Foster Electric Company, Limited (6794) AI Stock Analysis

• Market Cap: ¥58.70B
• Dividend Yield: 2.73%
• 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: 69 Neutral
• Price Target: ¥2,873.00 ▲(4.55% Upside)

Foster Electric Company scores a 69, driven primarily by its stable financial performance and positive technical indicators. The company's strong balance sheet and reasonable valuation metrics further support the score. However, the decline in revenue growth and challenges in cash flow generation are notable concerns. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and growth initiatives.

Stable Profitability Margins

Stable profitability margins indicate effective cost management and operational efficiency, supporting long-term financial health.

Competitive Edge through Innovation

Innovation and quality drive competitive advantage, fostering market share growth and customer loyalty in key sectors.

Negative Factors

Decline in Revenue Growth

A significant decline in revenue growth can impact future earnings potential and market positioning, posing a challenge to long-term expansion.

Challenges in Cash Flow Generation

Declining free cash flow growth may limit the company's ability to fund operations and invest in growth opportunities, affecting financial flexibility.

Absence of Earnings Call Data

Lack of earnings call data limits transparency and insights into management's strategic direction and operational performance.

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 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	137.65B	137.61B	122.45B	121.34B	91.11B	85.22B
Gross Profit	24.35B	24.12B	18.84B	16.16B	7.49B	11.12B
EBITDA	11.74B	11.51B	8.57B	6.16B	-5.27B	565.00M
Net Income	4.16B	3.90B	2.30B	848.00M	-7.02B	-3.36B
Balance Sheet
Total Assets	106.62B	106.83B	102.75B	92.87B	86.15B	77.23B
Cash, Cash Equivalents and Short-Term Investments	20.55B	21.50B	20.86B	13.65B	13.19B	21.09B
Total Debt	8.65B	9.05B	16.94B	17.46B	13.37B	5.20B
Total Liabilities	36.64B	38.09B	38.43B	36.36B	34.52B	21.24B
Stockholders Equity	62.11B	60.87B	58.01B	51.09B	47.16B	50.64B
Cash Flow
Free Cash Flow	10.10B	11.21B	10.62B	-2.21B	-15.52B	-1.39B
Operating Cash Flow	14.15B	14.83B	15.43B	354.00M	-12.77B	739.00M
Investing Cash Flow	-76.00M	-844.00M	-8.54B	-1.32B	-3.07B	-1.96B
Financing Cash Flow	-9.71B	-9.88B	-4.44B	1.78B	6.77B	-2.62B

Foster Electric Company, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2748.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2748 is above the 20-day moving average (MA) of 2586.70, above the 50-day MA of 2563.12, and above the 200-day MA of 1825.85, indicating a bullish trend. The MACD of 37.63 indicates Negative momentum. The RSI at 63.13 is Neutral, neither overbought nor oversold. The STOCH value of 61.88 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	73 Outperform	$4.32T	13.52	6.73%	1.84%	-6.96%	-7.22%
6794	69 Neutral	¥58.70B	13.75	―	2.73%	6.41%	16.71%
6952	66 Neutral	$290.05B	23.16	5.53%	3.53%	-5.43%	55.21%
6810	66 Neutral	¥95.37B	18.23	―	2.07%	3.71%	-3.32%
6632	64 Neutral	¥177.22B	10.44	13.53%	1.36%	0.48%	-1.86%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6753	60 Neutral	¥509.92B	8.68	―	―	-10.88%	―

Foster Electric Company, Limited Corporate Events

Foster Electric Reports Stable Six-Month Financial Results with Increased Dividends

Foster Electric Company reported its consolidated financial results for the six months ending September 30, 2025, showing a slight increase in net sales by 0.1% to ¥66,654 million. Operating profit increased by 19.5% to ¥4,327 million, while ordinary profit decreased by 6.0% to ¥3,863 million. The company announced a revision in its dividend forecast, increasing the annual dividend per share to ¥75.00. These financial results reflect a stable performance with strategic adjustments in dividends, indicating a focus on shareholder returns despite challenges in ordinary profit.

Foster Electric Revises Financial and Dividend Forecasts Upward

Foster Electric Company has revised its financial forecasts for the fiscal year ending March 31, 2026, anticipating higher profits due to strong sales in its automotive business and benefits from structural reforms. The company also increased its year-end dividend forecast, aiming to enhance shareholder value by raising the dividend payout ratio to approximately 40%, reflecting its commitment to balancing growth investments and shareholder returns.

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.

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.