Fuji Electric Industry. Co.,Ltd (6654) AI Stock Analysis

• Market Cap: ¥5.79B
• Dividend Yield: 2.9%
• Average Volume (3M): 7.30K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.37
• Revenue Growth: -0.14%
• EPS Growth: -32.62%
• Country: JP
• Employees: 109
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 6,299,000
• 10 Day Avg. Volume: 5,090
• 30 Day Avg. Volume: 7,303
• PEG Ratio: 33.01
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 21.50
• 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: 69 Neutral
• Price Target: ¥1,182.00 ▲(5.54% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by financial strength—especially the exceptionally low leverage and consistent positive cash generation—tempered by weaker profitability trends (margin compression and uneven cash conversion). Technical indicators are mildly bearish/neutral and valuation is only moderately attractive (P/E ~24 despite a ~3% yield), which together cap the overall score.

Positive Factors

Extremely low leverage / strong balance sheet

Debt-to-equity around ~0.01 and a conservatively financed balance sheet materially reduce refinancing and interest-rate risk. This durable financial flexibility supports capital allocation options (capex, dividends, M&A) through cycles and enhances the company’s ability to withstand industry downturns without forced deleveraging.

Consistent positive operating and free cash flow

Reliable annual operating and free cash flow provide a durable internal funding source for reinvestment and distributions. Persistent positive FCF underpins earnings quality, reduces reliance on external financing, and affords management flexibility to pursue long-term strategic initiatives and steady shareholder returns.

Revenue stability with sustained positive net income

Relatively stable revenues and consistently positive net income create a predictable earnings base that supports operational planning and long-term investments. This steadiness reduces business volatility, making future cash generation and dividend policies more reliable over a multi-quarter to multi-year horizon.

Negative Factors

Meaningful margin compression since 2024

Falling gross and net margins materially reduce operating leverage and long-term profitability. If structural (pricing pressure, cost inflation or product mix shifts), lower margins constrain free cash flow and investment capacity, making it harder to restore earnings growth without efficiency gains or price recovery.

Uneven cash conversion; OCF below net income in most years

Operating cash flow consistently trails reported net income, signaling weaker cash conversion and potential working-capital or timing issues. Over time this reduces the reliability of earnings as a predictor of cash available for dividends, capex or debt service and raises earnings-quality concerns.

Volatile free cash flow and modest returns on equity

Significant FCF volatility reduces planning certainty for long-term investments and shareholder returns, while low ROE indicates conservative capital efficiency. Together they suggest limited capacity to generate high shareholder value absent structural improvement in margins or asset deployment.

Fuji Electric Industry. Co.,Ltd Business Overview & Revenue Model

Company Description

Fuji Electric Industry Co., Ltd. manufactures and sells control switches, connecting devices, pilot lamps and indicators, and electronic devices in Japan and internationally. The company offers control switches, including cam-operated, drum, pushbutton, selector, illuminated pushbutton, door, and auxiliary switches; and pilot lamps and indicators, such as round type and square type LED, multi-window, maclit, and flag drop type fault indicators, as well as semaphore relays. It also provides terminals, which include up-screw type, screw type, disconnecting, block type, terminal block technical data, and short circuit terminal blocks, as well as fuse holders and rectifiers; connectors consisting of rectangular connectors and connector terminal blocks; control center parts comprising power disconnect devices and load disconnect devices; test terminals; and electronic devices, including voltage and annunciator relays, and digital alarms. The company also offers H type cam-operated control switch and THT type interface unit. It offers its products to various markets, such as railways, industry, electric power, buildings, and environment. The company was founded in 1953 and is headquartered in Kyoto, Japan.

How the Company Makes Money

null

Fuji Electric Industry. Co.,Ltd Financial Statement Overview

Summary

Strong balance sheet (very low leverage; debt-to-equity ~0.01) and consistently positive operating cash flow/free cash flow support financial stability. Offsetting this, profitability has cooled since 2024 with noticeable margin compression into 2026 (gross margin ~35.6% to ~31.4%; net margin ~9.4% to ~6.2%) and uneven cash conversion (operating cash flow to net income below 1.0 in most years, especially 2025–2026).

