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

• Market Cap: ¥2.68B
• Dividend Yield: 2.57%
• Average Volume (3M): 576.00
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.41
• Revenue Growth: 23.01%
• EPS Growth: 260.84%
• Country: JP
• Employees: 232
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 71.36
• Shares Outstanding: 1,425,000
• 10 Day Avg. Volume: 220
• 30 Day Avg. Volume: 576
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,048.00
• Price Target Upside: 5.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥2,048.00 ▲(5.30% Upside)

Morio Denki Co., Ltd. receives a strong overall score due to its attractive valuation metrics and positive technical indicators suggesting bullish momentum. Financial performance shows a solid balance sheet but highlights areas for improvement in profitability and cash flow conversion.

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

Company Description

Morio Denki Co., Ltd. (6647) is a Japan-based company primarily engaged in the manufacturing and sale of electrical equipment. The company operates in sectors such as industrial machinery and components, focusing on the production of electrical control equipment and related systems. Morio Denki's core products include motor control centers, power distribution boards, and various electrical apparatus designed to support industrial automation and infrastructure projects.

How the Company Makes Money

Morio Denki Co., Ltd. generates revenue through the sale of its electrical control equipment and systems. The company's primary revenue streams include the production and distribution of motor control centers and power distribution boards, which are critical components in industrial automation and infrastructure development. Additionally, Morio Denki may engage in partnerships or collaborations with other industrial companies to expand its market reach and enhance its product offerings, thereby contributing to its overall earnings. The company's financial performance is driven by demand in sectors such as manufacturing, construction, and utilities, where its products are essential for efficient and reliable operations.

Morio Denki Co., Ltd. Financial Statement Overview

Summary

Morio Denki Co., Ltd. demonstrates strong revenue growth and a solid balance sheet with low leverage. However, profitability and cash flow conversion pose challenges, indicating areas for future improvement. The company's operational efficiency is commendable but enhancing cash flow generation remains crucial.

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	9.21B	9.21B	7.45B	7.90B	8.51B	9.59B
Gross Profit	1.86B	1.86B	1.38B	1.32B	1.55B	1.42B
EBITDA	956.05M	957.79M	566.71M	520.54M	777.61M	682.47M
Net Income	568.44M	568.71M	211.84M	148.92M	270.39M	204.51M
Balance Sheet
Total Assets	8.91B	8.91B	8.22B	7.77B	7.95B	8.88B
Cash, Cash Equivalents and Short-Term Investments	933.73M	933.73M	979.28M	905.75M	830.36M	1.15B
Total Debt	1.41B	1.41B	1.15B	1.34B	1.31B	2.18B
Total Liabilities	3.75B	3.75B	3.49B	3.42B	3.73B	4.72B
Stockholders Equity	5.16B	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: 1945.00
• 50DMA: Positive
• 100DMA: Positive
• 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:6647, the sentiment is Positive. The current price of 1945 is above the 20-day moving average (MA) of 1917.05, above the 50-day MA of 1887.34, and above the 200-day MA of 1667.97, indicating a bullish trend. The MACD of 17.37 indicates Negative momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 99.65 is Negative, 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	81 Outperform	23.13B	13.66	7.23%	2.89%	13.05%	14.25%
6647	78 Outperform	¥2.68B	4.12		2.57%	23.01%	260.84%
6894	76 Outperform	2.76B	8.14	9.21%	3.98%	-10.78%	1.10%
6668	69 Neutral	12.03B	7.13	10.03%	1.52%	20.12%	17.45%
6882	61 Neutral	12.53B	114.07	2.06%	4.43%	-17.49%	-96.33%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Morio Denki Co., Ltd. Corporate Events

Morio Denki Co., Ltd. Reports Strong Financial Growth in FY2025

Morio Denki Co., Ltd. reported a significant increase in its financial performance for the fiscal year ending March 2025. The company achieved a 23.7% rise in net sales and a 114.8% increase in operating profit compared to the previous year. This growth reflects a strong recovery and improved operational efficiency, positioning the company favorably in the market. The increase in profits is likely to have a positive impact on stakeholders, enhancing investor confidence and potentially leading to further investments in the company’s operations.