Fuji Electric Co (6504) AI Stock Analysis

0 Followers

Top Page

Fuji Electric Co

(OTC:6504)

78Outperform

Fuji Electric Co demonstrates solid financial performance with improved profitability, a healthier balance sheet, and strong cash flows. Technical analysis suggests potential for upward price movement, while valuation metrics indicate the stock may be undervalued. The positive earnings call, highlighting record achievements and future growth prospects, further supports a favorable outlook.

Fuji Electric Co (6504) vs. S&P 500 (SPY)

Market Cap

¥964.87B

Dividend Yield2.33%

Average Volume (3M)865.88K

Price to Earnings (P/E)10.5

Beta (1Y)1.43

Revenue Growth1.83%

EPS Growth21.82%

CountryJP

Employees27,391

SectorIndustrials

Sector Strength83

IndustryElectrical Equipment & Parts

Share Statistics

EPS (TTM)254.71

Shares Outstanding149,297,000

10 Day Avg. Volume734,060

30 Day Avg. Volume865,880

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

¥8,232.00

Price Target Upside24.69% 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 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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
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

Technical Analysis Sentiment

Neutral

Last Price6602.00

Price Trends

50DMA

6258.56

Positive

100DMA

7015.43

Negative

200DMA

7586.49

Negative

Market Momentum

MACD

91.53

Negative

RSI

62.55

Neutral

STOCH

83.06

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6504, the sentiment is Neutral. The current price of 6602 is above the 20-day moving average (MA) of 6167.25, above the 50-day MA of 6258.56, and below the 200-day MA of 7586.49, indicating a neutral trend. The MACD of 91.53 indicates Negative momentum. The RSI at 62.55 is Neutral, neither overbought nor oversold. The STOCH value of 83.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6504.

Fuji Electric Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6701	78 Outperform	$5.07T	28.42	8.97%	0.77%	-1.55%	17.24%
6504	78 Outperform	¥964.87B	10.51	14.10%	2.33%	1.83%	21.82%
6501	77 Outperform	$17.52T	28.67	10.50%	1.06%	0.56%	5.32%
6503	75 Outperform	€6.00T	18.35	8.40%	1.79%	5.02%	14.73%
6505	66 Neutral	¥12.35B	7.31		2.17%	19.77%	108.68%
6506	64 Neutral	¥843.32B	14.76	13.62%	2.01%	-6.60%	12.77%
Sector *	64 Neutral	$4.36B	12.05	5.23%	249.94%	4.13%	-10.23%

* Industrials Sector Average

Performance Comparison

JP:6504

Fuji Electric Co

6,755.00

-2,531.44

-27.26%

JP:6505

TOYO ELECTRIC MFG CO LTD

1,381.00

234.69

20.47%

JP:6503

Mitsubishi Electric

2,843.00

111.87

4.10%

JP:6501

Hitachi,Ltd.

3,837.00

962.88

33.50%

JP:6506

Yaskawa Electric

3,226.00

-3,168.64

-49.55%

JP:6701

NEC

3,737.00

1,584.30

73.60%

Fuji Electric Co Earnings Call Summary

Earnings Call Date:Apr 25, 2025

(Q3-2024)

% Change Since: 6.97%|

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 Corporate Events

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.