Tomita Electric Co., Ltd. (6898) AI Stock Analysis

• Market Cap: ¥2.55B
• Dividend Yield: N/A
• Average Volume (3M): 1.21K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.36
• Revenue Growth: 14.60%
• EPS Growth: N/A
• Country: JP
• Employees: 268
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -33.87
• Shares Outstanding: 816,979
• 10 Day Avg. Volume: 770
• 30 Day Avg. Volume: 1,213
• PEG Ratio: -0.14
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 1.88
• P/FCF Ratio: -21.94
• 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: 63 Neutral
• Price Target: ¥4,143.00 ▲(21.14% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is primarily capped by weak and recently negative operating/free cash flow and still-negative operating profitability, despite a strong debt-free balance sheet. Technicals are supportive with the price above major moving averages and a positive MACD, but near-overbought momentum and a moderate-to-high P/E keep the overall score in the mid-range.

Positive Factors

Debt-free balance sheet

Zero reported debt and a sizeable equity base materially reduce financial distress risk and preserve strategic optionality. Over the next 2-6 months this durable low-leverage profile supports working capital flexibility, opportunistic capex or M&A, and shields operations in downturns.

Revenue rebound and margin recovery

A clear revenue rebound and higher gross margin indicate improving demand, pricing or mix that drive sustainable top-line momentum. Returning to net income shows the business can translate sales into bottom-line profit if revenue and margin trends persist, improving long-term earnings prospects.

Low business volatility (low beta)

A low beta suggests the company and its earnings are less sensitive to market swings, which combined with zero debt supports steadier operational planning. This structural stability aids multi-month strategy execution, supplier/customer relationships and reduces refinancing or covenant risks.

Negative Factors

Weak cash generation

Persistent negative operating and free cash flow constrains the company's ability to self-fund operations, capex, and working-capital needs. Even with no debt, continued cash outflows increase reliance on existing liquidity and impair reinvestment capacity, risking sustainability of recent profitability gains.

Negative operating profitability

Negative operating margins indicate core operations remain unprofitable after accounting for SG&A and other operating costs. This structural cost-pressure means net income improvements may be fragile unless the company sustains revenue growth or implements durable cost reduction to restore healthy operating cash generation.

Earnings volatility and inconsistent ROE

Volatile earnings and swings in equity profitability complicate long-term planning and suggest sensitivity to cyclical demand or margin shifts. This inconsistency raises execution and forecasting risk for management and can limit investor confidence in sustained returns over the coming months.

Tomita Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Tomita Electric Co.,Ltd. manufactures and sells ferrite cores and electronic components in Japan and internationally. It offers soft ferrite cores; and coils and transformers. Its products are used in switching power supply transformers, high frequency transformers, transformers for telecommunications, high frequency EMI filters, and low frequency noise filters, as well as in televisions, videos, computers, inverter lighting equipment, gas kerosene ignition equipment, industrial control equipment, etc. Tomita Electric Co.,Ltd. was founded in 1952 and is headquartered in Tottori, Japan.

How the Company Makes Money

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Tomita Electric Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet with zero debt and solid equity (82), but overall fundamentals are held back by weak cash generation (38) and still-negative operating profitability despite FY2026 revenue rebound and return to net income (income statement 58).

Income Statement

Revenue rebounded strongly in FY2026 (+12.0% YoY) after two down years, but profitability remains mixed. Gross margin improved to 25.9% (from 19.8% in FY2025), and the company returned to positive net income (7.7% net margin) after a loss in FY2025. However, operating profitability is still weak, with FY2026 showing negative operating income (EBIT margin -3.8%) and negative EBITDA margin, signaling that core costs are still pressuring results despite the bottom-line recovery.

Balance Sheet

The balance sheet is conservatively positioned with zero reported debt across all periods and a sizeable equity base (FY2026 equity of ~¥4.0B vs. total assets of ~¥4.7B). This low-leverage structure reduces financial risk and provides flexibility through cycles. The main weakness is inconsistent shareholder returns, with equity profitability negative in FY2024–FY2025 before recovering alongside FY2026 net income, indicating earnings volatility rather than balance-sheet stress.

Cash Flow

Cash generation is the key weak spot. FY2026 posted negative operating cash flow (about -¥117M) and negative free cash flow (about -¥137M), extending the pattern of uneven cash conversion (negative operating cash flow also in FY2025 and FY2021). While there were positive free-cash-flow years (FY2022 and FY2024), the recent two-year trend of cash outflows raises questions about working capital and/or investment needs and increases reliance on existing liquidity despite the company’s debt-free status.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	1.43B	1.60B	1.42B	1.49B	2.00B	1.83B
Gross Profit	311.64M	414.74M	276.35M	403.76M	635.46M	567.89M
EBITDA	-93.41M	-12.06M	-122.13M	21.10M	191.79M	174.75M
Net Income	29.22M	123.76M	-171.15M	-33.59M	95.44M	106.72M
Balance Sheet
Total Assets	4.52B	4.66B	4.79B	4.70B	4.56B	4.26B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.11B	1.25B	1.32B	1.06B	1.04B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	649.13M	678.39M	938.63M	917.13M	1.02B	970.07M
Stockholders Equity	3.87B	3.98B	3.85B	3.78B	3.54B	3.29B
Cash Flow
Free Cash Flow	0.00	-137.50M	-221.67M	43.68M	-34.10M	28.61M
Operating Cash Flow	0.00	-117.13M	-109.14M	77.92M	40.02M	59.36M
Investing Cash Flow	0.00	-26.84M	-118.20M	-40.38M	-82.26M	-35.08M
Financing Cash Flow	0.00	15.07M	78.47M	177.29M	-5.59M	-11.96M

Tomita Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3420.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6898, the sentiment is Positive. The current price of 3420 is below the 20-day moving average (MA) of 3685.50, below the 50-day MA of 3658.60, and above the 200-day MA of 3265.11, indicating a bullish trend. The MACD of 73.11 indicates Negative momentum. The RSI at 70.94 is Negative, neither overbought nor oversold. The STOCH value of 74.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6898.

Tomita Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5906	74 Outperform	¥12.49B	2.21	―	1.20%	-6.45%	53.12%
6794	73 Outperform	¥66.18B	23.18	―	2.73%	6.41%	16.71%
6632	66 Neutral	¥176.54B	8.81	13.53%	1.34%	0.48%	-1.86%
6810	66 Neutral	¥87.14B	12.03	―	1.99%	3.71%	-3.32%
6898	63 Neutral	¥2.55B	24.37	―	―	14.60%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6927	61 Neutral	¥22.90B	3.36	―	3.42%	-21.21%	-55.72%

Tomita Electric Co., Ltd. Corporate Events

Tomita Electric Returns to Profit on Higher Sales Despite Operating Loss

Tomita Electric Co., Ltd. reported consolidated net sales of ¥1,603 million for the fiscal year ended January 2026, a 12.8% increase from the previous year, while operating loss narrowed to ¥61 million and ordinary loss to ¥27 million. Despite remaining in operating loss, the company returned to profitability at the bottom line with profit attributable to owners of parent of ¥123 million, improving basic earnings per share to ¥151.82 and lifting comprehensive income and equity ratios, signaling a recovery in profitability and balance-sheet strength for stakeholders.

The most recent analyst rating on (JP:6898) stock is a Hold with a Yen3900.00 price target. To see the full list of analyst forecasts on Tomita Electric Co., Ltd. stock, see the JP:6898 Stock Forecast page.