Terasaki Electric Co., Ltd. (6637) AI Stock Analysis

• Market Cap: ¥53.74B
• Dividend Yield: 0.91%
• Average Volume (3M): 61.77K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.54
• Revenue Growth: 5.28%
• EPS Growth: 18.38%
• Country: JP
• Employees: 2,115
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 13,030,000
• 10 Day Avg. Volume: 80,440
• 30 Day Avg. Volume: 61,773
• PEG Ratio: 0.60
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 5.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥4,585.00 ▲(6.38% Upside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

Terasaki Electric Co., Ltd. demonstrates strong financial performance with consistent revenue growth and improved profitability, which is the most significant factor in the overall score. The technical analysis indicates strong bullish momentum, although overbought conditions suggest caution. The valuation is reasonable, supporting the stock's attractiveness. The absence of earnings call and corporate events data limits the analysis to these components.

Positive Factors

Revenue & Margin Trends

Consistent revenue growth alongside a ~27.6% gross margin and net margin rising to 7.9% signals durable product demand and effective cost control. These margin improvements underpin sustainable operating cash flows and support reinvestment or targeted operational expansion over the next several quarters.

Balance Sheet Strength

Very low leverage and a high equity ratio provide durable financial flexibility, lowering interest burden and recession risk. This capital structure supports steady capex, potential opportunistic M&A, and preserves credit capacity, enabling multi-quarter resilience and strategic optionality.

Cash Generation

Strong cash conversion (OCF/Net Income ~1.87) and improving free cash flow indicate that earnings are translating into real cash available for reinvestment, debt reduction, or shareholder returns. Reliable cash generation strengthens long-term funding of growth and reduces reliance on external financing.

Negative Factors

Cash Flow Volatility

Although cash generation improved, historical swings including negative free cash flow in 2022 indicate working-capital or timing risks. Persistent volatility complicates forecasting, can constrain sustained capex or dividends, and raises the risk that short-term funding needs emerge during weaker demand periods.

Moderate ROE

ROE improvement is positive but remains moderate at 8.7%, suggesting limited capital efficiency relative to higher-return peers. Over the medium term, this may constrain shareholder returns and signal that incremental investment may yield only modest returns absent productivity or margin breakthroughs.

Limited Shareholder Yield

A low dividend yield implies the company returns limited cash to shareholders, which can reduce appeal to income-oriented investors. If management maintains conservative payouts to preserve balance sheet, total shareholder returns may rely primarily on operational improvement rather than recurring cash distributions.

Terasaki Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Terasaki Electric Co.,Ltd. manufactures and sells marine and industrial systems, circuit breakers, and medical devices in Japan and internationally. The company offers medium voltage switchgears, power distribution systems, arc proof LV switchgears and control gears, group starter panels, and generating plant management systems; integrated control and monitoring and engine monitoring systems, and engine room simulators; and shore connection and obsolete products. It also provides industrial systems, such as industrial power distribution control and cogeneration systems. In addition, the company offers molded case and air circuit breakers, multi-protection and earth leakage relays, as well as related software; and medical tools and equipment. Further, it provides retrofit solution and lifecycle services for electrical equipment, as well as engineering services in power distribution and control for marine, railway, and industrial applications. Terasaki Electric Co.,Ltd. was founded in 1923 and is headquartered in Osaka, Japan.

How the Company Makes Money

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Terasaki Electric Co., Ltd. Financial Statement Overview

Summary

Terasaki Electric Co., Ltd. exhibits strong financial health with consistent revenue growth, improved profitability, and solid balance sheet metrics. The company has effectively managed its costs and leverage, contributing to enhanced profitability and financial stability. However, fluctuations in cash flow could pose risks that need to be monitored closely.

Income Statement

Terasaki Electric Co., Ltd. has demonstrated a strong revenue growth rate, increasing from JPY 56.4 billion in 2025 to JPY 37.9 billion in 2022. The gross profit margin has remained healthy at approximately 27.6% in 2025. Net profit margin improved to 7.9% in 2025 from 3.4% in 2022, reflecting increased profitability. EBIT and EBITDA margins have also shown positive trends, indicating effective cost management.

Balance Sheet

The company's financial position is robust with a low debt-to-equity ratio of 0.06 in 2025, indicating low leverage and financial stability. Return on Equity has improved to 8.7% in 2025 from 3.4% in 2022, showing better profitability. The equity ratio stands strong at 69.6%, highlighting a solid equity base and low financial risk.

Cash Flow

Terasaki Electric Co., Ltd. has shown a substantial growth in free cash flow, from JPY 548 million in 2025 to a negative JPY 807 million in 2022, demonstrating improved operational efficiency. The operating cash flow to net income ratio is 1.87 in 2025, suggesting strong cash generation relative to earnings. However, the volatility in cash flows over the years points to potential challenges in cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	56.98B	56.40B	52.07B	44.25B	37.86B	34.72B
Gross Profit	15.52B	15.60B	14.32B	11.71B	9.39B	9.36B
EBITDA	7.18B	7.24B	6.45B	4.10B	2.76B	3.31B
Net Income	4.33B	4.45B	4.01B	2.35B	1.28B	2.19B
Balance Sheet
Total Assets	74.95B	73.90B	68.04B	59.94B	52.42B	48.57B
Cash, Cash Equivalents and Short-Term Investments	18.33B	17.61B	13.21B	11.36B	11.77B	13.03B
Total Debt	3.21B	4.90B	4.77B	4.50B	2.14B	2.50B
Total Liabilities	22.67B	22.46B	21.25B	19.31B	14.55B	13.72B
Stockholders Equity	52.27B	51.43B	46.79B	40.58B	37.83B	34.82B
Cash Flow
Free Cash Flow	0.00	5.48B	1.42B	-2.09B	-806.99M	2.55B
Operating Cash Flow	0.00	8.33B	3.82B	-663.79M	39.92M	3.42B
Investing Cash Flow	0.00	-3.19B	-2.42B	-1.31B	-933.75M	-928.13M
Financing Cash Flow	0.00	-743.17M	-212.61M	1.20B	-923.15M	-1.18B

Terasaki Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4310.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6637, the sentiment is Neutral. The current price of 4310 is above the 20-day moving average (MA) of 4140.75, below the 50-day MA of 4365.50, and above the 200-day MA of 4088.13, indicating a neutral trend. The MACD of -95.17 indicates Negative momentum. The RSI at 47.91 is Neutral, neither overbought nor oversold. The STOCH value of 83.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6637.

Terasaki Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6637	72 Outperform	¥53.74B	12.37	―	0.91%	5.28%	18.38%
6804	72 Outperform	¥139.49B	3.86	8.07%	2.64%	79.29%	35.48%
6506	72 Outperform	$1.16T	35.76	8.39%	1.49%	-2.18%	30.16%
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%