New Cosmos Electric Co., Ltd. (6824) AI Stock Analysis

• Market Cap: ¥61.63B
• Dividend Yield: 1.12%
• Average Volume (3M): 16.54K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.36
• Revenue Growth: 14.84%
• EPS Growth: 7.57%
• Country: JP
• Employees: 947
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 106.40
• Shares Outstanding: 12,561,000
• 10 Day Avg. Volume: 15,200
• 30 Day Avg. Volume: 16,536
• PEG Ratio: 0.75
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 62.20
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥5,505.00 ▲(31.70% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by solid financial performance (strong balance sheet and healthy profitability) and supportive valuation (low P/E). Technicals are constructive due to a clear uptrend, but overbought momentum signals temper the overall score, alongside cash-flow conversion volatility.

Positive Factors

Conservative balance sheet / low leverage

Debt-to-equity around 0.09 and steadily built equity give durable financial flexibility. Low leverage reduces refinancing and interest-rate risk, supports capital spending or M&A, and helps the company sustain operations and payouts through industry cycles without needing to raise costly external capital.

Robust gross and operating margins

High gross margin (~44.6%) and double-digit operating margin (~12.6%) indicate product differentiation and pricing power in gas-detection hardware. These durable margin cushions support reinvestment in R&D and service, enabling sustainable profitability across modest demand cycles.

Recent strong free cash flow rebound

A near-term ~97% rebound in free cash flow and stronger operating cash flow increase the firm's ability to fund capex, R&D, and shareholder returns from internal sources. Improved cash generation enhances strategic optionality and reduces reliance on external financing over the medium term.

Negative Factors

Uneven cash conversion history

Historic swings in working capital and investments produced negative FCF in 2024 and TTM FCF only ~50% of net income, indicating unreliable cash conversion. Persistent volatility in cash generation can limit durable funding for growth, dividends, or capital deployment during weaker demand periods.

Margin compression vs prior peak

Net margin below prior-peak levels signals margin pressure from mix shifts, cost increases, or pricing dynamics. Sustained margin compression would reduce free cash flow and returns, forcing tougher trade-offs between price, volume, and investment to restore prior profitability.

Modest return on equity

An ROE near 8.5% is adequate but not high; modest capital efficiency means shareholder value depends more on sustained growth than on improving operating leverage. If growth slows, the company may struggle to generate superior returns versus peers or justify incremental capital deployment.

New Cosmos Electric Co., Ltd. Business Overview & Revenue Model

Company Description

New Cosmos Electric Co.,Ltd. researches, develops, manufactures, and sells various products based on gas sensor technology in Japan. It offers portable gas detectors, such as combustible gas, oxygen, toxic gas, multi-gas, incomplete combustible gas, and other detectors; gas detection and alarm systems; odor sensors and air quality monitors; and steel dust busters. The company was founded in 1934 and is headquartered in Osaka, Japan.

How the Company Makes Money

New Cosmos Electric Co., Ltd. generates revenue primarily through the sale of its gas detection systems and safety equipment to a diverse clientele, including manufacturing facilities, construction companies, and residential customers. The company earns money by selling its products directly to end-users as well as through distributors and partners across various regions. In addition to product sales, New Cosmos Electric also provides maintenance services and training for its equipment, creating an additional revenue stream. Strategic partnerships with other safety and industrial equipment manufacturers further enhance its market presence and help in reaching broader customer bases. The company may also benefit from government contracts related to public safety and environmental monitoring, contributing to its overall earnings.

New Cosmos Electric Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals supported by a conservative balance sheet (low leverage) and solid profitability/margins with positive TTM revenue growth. The main offset is cash-flow quality: free-cash-flow conversion has been uneven and historically volatile despite a sharp recent rebound.

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability with ~44.6% gross margin and ~8.7% net margin, supported by healthy operating profitability (~12.6% operating margin). Revenue growth is positive in TTM (~6.1%) and revenue has expanded meaningfully versus earlier years, indicating a constructive demand backdrop. Offsetting this, profitability is not at prior peak levels (net margin was higher in 2023), suggesting some margin compression or mix/expense pressure over time.

Balance Sheet

The balance sheet looks conservative: leverage is low with debt-to-equity around ~0.09 in TTM (Trailing-Twelve-Months), and equity has built steadily over the period. Returns on equity are respectable (~8.5% TTM) and broadly stable, indicating decent capital efficiency without relying on heavy debt. The main watch item is that returns are good but not exceptional, so future value creation depends more on sustained growth and maintaining margins than on balance-sheet leverage.

Cash Flow

Cash generation improved sharply in TTM (Trailing-Twelve-Months), with strong operating cash flow and free cash flow rebounding (free cash flow growth ~97%). However, cash conversion has been uneven historically: free cash flow was negative in 2024 and, even in TTM, free cash flow is only about half of net income, pointing to working-capital or investment swings. This volatility tempers confidence that the latest step-up is fully durable.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	49.41B	42.15B	37.38B	37.21B	29.58B	27.77B
Gross Profit	21.77B	19.55B	17.73B	17.78B	13.51B	12.47B
EBITDA	8.12B	6.95B	6.28B	7.46B	4.84B	3.40B
Net Income	4.52B	3.38B	3.00B	3.74B	2.46B	1.48B
Balance Sheet
Total Assets	72.77B	67.29B	66.84B	54.93B	45.81B	41.43B
Cash, Cash Equivalents and Short-Term Investments	23.61B	20.07B	20.80B	15.68B	14.71B	11.82B
Total Debt	4.23B	4.89B	5.83B	842.50M	1.66B	1.65B
Total Liabilities	17.93B	16.03B	19.19B	11.90B	10.45B	9.12B
Stockholders Equity	50.94B	47.65B	44.37B	40.14B	33.37B	30.47B
Cash Flow
Free Cash Flow	7.15B	502.08M	-567.17M	1.09B	3.03B	738.54M
Operating Cash Flow	8.41B	4.89B	1.82B	2.62B	3.73B	1.88B
Investing Cash Flow	-2.17B	-4.73B	-2.54B	-1.49B	-675.41M	-1.37B
Financing Cash Flow	-2.38B	-1.67B	-108.85M	-1.01B	-364.69M	-529.04M

New Cosmos Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4180.00
• 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:6824, the sentiment is Positive. The current price of 4180 is below the 20-day moving average (MA) of 4510.50, below the 50-day MA of 4351.90, and above the 200-day MA of 3555.95, indicating a bullish trend. The MACD of 182.61 indicates Negative momentum. The RSI at 64.45 is Neutral, neither overbought nor oversold. The STOCH value of 50.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6824.

New Cosmos Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥33.01B	16.29	―	2.89%	6.15%	2.98%
6866	79 Outperform	¥105.76B	19.22	―	3.23%	7.28%	4.16%
6824	77 Outperform	¥61.63B	13.52	―	1.12%	14.84%	7.57%
6814	76 Outperform	¥250.13B	15.44	―	1.88%	6.56%	106.55%
6848	73 Outperform	¥19.10B	24.04	―	2.59%	1.66%	-12.21%
6772	62 Neutral	¥9.88B	49.02	―	1.78%	-1.17%	-42.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%