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Tomita Electric Co., Ltd. (JP:6898)
:6898
Japanese Market
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Tomita Electric Co., Ltd. (6898) AI Stock Analysis

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JP:6898

Tomita Electric Co., Ltd.

(6898)

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Neutral 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
¥4,321.00
▲(26.35% Upside)
Action:ReiteratedDate:05/02/26
The score is primarily held back by weak earnings quality (negative operating income) and notably poor cash generation in FY2026, despite a strong, low-risk balance sheet with no debt. Technicals provide some support with the stock trading above major moving averages, but momentum indicators are soft. Valuation (P/E ~24.4) is not especially compelling given the operating and cash-flow profile.
Positive Factors
Conservative balance sheet
A zero-debt, equity-heavy balance sheet materially reduces financing risk and gives the company flexibility to manage near-term cash shortfalls or fund targeted capex without taking on leverage. This durable financial strength supports survival and strategic choices across cycles.
Negative Factors
Weak cash generation
Repeated negative operating and free cash flow over recent years indicates persistent cash-conversion problems, likely from working capital or investment timing. This reduces internal funding for growth, increases reliance on equity buffers, and limits capacity for shareholder returns or sustained capex.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
A zero-debt, equity-heavy balance sheet materially reduces financing risk and gives the company flexibility to manage near-term cash shortfalls or fund targeted capex without taking on leverage. This durable financial strength supports survival and strategic choices across cycles.
Read all positive factors

Tomita Electric Co., Ltd. (6898) vs. iShares MSCI Japan ETF (EWJ)

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 freq...
How the Company Makes Money
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Tomita Electric Co., Ltd. Financial Statement Overview

Summary
FY2026 revenue rebounded (+12% YoY) with improved gross margin (25.9%) and a return to positive net income, but core profitability remains weak with negative operating income (EBIT margin -3.8%). Cash flow is a major concern: FY2026 operating and free cash flow were negative, continuing recent cash-outflow trends despite a debt-free, equity-heavy balance sheet.
Income Statement
58
Neutral
Balance Sheet
82
Very Positive
Cash Flow
38
Negative
BreakdownTTMJan 2026Jan 2025Jan 2024Jan 2023Jan 2022
Income Statement
Total Revenue1.43B1.60B1.42B1.49B2.00B1.83B
Gross Profit311.64M414.74M276.35M403.76M635.46M567.89M
EBITDA-93.41M-12.06M-122.13M21.10M191.79M174.75M
Net Income29.22M123.76M-171.15M-33.59M95.44M106.72M
Balance Sheet
Total Assets4.52B4.66B4.79B4.70B4.56B4.26B
Cash, Cash Equivalents and Short-Term Investments1.03B1.11B1.25B1.32B1.06B1.04B
Total Debt0.000.000.000.000.000.00
Total Liabilities649.13M678.39M938.63M917.13M1.02B970.07M
Stockholders Equity3.87B3.98B3.85B3.78B3.54B3.29B
Cash Flow
Free Cash Flow0.00-137.50M-221.67M43.68M-34.10M28.61M
Operating Cash Flow0.00-117.13M-109.14M77.92M40.02M59.36M
Investing Cash Flow0.00-26.84M-118.20M-40.38M-82.26M-35.08M
Financing Cash Flow0.0015.07M78.47M177.29M-5.59M-11.96M

Tomita Electric Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3420.00
Price Trends
50DMA
3762.70
Positive
100DMA
3642.10
Positive
200DMA
3345.64
Positive
Market Momentum
MACD
33.34
Positive
RSI
54.83
Neutral
STOCH
36.36
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 3921.75, below the 50-day MA of 3762.70, and above the 200-day MA of 3345.64, indicating a bullish trend. The MACD of 33.34 indicates Positive momentum. The RSI at 54.83 is Neutral, neither overbought nor oversold. The STOCH value of 36.36 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥12.68B33.881.20%5.38%86.01%
73
Outperform
¥69.76B23.182.73%-0.70%33.64%
69
Neutral
¥173.91B9.0413.53%1.34%-3.63%-14.77%
62
Neutral
¥86.02B9.531.99%-0.29%119.59%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
¥20.85B3.363.42%23.65%53.37%
58
Neutral
¥2.74B-27.3012.75%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6898
Tomita Electric Co., Ltd.
4,155.00
1,204.00
40.80%
JP:6632
JVCKENWOOD Corporation
1,172.00
22.39
1.95%
JP:5906
MK Seiko Co., Ltd.
870.00
440.18
102.41%
JP:6794
Foster Electric Company, Limited
3,135.00
1,964.53
167.84%
JP:6810
Maxell, Ltd.
1,997.00
275.00
15.97%
JP:6927
Helios Techno Holding Co., Ltd.
1,150.00
283.31
32.69%

Tomita Electric Co., Ltd. Corporate Events

Tomita Electric Returns to Profit on Higher Sales Despite Operating Loss
Mar 12, 2026
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 milli...
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: May 02, 2026