Foster Electric Company, Limited (6794) AI Stock Analysis

• Market Cap: ¥49.85B
• Dividend Yield: 2.68%
• Average Volume (3M): 236.96K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.58
• Revenue Growth: 9.24%
• EPS Growth: 23.83%
• Country: JP
• Employees: 14,094
• Sector: Technology
• Sector Strength: 82
• Industry: Consumer Electronics
• EPS (TTM): 66.63
• Shares Outstanding: 25,000,000
• 10 Day Avg. Volume: 259,640
• 30 Day Avg. Volume: 236,963
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,517.00
• Price Target Upside: 12.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥2,517.00 ▲(12.37% Upside)

Foster Electric Company scores well due to its strong financial performance, characterized by robust revenue growth and profitability. The technical analysis indicates bullish momentum, although caution is advised due to overbought signals. The stock's valuation is attractive with a low P/E ratio and a solid dividend yield.

Foster Electric Company, Limited Business Overview & Revenue Model

Company Description

Foster Electric Company, Limited (6794) is a Japanese corporation engaged in the design, manufacture, and distribution of audio equipment and electronic components. The company's product offerings include a variety of audio devices such as headphones, speakers, and automotive audio systems, as well as electronic components like microphones and transducers. Foster Electric serves both consumer and industrial sectors, providing high-quality audio solutions for personal, automotive, and professional use.

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 a strong financial position with impressive revenue growth of 32.6% and improved profitability margins. The balance sheet reflects a stable capital structure with low leverage, and the cash flow statement underscores robust cash generation.

Income Statement

Foster Electric Company has demonstrated strong revenue growth with a TTM increase of 32.6%, reflecting robust demand in the consumer electronics sector. The gross profit margin has improved to 17.5%, indicating effective cost management. Net profit margin has also increased to 2.8%, showcasing enhanced profitability. The EBIT and EBITDA margins have shown positive trends, reinforcing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has decreased to 0.14, indicating a solid capital structure with manageable leverage. Return on equity stands at 6.5%, reflecting moderate profitability relative to shareholder equity. The equity ratio of 56.7% suggests a strong equity base supporting the company's assets.

Cash Flow

Foster Electric has achieved a significant free cash flow growth rate of 4.5%, highlighting improved cash generation capabilities. The operating cash flow to net income ratio of 3.5 indicates strong cash conversion efficiency. The free cash flow to net income ratio of 0.75 further supports the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	138.06B	137.61B	122.45B	121.34B	91.11B	85.22B
Gross Profit	24.54B	24.12B	18.84B	16.16B	7.49B	11.12B
EBITDA	11.85B	11.51B	8.57B	6.16B	-5.27B	565.00M
Net Income	4.28B	3.90B	2.30B	848.00M	-7.02B	-3.36B
Balance Sheet
Total Assets	104.95B	106.83B	102.75B	92.87B	86.15B	77.23B
Cash, Cash Equivalents and Short-Term Investments	22.54B	21.50B	20.86B	13.65B	13.19B	21.09B
Total Debt	10.54B	8.57B	16.94B	17.46B	13.37B	5.20B
Total Liabilities	37.92B	38.09B	38.43B	36.36B	34.52B	21.24B
Stockholders Equity	59.48B	60.87B	58.01B	51.09B	47.16B	50.64B
Cash Flow
Free Cash Flow	11.72B	11.21B	10.62B	-2.21B	-15.52B	-1.39B
Operating Cash Flow	15.14B	14.83B	15.43B	354.00M	-12.77B	739.00M
Investing Cash Flow	-309.00M	-844.00M	-8.54B	-1.32B	-3.07B	-1.96B
Financing Cash Flow	-7.03B	-9.88B	-4.44B	1.78B	6.77B	-2.62B

Foster Electric Company, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2240.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2240 is above the 20-day moving average (MA) of 2101.80, above the 50-day MA of 1870.58, and above the 200-day MA of 1521.12, indicating a bullish trend. The MACD of 98.52 indicates Positive momentum. The RSI at 78.23 is Negative, neither overbought nor oversold. The STOCH value of 90.30 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	79 Outperform	¥49.85B	11.67		2.68%	9.24%	23.83%
Sector *	61 Neutral	$35.55B	8.88	-11.02%	1.87%	8.55%	-8.14%
CSIOF	―	$1.98B	51.51	2.56%	3.50%	―	―
PCRFF	―	$24.40B	10.00	7.89%	3.08%	―	―
JVC	―	€1.05B	9.05	15.38%	―	―	―
6753	62 Neutral	¥563.55B	8.72		―	-9.17%	―
6810	57 Neutral	¥92.22B	26.56		2.34%	0.31%	-50.17%

Foster Electric Company, Limited Corporate Events

Foster Electric Announces Treasury Share Disposition for Board Compensation

Foster Electric Company announced the disposition of treasury shares through a third-party allotment as part of its Board Benefit Trust plans. This move is aimed at providing stock-based compensation to its directors and executive officers, reflecting their performance and position within the company. The disposition involves a significant number of shares and is part of the company’s strategic plan to align management incentives with shareholder interests.

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.