 Outperform	¥76.84B	13.73	―	3.12%	2.78%	-5.32%
8159	74 Outperform	¥73.80B	10.13	―	3.17%	-2.96%	6.43%
6908	70 Outperform	¥77.92B	19.74	―	3.05%	10.79%	12.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Tachibana Eletech Co., Ltd. Corporate Events

Tachibana Eletech Reports Progress on Share Buyback Program

Tachibana Eletech Co., Ltd. has disclosed the latest progress of its ongoing share repurchase program authorized by its board in May 2025, which allows buybacks of up to 1,000,000 shares or 4.35% of outstanding stock (excluding treasury shares) for a maximum of 5 billion yen through March 31, 2026. During the period from December 1 to December 31, 2025, the company repurchased 151,800 shares of its common stock on the Tokyo Stock Exchange at a total cost of 458,993,700 yen, bringing cumulative buybacks under the current authorization to 775,000 shares worth 2,213,698,800 yen as of December 31, 2025; this continued execution of the buyback underscores management’s capital allocation policy and may support shareholder value through reduced share float and potentially enhanced earnings per share.

The most recent analyst rating on (JP:8159) stock is a Buy with a Yen3175.00 price target. To see the full list of analyst forecasts on Tachibana Eletech Co., Ltd. stock, see the JP:8159 Stock Forecast page.

Tachibana Eletech Reports Mixed Financial Results Amid Sales Decline

Tachibana Eletech Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a decrease in net sales by 3.4% compared to the previous year. Despite the decline in sales, the company achieved a significant increase in comprehensive income by 116.1%, indicating improved operational efficiency. The company’s equity-to-asset ratio improved to 59.1%, reflecting a stronger financial position. The forecast for the fiscal year ending March 31, 2026, anticipates a modest growth in net sales by 2.2%, with a decrease in operating and ordinary profit, suggesting challenges in maintaining profitability.

The most recent analyst rating on (JP:8159) stock is a Buy with a Yen3175.00 price target. To see the full list of analyst forecasts on Tachibana Eletech Co., Ltd. stock, see the JP:8159 Stock Forecast page.