Tokyo Cosmos Electric Co., Ltd. (6772) AI Stock Analysis

• Market Cap: ¥9.88B
• Dividend Yield: 1.78%
• Average Volume (3M): 1.71K
• Price to Earnings (P/E): 49.0
• Beta (1Y): -0.08
• Revenue Growth: -1.17%
• EPS Growth: -42.36%
• Country: JP
• Employees: 645
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 6.06
• Shares Outstanding: 6,825,860
• 10 Day Avg. Volume: 3,380
• 30 Day Avg. Volume: 1,710
• PEG Ratio: -0.46
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 8.58
• 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: 62 Neutral
• Price Target: ¥1,580.00 ▼(-1.25% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven by solid underlying financial performance (improving profitability and a much stronger balance sheet). However, the overall rating is held back by weak technical momentum (below key moving averages with negative MACD) and an expensive valuation (high P/E despite a moderate dividend yield).

Positive Factors

Improving Profitability

Gross margin rising to 27.8% and net margin turning positive at 6.7% by 2025 indicate durable improvements in pricing, cost control and product mix. Sustained margin expansion enhances cash available for reinvestment, supports dividends, and strengthens resilience across industry cycles.

Stronger Balance Sheet

Debt-to-equity falling from 1.51 to 0.20 and a higher equity ratio materially improve financial flexibility. Lower leverage reduces solvency risk, enables opportunistic capex or M&A, and supports steady operations and supplier/customer confidence over the medium term.

Positive Free Cash Flow

Consistent positive free cash flow and robust operating cash flow show the business can fund maintenance capex, sustain dividends, and reduce debt without relying on external financing. This cash generation underpins long-term operational stability and strategic optionality.

Negative Factors

Revenue Decline

A ~6.4% decline in revenue and a recent dip in sales reduce scale and may signal weakening demand or customer concentration risk. Persistent top-line contraction would erode benefits from fixed-cost leverage and weaken long-term supplier/OEM qualification advantages.

Operating Margin Pressure

Eased EBIT/EBITDA margins and weaker operating/free cash flow versus the prior year suggest rising costs or pricing pressure. Continued margin compression would limit ability to invest in R&D, absorb input cost shocks, and could impair competitiveness across product lifecycles.

Earnings Volatility

A roughly 72% drop in EPS growth signals meaningful earnings volatility or one-off impacts. Large swings in reported earnings reduce predictability for capital allocation and dividends, and may reflect operational or demand issues that could persist absent revenue recovery.

Tokyo Cosmos Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Tokyo Cosmos Electric Co., Ltd. manufactures and sells electronic components in Japan and internationally. The company offers TOCOS film heaters, switches, trimmer capacitors, opto electronic devices, automotive devices, and potentiometer for industrial and consumer. It serves automobile and motorcycle, agriculture and construction, two-way radio, industrial, amusement, infrastructure, office and home, and healthcare sectors. In addition, it provides accessories. The company was incorporated in 1947 and is headquartered in Zama, Japan.

How the Company Makes Money

Tokyo Cosmos Electric generates revenue through the sale of its electronic components and systems, catering to various industries such as telecommunications, automotive, and industrial automation. Key revenue streams include the production and distribution of semiconductors and other electronic parts, which are sold to OEMs (original equipment manufacturers) and other manufacturers. The company may also engage in long-term contracts with major corporations, providing custom solutions and ongoing support services, which contribute to stable income. Additionally, partnerships with technology firms and participation in joint ventures allow Tokyo Cosmos Electric to expand its market reach and enhance its product offerings, ultimately driving sales and increasing profitability.

Tokyo Cosmos Electric Co., Ltd. Financial Statement Overview

Summary

Overall financials are solid: profitability improved meaningfully (net margin turning positive to 6.7% by 2025 and gross margin rising to 27.8%), leverage strengthened (debt-to-equity down to 0.20), and ROE is healthy (9.4%). Offsetting this, revenues dipped slightly in the latest year, EBIT/EBITDA margins eased, and operating/free cash flow weakened versus 2024.

Income Statement

The company shows solid profitability with consistent gross profit margins improving from 22.6% in 2021 to 27.8% in 2025. Net profit margins have seen significant improvement, moving from a negative position in 2021 to 6.7% in 2025. Revenue growth has been relatively stable with a slight dip in the latest year. However, EBIT and EBITDA margins have slightly decreased, indicating some pressure on operational efficiencies.

Balance Sheet

The balance sheet is strong with a decreasing debt-to-equity ratio from 1.51 in 2020 to 0.20 in 2025, indicating improved leverage. The equity ratio has increased over the years, reflecting financial stability and reduced risk. ROE remains healthy at 9.4% in 2025, showcasing effective utilization of equity capital.

