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Fuji Electric Co Ltd (JP:6504)
:6504
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Fuji Electric Co
(OTC:6504)
Rating:76Outperform
Price Target:
¥7,416.00
▲(12.71%Upside)
Fuji Electric Co (6504) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$932.73B
Dividend Yield2.33%
Average Volume (3M)817.88K
Price to Earnings (P/E)10.2
Beta (1Y)1.41
Revenue Growth1.83%
EPS Growth21.82%
CountryJP
Employees27,391
SectorIndustrials
Sector Strength90
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)254.71
Shares Outstanding149,297,000
10 Day Avg. Volume863,680
30 Day Avg. Volume817,876
Financial Highlights & Ratios
PEG Ratio-5.65
Price to Book (P/B)1.38
Price to Sales (P/S)0.00
P/FCF Ratio16.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8,266.55Price Target Upside25.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Fuji Electric Co Business Overview & Revenue Model
Company DescriptionFuji Electric Co., Ltd. is a Japanese multinational company founded in 1923, specializing in the manufacturing of electrical equipment and related solutions. The company operates across various sectors, including energy, industrial systems, information technology, and electronics. Fuji Electric's core products and services encompass power electronics systems, semiconductors, power generation, and distribution solutions, automation systems, and environmental solutions, catering to both industrial and consumer markets.
How the Company Makes MoneyFuji Electric generates revenue through a diverse set of business segments. The company's primary revenue streams include the sale of power electronics systems, which provide energy-efficient solutions for industrial and consumer applications, and semiconductor devices used in various electronic products. Additionally, Fuji Electric earns substantial income from its energy and environment segment, which offers power generation and distribution systems, including renewable energy solutions. The industrial solutions segment, providing automation and factory optimization systems, also contributes significantly to the company's earnings. Fuji Electric's strategic partnerships and collaborations with other companies in the energy and electronics sectors enhance its market position and drive revenue growth. Furthermore, the company invests in research and development to innovate and improve its product offerings, which helps maintain its competitive edge in the global market.
Fuji Electric Co Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q3-2024)
| % Change Since: 6.61%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant positive achievements, including record high financial metrics, strong growth in the semiconductor and automotive sectors, and a successful revision of the full year forecast. However, there are notable challenges such as declines in the ED&C components sector, energy segment operating profit, and sales in the China market.Q3-2024 Updates
Positive Updates
Record High Financial Metrics
Achieved record high consolidated net sales, operating profit, ordinary profit, and net profit for the third quarter. Net sales increased by JPY 68.9 billion to JPY 759.7 billion. Operating profit increased by JPY 15.2 billion to JPY 57.7 billion, and net profit increased by JPY 8.3 billion to JPY 37.3 billion.
Significant Growth in Semiconductor and Automotive Sectors
Semiconductor segment net sales increased by JPY 19.6 billion, with operating profit up by JPY 4 billion. Automotive business saw both sales and profit increase significantly, with a 36% increase in semiconductor automotive sales.
Energy Management and Power Supply Growth
Energy Management showed increases in sales and profit driven by large orders for substation and power supply equipment. Power Supply and Facility Systems saw significant increases in sales and profit due to projects from data centers and semiconductor manufacturers.
Food and Beverage Distribution Success
Net sales in the Food and Beverage Distribution increased by JPY 11.1 billion, with operating profit up by JPY 4 billion. Notable growth in vending machines and store distribution projects.
Upward Revision of Full Year Forecast
Full year forecast was revised upward with net sales increased by JPY 10 billion to JPY 1,070 billion, and operating profit increased by JPY 4 billion to JPY 100 billion.
Negative Updates
Decline in ED&C Components
ED&C components experienced a decline in both sales and profit due to decreased demand from machinery manufacturers and semiconductor production equipment.
Decrease in Energy Segment Operating Profit
Despite an increase in net sales, the Energy segment saw a slight decrease in operating profit due to the absence of large-scale renewable energy projects recorded in the previous period.
Decline in Orders for Major Components
Overall orders received decreased by JPY 9.2 billion, with major components seeing a decrease of JPY 25 billion. Orders for factory automation and ED&C components declined due to market conditions and previous advance orders.
