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

• Market Cap: ¥3.78B
• Dividend Yield: 2.2%
• Average Volume (3M): 843.00
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.44
• Revenue Growth: 14.26%
• EPS Growth: 280.42%
• Country: JP
• Employees: 232
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 177.39
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥3,180.00 ▲(38.26% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by strong financial fundamentals (notably revenue growth and a low-leverage balance sheet), tempered by weak cash flow conversion and negative free cash flow. Technicals add support due to a clear uptrend and positive momentum, while the very low P/E and a ~2% dividend yield meaningfully strengthen the overall profile.

Positive Factors

Revenue growth & gross margin improvement

Sustained 23.7% revenue growth alongside a gross margin rising to 20.2% indicates durable demand and improving unit economics. Over 2-6 months this supports reinvestment capacity, pricing power, and a larger earnings base that can fund growth initiatives and margin expansion.

Low leverage and strong equity base

A low debt-to-equity ratio and high equity ratio signal financial resilience and low refinancing risk. This balance sheet strength provides lasting optionality to fund capex, weather downturns, or pursue strategic investments without materially increasing financial stress.

Healthy operating margins (EBIT/EBITDA)

Consistent EBIT and EBITDA margins near 8-10% reflect structural operational efficiency and cost control. These margins create a durable earnings cushion that supports reinvestment, competitiveness, and the potential to improve net margins if cash conversion issues are addressed.

Negative Factors

Weak cash conversion & negative FCF

Negative operating cash conversion and declining free cash flow are material structural concerns: accrual earnings are not translating into cash, limiting internal funding for capex, dividends, or debt reduction and potentially forcing external financing if sustained.

Moderate net profit margin

A 6.2% net margin provides only a modest buffer against cost shocks or price pressure. Over the medium term this constrains retained earnings and the speed at which the company can self-fund growth or improve balance sheet metrics without boosting pricing or cutting costs.

Small scale & low trading liquidity

A small headcount and thin trading volume point to limited scale and market liquidity. Structurally, this can restrict R&D, geographic expansion, and talent depth, while lower liquidity can complicate capital raises and reduce investor access over a 2-6 month horizon.

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

Strong revenue growth (+23.7%) and improved gross margin (20.2%) support results, and the balance sheet is stable with low leverage (debt-to-equity 0.27) and a healthy equity ratio (57.9%). Offsetting this, profitability is only moderate (net margin 6.2%) and cash generation is a key concern due to negative operating cash flow conversion and negative free cash flow.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 2300.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2300 is below the 20-day moving average (MA) of 2634.20, below the 50-day MA of 2445.78, and above the 200-day MA of 2070.71, indicating a bullish trend. The MACD of 104.27 indicates Negative momentum. The RSI at 61.46 is Neutral, neither overbought nor oversold. The STOCH value of 47.94 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
6763	80 Outperform	¥27.45B	17.28	―	3.16%	12.72%	53.85%
6894	76 Outperform	¥3.16B	7.86	―	3.92%	-1.32%	45.44%
6647	76 Outperform	¥3.78B	5.14	―	2.20%	14.26%	280.42%
6668	70 Outperform	¥16.92B	9.82	―	1.66%	12.23%	65.42%
6748	70 Outperform	¥10.83B	8.70	―	2.23%	―	―
6882	65 Neutral	¥15.24B	173.69	―	4.42%	-11.74%	-84.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Morio Denki Co., Ltd. Corporate Events

Morio Denki Delivers Strong Profit Growth Despite Lower Sales in Q3 FY2025

Morio Denki reported a 6.8% year-on-year decline in net sales to ¥5,836 million for the quarter ended December 2025, but significantly improved profitability, with operating profit rising 72.1% to ¥414 million and profit attributable to owners of parent jumping 90.5% to ¥305 million. Despite lower revenue, the company strengthened its financial position, with total assets edging up to ¥9,101 million, net assets increasing to ¥5,675 million, and its capital adequacy ratio improving to 62.4%, indicating enhanced balance sheet robustness and suggesting that cost management and operational efficiency measures are supporting stronger earnings and equity for shareholders.

The most recent analyst rating on (JP:6647) stock is a Buy with a Yen2759.00 price target. To see the full list of analyst forecasts on Morio Denki Co., Ltd. stock, see the JP:6647 Stock Forecast page.