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

• Market Cap: ¥2.39B
• Dividend Yield: N/A
• Average Volume (3M): 1.21K
• Price to Earnings (P/E): 28.2
• Beta (1Y): 0.38
• Revenue Growth: 14.60%
• EPS Growth: N/A
• Country: JP
• Employees: 268
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 29.27
• Shares Outstanding: 816,979
• 10 Day Avg. Volume: 770
• 30 Day Avg. Volume: 1,213
• PEG Ratio: -0.03
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 1.22
• P/FCF Ratio: -7.79
• 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: 49 Neutral
• Price Target: ¥3,403.00 ▼(-0.50% Downside)

The score is held back mainly by deteriorating profitability and the latest year’s negative operating/free cash flow, despite a strong debt-free balance sheet. Technicals are broadly neutral with modest longer-term support, while valuation is average with a P/E of 26.44 and no dividend yield provided.

Positive Factors

Strong Balance Sheet

A debt-free balance sheet with substantial equity provides significant financial flexibility, enabling the company to withstand economic downturns and invest in growth opportunities without the burden of interest payments.

Revenue Growth

A revenue growth rate of 14.6% indicates strong demand for the company's products, suggesting a robust market position and potential for continued expansion.

Financial Resilience

The company's financial resilience, highlighted by its strong balance sheet, allows for strategic investments and operational stability, even during periods of market volatility.

Negative Factors

Deteriorating Profitability

The shift from profitability to losses indicates challenges in maintaining pricing power or managing costs, which could impact long-term financial health and shareholder value.

Negative Cash Flow

Negative cash flow in 2025 raises concerns about the company's ability to fund operations and growth internally, potentially leading to increased reliance on external financing.

Margin Compression

Sharp margin compression suggests reduced pricing power or increased cost pressures, which could hinder profitability and competitive positioning in the long term.

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

Tomita Electric Co., Ltd. generates revenue through the production and sale of electronic components and devices. The company's key revenue streams include sales to industrial manufacturers who integrate these components into their machinery and systems, sales to automotive companies for use in vehicle electronic systems, and sales to consumer electronics manufacturers. Additionally, Tomita Electric may engage in strategic partnerships and collaborations with other technology firms to enhance its product offerings and expand its market reach, contributing to its earnings.

Tomita Electric Co., Ltd. Financial Statement Overview

Summary

Financials are pressured: revenue volatility and a shift from profits (2022–2023) to losses (2024–2025) with sharp margin compression. Cash flow weakened with negative operating and free cash flow in 2025. Offsetting this, the balance sheet is strong with no debt and substantial equity, providing resilience.

Income Statement

Revenue has been volatile, rising strongly in 2022–2023 but declining in 2024 and again in 2025. Profitability deteriorated meaningfully: the company moved from positive operating and net profits in 2022–2023 to losses in 2024, with a larger loss in 2025. Margins also compressed sharply (gross margin down and operating margin turning deeply negative), indicating weaker pricing power and/or cost pressure.

Balance Sheet

The balance sheet is a clear strength with no debt reported and a large equity base relative to assets, providing financial flexibility. However, returns on equity have been inconsistent and are negative in the latest two years, reflecting that capital is not currently generating profits despite the conservative leverage profile.

Cash Flow

Cash generation is inconsistent. Operating cash flow was positive in 2022–2024 but turned negative in 2025, and free cash flow has swung between positive and negative across the period (notably negative in 2021, 2023, and 2025). The latest year’s negative operating and free cash flow alongside net losses increases near-term execution risk, even though prior years showed the ability to produce positive free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.43B	1.42B	1.49B	2.00B	1.83B	1.08B
Gross Profit	311.11M	282.00M	410.09M	642.79M	577.85M	238.96M
EBITDA	73.66M	-123.00M	25.06M	168.72M	185.10M	-52.23M
Net Income	29.76M	-171.00M	-33.59M	95.44M	106.72M	-97.91M
Balance Sheet
Total Assets	4.52B	4.79B	4.70B	4.55B	4.26B	3.98B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.25B	1.32B	1.06B	1.04B	996.10M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	649.14M	938.64M	917.13M	1.01B	970.08M	876.83M
Stockholders Equity	3.87B	3.85B	3.78B	3.54B	3.29B	3.10B
Cash Flow
Free Cash Flow	0.00	-221.67M	43.68M	-34.10M	28.61M	-80.75M
Operating Cash Flow	0.00	-109.14M	77.92M	40.02M	59.36M	-76.51M
Investing Cash Flow	0.00	-118.20M	-40.38M	-82.26M	-35.08M	-10.62M
Financing Cash Flow	0.00	78.47M	177.29M	-5.59M	-11.96M	-10.74M

Tomita Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3420.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 3648.75, below the 50-day MA of 3524.50, and above the 200-day MA of 3145.11, indicating a neutral trend. The MACD of 45.19 indicates Positive momentum. The RSI at 52.07 is Neutral, neither overbought nor oversold. The STOCH value of 51.67 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
6794	69 Neutral	¥65.60B	15.42	―	2.73%	6.41%	16.71%
6810	66 Neutral	¥93.69B	18.88	―	1.99%	3.71%	-3.32%
8144	63 Neutral	¥7.74B	19.38	―	3.25%	-0.73%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6927	61 Neutral	¥18.97B	30.21	―	3.42%	-21.21%	-55.72%
6753	60 Neutral	¥463.18B	7.90	―	―	-10.88%	―
6898	49 Neutral	¥2.39B	28.23	―	―	14.60%	―