Balance Sheet StrengthA moderate debt-to-equity ratio (0.38) and equity equal to ~50% of assets provide a durable capital cushion. This supports the firm's ability to absorb automotive cycle volatility, maintain supplier and OEM relationships, and fund necessary working capital without relying solely on external debt.

Improving Gross MarginsA rising gross margin to 14.66% suggests better product mix or cost control at the manufacturing level. Sustained improvement here increases the margin buffer against fixed overhead and commodity swings, helping long-term operating leverage and viability in a competitive parts market.

OEM + Aftermarket Revenue MixA business model combining OEM contracts and aftermarket replacement demand provides resilience: OEMs offer scale and design wins, while aftermarket sales deliver recurring, countercyclical revenue. This structural mix supports steady volume and reduces reliance on a single customer channel.

Bears Say

Weak Cash GenerationNegative operating cash flow and -1,407 million free cash flow are structural red flags. Persistent cash shortfalls restrict the company's ability to fund capex, service unexpected costs, sustain dividends, or invest in product upgrades, raising medium-term liquidity and execution risk.

Revenue DeclineA sustained decline in revenue reduces economies of scale and bargaining power with suppliers and OEMs. Over months this erodes margins and limits room to invest in new product development or manufacturing efficiency, potentially weakening competitive position in auto parts.

Very Low Net MarginsNet margin near 1% and weak EBIT/EBITDA margins limit internal funding for R&D, tooling, and modernization. Low profitability reduces resilience to commodity or cyclical shocks and forces reliance on cost cutting rather than strategic investment, constraining long-term competitiveness.

6901 FAQ

What was Sawafuji Electric Co., Ltd.’s price range in the past 12 months?

Sawafuji Electric Co., Ltd. lowest stock price was ¥682.00 and its highest was ¥1314.00 in the past 12 months.

What is Sawafuji Electric Co., Ltd.’s market cap?

Sawafuji Electric Co., Ltd.’s market cap is ¥5.57B.

When is Sawafuji Electric Co., Ltd.’s upcoming earnings report date?

Sawafuji Electric Co., Ltd.’s upcoming earnings report date is May 08, 2026 which is in 62 days.

How were Sawafuji Electric Co., Ltd.’s earnings last quarter?

Sawafuji Electric Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥37.2 earnings per share for the quarter, beating the consensus estimate of N/A by ¥37.2.

Is Sawafuji Electric Co., Ltd. overvalued?

According to Wall Street analysts Sawafuji Electric Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Sawafuji Electric Co., Ltd. pay dividends?

Sawafuji Electric Co., Ltd. pays a Semiannually dividend of ¥16 which represents an annual dividend yield of 2.46%. See more information on Sawafuji Electric Co., Ltd. dividends here

What is Sawafuji Electric Co., Ltd.’s EPS estimate?

Sawafuji Electric Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Sawafuji Electric Co., Ltd. have?

Sawafuji Electric Co., Ltd. has 4,322,000 shares outstanding.

What happened to Sawafuji Electric Co., Ltd.’s price movement after its last earnings report?

Sawafuji Electric Co., Ltd. reported an EPS of ¥37.2 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went same 0%.

Which hedge fund is a major shareholder of Sawafuji Electric Co., Ltd.?

Currently, no hedge funds are holding shares in JP:6901

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Sawafuji Electric Co., Ltd.

Sawafuji Electric Co., Ltd. manufactures and sells electronic components for trucks and buses, portable electronic equipment, and portable refrigerators in Japan. The company offers automotive electrical equipment, such as starters, alternators, hybrid (HV) motors, control devices, battery packs, relays, and DC motors. It also provides refrigerators under the ENGEL brand; and gasoline and diesel engine generators and welders under the Elemax brand, as well as generators for use in ships, power plants, and industrial applications. In addition, the company engages in the transportation and freightage businesses. It exports its products to approximately 100 countries worldwide. The company was formerly known as Sawafuji Electric Manufactory and changed its name to Sawafuji Electric Co., Ltd. in 1934. Sawafuji Electric Co., Ltd. was founded in 1908 and is headquartered in Ota, Japan.