Balance Sheet StrengthModerate leverage and a stable equity cushion provide durable financial resilience across industry cycles. A 0.38 debt/equity and ~50% equity of assets support borrowing capacity and loss absorption, enabling continued supply to OEMs and funding of capital needs without immediate recapitalization.

Diversified OEM And Aftermarket RevenueA two-channel business model (OEM contracts plus aftermarket replacement sales) creates structural revenue durability. OEMs provide scale and recurring contracts, while aftermarket demand smooths cycles and offers stable installed-base driven sales, supporting long-term volume and cash generation potential.

Improving Gross MarginA modest improvement in gross margin to 14.66% suggests some success in pricing, mix, or input-cost control. Sustained gross margin improvement can materially improve operating leverage for a components supplier, supporting reinvestment and resilience versus cyclical OEM volume swings.

Bears Say

Negative Operating And Free Cash FlowPersistently negative operating and free cash flow undermines the firm's ability to self-fund working capital, capex, and dividends. Over months this constrains strategic flexibility, increases reliance on external financing, and raises risk if industry cycles or supplier financing tighten.

Declining Revenue TrendA near-term multi-period revenue decline reduces scale benefits and pressures fixed-cost absorption for a component manufacturer. Over a 2–6 month horizon, shrinking top line can indicate lost OEM share or weaker vehicle production, impairing margin recovery and future investment capacity.

Profitability Compression And EPS DeclineSevere EPS contraction and a razor-thin 1.05% net margin signal limited operating profitability. Low net margins reduce retained earnings and the ability to weather input cost inflation or volume shocks, making long-term recovery dependent on sustained cost improvements or meaningful revenue gains.

6901 FAQ

What was Sawafuji Electric Co., Ltd.’s price range in the past 12 months?

Sawafuji Electric Co., Ltd. lowest stock price was ¥682.00 and its highest was ¥1314.00 in the past 12 months.

What is Sawafuji Electric Co., Ltd.’s market cap?

Sawafuji Electric Co., Ltd.’s market cap is ¥5.62B.

When is Sawafuji Electric Co., Ltd.’s upcoming earnings report date?

Sawafuji Electric Co., Ltd.’s upcoming earnings report date is Feb 13, 2026 which is in 9 days.

How were Sawafuji Electric Co., Ltd.’s earnings last quarter?

Sawafuji Electric Co., Ltd. released its earnings results on Nov 07, 2025. The company reported -¥51.42 earnings per share for the quarter, missing the consensus estimate of N/A by -¥51.42.

Is Sawafuji Electric Co., Ltd. overvalued?

According to Wall Street analysts Sawafuji Electric Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Sawafuji Electric Co., Ltd. pay dividends?

Sawafuji Electric Co., Ltd. pays a Semiannually dividend of ¥16 which represents an annual dividend yield of 2.46%. See more information on Sawafuji Electric Co., Ltd. dividends here

What is Sawafuji Electric Co., Ltd.’s EPS estimate?

Sawafuji Electric Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Sawafuji Electric Co., Ltd. have?

Sawafuji Electric Co., Ltd. has 4,322,000 shares outstanding.

What happened to Sawafuji Electric Co., Ltd.’s price movement after its last earnings report?

Sawafuji Electric Co., Ltd. reported an EPS of -¥51.42 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -0.89%.

Which hedge fund is a major shareholder of Sawafuji Electric Co., Ltd.?

Currently, no hedge funds are holding shares in JP:6901

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Sawafuji Electric Co., Ltd.

Sawafuji Electric Co., Ltd. manufactures and sells electronic components for trucks and buses, portable electronic equipment, and portable refrigerators in Japan. The company offers automotive electrical equipment, such as starters, alternators, hybrid (HV) motors, control devices, battery packs, relays, and DC motors. It also provides refrigerators under the ENGEL brand; and gasoline and diesel engine generators and welders under the Elemax brand, as well as generators for use in ships, power plants, and industrial applications. In addition, the company engages in the transportation and freightage businesses. It exports its products to approximately 100 countries worldwide. The company was formerly known as Sawafuji Electric Manufactory and changed its name to Sawafuji Electric Co., Ltd. in 1934. Sawafuji Electric Co., Ltd. was founded in 1908 and is headquartered in Ota, Japan.