Fuji Electric Co (6504) AI Stock Analysis

• Market Cap: $1.57T
• Dividend Yield: 1.5%
• Average Volume (3M): 595.91K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 1.42
• 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: 1.05
• Enterprise Value/Revenue: 1.40
• Enterprise Value/Gross Profit: 5.06
• Enterprise Value/Ebitda: 8.87
• 1Y Price Target: $13,200.00
• Price Target Upside: 23.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥11,759.00 ▲(9.79% Upside)

The score is supported primarily by strong balance-sheet quality and solid operating profitability, but is held back by mixed free-cash-flow conversion and clearly weak near-term technical momentum (below key moving averages with negative MACD and low RSI). Valuation and dividend are moderate and provide only limited offset.

Positive Factors

Low Leverage / Strong Balance Sheet

Very low debt-to-equity (~0.13) indicates a de-risked balance sheet, giving durable financial flexibility. This supports funding capex, sustaining R&D and service investments, and absorbing cyclical downturns without forcing asset sales or aggressive refinancing over the next 2–6 months.

Sustainable Profitability / Margins

Consistently healthy gross and operating margins reflect differentiated, higher-value products (power semiconductors, inverters) and services. These margins support predictable operating cash generation and reinvestment capacity, underpinning medium-term earnings resilience.

Diversified, Recurring Revenue Model

A mix of equipment sales, project engineering and after-sales maintenance creates recurring service revenue and installed-base monetization. This diversification plus lifecycle services tends to stabilize revenues and margins through industrial cycles and supports steady cash generation over months.

Negative Factors

Weak Free Cash Flow Conversion

FCF conversion at ~19% of net income signals that reported profits are not reliably becoming free cash. Over 2–6 months this can constrain discretionary spending (capex, upgrades, M&A) and pressure dividend or buyback flexibility if operating cash remains uneven.

Modest Revenue Growth and Net Income Pressure

Very modest top-line growth and TTM net income lagging the annual figure suggest limited near-term revenue momentum and possible non-operating pressures. This may cap earnings upside and makes sustained margin-led growth harder without stronger sales expansion.

Cyclicality of End Markets

Exposure to industrial capex, factory automation cycles and utility/infrastructure spending creates structural demand volatility. Over the medium term, order timing and project seasonality can produce revenue and cash-flow swings that stress planning and investment pacing.

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 generates revenue through multiple key streams. Primarily, it earns income from the sale of power semiconductor devices and systems, which are essential for efficient energy management and conversion in various applications. The company also provides industrial automation solutions, including control systems and sensors, which contribute significantly to its overall revenue. Additionally, Fuji Electric offers energy solutions, including renewable energy systems and energy management services, capitalizing on the global shift towards sustainable energy practices. Strategic partnerships with other technology firms and collaborations with industrial clients further enhance its market reach and revenue potential. Furthermore, the company benefits from government contracts and initiatives aimed at improving energy efficiency and infrastructure development, which bolster its earnings.

Fuji Electric Co Financial Statement Overview

Summary

Solid profitability and a clearly de-risked balance sheet support the score (operating margin ~10.2%, net margin ~7.1%, debt-to-equity ~0.13, ROE ~12%). The main offset is weaker cash-flow quality: free cash flow is positive but only ~19% of net income, indicating inconsistent cash conversion.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.12T	1.10T	1.01T	910.23B	875.93B
Gross Profit	317.90B	307.82B	276.92B	252.44B	221.27B
EBITDA	174.89B	168.01B	144.52B	131.03B	101.78B
Net Income	92.24B	75.35B	61.35B	58.66B	41.93B
Balance Sheet
Total Assets	1.31T	1.27T	1.18T	1.12T	1.05T
Cash, Cash Equivalents and Short-Term Investments	63.54B	66.19B	84.70B	92.97B	76.55B
Total Debt	101.29B	160.35B	180.63B	206.82B	215.03B
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	68.17B	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

• Technical Analysis Sentiment: Negative
• Last Price: 10710.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 10710 is below the 20-day moving average (MA) of 11815.75, below the 50-day MA of 11525.20, and above the 200-day MA of 9049.50, indicating a neutral trend. The MACD of -134.93 indicates Positive momentum. The RSI at 36.11 is Neutral, neither overbought nor oversold. The STOCH value of 18.66 is Positive, 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	79 Outperform	$359.79B	11.43	8.89%	2.12%	3.05%	-16.11%
6503	72 Outperform	€10.15T	25.32	10.23%	1.19%	4.62%	40.65%
6506	72 Outperform	¥1.28T	34.41	13.26%	1.49%	-2.18%	30.16%
5801	67 Neutral	¥952.30B	27.14	10.06%	1.21%	10.52%	60.75%
6504	64 Neutral	$1.57T	18.82	12.05%	1.50%	5.44%	-5.19%
5803	63 Neutral	¥5.40T	41.68	32.32%	0.91%	27.53%	137.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Fuji Electric Co Corporate Events

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.