Freesia Macross Corporation (6343) AI Stock Analysis

• Market Cap: ¥8.06B
• Dividend Yield: 0.3%
• Average Volume (3M): 329.98K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.54
• Revenue Growth: 4.45%
• EPS Growth: 19.84%
• Country: JP
• Employees: 376
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 7.38
• Shares Outstanding: 45,099,320
• 10 Day Avg. Volume: 408,990
• 30 Day Avg. Volume: 329,983
• PEG Ratio: 0.13
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.65
• P/FCF Ratio: -14.21
• 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: 73 Outperform
• Price Target: ¥198.00 ▲(50.00% Upside)

Overall score is driven primarily by solid financial performance and profitability, tempered by weaker cash flow quality and some balance sheet leverage risk. Technicals are supportive with a clear uptrend but momentum is near overbought, while valuation is a key positive due to the low P/E and dividend yield.

Positive Factors

High profit margins

Sustained high gross and operating margins indicate durable product differentiation and pricing power in components and systems. This supports long-term cash profitability, funds R&D and cushions the business through cyclical industry swings, improving resilience over 2-6 months.

Consistent revenue growth

Recurring mid-single-digit revenue growth reflects steady demand across telecom, automotive and consumer end-markets and validates market share retention. Persistent top-line growth mitigates execution risk and underpins earnings progression over multiple quarters.

Diversified revenue model & R&D focus

A multi-stream revenue mix with OEM contracts, partnerships and active R&D builds durable customer relationships and pipeline. This diversification reduces customer-concentration risk and supports sustainable product innovation and repeatable revenue streams.

Negative Factors

Negative free cash flow trends

Sharp negative FCF growth signals capital allocation or working capital pressure that can impair funding for strategic investments or dividends. Unless capex efficiency improves, persistent FCF weakness erodes financial flexibility and constrains long-term value creation.

Weak cash conversion

Low OCF-to-net-income implies earnings are not converting to cash efficiently, raising concerns about receivables, inventory or non-cash gains. Structural cash conversion gaps increase refinancing and liquidity risk and pressure sustaining investments over subsequent quarters.

Rising leverage risk

Moderate but rising leverage reduces balance sheet flexibility and heightens refinancing exposure if industry downturns occur. Continued debt accumulation could elevate interest burdens and limit ability to capitalize on growth opportunities over a multi-quarter horizon.

Freesia Macross Corporation Business Overview & Revenue Model

Company Description

Freesia Macross Corporation (6343) is a dynamic company engaged in the design, manufacturing, and distribution of advanced electronic components and systems. Operating primarily in the technology sector, Freesia Macross specializes in providing innovative solutions for various applications, including telecommunications, automotive electronics, and consumer devices. With a strong emphasis on research and development, the company aims to deliver high-performance products that meet the evolving needs of its diverse clientele.

How the Company Makes Money

Freesia Macross Corporation generates revenue through multiple streams, primarily by selling its electronic components and systems to manufacturers across various industries, including telecommunications and automotive. The company benefits from a solid revenue model that includes direct sales to original equipment manufacturers (OEMs), long-term contracts with key clients, and partnerships with technology firms that enhance its product offerings. Moreover, Freesia Macross invests in research and development to foster innovation, allowing it to stay competitive and command premium pricing for its high-quality products. Additionally, the company may engage in licensing agreements for its patented technologies, further diversifying its income sources.

Freesia Macross Corporation Financial Statement Overview

Summary

Strong profitability supports the score (gross margin 52.6%, net margin 13.0%, EBIT margin 19.3%, EBITDA margin 34.9%) alongside steady revenue growth (+3.73%). The balance sheet is generally stable (debt-to-equity 0.82, equity ratio 37.8%), but rising leverage risk and weaker cash conversion/free cash flow trends (operating cash flow to net income 0.19; negative free cash flow growth) hold the score back.

Income Statement

Freesia Macross Corporation has shown steady revenue growth with a 3.73% increase in the most recent year. The company maintains solid profit margins, including a gross profit margin of 52.6% and a net profit margin of 13.0% for the latest year. The EBIT and EBITDA margins are strong at 19.3% and 34.9%, respectively, indicating operational efficiency. The consistent revenue growth and strong margins highlight the company's stable and profitable position in the market.

Balance Sheet

The company exhibits a balanced financial structure with a debt-to-equity ratio of 0.82, indicating a moderate level of leverage. The return on equity is robust at 7.3%, reflecting effective use of shareholder funds. An equity ratio of 37.8% suggests a solid capital base. While the balance sheet shows stability, the increasing debt levels over the years could pose a risk if not managed carefully.

Cash Flow

Freesia Macross Corporation's cash flow analysis reveals challenges in generating free cash flow, with a negative free cash flow growth rate of 70.4%. However, the operating cash flow to net income ratio of 0.19 indicates a positive cash flow from operations. The company's cash flow management shows potential for improvement, particularly in capital expenditure efficiency to ensure sustainable growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.14B	6.97B	6.72B	7.03B	7.01B	6.79B
Gross Profit	3.81B	3.67B	3.41B	3.42B	3.57B	3.39B
EBITDA	2.54B	2.44B	2.00B	2.22B	1.95B	846.02M
Net Income	945.65M	906.70M	657.54M	835.08M	410.39M	-308.92M
Balance Sheet
Total Assets	34.33B	33.06B	30.48B	27.01B	27.10B	25.17B
Cash, Cash Equivalents and Short-Term Investments	1.29B	1.11B	1.50B	2.07B	3.25B	2.91B
Total Debt	10.25B	10.22B	9.92B	9.18B	10.07B	9.08B
Total Liabilities	13.90B	13.53B	12.99B	12.11B	13.61B	12.79B
Stockholders Equity	13.27B	12.49B	11.12B	9.11B	8.06B	7.75B
Cash Flow
Free Cash Flow	0.00	-319.91M	-1.08B	-407.86M	-63.62M	1.16B
Operating Cash Flow	0.00	176.22M	190.70M	-263.60M	43.61M	1.44B
Investing Cash Flow	0.00	-819.17M	-1.45B	-257.35M	-844.35M	-731.83M
Financing Cash Flow	0.00	251.46M	693.12M	-662.10M	1.16B	271.46M

Freesia Macross Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 132.00
• 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:6343, the sentiment is Positive. The current price of 132 is below the 20-day moving average (MA) of 174.40, below the 50-day MA of 161.62, and above the 200-day MA of 128.65, indicating a bullish trend. The MACD of 5.26 indicates Positive momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 47.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6343.

Freesia Macross Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6267	81 Outperform	¥6.94B	8.47	―	2.80%	6.02%	7.39%
6343	73 Outperform	¥8.06B	7.82	―	0.30%	4.45%	19.84%
6336	72 Outperform	¥6.02B	5.87	―	2.63%	0.59%	53.87%
6327	68 Neutral	¥8.21B	12.78	―	1.17%	53.68%	146.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6292	61 Neutral	¥5.66B	17.15	―	5.22%	-8.98%	4.00%
6495	54 Neutral	¥8.06B	134.84	―	1.65%	3.96%	―