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

• Market Cap: ¥8.22B
• Dividend Yield: 1.78%
• Average Volume (3M): 1.71K
• Price to Earnings (P/E): 66.0
• Beta (1Y): 0.06
• 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: ¥1,279.00 ▼(-20.06% 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 profit margins

Sustained gross and net margin improvement indicates stronger pricing, better product mix, or efficiency gains. Higher margins support durable cash generation and resilience to revenue swings, underpinning longer‑term profitability even if top line fluctuates.

Stronger balance sheet / lower leverage

A materially lower debt-to-equity ratio reduces refinancing and solvency risk, increasing financial flexibility for capex, R&D, or dividends. This structural deleveraging improves the firm's ability to weather downturns and invest in long-term competitiveness.

Positive free cash flow and robust operating cash flow

Positive free cash flow after capex is a durable indicator of internal funding ability. It permits reinvestment, supports dividends or deleveraging, and reduces reliance on external financing, strengthening long-term operational independence.

Negative Factors

Top-line decline

A decline in revenue growth suggests weakening demand or customer order volumes. Persistent top-line deterioration can erode operating leverage, limit margin expansion, and constrain long-term earnings and investment capacity if not reversed.

Easing EBIT/EBITDA margins

Pressure on operating margins points to rising costs or deteriorating pricing dynamics at the operating level. If structural, this reduces the durability of net margin gains and limits cash available for growth initiatives or shareholder returns.

Negative free cash flow growth trend

Declining cash flow growth, even with positive absolute FCF, weakens the company's ability to sustainably fund capex, R&D, or dividends. Continued deterioration would pressure liquidity and slow the pace of strategic investments.

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 makes money primarily by selling electronic components it manufactures—most notably potentiometers/variable resistors and related control or sensing components—to equipment makers and electronics manufacturers. Revenue is generated through (1) product sales to OEM customers, including higher-volume sales of standard parts and typically higher-margin sales of custom or application-specific designs; (2) sales tied to customers’ production volumes in end markets (e.g., industrial equipment and other electronics), which drive recurring demand as long as customers continue manufacturing the devices that incorporate these parts; and (3) ongoing supply relationships where the company is qualified as an approved component vendor, supporting repeat orders over a product’s lifecycle. Specific details on revenue breakdown by product line, customer concentration, geographic mix, pricing structure (e.g., long-term supply agreements vs. spot orders), or named strategic partnerships are null.

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	2.83B	2.68B	2.66B	2.06B	1.30B
EBITDA	1.48B	1.49B	1.77B	1.98B	1.46B	673.77M
Net Income	593.78M	709.01M	962.25M	1.17B	630.03M	-161.52M
Balance Sheet
Total Assets	12.00B	12.01B	12.42B	13.40B	12.73B	13.26B
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	9.31B
Stockholders Equity	7.46B	7.58B	7.00B	5.92B	4.68B	3.95B
Cash Flow
Free Cash Flow	0.00	976.40M	1.43B	1.47B	985.55M	239.85M
Operating Cash Flow	0.00	1.20B	1.59B	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	-2.11B	-874.50M	-1.06B	1.21B

Tokyo Cosmos Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1600.00
• 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:6772, the sentiment is Negative. The current price of 1600 is above the 20-day moving average (MA) of 1303.25, above the 50-day MA of 1404.50, and below the 200-day MA of 1679.45, indicating a bearish trend. The MACD of -73.21 indicates Positive momentum. The RSI at 31.63 is Neutral, neither overbought nor oversold. The STOCH value of 36.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
6951	78 Outperform	¥303.25B	8.42	―	2.04%	-0.69%	-29.88%
6590	77 Outperform	¥310.19B	17.58	―	1.49%	18.20%	28.13%
6754	75 Outperform	$373.65B	28.58	7.44%	1.76%	-0.89%	53.87%
6859	75 Outperform	¥70.58B	12.98	―	3.12%	2.78%	-5.32%
6772	62 Neutral	¥8.22B	65.95	―	1.78%	-1.17%	-42.36%
6728	62 Neutral	¥451.71B	19.19	5.63%	2.35%	-9.06%	-35.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Tokyo Cosmos Electric Co., Ltd. Corporate Events

Tokyo Cosmos Electric Adopts 100% Payout Dividend Policy and Lifts Year-End Forecast

Tokyo Cosmos Electric has overhauled its dividend policy, shifting from a framework centered on Dividend on Equity to one that commits to returning 100% of earnings as dividends, while still guaranteeing a minimum DOE of 3.5%. The company says this change is intended to ensure more proactive and stable shareholder returns even during periods of short-term earnings volatility, while continuing to secure funds for strategic investments and financial strengthening.

In line with the new policy, the board set a year-end dividend forecast of ¥40 per share for the fiscal year ending March 2026, implying a DOE of 3.5% for the period. This payout level, adjusted for a recent stock split, signals management’s willingness to prioritize direct cash returns to shareholders and could enhance the stock’s appeal to income-focused investors, although it also tightens the margin for retaining profits on the balance sheet.

The most recent analyst rating on (JP:6772) stock is a Hold with a Yen1580.00 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 Restores Audit Committee Quorum With Court-Appointed Directors

Tokyo Cosmos Electric has secured court-appointed temporary directors to restore the legally required number of audit and supervisory committee members after four non-executive directors resigned in December 2025. The Yokohama District Court named seasoned finance professionals Naoki Isetani and Makoto Oki as temporary non-executive audit and supervisory committee members, and appointed Katsuya Iwasaki as a full-time non-executive audit and supervisory committee member, stabilizing the firm’s governance structure and addressing regulatory compliance concerns.

The appointments, made under Japan’s Companies Act following a company petition, signal an effort to quickly reinforce oversight and internal controls during a sensitive period for the company’s board. By bringing in directors with deep banking, capital markets, and auditing experience, Tokyo Cosmos Electric aims to reassure shareholders and stakeholders about the continuity of board monitoring functions and to mitigate any potential impact on its reputation and decision-making processes.

The most recent analyst rating on (JP:6772) stock is a Hold with a Yen1580.00 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 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.