tiprankstipranks
Trending News
More News >
Foster Electric Company, Limited (JP:6794)
:6794
Japanese Market

Foster Electric Company, Limited (6794) AI Stock Analysis

Compare
0 Followers

Top Page

JP

Foster Electric Company, Limited

(6794)

Rating:80Outperform
Price Target:
¥1,733.00
▲(10.66%Upside)
Foster Electric Company's strong financial performance and attractive valuation are the most significant contributors to its high stock score. The technical analysis indicates a positive trend, though caution is warranted due to potential overbought conditions. Overall, the company is well-positioned with a solid financial foundation and appealing valuation metrics.

Foster Electric Company, Limited (6794) vs. iShares MSCI Japan ETF (EWJ)

Foster Electric Company, Limited Business Overview & Revenue Model

Company DescriptionFoster Electric Company, Limited (6794) is a Japanese corporation that specializes in the manufacturing and distribution of audio equipment and electronic components. The company operates in various sectors including automotive, professional audio, and consumer electronics, offering products such as speakers, audio systems, and other related components. Foster Electric is recognized for its innovative designs and high-quality products that cater to a diverse range of markets worldwide.
How the Company Makes MoneyFoster Electric Company, Limited generates revenue primarily through the sale of its audio equipment and electronic components. The company's key revenue streams include the automotive sector, where it supplies speakers and audio systems to vehicle manufacturers, and the consumer electronics sector, where it offers products to individual consumers and businesses. Additionally, Foster Electric benefits from strategic partnerships with major global brands that incorporate its components into their products. The company also invests in research and development to continuously improve its offerings and maintain a competitive edge in the market.

Foster Electric Company, Limited Financial Statement Overview

Summary
Foster Electric Company exhibits strong financial performance, marked by significant revenue growth and improved profitability metrics. The balance sheet is robust with low leverage, and cash flow management is effective, ensuring liquidity and supporting growth investments.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue137.61B122.45B121.34B91.11B85.22B
Gross Profit24.12B18.84B16.16B7.49B11.12B
EBITDA11.51B8.57B6.16B-5.27B565.00M
Net Income3.90B2.30B848.00M-7.02B-3.36B
Balance Sheet
Total Assets106.83B102.75B92.87B86.15B77.23B
Cash, Cash Equivalents and Short-Term Investments21.50B20.86B13.65B13.19B21.09B
Total Debt8.57B16.94B17.46B13.37B5.20B
Total Liabilities38.09B38.43B36.36B34.52B21.24B
Stockholders Equity60.87B58.01B51.09B47.16B50.64B
Cash Flow
Free Cash Flow11.21B10.62B-2.21B-15.52B-1.39B
Operating Cash Flow14.83B15.43B354.00M-12.77B739.00M
Investing Cash Flow-844.00M-8.54B-1.32B-3.07B-1.96B
Financing Cash Flow-9.88B-4.44B1.78B6.77B-2.62B

Foster Electric Company, Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1566.00
Price Trends
50DMA
1381.52
Positive
100DMA
1350.73
Positive
200DMA
1479.81
Positive
Market Momentum
MACD
52.05
Negative
RSI
72.94
Negative
STOCH
76.06
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 1566 is above the 20-day moving average (MA) of 1498.50, above the 50-day MA of 1381.52, and above the 200-day MA of 1479.81, indicating a bullish trend. The MACD of 52.05 indicates Negative momentum. The RSI at 72.94 is Negative, neither overbought nor oversold. The STOCH value of 76.06 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

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥34.80B8.94
5.12%12.38%68.86%
75
Outperform
$3.57T9.767.85%2.61%-0.45%-17.53%
73
Outperform
$250.63B31.243.45%4.09%-2.63%-31.17%
71
Outperform
¥174.58B8.5616.78%1.73%3.02%60.53%
69
Neutral
¥228.24B14.407.64%2.72%9.13%8.48%
68
Neutral
¥82.40B20.54
2.61%0.52%-44.10%
53
Neutral
¥445.06B12.40
-6.97%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6794
Foster Electric Company, Limited
1,542.00
-58.48
-3.65%
JP:6753
Sharp Corporation
685.40
-256.50
-27.23%
JP:6810
Maxell, Ltd.
1,910.00
134.82
7.59%
JP:6632
JVCKENWOOD Corporation
1,179.50
312.91
36.11%
JP:6752
Panasonic
1,512.00
220.34
17.06%
JP:6952
Casio Computer Co
1,095.00
-54.94
-4.78%

Foster Electric Company, Limited Corporate Events

Foster Electric Revises Stock Compensation Plan to Boost Corporate Value
May 15, 2025

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
May 15, 2025

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
May 15, 2025

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.

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.Date of analysis: Jun 21, 2025