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Fuji Electric Co Ltd (JP:6504)
:6504
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Fuji Electric Co
(6504)
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Rating:76Outperform
Price Target:
¥12,170.00
▲(3.57% Upside)
Fuji Electric Co's strong financial performance and positive technical indicators are the primary drivers of its stock score. The valuation is reasonable, supporting a solid investment case. The absence of earnings call data and corporate events does not detract from the overall positive outlook.
Positive Factors
Revenue Growth
Consistent revenue growth over multiple years indicates a strong market position and effective business strategies, supporting long-term expansion.
Cash Generation
Robust cash generation from operations ensures the company can fund growth initiatives, reduce debt, and return capital to shareholders, enhancing financial stability.
Profit Margins
Improving profit margins reflect enhanced operational efficiency and cost management, which contribute to sustainable profitability and competitive advantage.
Negative Factors
Market Competition
High competition in core sectors can pressure pricing and margins, challenging the company's ability to maintain market share and profitability over time.
Industry Cyclicality
Exposure to cyclical industries can lead to revenue volatility, impacting financial performance during economic downturns and requiring strategic adaptability.
Debt Levels
While improving, existing debt levels necessitate careful management to avoid constraints on financial flexibility and potential impacts on future growth.
Fuji Electric Co (6504) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$1.67T
Dividend Yield1.51%
Average Volume (3M)595.91K
Price to Earnings (P/E)20.5
Beta (1Y)1.39
Revenue Growth5.44%
EPS Growth-5.19%
CountryJP
Employees27,391
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)106.46
Shares Outstanding149,297,000
10 Day Avg. Volume668,660
30 Day Avg. Volume595,910
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)1.31
Price to Sales (P/S)0.80
P/FCF Ratio13.25
Enterprise Value/Market Cap0.62
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit3.18
Enterprise Value/Ebitda5.73
Forecast
1Y Price Target
$11,060.70Price Target Upside-5.87% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Fuji Electric Co Business Overview & Revenue Model
Company DescriptionFuji Electric Co., Ltd. (6504) is a Japanese multinational corporation that specializes in electrical and electronic equipment. Established in 1923, the company operates in various sectors, including power electronics, energy solutions, and industrial automation. Its core products and services encompass semiconductor devices, power systems, industrial equipment, and social infrastructure systems, targeting a diverse range of industries such as energy, transportation, and manufacturing.
How the Company Makes MoneyFuji 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 Earnings Call Summary
Earnings Call Date:Jan 30, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Jan 29, 2026
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 exhibits strong financial health with consistent revenue growth, improved profit margins, a balanced capital structure, and robust cash flow generation. These factors indicate stability and growth potential.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 | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.17T | 1.12T | 1.10T | 1.01T | 910.23B | 875.93B |
| Gross Profit | 322.96B | 317.90B | 307.82B | 276.92B | 252.44B | 221.27B |
| EBITDA | 179.55B | 174.89B | 168.01B | 144.52B | 131.03B | 101.78B |
| Net Income | 83.31B | 92.24B | 75.35B | 61.35B | 58.66B | 41.93B |
Balance Sheet | ||||||
| Total Assets | 1.30T | 1.31T | 1.27T | 1.18T | 1.12T | 1.05T |
| Cash, Cash Equivalents and Short-Term Investments | 55.88B | 63.54B | 66.19B | 84.70B | 92.97B | 76.55B |
| Total Debt | 94.76B | 101.29B | 160.35B | 180.63B | 206.82B | 215.03B |
| Total Liabilities | 549.36B | 581.51B | 609.70B | 609.49B | 593.38B | 590.70B |
| Stockholders Equity | 716.62B | 691.77B | 602.52B | 517.09B | 472.90B | 417.00B |
Cash Flow | ||||||
| Free Cash Flow | 17.82B | 68.17B | 17.90B | 55.08B | 43.76B | 6.35B |
| Operating Cash Flow | 93.28B | 144.92B | 84.86B | 116.16B | 76.81B | 26.93B |
| Investing Cash Flow | -82.23B | -63.38B | -62.42B | -49.50B | -22.35B | 23.48B |
| Financing Cash Flow | -20.80B | -86.25B | -45.87B | -77.19B | -42.89B | -39.52B |
Fuji Electric Co Technical Analysis
Positive
11750.00
Price Trends
10892.50
Positive
10161.14
Positive
8268.41
Positive
Market Momentum
212.75
Negative
62.15
Neutral
65.61
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 11750 is above the 20-day moving average (MA) of 11185.75, above the 50-day MA of 10892.50, and above the 200-day MA of 8268.41, indicating a bullish trend. The MACD of 212.75 indicates Negative momentum. The RSI at 62.15 is Neutral, neither overbought nor oversold. The STOCH value of 65.61 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥381.66B | 12.00 | 8.89% | 2.12% | 3.05% | -16.11% | |
76 Outperform | $1.67T | 20.45 | 12.05% | 1.51% | 5.44% | -5.19% | |
73 Outperform | ¥687.66B | 19.86 | 10.06% | 1.23% | 10.52% | 60.75% | |
72 Outperform | ¥9.82T | 24.33 | 10.23% | 1.18% | 4.62% | 40.65% | |
70 Outperform | ¥1.20T | 20.73 | 13.26% | 1.55% | -2.18% | 30.16% | |
63 Neutral | €4.90T | 38.00 | 32.32% | 0.91% | 27.53% | 137.34% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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Fuji Electric Co Corporate Events
Fuji Electric Announces Interim Dividend Amid Uncertain Outlook
Oct 30, 2025
Fuji Electric Co., Ltd. announced the approval of an interim dividend payment of ¥91 per share, sourced from retained earnings, with a record date of September 30, 2025. This decision aligns with their policy of stable and continuous dividend payments, although the company has delayed decisions on the annual dividend due to an uncertain management environment in the latter half of the fiscal year.
Fuji Electric Reports Increased Sales but Decline in Profit for H1 2025
Oct 30, 2025
Fuji Electric Co., Ltd. reported a 9.2% increase in net sales for the six months ending September 30, 2025, compared to the same period last year. Despite the rise in sales and operating profit, the profit attributable to owners of the parent decreased by 25.1%, reflecting challenges in profitability. The company also announced an increase in dividends per share for the fiscal year ending March 31, 2026, indicating a commitment to shareholder returns. These financial results and strategic decisions may impact Fuji Electric’s market positioning and stakeholder confidence.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.