Decline in China Market Sales
Actual sales in China went down due to market conditions, impacting the overall performance despite an increase in overseas sales.
Company Guidance
During the earnings call for the third quarter of fiscal year 2023, Junichi Arai provided a detailed analysis of the company's financial performance, highlighting record high metrics across various financial indicators. Consolidated net sales reached JPY 759.7 billion, marking an increase of JPY 68.9 billion from the previous year, with JPY 57 billion attributed to actual demand excluding exchange rate effects. Operating profit rose by JPY 15.2 billion to JPY 57.7 billion, with an operating profit ratio increase of 1.4% to 7.6%. Ordinary profit was also up by JPY 15.4 billion to JPY 56.6 billion, although extraordinary profit saw a decline of JPY 2.3 billion, settling at a positive JPY 6 billion. Net profit increased by JPY 8.3 billion to JPY 37.3 billion. Segment-wise, the Energy segment showed a mixed performance with a sales increase of JPY 3.6 billion but a decline in operating profit by JPY 0.8 billion. Meanwhile, the Industry, Semiconductor, and Food and Beverage Distribution segments posted strong sales and profit growth. The call also revealed a positive outlook with an upward revision of the full-year forecast, projecting net sales of JPY 1,070 billion and operating profit of JPY 100 billion, aiming for a 9.3% operating profit ratio, setting the stage for future growth and a double-digit operating profit ratio in the medium-term plan.Fuji Electric Co Financial Statement Overview
Summary
Fuji Electric Co shows strong financial health with consistent revenue growth and improved profitability. The balance sheet indicates reduced financial leverage and better equity utilization. Robust cash flow generation supports stability and growth potential in the industry.Income Statement
Fuji Electric Co has demonstrated strong growth in revenue with a consistent upward trend from 2020 to 2025. The gross profit margin and net profit margin have been improving steadily, indicating enhanced operational efficiency and profitability. The EBIT and EBITDA margins also show positive trends, reflecting effective cost management and stable earnings before interest, taxes, depreciation, and amortization.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio has decreased over the years, suggesting a more balanced capital structure and reduced financial leverage. Return on equity has been increasing, showcasing better utilization of shareholder funds. The equity ratio is stable, indicating a healthy proportion of equity financing relative to total assets, which enhances financial stability.78
Positive
Cash Flow
Fuji Electric Co's cash flow from operations has grown significantly, supporting strong free cash flow growth. The operating cash flow to net income ratio indicates robust cash conversion from earnings. The free cash flow to net income ratio shows improvement, reflecting effective capital expenditure management and strong cash generation capabilities.80
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.12T | 1.10T | 1.01T | 910.23B | 875.93B | Gross Profit |
| 317.80B | 303.29B | 276.92B | 252.44B | 221.27B | EBIT |
| 117.55B | 106.07B | 88.88B | 74.83B | 48.59B | EBITDA |
| 194.34B | 168.01B | 144.52B | 131.03B | 101.78B | Net Income Common Stockholders |
| 92.24B | 75.35B | 61.35B | 58.66B | 41.93B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 63.54B | 66.19B | 84.70B | 92.97B | 76.55B | Total Assets |
| 1.31T | 1.27T | 1.18T | 1.12T | 1.05T | Total Debt |
| 101.29B | 160.35B | 180.63B | 206.82B | 215.03B | Net Debt |
| 37.75B | 94.81B | 95.93B | 113.86B | 138.49B | Total Liabilities |
| 581.51B | 609.70B | 609.49B | 593.38B | 590.70B | Stockholders Equity |
| 691.77B | 602.52B | 517.09B | 472.90B | 417.00B |
| Cash Flow | Free Cash Flow | |||
| 58.17B | 17.90B | 55.08B | 43.76B | 6.35B | Operating Cash Flow |
| 144.92B | 84.86B | 116.16B | 76.81B | 26.93B | Investing Cash Flow |
| -63.38B | -62.42B | -49.50B | -22.35B | 23.48B | Financing Cash Flow |
| -86.25B | -45.87B | -77.19B | -42.89B | -39.52B |
Fuji Electric Co Technical Analysis
Positive
6580.00
Price Trends
6248.02
Positive
6614.71
Negative
7435.17
Negative
Market Momentum
60.19
Positive
54.80
Neutral
62.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6504, the sentiment is Positive. The current price of 6580 is above the 20-day moving average (MA) of 6491.20, above the 50-day MA of 6248.02, and below the 200-day MA of 7435.17, indicating a neutral trend. The MACD of 60.19 indicates Positive momentum. The RSI at 54.80 is Neutral, neither overbought nor oversold. The STOCH value of 62.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6504.
