Seiko Epson (SEKEY) AI Stock Analysis

• Market Cap: $4.05B
• Dividend Yield: 3.35%
• Average Volume (3M): 1.25K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.39
• Revenue Growth: 1.21%
• EPS Growth: 7.70%
• Country: US
• Employees: 75,352
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.12
• Shares Outstanding: 747,146,300
• 10 Day Avg. Volume: 1,318
• 30 Day Avg. Volume: 1,254
• PEG Ratio: 2.23
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 11.54
• Enterprise Value/Market Cap: 94.35
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 1.05
• Enterprise Value/Ebitda: 3.45
• 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: 69 Neutral
• Price Target: $7.00 ▲(8.19% Upside)

Seiko Epson's overall stock score reflects a balance of moderate financial performance, technical analysis, and valuation. The most significant factor is the company's financial performance, which shows reasonable profitability but challenges in revenue and cash flow growth. Technical analysis indicates short-term bullish momentum, though caution is advised due to potential overbought conditions. Valuation metrics suggest the stock is fairly valued with an attractive dividend yield, providing a stable income stream for investors.

Positive Factors

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management and pricing strategies, supporting long-term profitability.

Moderate Leverage

Moderate leverage suggests financial stability, allowing the company to manage debt obligations without excessive risk.

Recurring Revenue Model

A recurring revenue model provides a steady income stream, enhancing financial predictability and resilience against market fluctuations.

Negative Factors

Revenue Decline

A substantial revenue decline poses challenges to growth and may impact the company's ability to invest in future opportunities.

Declining Free Cash Flow

Reduced free cash flow growth limits financial flexibility and could hinder the company's capacity to fund operations and strategic initiatives.

Decreasing ROE

A declining ROE indicates challenges in generating shareholder value, potentially affecting investor confidence and future capital raising.

Seiko Epson Business Overview & Revenue Model

Company Description

Seiko Epson Corporation, commonly known as Epson, is a global leader in imaging and printing solutions, headquartered in Japan. The company operates in several sectors, including printing technologies, visual communications, and precision instruments. Epson is renowned for its innovative range of products, which includes inkjet and laser printers, scanners, projectors, and industrial automation equipment. The company emphasizes environmentally friendly technologies and aims to enhance the quality of life through its products and services.

How the Company Makes Money

Epson generates revenue primarily through the sale of its printing and imaging products, which includes inkjet and laser printers, as well as consumables like ink cartridges and paper. The company also earns money from its visual communication segment, which markets projectors and related accessories. Additionally, Epson's industrial solutions division, which encompasses robotics and automation technologies, contributes to its revenue streams. Significant partnerships with businesses in various sectors, including retail and manufacturing, as well as a focus on providing integrated solutions, help bolster Epson's earnings. The company also benefits from a recurring revenue model through consumable sales, creating a steady income flow from customers who require ongoing supplies for their devices.

Seiko Epson Financial Statement Overview

Summary

Seiko Epson's financial statements present a mixed picture. The company maintains reasonable profitability and a stable balance sheet with moderate leverage. However, the significant decline in revenue and free cash flow growth in the TTM period highlights challenges in sustaining growth and cash generation. While the company has a solid equity base, improving revenue and cash flow stability will be crucial for future financial health.

Income Statement

Seiko Epson's income statement shows a mixed performance. The TTM data indicates a significant revenue decline of 24.88%, which is concerning. However, the company maintains a stable gross profit margin of 35.64% and a net profit margin of 3.73%. The EBIT and EBITDA margins are moderate at 5.79% and 11.36%, respectively. The historical data shows fluctuating revenue growth, with a notable increase in 2023 but a decline in the TTM period. Overall, the company demonstrates reasonable profitability but faces challenges in sustaining revenue growth.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.26, indicating moderate leverage. The return on equity (ROE) is 6.23%, which is decent but has decreased from previous years. The equity ratio stands at 38.32%, suggesting a solid equity base. While the company has managed its debt well, the declining ROE and equity ratio indicate potential challenges in generating shareholder value.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 43.06% in the TTM period, raising concerns about cash generation. The operating cash flow to net income ratio is 0.23, and the free cash flow to net income ratio is 0.36, indicating moderate cash conversion efficiency. Historical data shows volatility in free cash flow growth, with significant fluctuations over the years. The company needs to improve its cash flow stability to support long-term operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.01T	1.36T	1.31T	1.33T	1.13T	995.94B
Gross Profit	364.45B	493.03B	456.67B	450.76B	418.45B	352.38B
EBITDA	110.70B	153.44B	141.49B	147.39B	139.09B	118.92B
Net Income	38.49B	55.18B	52.62B	75.04B	92.29B	30.92B
Balance Sheet
Total Assets	1.45T	1.46T	1.41T	1.34T	1.27T	1.16T
Cash, Cash Equivalents and Short-Term Investments	222.13B	269.45B	330.48B	267.38B	335.24B	304.01B
Total Debt	1.41B	224.71B	204.78B	233.28B	243.15B	265.91B
Total Liabilities	4.25B	651.57B	601.96B	614.10B	600.68B	608.36B
Stockholders Equity	5.55B	804.75B	810.99B	727.35B	665.63B	550.92B
Cash Flow
Free Cash Flow	25.11B	67.81B	108.98B	2.21B	66.96B	77.35B
Operating Cash Flow	71.48B	138.07B	165.57B	61.31B	110.80B	133.22B
Investing Cash Flow	-135.90B	-150.79B	-58.98B	-61.60B	-44.08B	-57.45B
Financing Cash Flow	-12.61B	-45.13B	-65.39B	-79.35B	-51.77B	23.15B

Seiko Epson Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.47
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEKEY, the sentiment is Negative. The current price of 6.47 is above the 20-day moving average (MA) of 6.29, above the 50-day MA of 6.30, and below the 200-day MA of 6.63, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 46.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SEKEY.

Seiko Epson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDC	77 Outperform	$61.39B	26.18	31.48%	0.18%	-16.35%	316.56%
NTAP	76 Outperform	$21.80B	19.15	125.35%	1.89%	2.64%	4.12%
SEKEY	69 Neutral	$4.05B	12.19	5.27%	3.35%	1.21%	7.70%
STX	68 Neutral	$60.92B	36.62	―	1.02%	31.56%	106.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPQ	61 Neutral	$21.26B	8.73	―	5.09%	4.09%	-5.77%
SMCI	58 Neutral	$18.24B	24.49	12.79%	―	12.22%	-48.34%