Elecom Co (6750) AI Stock Analysis

• Market Cap: €167.84B
• Dividend Yield: 2.87%
• Average Volume (3M): 170.95K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.54
• Revenue Growth: 4.48%
• EPS Growth: 22.39%
• Country: JP
• Employees: 1,905
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 31.45
• Shares Outstanding: 92,221,420
• 10 Day Avg. Volume: 128,590
• 30 Day Avg. Volume: 170,950
• PEG Ratio: -23.42
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 9.14
• 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: 75 Outperform
• Price Target: ¥2,071.00 ▲(19.02% Upside)

Elecom Co's overall stock score is driven by its strong financial performance, characterized by robust revenue growth and a stable balance sheet with low leverage. The valuation is fair, offering a reasonable P/E ratio and an attractive dividend yield. Technical analysis presents mixed signals, with the stock trading below short-term moving averages but showing a positive MACD. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and successful product offerings, supporting long-term business expansion.

Balance Sheet Health

Low leverage enhances financial flexibility and reduces risk, enabling the company to invest in growth opportunities without financial strain.

Cash Generation Ability

Positive cash flow growth supports ongoing operations and strategic investments, ensuring the company can sustain and scale its business model.

Negative Factors

Net Profit Margin Pressure

Declining net profit margins may indicate rising costs or pricing pressures, which could impact long-term profitability if not addressed.

Cash Flow Conversion Efficiency

Moderate cash conversion efficiency suggests potential challenges in translating earnings into cash, which could affect liquidity and investment capacity.

Profitability Margins

Suboptimal profitability margins may limit the company's ability to reinvest in growth and compete effectively in the long term.

Elecom Co Business Overview & Revenue Model

Company Description

Elecom Co., Ltd. (6750) is a Japanese company specializing in the design, development, and manufacturing of a wide range of consumer electronics and computer peripherals. Operating primarily in the information technology sector, Elecom offers products such as keyboards, mice, USB hubs, mobile accessories, and various network devices. The company is known for its innovative designs and high-quality products, catering to both individual consumers and corporate clients.

How the Company Makes Money

Elecom generates revenue primarily through the sale of its diverse product line in the consumer electronics and IT peripherals market. Key revenue streams include direct sales of hardware products such as input devices, audio accessories, and network solutions, which are sold through various distribution channels including online platforms, retail stores, and B2B partnerships. Additionally, the company benefits from licensing agreements and collaborations with other technology firms, enhancing its market reach. Elecom's strategic focus on research and development also allows it to introduce new products, thereby driving sales growth and expanding its customer base.

Elecom Co Financial Statement Overview

Summary

Elecom Co exhibits strong financial health with impressive revenue growth and a stable balance sheet characterized by low leverage and high equity. While profitability margins are generally strong, there is room for improvement in net profit margins and cash flow conversion. The company's financial position is robust, positioning it well for future growth and stability in the competitive computer hardware industry.

Income Statement

Elecom Co has demonstrated strong revenue growth with a TTM revenue increase of 87.3% compared to the previous year. The gross profit margin is robust at 39.14%, indicating efficient cost management. However, the net profit margin has slightly decreased to 7.88% from previous highs, suggesting some pressure on net profitability. Overall, the company shows solid performance with room for improvement in net profitability.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.006, reflecting minimal leverage and strong financial stability. Return on equity is healthy at 11.24%, indicating effective use of shareholder funds. The equity ratio stands at 74.42%, showcasing a strong capital structure with significant equity backing. Overall, Elecom Co's balance sheet is highly stable and well-managed.