Fuji Electric Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | €1.90T | 20.89 | 24.26% | 1.46% | 22.46% | 78.59% | |
76 Outperform | $932.73B | 10.16 | 14.10% | 2.33% | 1.83% | 21.82% | |
75 Outperform | €6.13T | 18.75 | 8.40% | 1.77% | 5.02% | 14.73% | |
73 Outperform | $252.92B | 8.32 | 8.87% | 2.83% | 3.10% | -14.40% | |
70 Outperform | $822.93B | 14.40 | 13.62% | 2.05% | -6.60% | 12.74% | |
70 Neutral | $493.96B | 14.82 | 9.85% | 2.03% | 13.75% | 412.79% | |
66 Neutral | $4.50B | 12.29 | 5.40% | 248.66% | 4.13% | -12.33% |
* Industrials Sector Average
Performance Comparison
JP:6504
Fuji Electric Co
6,580.00
-2,571.13
-28.10%
JP:5803
Fujikura Ltd
7,070.00
3,809.43
116.83%
JP:6503
Mitsubishi Electric
2,971.00
407.71
15.91%
JP:6674
GS Yuasa
2,526.50
-608.85
-19.42%
JP:6506
Yaskawa Electric
3,287.00
-2,552.01
-43.71%
JP:5801
Furukawa Electric Co
7,000.00
2,804.80
66.86%
Fuji Electric Co Corporate Events
Fuji Electric Announces Merger with Subsidiary to Boost Efficiency
May 23, 2025
Fuji Electric Co., Ltd. has announced the absorption of its wholly owned subsidiary, Takayanagi Fuji Co., Ltd., which specializes in wire coiling processing for industrial motors. This merger aims to integrate Takayanagi Fuji’s advanced techniques into Fuji Electric’s operations, enhancing production efficiency, reducing costs, and improving quality. The merger is not expected to significantly impact Fuji Electric’s consolidated operating performance.
The most recent analyst rating on (JP:6504) stock is a Buy with a Yen11700.00 price target. To see the full list of analyst forecasts on Fuji Electric Co stock, see the JP:6504 Stock Forecast page.
Fuji Electric Announces Increased Year-End Dividend for Fiscal 2024
May 23, 2025
Fuji Electric Co., Ltd. announced a year-end dividend payment of ¥85 per share for fiscal 2024, reflecting an increase from the previous year’s ¥75 per share. This decision underscores the company’s commitment to returning profits to shareholders while also securing internal reserves for future investments in research, development, and human resources, aiming for stable and continuous dividend payments.
The most recent analyst rating on (JP:6504) stock is a Buy with a Yen11700.00 price target. To see the full list of analyst forecasts on Fuji Electric Co stock, see the JP:6504 Stock Forecast page.
Fuji Electric Revises Dividend Forecast for Fiscal 2024
Apr 25, 2025
Fuji Electric Co., Ltd. announced a revision to its dividend forecast, with plans to increase the year-end dividend payment to ¥85 per share for fiscal 2024. This decision reflects the company’s strategy to balance shareholder returns with the need to invest in research, development, and other long-term initiatives, aiming to provide stable dividends while strengthening its management foundation.
Fuji Electric Reports Strong Financial Performance for FY2025
Apr 25, 2025
Fuji Electric Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a modest increase in net sales by 1.8% to ¥1,123,407 million. The company achieved significant growth in operating profit and profit attributable to owners of the parent, with increases of 10.9% and 22.4%, respectively. This financial performance reflects Fuji Electric’s strategic focus on improving profitability and operational efficiency. The company’s robust equity ratio of 52.7% and increased dividends per share indicate a strong financial position, potentially benefiting shareholders and reinforcing its competitive stance in the industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.