Income Statement

Profitability is solid but has clearly cooled versus the prior peak. Annual revenue has been relatively stable over the period with modest ups and downs (2026: -1.8% vs. 2025; 2025: +5.5%), but margins have compressed meaningfully from 2024 to 2026 (gross margin ~35.6% to ~31.4%; net margin ~9.4% to ~6.2%). EBIT and EBITDA margins also stepped down in 2025–2026, indicating weaker operating leverage. Net income has remained positive and fairly steady recently, but the trajectory suggests earnings quality is more “stable” than “growing.”

Balance Sheet

The balance sheet is a key strength. Leverage is extremely low and consistent, with debt-to-equity around ~0.01 across all years, which provides significant financial flexibility and reduces refinancing risk. Equity and assets are broadly stable over time, supporting balance-sheet durability. The main drawback is that returns on equity are modest (roughly ~1.9%–3.3%), which suggests the company is conservatively financed but not generating high shareholder returns.

Cash Flow

Cash generation is healthy overall, with positive operating cash flow and free cash flow in every year shown. Free cash flow conversion versus net income is generally reasonable (often ~0.6–0.8), supporting earnings quality. However, cash flow coverage of reported profits is uneven (operating cash flow to net income below 1.0 in most years and especially low in 2025–2026), and free cash flow has been volatile year to year (notably a sharp drop in 2022, strong rebound in 2023, and decline in 2025).

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	3.85B	3.78B	3.93B	3.72B	3.71B	3.72B
Gross Profit	1.19B	1.19B	1.21B	1.28B	1.25B	1.13B
EBITDA	423.85M	476.08M	501.45M	614.61M	576.76M	532.33M
Net Income	195.66M	236.02M	240.48M	349.92M	262.53M	191.24M
Balance Sheet
Total Assets	11.38B	11.28B	11.35B	11.41B	10.98B	11.10B
Cash, Cash Equivalents and Short-Term Investments	4.10B	3.90B	3.78B	4.64B	4.47B	4.55B
Total Debt	120.00M	120.00M	120.00M	120.00M	120.00M	120.00M
Total Liabilities	900.81M	839.89M	977.88M	964.14M	808.36M	811.34M
Stockholders Equity	10.48B	10.44B	10.37B	10.45B	10.17B	10.29B
Cash Flow
Free Cash Flow	0.00	263.83M	322.09M	338.18M	333.61M	225.75M
Operating Cash Flow	0.00	466.90M	434.50M	453.32M	399.03M	379.89M
Investing Cash Flow	0.00	-503.04M	-372.10M	-109.74M	26.97M	-255.33M
Financing Cash Flow	0.00	-355.34M	-417.92M	-178.48M	-413.65M	-182.93M

Fuji Electric Industry. Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1120.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6654, the sentiment is Negative. The current price of 1120 is above the 20-day moving average (MA) of 1093.25, above the 50-day MA of 1098.03, and above the 200-day MA of 1073.57, indicating a bearish trend. The MACD of -7.86 indicates Positive momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 37.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6654.

Fuji Electric Industry. Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6637	72 Outperform	¥52.51B	12.37	―	0.91%	5.28%	18.38%
6506	72 Outperform	¥1.19T	35.76	8.39%	1.49%	-2.18%	30.16%
6503	71 Outperform	¥11.47T	21.58	9.29%	1.19%	4.62%	40.65%
6654	69 Neutral	¥5.79B	15.45	―	2.90%	-0.14%	-32.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6504	63 Neutral	$1.61T	19.95	12.05%	1.50%	5.44%	-5.19%
6905	59 Neutral	¥51.25B	195.39	―	5.01%	-32.74%	-117.06%