Seiko Epson (SEKEY) AI Stock Analysis

• Market Cap: $4.09B
• Dividend Yield: 2.05%
• Average Volume (3M): 1.25K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.28
• 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: 1.03
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: 0.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $7.00 ▲(13.45% Upside)

Seiko Epson's overall stock score reflects a stable financial position with manageable leverage and consistent profitability. However, the lack of revenue growth and declining cash flow generation are significant concerns. The technical analysis shows mixed signals, and the valuation appears fair with a reasonable P/E ratio and modest dividend yield. These factors combined result in a moderate overall score.

Seiko Epson Business Overview & Revenue Model

Company Description

Seiko Epson Corporation, together with its subsidiaries, develops, manufactures, sells, and provides services for products in the printing solutions, visual communications, manufacturing-related and wearables, and other businesses. It operates through three segments: Printing Solutions, Visual Communications, and Manufacturing-related and Wearables segments. The Printing Solutions segment offers home and office inkjet printers, serial impact dot matrix printers, page printers, color image scanners, dry process office papermaking systems, commercial and industrial inkjet printers, inkjet printheads, printers for use in POS systems, label printers, printer consumables, and others. The Visual Communications segment provides 3LCD projectors for business, education, the home, and event; smart glasses; and others. The Manufacturing-related and Wearables segment offers wristwatches, watch movements, and others; factory automation products, industrial robots, compact injection molders, and other production systems; and crystal units, crystal oscillators, quartz sensors, and others for consumer, automotive, and industrial equipment applications. This segment also provides CMOS LSIs and other chips primarily for consumer electronics and automotive applications; and metal powders for use as raw materials in the production of electronic components, etc., as well as value-added surface finishing in a range of industrial fields. The company also sells PCs, etc. It has operations in Japan, the Philippines, the United States, Indonesia, China, and internationally. The company was incorporated in 1942 and is headquartered in Suwa, Japan.

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 demonstrates a stable financial foundation with manageable leverage and consistent profitability margins. However, challenges in revenue growth and cash flow generation could impact future performance. The balance sheet remains strong, but the income statement and cash flow metrics indicate areas that require strategic focus to enhance growth and liquidity.

Income Statement

Seiko Epson's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth rate, which is concerning. However, the company maintains a stable gross profit margin of around 36% and a net profit margin of approximately 3.16%. The EBIT and EBITDA margins have decreased slightly, reflecting some operational challenges. Overall, while profitability remains stable, the lack of revenue growth poses a risk.

Balance Sheet

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.29, indicating manageable leverage. The return on equity (ROE) is moderate at 5.29%, suggesting efficient use of equity capital. The equity ratio stands at 55.6%, showcasing a strong equity base. While the company is financially stable, the moderate ROE suggests room for improvement in generating returns from equity.

Cash Flow

Cash flow analysis reveals challenges with a significant decline in free cash flow growth rate by 43.97% in the TTM period. The operating cash flow to net income ratio is 0.27, indicating decent cash generation relative to net income. However, the free cash flow to net income ratio of 0.42 suggests potential issues in converting income to free cash flow. The declining free cash flow growth is a concern for future liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.35T	1.36T	1.31T	1.33T	1.13T	995.94B
Gross Profit	489.40B	493.03B	456.67B	450.76B	418.45B	352.38B
EBITDA	140.24B	153.44B	141.49B	147.39B	139.09B	118.92B
Net Income	42.53B	55.18B	52.62B	75.04B	92.29B	30.92B
Balance Sheet
Total Assets	1.42T	1.46T	1.41T	1.34T	1.27T	1.16T
Cash, Cash Equivalents and Short-Term Investments	229.89B	269.45B	330.48B	267.38B	335.24B	304.01B
Total Debt	227.71B	224.71B	204.78B	233.28B	243.15B	265.91B
Total Liabilities	629.44B	651.57B	601.96B	614.10B	600.68B	608.36B
Stockholders Equity	789.32B	804.75B	810.99B	727.35B	665.63B	550.92B
Cash Flow
Free Cash Flow	44.10B	67.81B	108.98B	2.21B	66.96B	77.35B
Operating Cash Flow	105.99B	138.07B	165.57B	61.31B	110.80B	133.22B
Investing Cash Flow	-153.21B	-150.79B	-58.98B	-61.60B	-44.08B	-57.45B
Financing Cash Flow	-44.04B	-45.13B	-65.39B	-79.35B	-51.77B	23.15B

Seiko Epson Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 6.17 is below the 20-day moving average (MA) of 6.41, below the 50-day MA of 6.51, and below the 200-day MA of 6.98, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 40.35 is Neutral, neither overbought nor oversold. The STOCH value of 8.44 is Positive, 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	78 Outperform	$55.93B	23.85	31.48%	0.13%	-16.35%	316.56%
NTAP	72 Outperform	$23.09B	20.44	123.00%	1.83%	3.45%	9.69%
STX	70 Outperform	$59.47B	35.75	―	1.08%	31.56%	106.00%
SEKEY	64 Neutral	$4.09B	14.65	5.27%	2.05%	1.21%	7.70%
SMCI	64 Neutral	$24.98B	32.23	12.79%	―	12.22%	-48.34%
HPQ	63 Neutral	$24.46B	9.52	―	4.40%	3.11%	-3.54%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%