Fuji Electric Co (6504) AI Stock Analysis

• Market Cap: ¥1.59T
• Dividend Yield: 1.5%
• Average Volume (3M): 595.91K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 1.47
• Revenue Growth: 5.44%
• EPS Growth: -5.19%
• Country: JP
• Employees: 27,391
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 148.53
• Shares Outstanding: 149,297,000
• 10 Day Avg. Volume: 668,660
• 30 Day Avg. Volume: 595,910
• PEG Ratio: 0.45
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 13.25
• 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: ¥12,733.94
• Price Target Upside: 14.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 610.32
• Revenue Forecast (FY): ¥1.20T

• Rating: 63 Neutral
• Price Target: ¥11,198.00 ▲(0.43% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is supported primarily by strong balance-sheet quality and solid profitability, but is held back by mixed cash-flow conversion and a clearly weak technical trend with oversold momentum signals. Valuation is moderate and not a major driver.

Positive Factors

Low leverage / strong balance sheet

TTM debt-to-equity near 0.13 and a large equity base leave Fuji Electric well-capitalized. Durable low leverage increases financial flexibility to fund capex, R&D, dividends or absorb shocks, reducing refinancing risk and supporting strategic initiatives over cycles.

Healthy profit margins

Sustained gross and operating margins reflect differentiated power-electronics products and integrated systems. Durable margin structure supports internal reinvestment, service economics and returns even if top-line growth is modest, providing resilience across cycles.

Diversified, recurring revenue mix

A mix of product sales, project-based engineering and recurring after-sales service spreads revenue sources. Aftermarket contracts and integrated solutions boost customer stickiness, smooth cyclicality, and improve lifetime margins from installed equipment.

Negative Factors

Weak cash conversion

Despite positive operating cash, FCF conversion at ~19% of net income signals working-capital or timing volatility. Inconsistent cash conversion constrains the firm’s ability to reliably self-fund growth, dividends or large investments without managing liquidity actively.

Earnings pressure below operating line

Negative EPS growth and commentary that TTM net income is below the latest annual level suggest non-operating costs, taxes or one-offs are pressuring the bottom line. This reduces excess cash available for strategic uses and can slow recovery in returns to shareholders.

Modest revenue growth and cyclicality

Top-line expansion is modest, leaving limited scale advantages. Heavy exposure to industrial capital spending and infrastructure cycles makes revenue sensitive to macro investment trends, constraining durable growth unless new markets or product wins materialize.

Fuji Electric Co Business Overview & Revenue Model

Company Description

Fuji Electric Co., Ltd., together with its subsidiaries, operates in the power electronics systems energy and industry, electronic devices, food and beverage distribution, and power generation businesses worldwide. It offers AC drives, motors, and servo systems; semiconductors and photoconductors; uninterruptible power systems, solar inverters, data centers, rectifiers, and formers; instrumentation products and sensors, and radiation monitoring systems; factory automation systems; and LV and MV distributions, motor controls, and energy control equipment. The company also provides oil-immersed transformers, shunt reactors, cast resin transformers, gas insulated switchgears, MV and LV switchgears and control centers, vacuum circuit breakers, and pure water vaporization cooling silicon rectifiers; tunnel ventilation systems, marine environment protection systems, and electrical equipment for railcars; thermal, geothermal, nuclear, and fuel cell power generation equipment and plants; power system simulators; system solutions; and service solutions and after sales services, as well as upgrade services for equipment. In addition, it offers multipurpose vending machines, can and PET bottle beverage vending machines, coin mechanisms, and bill validators. The company was formerly known as Fuji Electric Holdings Co., Ltd. and changed its name to Fuji Electric Co., Ltd. in 2011. Fuji Electric Co., Ltd. was incorporated in 1923 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Fuji Electric makes money primarily by selling industrial and energy-related hardware and by providing engineering and lifecycle services around that hardware. 1) Product sales (core revenue driver) - Power electronics & drive/control equipment: Revenue is generated through the sale of inverters, motor drives, power supplies, and control equipment used to improve energy efficiency and automate production lines in factories and process industries. - Power semiconductors and electronic components: The company earns revenue from supplying power semiconductor devices and related components that are integrated into power conversion systems across industrial equipment, transportation, and energy applications. - Energy & infrastructure electrical equipment: Fuji Electric sells equipment used in power distribution and energy management, such as switchgear and related electrical systems, to utilities, infrastructure operators, and large industrial facilities. 2) Solutions/engineering revenue Beyond standalone products, Fuji Electric earns project-based revenue by designing, building, and integrating systems (e.g., energy management, power conversion, and industrial control solutions). These projects typically include system design, procurement, installation, commissioning, and integration work, with revenue recognized based on project delivery/acceptance terms. 3) After-sales service and maintenance A recurring earnings contributor comes from services tied to installed equipment: maintenance contracts, inspections, repairs, parts replacement, upgrades/retrofits, and field services. This monetizes the installed base over the equipment lifecycle and can provide steadier revenue than one-time equipment sales. 4) Key factors influencing earnings - Industrial capital spending and factory automation demand: Orders tend to rise with manufacturing investment and efficiency/automation upgrades. - Energy and infrastructure investment cycles: Utility and infrastructure spending on grid/distribution modernization and energy-efficiency initiatives supports demand for power equipment and systems. - Product mix and value-added solutions: Higher margins are typically associated with proprietary components (e.g., power devices) and integrated systems/engineering compared with commoditized equipment. Significant partnerships: null

