Canare Electric Co., Ltd. (5819) AI Stock Analysis

• Market Cap: ¥12.51B
• Dividend Yield: 2.96%
• Average Volume (3M): 11.15K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.49
• Revenue Growth: 3.43%
• EPS Growth: 3.75%
• Country: JP
• Employees: 260
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 48.75
• Shares Outstanding: 7,028,060
• 10 Day Avg. Volume: 9,670
• 30 Day Avg. Volume: 11,153
• PEG Ratio: -0.73
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 7.44
• 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: 77 Outperform
• Price Target: ―

Canare Electric Co., Ltd. demonstrates a strong financial foundation with excellent cash flow, no debt, and robust profitability, which are significant strengths. The valuation appears attractive with a low P/E ratio and a high dividend yield. However, technical indicators present a mixed picture, which slightly offsets the otherwise strong financial performance and valuation. The overall score reflects a solid investment with potential for future growth, tempered by the need for careful monitoring of market trends.

Positive Factors

Cash Flow Management

Strong cash flow management indicates operational efficiency, enabling reinvestment and shareholder returns, supporting long-term growth.

Balance Sheet Health

A debt-free balance sheet enhances financial flexibility and reduces risk, allowing for strategic investments and stability.

Profitability

Consistent profitability with strong margins suggests efficient operations and a competitive edge, supporting sustainable growth.

Negative Factors

Revenue Growth Decline

A decline in revenue growth could indicate market challenges or increased competition, potentially impacting future expansion.

Asset Utilization

Inefficient asset utilization may limit income generation, affecting overall profitability and return on investment.

Revenue Growth

Negative revenue growth suggests potential market saturation or competitive pressures, which could hinder long-term growth prospects.

Canare Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Canare Electric Co., Ltd. develops, manufactures, and sells audio and video cables, connectors, patchbays, assemblies, converters and related products, and fiber-optic products in Japan and internationally. The company also offers video jacks, crimp plugs, receptacles and adapters, and coaxial cable strippers. It serves television broadcasting, and professional audio and video industries. The company was founded in 1970 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Canare Electric Co., Ltd. generates revenue primarily through the design, production, and sale of a comprehensive range of audio and video cables and connectors. Its core revenue streams include sales of bulk cables, assemblies, and accessories for professional audio and video applications. Additionally, the company benefits from long-standing relationships and partnerships with broadcasters, integrators, and distributors worldwide, which help ensure a steady demand for its products. Canare Electric's commitment to quality and innovation also allows it to maintain a competitive edge in the market, contributing to its financial performance.

Canare Electric Co., Ltd. Financial Statement Overview

Summary

Canare Electric Co., Ltd. presents a strong financial position with consistent profitability, no debt, and excellent cash flow generation. Despite a minor setback in revenue growth in the most recent year, the company maintains solid operational margins and a strong equity base, positioning it well for future growth and stability.

Income Statement

Canare Electric Co., Ltd. demonstrates strong profitability with a substantial gross profit margin and a solid net profit margin. Despite a slight revenue decline from 2023 to 2024, the company has shown consistent revenue growth over the past years. Additionally, the EBIT and EBITDA margins indicate efficient operations relative to revenues.

Balance Sheet

The company's balance sheet is robust with no debt, reflected in a debt-to-equity ratio of zero, and a strong equity ratio showing that the majority of assets are financed by equity. The return on equity is solid, indicating effective use of shareholders' funds, though there's room for improvement in leveraging assets to generate income.

Cash Flow

Canare Electric Co., Ltd. has impressive cash flow management with a significant increase in free cash flow, indicating strong operational efficiency. The operating cash flow to net income ratio is healthy, showing a good conversion of profits into cash. Free cash flow growth is notable, supporting potential reinvestment or shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.54B	12.38B	12.87B	11.17B	10.03B	9.70B
Gross Profit	2.71B	5.20B	5.41B	4.43B	3.94B	3.91B
EBITDA	854.50M	1.62B	1.99B	1.47B	1.21B	1.20B
Net Income	482.87M	1.04B	1.19B	868.94M	681.43M	679.46M
Balance Sheet
Total Assets	19.88B	19.63B	18.91B	17.73B	16.27B	15.26B
Cash, Cash Equivalents and Short-Term Investments	9.04B	11.47B	10.27B	9.71B	9.78B	9.31B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.56B	1.66B	1.89B	2.04B	1.56B	1.35B
Stockholders Equity	18.32B	17.97B	17.02B	15.69B	14.72B	13.92B
Cash Flow
Free Cash Flow	1.66B	1.33B	724.00M	-94.00M	461.00M	1.17B
Operating Cash Flow	1.74B	1.46B	808.00M	835.00M	515.00M	1.27B
Investing Cash Flow	-2.12B	317.00M	-561.00M	-913.00M	-119.00M	-197.00M
Financing Cash Flow	-468.00M	-543.00M	-369.00M	-290.00M	-214.00M	-284.00M

Canare Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1893.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5819, the sentiment is Positive. The current price of 1893 is above the 20-day moving average (MA) of 1878.30, above the 50-day MA of 1867.24, and above the 200-day MA of 1623.82, indicating a bullish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of 54.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5819.

Canare Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6763	80 Outperform	¥24.19B	14.29	―	3.44%	12.72%	53.85%
5816	79 Outperform	¥17.83B	9.93	6.87%	2.53%	-2.24%	-26.59%
5819	77 Outperform	¥12.51B	10.51	―	2.96%	3.43%	3.75%
7711	72 Outperform	¥45.00B	53.87	―	0.53%	10.13%	24.53%
6668	69 Neutral	¥10.52B	5.23	―	2.15%	12.23%	65.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥12.29B	33.54	―	4.56%	-11.74%	-84.61%