Seiwa Electric Mfg. Co., Ltd. (6748) AI Stock Analysis

• Market Cap: ¥9.98B
• Dividend Yield: 2.23%
• Average Volume (3M): 70.29K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.65
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 620
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 30.93
• Shares Outstanding: 13,238,700
• 10 Day Avg. Volume: 76,340
• 30 Day Avg. Volume: 70,293
• PEG Ratio: -1.12
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 5.97
• 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: 70 Outperform
• Price Target: ¥887.00 ▲(10.05% Upside)
• Action: N/A Date: 02/18/26
• Date: Action: N/A 02/18/26

The score is driven primarily by solid financial performance (notably improved leverage and a strong 2025 revenue rebound) and supportive valuation (low P/E with a moderate dividend). These positives are tempered by weaker near-term technicals, with the stock trading below key moving averages despite indicators nearing oversold levels.

Positive Factors

Improved leverage / balance sheet

A materially lower debt-to-equity (≈0.19) versus prior years meaningfully reduces financial risk, increases borrowing flexibility and supports capital allocation (dividends, capex or M&A). This stronger balance sheet improves resilience across economic cycles and underpins longer-term strategic optionality.

Strong 2025 revenue rebound

A 27.3% revenue rebound in 2025 after a weak 2024 signals recovered end-market demand or regained share. Durable revenue recovery supports scale economics, improves forecasting visibility and provides a base to rebuild operating leverage if sustained across the next several quarters.

Recovered cash generation / positive FCF

Resilient free cash flow (~¥1.8B) and FCF nearly covering net income enhance internal funding for capex, dividends and debt reduction. Improved cash conversion reduces refinancing risk and gives management flexibility to invest in durable initiatives that support long-term competitiveness.

Negative Factors

Margin compression / profitability softened

A decline in net margin and step-down in operating profit indicate cost pressures or weaker operating leverage. Persistent margin compression would limit reinvestment capacity and reduce buffers for cyclical downturns, making earnings more sensitive to input-cost or pricing swings over the medium term.

Volatile cash flows / modest OCF coverage

Historical swings in operating cash and only modest operating cash flow coverage (~0.25) point to working-capital or conversion volatility. This variability can constrain sustained reinvestment, increase reliance on external financing during downturns, and complicate reliable dividend or capex planning.

Revenue cyclicality / reliance on rebound

Sharp rebound after a flat year suggests end-market cyclicality or sensitivity to specific demand drivers. If the 2025 recovery reflects temporary factors, revenue and margin durability may be limited, making medium-term growth and planning contingent on sustaining that demand environment.

Seiwa Electric Mfg. Co., Ltd. Business Overview & Revenue Model

Company Description

Seiwa Electric Mfg. Co., Ltd. provides information display systems, industrial lighting equipment, road and tunnel lighting equipment, EMC products, LED module products for lighting, and wire protection devices in Japan. It offers information display systems for roadways, and parking and waterway conditions; emergency information systems for tunnels; monitoring boards for industrial plants; traffic control systems; and LED information displays. The company also produces explosion-proof lighting for use in chemical plants, oil refineries, and other hazardous environments; air-and watertight light fixtures for various industrial environments, as well as supplies illumination for tunnels, highways, and expressways; street lighting for towns and cities; and landscape lighting. In addition, it develops e-Duct, a polyvinyl chloride-free protective cable housing. Further, the company provides fingers, edge fingers, surface mounting fingers and gaskets, gaskets, nonwoven fabric gaskets, ferrite cores, conductive cloth tapes, shield tubes, grounding straps and clamps, electromagnetic wave control sheets, conductive silicone rubbers, metal foil tapes and sheets, vibration control products, thermal conductive sheets, radiation paints and heat shielding paints, and magnetic field probes. Seiwa Electric Mfg. Co., Ltd. was founded in 1945 and is headquartered in Joyo, Japan.

How the Company Makes Money

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Seiwa Electric Mfg. Co., Ltd. Financial Statement Overview

Summary

Strong 2025 revenue rebound (+27.3% YoY) and materially improved leverage (debt-to-equity ~0.19) support a solid financial profile. Offsetting this, profitability softened versus 2024 (net margin ~4.9% vs ~5.4%) and cash flow remains somewhat inconsistent historically with modest operating cash flow coverage.

Income Statement

Revenue accelerated strongly in 2025 (+27.3% YoY) after a flatter 2024, showing demand recovery. Profitability is steady-to-good for the industry with gross margin around 24% and net margin ~4.9% in 2025, but margins have softened versus 2024 (net margin ~5.4%) and operating profit also stepped down, indicating some cost pressure and less operating leverage than last year.

Balance Sheet

Leverage has improved meaningfully: debt-to-equity fell to ~0.19 in 2025 from ~0.33 in 2024 and ~0.69 in 2021, reflecting a de-risking trend. Equity has grown alongside a stable asset base, which supports financial flexibility. The main watch item is that debt levels were materially higher in prior years, so maintaining the lower leverage profile through the cycle remains important.

Cash Flow

Cash generation rebounded in 2025 with operating cash flow of ~¥2.1B and free cash flow of ~¥1.8B, and free cash flow covered net income well (~0.85x). However, cash flow has been volatile historically (notably weak/negative in 2021), and 2025 operating cash flow coverage remains modest (~0.25), suggesting ongoing working-capital or cash-conversion variability despite the improved headline free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.19B	25.39B	25.22B	23.76B	23.43B	26.23B
Gross Profit	6.51B	6.08B	6.03B	5.09B	5.57B	5.27B
EBITDA	2.64B	2.19B	2.33B	1.63B	2.13B	2.11B
Net Income	1.55B	1.23B	1.35B	793.73M	1.10B	909.14M
Balance Sheet
Total Assets	27.51B	30.22B	30.38B	27.94B	28.31B	30.14B
Cash, Cash Equivalents and Short-Term Investments	4.29B	3.44B	3.83B	3.15B	3.61B	2.56B
Total Debt	2.63B	3.54B	5.63B	5.26B	6.05B	9.13B
Total Liabilities	10.03B	11.13B	13.11B	12.29B	14.20B	16.94B
Stockholders Equity	17.45B	19.06B	17.24B	15.62B	14.08B	13.18B
Cash Flow
Free Cash Flow	0.00	1.78B	473.39M	304.68M	4.15B	-688.67M
Operating Cash Flow	0.00	2.11B	981.28M	529.99M	4.50B	47.48M
Investing Cash Flow	0.00	-127.90M	-203.10M	-364.49M	-131.05M	-801.27M
Financing Cash Flow	0.00	-2.40B	98.78M	-989.73M	-3.28B	906.74M

Seiwa Electric Mfg. Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6643	85 Outperform	¥28.05B	6.42	―	3.12%	6.60%	0.27%
5819	75 Outperform	¥12.70B	10.63	―	3.02%	3.43%	3.75%
6804	72 Outperform	¥139.49B	3.86	8.07%	2.64%	79.29%	35.48%
6748	70 Outperform	¥9.98B	8.62	―	2.23%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥49.52B	195.39	―	5.01%	-32.74%	-117.06%
6943	51 Neutral	¥4.04B	7.18	―	1.79%	-10.43%	-368.47%