Fuji Electric Co Financial Statement Overview

Summary

Financials are solid overall: strong, de-risked balance sheet (low debt-to-equity ~0.13; ROE ~12%) and healthy profitability (TTM operating margin ~10.2%, net margin ~7.1%). The main offset is weaker cash-flow quality, with TTM free cash flow only ~19% of net income, suggesting uneven conversion despite positive cash generation.

Income Statement

Fuji Electric shows solid operating performance with steady margin structure and improving scale. Revenue grew modestly in the latest annual period (about 1.8%) and remains higher on a multi-year basis, while TTM (Trailing-Twelve-Months) revenue is meaningfully above the prior annual level. Profitability is healthy for the industry: TTM gross margin is ~27.6% and operating margin is ~10.2%, with net margin ~7.1%. A key watch item is that TTM net income is below the latest annual level (net margin also lower vs. the prior annual), suggesting some recent pressure below the operating line despite stable core margins.

Balance Sheet

The balance sheet looks strong and has clearly de-risked over time. Leverage is low with TTM debt-to-equity around 0.13 (down from higher levels in earlier years), supported by a large equity base. Returns are solid and fairly consistent, with return on equity around 12%–13% across recent periods (TTM ~12.2%). Overall, the company appears well-capitalized with improving leverage, though returns are good rather than exceptional, which caps upside to the score.

Cash Flow

Cash generation is positive, but conversion of profit into free cash flow is mixed. TTM operating cash flow is strong in absolute terms and free cash flow is positive, with a very large TTM free cash flow growth rate versus the prior period; however, TTM free cash flow is only about 19% of net income, indicating weaker recent cash conversion. The operating cash flow coverage figure also remains low in both TTM and the latest annual period versus earlier years, pointing to working-capital or timing headwinds. Strength: cash flow is generally positive and has rebounded versus the weaker year; weakness: consistency and conversion remain the key risk.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.18T	1.12T	1.10T	1.01T	910.23B	875.93B
Gross Profit	326.59B	323.31B	307.82B	281.59B	256.47B	225.38B
EBITDA	183.49B	174.89B	157.54B	135.19B	115.04B	85.13B
Net Income	85.33B	92.24B	75.35B	61.35B	58.66B	41.93B
Balance Sheet
Total Assets	1.38T	1.31T	1.27T	1.18T	1.12T	1.05T
Cash, Cash Equivalents and Short-Term Investments	70.34B	63.54B	66.19B	84.70B	92.97B	76.55B
Total Debt	103.86B	101.29B	160.35B	180.63B	206.82B	215.03B
Total Liabilities	585.67B	581.51B	609.70B	609.48B	593.38B	590.70B
Stockholders Equity	752.59B	691.77B	602.52B	517.09B	472.90B	417.00B
Cash Flow
Free Cash Flow	51.45B	68.17B	17.90B	55.08B	43.76B	6.35B
Operating Cash Flow	128.66B	144.92B	84.86B	116.16B	76.81B	26.93B
Investing Cash Flow	-89.42B	-63.38B	-62.42B	-49.50B	-22.35B	23.58B
Financing Cash Flow	-32.55B	-86.25B	-45.87B	-77.19B	-42.89B	-39.63B

Fuji Electric Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11150.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6504, the sentiment is Negative. The current price of 11150 is below the 20-day moving average (MA) of 12100.50, below the 50-day MA of 11779.00, and above the 200-day MA of 9960.77, indicating a neutral trend. The MACD of -187.67 indicates Positive momentum. The RSI at 43.57 is Neutral, neither overbought nor oversold. The STOCH value of 64.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6504.