Cash Flow

Operating cash flow has remained robust, though it has decreased from 2024 to 2025. Free cash flow remains positive, demonstrating the company's ability to generate cash after capital expenditures. However, the free cash flow growth rate has been negative in the latest year, indicating potential cash flow challenges.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.52B	10.51B	10.43B	10.71B	9.51B	7.87B
Gross Profit	2.90B	2.92B	2.75B	2.74B	2.15B	1.38B
EBITDA	1.31B	1.50B	1.97B	2.18B	1.61B	769.98M
Net Income	594.12M	709.01M	962.25M	1.17B	630.03M	-161.52M
Balance Sheet
Total Assets	12.00B	12.01B	12.42B	13.40B	12.73B	13.08B
Cash, Cash Equivalents and Short-Term Investments	3.17B	3.34B	3.58B	4.04B	3.22B	3.10B
Total Debt	1.26B	1.51B	2.46B	4.30B	5.13B	5.97B
Total Liabilities	4.54B	4.44B	5.41B	7.49B	8.05B	9.14B
Stockholders Equity	7.46B	7.58B	7.00B	5.92B	4.68B	3.95B
Cash Flow
Free Cash Flow	0.00	976.40M	1.46B	1.46B	981.42M	206.87M
Operating Cash Flow	0.00	1.20B	1.63B	1.71B	1.22B	558.79M
Investing Cash Flow	0.00	-216.35M	-163.00M	-204.10M	-161.04M	-186.64M
Financing Cash Flow	0.00	-1.15B	-2.14B	-874.50M	-1.06B	1.21B

Tokyo Cosmos Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1600.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6772, the sentiment is Neutral. The current price of 1600 is above the 20-day moving average (MA) of 1467.45, above the 50-day MA of 1521.64, and below the 200-day MA of 1682.41, indicating a neutral trend. The MACD of -23.95 indicates Negative momentum. The RSI at 53.05 is Neutral, neither overbought nor oversold. The STOCH value of 36.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6772.

Tokyo Cosmos Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6915	77 Outperform	¥31.14B	12.54	―	4.78%	-7.10%	6.38%
6919	66 Neutral	¥11.86B	52.79	―	5.75%	-0.23%	-32.32%
6772	62 Neutral	¥9.88B	49.02	―	1.78%	-1.17%	-42.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6779	59 Neutral	¥29.34B	34.80	―	2.86%	2.87%	-53.44%
6926	46 Neutral	¥4.54B	-2.52	―	―	-6.31%	-64.22%

Tokyo Cosmos Electric Co., Ltd. Corporate Events

Tokyo Cosmos Electric Warns of Steep Profit Slump Despite Solid Equity Base

Tokyo Cosmos Electric reported a sharp deterioration in earnings for the nine months ended December 31, 2025, with net sales down 9.2% year on year to ¥7.22 billion and operating profit halved to ¥441 million. Profit attributable to owners of the parent plunged 97.3% to ¥13 million, reflecting severe margin pressure despite only a modest decline in revenues.

The balance sheet remained relatively solid, as total assets edged down to ¥11.86 billion while the equity ratio improved to 64.6%, indicating a stronger capital base. For the full year to March 31, 2026, the company forecasts a 10.3% drop in sales and a roughly 54% decline in operating profit, with annual earnings per share expected to fall to ¥7.39, signaling continued earnings strain and likely cautious sentiment among investors after last year’s ¥175 dividend.

The most recent analyst rating on (JP:6772) stock is a Hold with a Yen1636.00 price target. To see the full list of analyst forecasts on Tokyo Cosmos Electric Co., Ltd. stock, see the JP:6772 Stock Forecast page.

Tokyo Cosmos Electric Receives Investigation Report on Shareholder Matters

Tokyo Cosmos Electric Co., Ltd. has received an investigation report from a Special Investigation Committee, which was established to examine the company’s stance on a tender offer by Bourns Japan Holdings LLC and the handling of shareholder proposals at its recent general meeting. The company plans to disclose the report with necessary redactions to protect sensitive information, indicating a commitment to transparency and addressing shareholder concerns.

The most recent analyst rating on (JP:6772) stock is a Hold with a Yen9277.00 price target. To see the full list of analyst forecasts on Tokyo Cosmos Electric Co., Ltd. stock, see the JP:6772 Stock Forecast page.

Tokyo Cosmos Electric Announces Stock Split and Amendments to Articles of Incorporation

Tokyo Cosmos Electric Co., Ltd. announced a stock split, increasing its total issued shares from 1,365,172 to 6,825,860, to make shares more affordable and broaden its investor base. The company also amended its Articles of Incorporation to reflect an increase in authorized shares to 21 million, effective January 1, 2026, aligning with its strategic goals to enhance market accessibility.

The most recent analyst rating on (JP:6772) stock is a Hold with a Yen9277.00 price target. To see the full list of analyst forecasts on Tokyo Cosmos Electric Co., Ltd. stock, see the JP:6772 Stock Forecast page.