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Foster Electric Company, Limited (JP:6794)
:6794
Japanese Market

Foster Electric Company, Limited (6794) AI Stock Analysis

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JP:6794

Foster Electric Company, Limited

(6794)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
¥3,858.00
▲(42.31% Upside)
Action:UpgradedDate:02/18/26
The score is driven primarily by improved financial stability and profitability with low leverage, supported by a strong technical uptrend (price above major moving averages). Valuation is fair with a moderate dividend, but the recent revenue decline and sharp drop in free cash flow meaningfully temper the overall rating.
Positive Factors
Conservative Leverage
A low debt-to-equity (~0.14) signals durable balance-sheet flexibility. This reduces refinancing and interest-rate risk, supports continued supplier and customer confidence, and allows the company to fund working-capital swings, capex or program investments without stressing liquidity over the medium term.
Negative Factors
Sharp FCF Decline
A >50% drop in free cash flow year-on-year suggests weakening cash conversion or elevated investments/working-capital needs. That reduces funds available for strategic activities, heightens reliance on operating performance to fund growth, and raises the risk that cash generation may be less reliable.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Leverage
A low debt-to-equity (~0.14) signals durable balance-sheet flexibility. This reduces refinancing and interest-rate risk, supports continued supplier and customer confidence, and allows the company to fund working-capital swings, capex or program investments without stressing liquidity over the medium term.
Read all positive factors

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

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 manufacturing and selling electro-acoustic components and modules to original equipment manufacturers (OEMs) and brand owners. Its key revenue streams typically come from: (1) Speakers and speaker modules s...

Foster Electric Company, Limited Financial Statement Overview

Summary
Profitability has recovered versus prior loss years (TTM net margin ~3.0%, EBIT margin ~6.2%) and leverage is conservative (debt-to-equity ~0.14). The main offsets are cooling revenue (TTM ~-2.6%) and a sharp decline in free cash flow (TTM FCF growth ~-53.6%), which raises questions about durability and cash conversion.
Income Statement
70
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue134.14B137.61B122.45B121.34B91.11B85.22B
Gross Profit23.96B24.12B18.84B16.16B7.49B11.12B
EBITDA9.96B9.99B7.61B6.01B-4.55B3.15B
Net Income4.01B3.90B2.31B849.00M-7.02B-3.36B
Balance Sheet
Total Assets109.90B106.83B102.75B92.87B86.15B77.23B
Cash, Cash Equivalents and Short-Term Investments19.52B21.50B20.86B13.65B13.19B21.09B
Total Debt9.29B8.57B16.94B17.46B13.37B5.20B
Total Liabilities37.00B38.09B38.42B36.35B34.51B21.23B
Stockholders Equity64.49B60.87B58.01B51.10B47.16B50.64B
Cash Flow
Free Cash Flow4.69B11.21B10.67B-2.18B-15.43B-1.36B
Operating Cash Flow10.43B14.83B15.43B354.00M-12.77B739.00M
Investing Cash Flow-1.86B-844.00M-8.54B-1.32B-3.07B-1.96B
Financing Cash Flow-9.46B-9.88B-4.44B1.78B6.77B-2.62B

Foster Electric Company, Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2711.00
Price Trends
50DMA
2966.46
Positive
100DMA
2784.31
Positive
200DMA
2410.22
Positive
Market Momentum
MACD
128.16
Negative
RSI
68.01
Neutral
STOCH
91.31
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 2711 is below the 20-day moving average (MA) of 3038.43, below the 50-day MA of 2966.46, and above the 200-day MA of 2410.22, indicating a bullish trend. The MACD of 128.16 indicates Negative momentum. The RSI at 68.01 is Neutral, neither overbought nor oversold. The STOCH value of 91.31 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥76.33B23.182.73%6.41%16.71%
66
Neutral
¥184.23B8.8113.53%1.34%0.48%-1.86%
66
Neutral
¥95.24B12.031.99%3.71%-3.32%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
57
Neutral
¥6.68T-69.044.25%1.99%-6.96%-7.22%
56
Neutral
¥20.62T-5.9514.45%0.55%-2.86%5.93%
54
Neutral
¥2.76B-1.574.68%3.64%37.31%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6794
Foster Electric Company, Limited
3,370.00
2,302.32
215.64%
JP:6752
Panasonic
2,861.00
1,401.40
96.01%
JP:6758
Sony
3,325.00
232.36
7.51%
JP:6632
JVCKENWOOD Corporation
1,241.50
240.08
23.97%
JP:6694
Zoom Corp.
647.00
50.04
8.38%
JP:6810
Maxell, Ltd.
2,211.00
622.82
39.22%

Foster Electric Company, Limited Corporate Events

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...
Foster Electric Lifts Earnings and Dividend Despite Lower Sales
Feb 10, 2026
Foster Electric reported consolidated net sales of ¥100.0 billion for the nine months ended December 31, 2025, down 3.4% year on year, while operating profit slipped 1.7% to ¥5.5 billion and ordinary profit fell 5.6% to ¥5.5 billion...
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: Feb 18, 2026