Morio Denki Co., Ltd. (6647) AI Stock Analysis

• Market Cap: ¥3.09B
• Dividend Yield: 2.23%
• Average Volume (3M): 843.00
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.43
• Revenue Growth: 14.26%
• EPS Growth: 280.42%
• Country: JP
• Employees: 232
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -19.82
• Shares Outstanding: 1,425,000
• 10 Day Avg. Volume: 970
• 30 Day Avg. Volume: 843
• PEG Ratio: 0.02
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -11.79
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥2,585.00 ▲(15.20% Upside)

The stock's overall score is driven by strong technical indicators and attractive valuation, suggesting potential for growth. Financial performance is solid but could improve in profitability and cash flow conversion.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market expansion and product demand, supporting long-term business sustainability and competitiveness.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility for future investments and growth opportunities.

Operational Efficiency

Improved gross profit margin reflects efficient cost management, contributing to sustainable profitability and competitive advantage.

Negative Factors

Profitability Challenges

Low net profit margin suggests challenges in translating revenue growth into bottom-line profit, which could impact long-term financial health.

Cash Flow Conversion Issues

Negative cash flow conversion indicates potential liquidity issues, affecting the company's ability to fund operations and growth initiatives.

Free Cash Flow Concerns

Decreased free cash flow limits the company's capacity to invest in new projects, pay down debt, or return capital to shareholders.

Morio Denki Co., Ltd. Business Overview & Revenue Model

Company Description

Morio Denki Co., Ltd. engages in the designing, manufacturing, and selling various electronic components and electrical parts for the transportation field in Japan and internationally. It offers information indicators, such as destination and interior passenger information indicators; cab equipment, including master controllers, buzzer units, conductor's switch units, and change-over switches; and controllers comprising under-floor switchboard boxes, switchboards, multiple unit control boards, and heaters. The company also provides information display systems that include signboard vehicle with lifting-type display systems and road information display systems, car-borne information display systems, lifting-type car-borne display systems, and portable LED information display panels for automobiles. In addition, the company offers electrical equipment for ships, which comprise deck lights, explosion-proof lights and switches, and white/red fluorescent lights, as well as emergency braking devices, operation status recorders, and fluorescent lights. Further, it is involved in the real estate-related business. The company was founded in 1911 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Morio Denki generates revenue through multiple streams, primarily by selling its electronic components and systems to businesses within various sectors. The company has established itself as a key supplier of power supply solutions and automation equipment, which are essential for enhancing operational efficiency in industrial applications. Additionally, Morio Denki engages in partnerships with other technology firms and manufacturers, allowing them to co-develop products and expand their market reach. The company also benefits from long-term contracts with clients that require consistent supply and support for their electronic systems, contributing to stable revenue flow. Furthermore, Morio Denki continuously invests in research and development to innovate and improve its product offerings, which helps maintain its competitive edge and attract new customers.

Morio Denki Co., Ltd. Financial Statement Overview

Summary

Morio Denki Co., Ltd. shows strong revenue growth and a solid balance sheet with low leverage. However, profitability and cash flow conversion are areas needing improvement, despite operational efficiency.

Income Statement

Morio Denki Co., Ltd. has shown a strong revenue growth of 23.7% in the most recent year, driven by a significant increase in total revenue. The gross profit margin improved to 20.2%, indicating better cost management. However, the net profit margin is moderately low at 6.2%, reflecting room for improving profitability. The EBIT and EBITDA margins are healthy at 8.0% and 10.4%, respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a solid financial position with an equity ratio of 57.9% and a debt-to-equity ratio of 0.27, indicating low leverage and financial stability. Return on equity has improved to 11.0%, signifying effective management of shareholder funds. The increase in stockholders' equity over the years reflects a robust balance sheet.

Cash Flow

Cash flow performance is mixed. The operating cash flow to net income ratio is negative, reflecting challenges in converting income into cash flow, and a notable decrease in free cash flow compared to the previous year. However, the company has managed its capital expenditures effectively. The free cash flow to net income ratio is concerning due to negative free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.29B	9.21B	7.45B	7.90B	8.51B	9.59B
Gross Profit	1.96B	1.86B	1.38B	1.32B	1.55B	1.42B
EBITDA	1.06B	957.79M	566.71M	520.54M	777.61M	682.47M
Net Income	637.38M	568.71M	211.84M	148.92M	270.39M	204.51M
Balance Sheet
Total Assets	7.95B	8.91B	8.22B	7.77B	7.95B	8.88B
Cash, Cash Equivalents and Short-Term Investments	1.01B	933.73M	979.28M	905.75M	830.36M	1.15B
Total Debt	702.78M	1.41B	1.15B	1.34B	1.31B	2.18B
Total Liabilities	2.72B	3.75B	3.49B	3.42B	3.73B	4.72B
Stockholders Equity	5.24B	5.16B	4.73B	4.35B	4.21B	4.16B
Cash Flow
Free Cash Flow	0.00	-187.78M	382.58M	145.54M	590.42M	999.46M
Operating Cash Flow	0.00	-91.92M	604.34M	243.90M	730.81M	1.18B
Investing Cash Flow	0.00	-96.08M	-226.43M	-85.69M	-137.92M	-181.34M
Financing Cash Flow	0.00	144.36M	-312.00M	-86.91M	-913.85M	-1.01B

Morio Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2244.00
• 50DMA: Positive
• 100DMA: Positive
• 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:6647, the sentiment is Positive. The current price of 2244 is above the 20-day moving average (MA) of 2219.35, above the 50-day MA of 2109.46, and above the 200-day MA of 1808.97, indicating a neutral trend. The MACD of 16.56 indicates Positive momentum. The RSI at 53.86 is Neutral, neither overbought nor oversold. The STOCH value of 73.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6647.

Morio Denki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6647	80 Outperform	¥3.09B	4.76	―	2.23%	14.26%	280.42%
6763	80 Outperform	¥24.19B	14.29	―	3.44%	12.72%	53.85%
6894	76 Outperform	¥2.77B	8.17	―	3.84%	-1.32%	45.44%
6668	69 Neutral	¥10.52B	5.23	―	2.15%	12.23%	65.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥12.29B	33.54	―	4.56%	-11.74%	-84.61%

Morio Denki Co., Ltd. Corporate Events

Morio Denki Co., Ltd. Reports Strong Financial Performance for June 2025

Morio Denki Co., Ltd. reported a notable increase in its quarterly operating results for June 2025, with net sales rising by 3.9% compared to the previous year. The company achieved significant growth in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating a strong financial performance. The capital adequacy ratio also improved, reflecting a robust financial position. These results suggest a positive impact on the company’s operations and potential benefits for stakeholders.