Foster Electric Company, Limited (JP:6794)
:6794
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Foster Electric Company, Limited
(6794)
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Rating:57Neutral
Price Target:
¥3,050.00
▲(12.50% Upside)
Action:Downgraded
Date:05/17/26
The score is driven primarily by improving profitability and a stronger, low-leverage balance sheet, offset by weak free-cash-flow conversion and volatility in cash generation. Technical indicators also weigh on the score due to negative momentum and the stock trading below key short-term moving averages, while valuation is neutral with a moderate P/E and a supportive dividend yield.
Positive Factors
Balance sheet strength (low leverage)
Low leverage and a steadily built equity base provide durable financial resilience. This conservatism lowers default and refinancing risk, supports capital allocation flexibility for capex or dividends, and gives management optionality to pursue strategic investments over the next 2–6 months.
Negative Factors
Weak free cash flow conversion
Near-break-even free cash flow and very low conversion of accounting earnings constrain internal funding for capex, R&D, or shareholder returns. Persistent FCF weakness and historical volatility increase reliance on external financing for strategic moves and reduce margin for error in downcycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength (low leverage)
Low leverage and a steadily built equity base provide durable financial resilience. This conservatism lowers default and refinancing risk, supports capital allocation flexibility for capex or dividends, and gives management optionality to pursue strategic investments over the next 2–6 months.
Read all positive factors
Foster Electric Company, Limited (6794) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥62.84B
Dividend Yield2.73%
Average Volume (3M)212.45K
Price to Earnings (P/E)13.0
Beta (1Y)1.33
Revenue Growth-1.96%
EPS Growth26.37%
CountryJP
Employees14,094
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)221.15
Shares Outstanding25,000,000
10 Day Avg. Volume232,410
30 Day Avg. Volume212,453
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)0.95
Price to Sales (P/S)0.48
P/FCF Ratio267.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)213.6
Revenue Forecast (FY)¥140.00B
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 segmen...
How the Company Makes Money
Foster Electric makes money primarily by selling electro-acoustic components and finished audio products to business customers and end markets. Key revenue streams typically include (1) component sales (e.g., speakers, headphones/earphones, and ot...
Foster Electric Company, Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
48
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 134.91B | 137.61B | 122.45B | 121.34B | 91.11B |
| Gross Profit | 23.64B | 24.12B | 18.84B | 16.16B | 7.49B |
| EBITDA | 11.07B | 9.99B | 7.61B | 6.01B | -4.55B |
| Net Income | 4.95B | 3.90B | 2.31B | 849.00M | -7.02B |
Balance Sheet | |||||
| Total Assets | 112.24B | 106.83B | 102.75B | 92.87B | 86.15B |
| Cash, Cash Equivalents and Short-Term Investments | 20.66B | 21.50B | 20.86B | 13.65B | 13.19B |
| Total Debt | 8.97B | 8.57B | 16.94B | 17.46B | 13.37B |
| Total Liabilities | 35.31B | 38.09B | 38.42B | 36.35B | 34.51B |
| Stockholders Equity | 67.71B | 60.87B | 58.01B | 51.10B | 47.16B |
Cash Flow | |||||
| Free Cash Flow | 242.00M | 11.21B | 10.67B | -2.18B | -15.43B |
| Operating Cash Flow | 6.94B | 14.83B | 15.43B | 354.00M | -12.77B |
| Investing Cash Flow | -5.78B | -844.00M | -8.54B | -1.32B | -3.07B |
| Financing Cash Flow | -2.33B | -9.88B | -4.44B | 1.78B | 6.77B |
Foster Electric Company, Limited Technical Analysis
Negative
2711.00
Price Trends
3057.33
Negative
2934.63
Negative
2643.11
Positive
Market Momentum
-81.84
Positive
40.87
Neutral
41.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6794, the sentiment is Negative. The current price of 2711 is below the 20-day moving average (MA) of 2918.80, below the 50-day MA of 3057.33, and above the 200-day MA of 2643.11, indicating a neutral trend. The MACD of -81.84 indicates Positive momentum. The RSI at 40.87 is Neutral, neither overbought nor oversold. The STOCH value of 41.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6794.
Foster Electric Company, Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ¥167.68B | 9.71 | 13.53% | 1.34% | -3.63% | -14.77% | |
62 Neutral | ¥81.80B | 8.71 | ― | 1.99% | -0.29% | 119.59% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ¥8.33T | 44.23 | 4.25% | 1.99% | -4.84% | -48.25% | |
57 Neutral | ¥62.84B | 13.02 | ― | 2.73% | -1.96% | 26.37% | |
54 Neutral | ¥2.75B | -1.74 | ― | 4.68% | 1.19% | -2435.84% | |
53 Neutral | ¥21.54T | -64.19 | 14.45% | 0.55% | -3.68% | -129.40% |
* Technology Sector Average
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Foster Electric Company, Limited Corporate Events
Foster Electric Lifts Profit and Dividends Despite Modest Sales Decline
May 15, 2026
Foster Electric reported consolidated net sales of ¥134.9 billion for the fiscal year ended March 31, 2026, down 2% year on year, but operating profit rose 12.9% to ¥7.67 billion and profit attributable to owners of parent jumped 26.9% t...
Foster Electric Taps New Outside Directors to Bolster Governance and Long-Term Strategy
Apr 30, 2026
Foster Electric Company, Limited has moved to refresh its board, resolving to elect two new outside directors, subject to approval at its June 2026 shareholders’ meeting. The appointments reflect the company’s efforts to strengthen gov...
Foster Electric to Shift to Audit & Supervisory Committee Structure with Charter Amendments
Apr 30, 2026
Foster Electric Company, Limited plans to change its governance structure by transitioning from a company with a Board of Corporate Auditors to a company with an Audit Supervisory Committee, subject to shareholder approval at its 92nd Ordinary Ge...
Foster Electric Overhauls Board and Executive Ranks Ahead of Governance Shift
Feb 25, 2026
Foster Electric plans to transition to a corporate structure with an Audit Supervisory Committee, pending shareholder approval at its June 2026 annual meeting, and has resolved changes to its board and committee membership. The company will add i...
Foster Electric to Shift to Audit & Supervisory Committee Model in 2026
Feb 25, 2026
Foster Electric Company, Limited plans to transition from its current structure with a Board of Corporate Auditors to a company with an Audit Supervisory Committee, subject to shareholder approval at its 92nd Ordinary General Meeting in late June...
Foster Electric Raises Profit and Dividend Outlook on Foreign-Exchange Gains
Feb 25, 2026
Foster Electric revised its full-year forecast for the fiscal year ending March 31, 2026, keeping net sales and operating profit unchanged but raising estimates for ordinary profit and profit attributable to owners of the parent. The company now p...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.