Cash Flow

Elecom Co's free cash flow has grown by 4.08% in the TTM period, showing positive cash generation. The operating cash flow to net income ratio is 0.59, indicating a moderate conversion of income to cash. The free cash flow to net income ratio is 0.81, suggesting good cash flow relative to earnings. While cash flow performance is solid, there is potential for further improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.04B	118.01B	110.17B	103.73B	107.36B	108.04B
Gross Profit	47.03B	46.19B	42.57B	38.34B	39.71B	41.59B
EBITDA	17.30B	16.78B	16.77B	14.21B	16.11B	18.05B
Net Income	9.64B	9.30B	9.98B	8.13B	10.40B	10.75B
Balance Sheet
Total Assets	109.30B	114.74B	117.37B	106.85B	110.62B	105.52B
Cash, Cash Equivalents and Short-Term Investments	52.86B	54.92B	52.35B	55.11B	54.46B	61.40B
Total Debt	1.14B	500.00M	500.00M	500.00M	500.00M	500.00M
Total Liabilities	27.94B	32.05B	30.92B	25.64B	29.22B	28.71B
Stockholders Equity	81.34B	82.68B	86.43B	81.19B	81.38B	76.80B
Cash Flow
Free Cash Flow	14.68B	14.10B	6.57B	2.41B	6.21B	12.20B
Operating Cash Flow	17.08B	17.35B	9.67B	9.16B	9.66B	14.80B
Investing Cash Flow	-3.86B	-4.42B	-2.43B	-7.11B	-5.66B	-5.11B
Financing Cash Flow	-3.67B	-10.64B	-8.17B	-3.25B	-14.13B	4.73B

Elecom Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1740.00
• 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:6750, the sentiment is Negative. The current price of 1740 is below the 20-day moving average (MA) of 1787.35, below the 50-day MA of 1812.15, and below the 200-day MA of 1757.53, indicating a bearish trend. The MACD of -17.66 indicates Positive momentum. The RSI at 40.19 is Neutral, neither overbought nor oversold. The STOCH value of 23.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6750.

Elecom Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6670	79 Outperform	¥142.32B	10.17	―	2.81%	10.23%	8.78%
6750	75 Outperform	€167.84B	14.63	12.77%	2.87%	4.48%	22.39%
6737	69 Neutral	¥92.68B	20.52	―	4.99%	1.81%	9.07%
6727	66 Neutral	¥107.26B	18.65	17.33%	4.10%	-8.93%	48.98%
7739	65 Neutral	¥110.20B	15.94	―	1.93%	7.46%	-8.01%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6588	55 Neutral	€170.05B	7.61	-6.22%	1.63%	-4.91%	-136.94%

Elecom Co Corporate Events

Elecom Co. Completes Acquisition of Nippon Antenna

Elecom Co., Ltd. has completed the acquisition of Nippon Antenna Co., Ltd. as a wholly-owned subsidiary through a simplified share exchange, effective November 25, 2025. This strategic move is expected to enhance the corporate value of both companies by utilizing Elecom’s resources for procurement, development, and sales, while fostering collaboration between the two entities. The acquisition also involved the appointment of new directors for Nippon Antenna, indicating a significant management integration. The financial implications, including potential negative goodwill, are yet to be fully determined and will be announced in due course.

Elecom Co. Announces Interim Dividend Payout

Elecom Co., Ltd. announced an interim dividend payout of ¥26.00 per share, with a total payout of ¥1,985 million, effective December 8, 2025. This decision aligns with their policy of progressive dividends, reflecting their commitment to shareholder returns while ensuring sufficient retained earnings for future growth.

Elecom Co. Reports Strong First Half Financial Results for 2025

Elecom Co., Ltd. reported a positive financial performance for the first six months ending September 30, 2025, with net sales increasing by 3.9% year-on-year to ¥58,832 million. The company also saw significant growth in operating profit and ordinary profit, indicating a strong operational performance. The equity ratio improved to 73.7%, reflecting a solid financial position. The company maintained its dividend forecast, signaling confidence in its ongoing financial stability and commitment to shareholder returns.

Elecom Co. to Receive USD 80 Million Dividend from Subsidiary

Elecom Co., Ltd. has announced that it will receive an USD 80 million dividend from its consolidated subsidiary, ELECOM (HONG KONG) LIMITED. This dividend will be recorded as non-operating income in Elecom’s non-consolidated financial statements for the fiscal year ending March 2026, with no impact on the consolidated financial statements.