Foster Electric Company, Limited (6794) AI Stock Analysis

• Market Cap: ¥40.90B
• Dividend Yield: 3.26%
• Average Volume (3M): 171.40K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.58
• Revenue Growth: 12.38%
• EPS Growth: 68.86%
• Country: JP
• Employees: 14,094
• Sector: Technology
• Sector Strength: 86
• Industry: Consumer Electronics
• EPS (TTM): 32.83
• Shares Outstanding: 25,000,000
• 10 Day Avg. Volume: 187,690
• 30 Day Avg. Volume: 171,400
• PEG Ratio: 0.30
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.34
• 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: ¥1,733.00
• Price Target Upside: -5.71% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,861.00 ▲(1.25%Upside)

Foster Electric Company's strong financial performance and attractive valuation are the primary contributors to its overall stock score. The robust revenue growth and profitability improvements are bolstered by low leverage and effective cash flow management. While the technical indicators suggest bullish momentum, the overbought conditions warrant caution. The absence of recent earnings call data and corporate events means these factors do not influence the current score.

Foster Electric Company, Limited Business Overview & Revenue Model

Company Description

Foster Electric Company, Limited engages in the production and sale of loudspeakers, audio equipment, and electronical equipment in Japan and internationally. It operates through three segments: Speaker, Mobile Audio, and Other. The Speaker segment manufactures and distributes speakers and speaker systems for automobiles and flat screen TVs, as well as audio speakers. The Mobile Audio segment engages in the manufacture and distribution of mobile audio products, including headsets for mobile phones, headphones, micro speakers, and vibration actuators. The Other segment manufactures and distributes micro acoustic components, such as electronic buzzers and sounders for applications comprising alarms or warnings; and offers FOSTEX brand products, as well as provides logistics services. In addition, it offers communications, and audio and visual components and products, including micro speakers, portable speaker systems, vibration actuators, earphones, headsets, headphones, and earphone drivers; and micro acoustic transducers that include dynamic speakers, magnetic sounders, and magnetics buzzers. Foster Electric Company, Limited was incorporated in 1948 and is headquartered in Akishima, Japan.

How the Company Makes Money

Foster Electric Company, Limited generates revenue primarily through the sale of its audio equipment and electronic components. The company's key revenue streams include direct sales to consumers, partnerships with automotive manufacturers for integrated audio systems, and contracts with other electronics manufacturers. Foster Electric benefits from a global market presence, leveraging its reputation for quality and innovation to secure long-term partnerships and contracts. Additionally, the company invests in research and development to maintain its competitive edge and expand its product offerings, which can contribute to increased sales and market share.

Foster Electric Company, Limited Financial Statement Overview

Summary

Foster Electric Company exhibits strong financial performance with robust revenue growth and profitability improvements. The balance sheet remains stable with low leverage, high equity, and effective cash flow management. These factors position the company well for future growth.

Income Statement

Foster Electric Company has shown strong revenue growth, particularly from 2022 to 2025, indicating a robust recovery and expansion phase. Gross profit margins have improved significantly, reflecting enhanced cost management and operational efficiency. The net profit margin has also turned positive, showcasing profitability. The EBIT and EBITDA margins have steadily improved, highlighting operational effectiveness.

Balance Sheet

The company's balance sheet reflects a solid equity position with a consistently high equity ratio, indicating financial stability. The debt-to-equity ratio remains low, suggesting prudent leverage management. Return on equity has improved, showing enhanced profitability for shareholders. However, the substantial increase in stockholders' equity compared to total assets suggests a conservative approach to growth opportunities.

Cash Flow

Operating cash flow has remained strong, with significant improvements in free cash flow, indicating effective cash management and investment in capital expenditures. The free cash flow to net income ratio is positive, demonstrating the company's ability to generate cash relative to its earnings. Despite fluctuations in financing activities, the overall cash flow position is stable.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	137.61B	122.45B	121.34B	91.11B	85.22B
Gross Profit	24.12B	18.84B	16.16B	7.49B	11.12B
EBITDA	11.51B	8.57B	6.16B	-5.27B	565.00M
Net Income	3.90B	2.30B	848.00M	-7.02B	-3.36B
Balance Sheet
Total Assets	106.83B	102.75B	92.87B	86.15B	77.23B
Cash, Cash Equivalents and Short-Term Investments	21.50B	20.86B	13.65B	13.19B	21.09B
Total Debt	8.57B	16.94B	17.46B	13.37B	5.20B
Total Liabilities	38.09B	38.43B	36.36B	34.52B	21.24B
Stockholders Equity	60.87B	58.01B	51.09B	47.16B	50.64B
Cash Flow
Free Cash Flow	11.21B	10.62B	-2.21B	-15.52B	-1.39B
Operating Cash Flow	14.83B	15.43B	354.00M	-12.77B	739.00M
Investing Cash Flow	-844.00M	-8.54B	-1.32B	-3.07B	-1.96B
Financing Cash Flow	-9.88B	-4.44B	1.78B	6.77B	-2.62B

Foster Electric Company, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1838.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6794, the sentiment is Positive. The current price of 1838 is above the 20-day moving average (MA) of 1627.55, above the 50-day MA of 1504.98, and above the 200-day MA of 1479.80, indicating a bullish trend. The MACD of 86.57 indicates Negative momentum. The RSI at 87.24 is Negative, neither overbought nor oversold. The STOCH value of 96.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6794.

Foster Electric Company, Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6794	74 Outperform	¥40.90B	10.36		3.26%	12.38%	68.86%
Sector *	51 Neutral	AU$1.66B	2.46	-31.66%	3.59%	16.55%	-7.79%
CSIOF	―	$1.86B	35.22	3.45%	0.45%	―	―
PCRFF	―	$23.70B	9.96	7.85%	0.28%	―	―
JVC	―	€1.09B	8.61	16.78%	1.27%	―	―
6810	68 Neutral	¥83.05B	20.62		2.59%	0.52%	-44.10%
6753	51 Neutral	¥443.24B	12.28		―	-6.97%	―

Foster Electric Company, Limited Corporate Events

Foster Electric Revises Stock Compensation Plan to Boost Corporate Value

Foster Electric Company, Limited has announced revisions to its stock compensation plan for Directors and Executive Officers, which will be proposed at the upcoming General Meeting of Shareholders. The revisions include an increase in the number of shares granted under the current plan and a transition to a new plan where shares will have transfer restrictions until resignation. These changes aim to enhance the company’s medium- to long-term corporate value and align the interests of directors and officers with those of shareholders.

Foster Electric Proposes Amendment to Director Terms

Foster Electric Company, Limited has announced a proposal to amend its Articles of Incorporation, which will be presented at the upcoming Ordinary General Meeting of Shareholders. The amendment aims to change the term of office for Directors from two years to one year, enhancing management accountability and adaptability to the changing business environment, while also increasing shareholder engagement.

Foster Electric Reports Strong Financial Growth and Increased Dividends

Foster Electric Company, Limited reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 12.4% and operating profit surging by 54%. The company also announced a substantial increase in dividends, reflecting its strong financial health and commitment to shareholder returns. Despite a forecasted slight decline in net sales and profits for the next fiscal year, the company remains optimistic about maintaining robust earnings per share.