Fuji Electric Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6674	73 Outperform	¥508.64B	8.10	9.63%	2.12%	3.05%	-16.11%
6506	72 Outperform	¥1.16T	35.76	8.39%	1.49%	-2.18%	30.16%
5803	72 Outperform	¥6.98T	26.86	32.32%	0.91%	27.53%	137.34%
6503	71 Outperform	€11.52T	21.58	9.29%	1.19%	4.62%	40.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6504	63 Neutral	¥1.59T	19.95	12.05%	1.50%	5.44%	-5.19%
5801	61 Neutral	¥2.07T	7.80	10.06%	1.21%	10.52%	60.75%

Fuji Electric Co Corporate Events

Fuji Electric Confirms Reviewed Results as Sales and Profits Rise but Net Income Slips

Fuji Electric reported consolidated net sales of ¥851.1 billion for the nine months ended December 31, 2025, up 7.6% year on year, with operating and ordinary profit also rising, while profit attributable to owners of parent fell 12.5%, leading to lower earnings per share despite higher comprehensive income and a stronger equity ratio. The company confirmed that its previously disclosed Japanese-language quarterly financial statements have completed an interim review with no changes required, maintained its dividend policy with an increased interim dividend to ¥91 per share, and left the year-end dividend for the fiscal year ending March 2026 undetermined, signaling stable operations and reinforced financial position for shareholders.

The most recent analyst rating on (JP:6504) stock is a Buy with a Yen12199.00 price target. To see the full list of analyst forecasts on Fuji Electric Co stock, see the JP:6504 Stock Forecast page.

Fuji Electric Confirms Interim Review Completion as Sales and Profits Rise but Net Income Slips

Fuji Electric reported consolidated net sales of ¥851.1 billion for the nine months ended December 31, 2025, a 7.6% year-on-year increase, with operating and ordinary profits both rising more than 8%, while profit attributable to owners of parent fell 12.5%. Total assets and net assets expanded, the equity ratio improved to 54.6%, and the company confirmed there were no changes to the quarterly figures previously released, while a second-quarter dividend of ¥91 per share has been decided but the year-end dividend for fiscal 2026 remains undetermined.

The company’s comprehensive income jumped 46.5% to ¥90.3 billion, underscoring stronger overall financial performance despite the decline in bottom-line profit attributable to shareholders. Fuji Electric also noted that its Japanese-language financial statements have completed interim review by independent auditors, which should bolster confidence among investors and analysts ahead of the scheduled financial results briefing.

The most recent analyst rating on (JP:6504) stock is a Buy with a Yen12199.00 price target. To see the full list of analyst forecasts on Fuji Electric Co stock, see the JP:6504 Stock Forecast page.

Fuji Electric Lifts Sales and Profit but Bottom Line Slips; Forecasts and Dividend Maintained

Fuji Electric reported consolidated net sales of ¥851.1 billion for the nine months ended December 31, 2025, up 7.6% year-on-year, with operating profit rising 8.2% to ¥74.0 billion and ordinary profit increasing 8.5% to ¥74.2 billion. Despite these gains, profit attributable to owners of the parent fell 12.5% to ¥48.5 billion and earnings per share declined to ¥329.15, even as comprehensive income jumped 46.5% to ¥90.3 billion and the equity ratio improved to 54.6%. The company maintained its full-year forecast for the fiscal year ending March 31, 2026, targeting net sales of ¥1.185 trillion and operating profit of ¥128.5 billion, while projecting a slight full-year decline in profit attributable to owners of the parent. Fuji Electric also lifted its interim dividend to ¥91 per share compared with ¥75 in the prior year, signaling continued shareholder returns despite pressure on bottom-line profit.

The most recent analyst rating on (JP:6504) stock is a Buy with a Yen13300.00 price target. To see the full list of analyst forecasts on Fuji Electric Co stock, see the JP:6504 Stock Forecast page.