Foster Electric Company, Limited (6794) AI Stock Analysis

• Market Cap: ¥58.70B
• Dividend Yield: 2.94%
• Average Volume (3M): 212.45K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.59
• Revenue Growth: 6.41%
• EPS Growth: 16.71%
• Country: JP
• Employees: 14,094
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 50.71
• Shares Outstanding: 25,000,000
• 10 Day Avg. Volume: 232,410
• 30 Day Avg. Volume: 212,453
• PEG Ratio: 0.11
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 2.57
• 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: 76 Outperform
• Price Target: ¥2,879.00 ▲(9.55% Upside)

Foster Electric Company scores well due to its strong financial performance and positive technical indicators. The stock's valuation is reasonable, with a fair P/E ratio and a decent dividend yield. The absence of earnings call data and corporate events does not detract from the overall positive outlook.

Positive Factors

Revenue Growth

The significant revenue growth reflects robust demand in the consumer electronics sector, indicating strong market position and product appeal.

Cash Generation

Improved cash generation capabilities enhance financial flexibility, allowing for strategic investments and debt management.

Capital Structure

A low debt-to-equity ratio indicates a solid capital structure, reducing financial risk and supporting long-term stability.

Negative Factors

Profitability Concerns

Despite improvements, the net profit margin remains relatively low, potentially limiting reinvestment and growth opportunities.

Moderate ROE

A moderate ROE suggests that the company may not be utilizing shareholder equity as efficiently as possible, impacting investor returns.

Industry Competition

The competitive nature of the consumer electronics industry could pressure margins and market share, challenging long-term growth.

Foster Electric Company, Limited Business Overview & Revenue Model

Company Description

Foster Electric Company, Limited (6794) is a prominent Japanese manufacturer specializing in the production of electrical components and devices. The company operates primarily in the sectors of consumer electronics, automotive, and industrial equipment. Core products include high-quality electric fans, motors, and various electronic components that are essential for a wide range of applications in both domestic and international markets.

How the Company Makes Money

Foster Electric generates revenue primarily through the sale of its electrical components and devices across multiple sectors. The company's revenue model is based on direct sales to manufacturers, as well as partnerships with large-scale distributors and retailers. Key revenue streams include consumer electronics, where products are supplied to major brands, and the automotive sector, where Foster's components are integrated into vehicles. Additionally, the company benefits from long-term contracts and agreements with strategic partners, which provide a steady income stream. The company's focus on innovation and quality also enhances its competitive edge, driving both sales and market share.

Foster Electric Company, Limited Financial Statement Overview

Summary

Foster Electric Company exhibits strong financial performance with robust revenue growth, improved profitability margins, a stable capital structure with low leverage, and strong cash generation capabilities.

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	9.05B	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: 2628.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2628 is above the 20-day moving average (MA) of 2565.50, above the 50-day MA of 2481.13, and above the 200-day MA of 1755.89, indicating a neutral trend. The MACD of 6.72 indicates Positive momentum. The RSI at 52.96 is Neutral, neither overbought nor oversold. The STOCH value of 52.84 is Neutral, 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
6752	77 Outperform	$4.06T	12.70	6.73%	2.08%	-6.96%	-7.22%
6794	76 Outperform	¥58.70B	13.75	―	2.94%	6.41%	16.71%
6632	69 Neutral	¥176.92B	10.42	13.53%	1.28%	0.48%	-1.86%
6952	66 Neutral	$277.75B	49.58	5.53%	3.48%	-5.43%	55.21%
6810	66 Neutral	¥95.37B	18.23	―	2.24%	3.71%	-3.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6753	59 Neutral	¥505.44B	8.62	―	―	-10.88%	―

Foster Electric Company, Limited Corporate Events

Foster Electric Announces Change in Major Shareholders

Foster Electric Company, Limited has announced a change in its major shareholders, with Axium Capital Pte. Ltd. increasing its stake from 7.68% to 10.37%. This change, reported to the Kanto Local Finance Bureau, reflects a significant shift in shareholder dynamics, although the company states that there are no immediate implications for its future outlook.

The most recent analyst rating on (JP:6794) stock is a Buy with a Yen2517.00 price target. To see the full list of analyst forecasts on Foster Electric Company, Limited stock, see the JP:6794 Stock Forecast page.

Foster Electric Expands Automotive Business with New Indian Subsidiary

Foster Electric Company, Limited’s subsidiary, ESTec Corporation, is establishing a new production subsidiary in India to expand its market presence and improve operational efficiency in its automotive business. This move is expected to have minimal impact on the company’s earnings for the current fiscal year.

The most recent analyst rating on (JP:6794) stock is a Buy with a Yen2517.00 price target. To see the full list of analyst forecasts on Foster Electric Company, Limited stock, see the JP:6794 Stock Forecast page.

Foster Electric Company Reports Q1 2025 Financial Results with Profit Growth

Foster Electric Company reported consolidated financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 1.4% year-on-year to ¥32,136 million. The company experienced significant growth in operating profit and profit attributable to owners of the parent, with increases of 30.8% and 34.5% respectively, indicating improved operational efficiency. However, comprehensive income was negative at ¥(463) million, suggesting challenges in other financial areas. The company maintained its dividend forecast for the fiscal year ending March 31, 2026, with an expected increase to ¥70.00 per share, reflecting confidence in future earnings despite a slight decrease in total assets and net assets.

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.