Sawafuji Electric Co., Ltd. (6901) AI Stock Analysis

• Market Cap: ¥4.37B
• Dividend Yield: 3.16%
• Average Volume (3M): 3.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -12.15%
• EPS Growth: -123.44%
• Country: JP
• Employees: 881
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -48.52
• Shares Outstanding: 4,322,000
• 10 Day Avg. Volume: 2,640
• 30 Day Avg. Volume: 3,453
• PEG Ratio: -0.30
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -2.73
• 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

• Rating: 68 Neutral
• Price Target: ¥983.00 ▼(-2.87% Downside)

Sawafuji Electric Co., Ltd.'s stock score is driven primarily by technical strength and a reasonable valuation. However, the financial performance is hindered by weak cash flow and profitability challenges, which present risks to overall stability.

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

Company Description

Sawafuji Electric Co., Ltd. (6901) is a Japan-based company engaged in the design, manufacturing, and sale of electrical equipment and components. The company operates primarily in the sectors of electric machinery, automation systems, and energy solutions. Its core products include motors, generators, and other electrical devices that serve various industries, including manufacturing, transportation, and renewable energy.

How the Company Makes Money

Sawafuji Electric Co., Ltd. generates revenue through the sale of its electrical equipment and solutions, which includes a diverse range of products tailored to meet the needs of different industrial applications. The company’s revenue model is primarily based on direct sales to businesses and manufacturers in sectors such as automotive, aerospace, and industrial automation. Key revenue streams include the sale of motors and generators, which are critical components in various machinery and equipment. Additionally, Sawafuji may engage in long-term contracts with industrial clients for supply agreements, providing a steady income flow. Partnerships with other technology firms and participation in joint ventures to develop innovative solutions can also enhance its earnings potential, particularly in the growing markets for energy efficiency and smart technologies.

Sawafuji Electric Co., Ltd. Financial Statement Overview

Summary

Sawafuji Electric Co., Ltd. has faced challenges with declining revenue and profitability, pressure evident from low EBIT and EBITDA margins. While the balance sheet is stable, with a decent equity cushion, cash flow constraints pose significant risks to financial stability.

Income Statement

The company has experienced a decline in revenue over recent years. Gross profit margin has slightly improved to 14.66%, but net profit margin decreased to 1.05%, highlighting pressure on profitability. EBIT and EBITDA margins remain low, indicating operational challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.38, suggesting a balanced leverage. Stockholders' equity is stable, representing 50.07% of total assets, providing a solid equity cushion. However, the slight increase in total debt raises caution.

Cash Flow

Cash flow is weak with negative free cash flow of -1407 million and operating cash flow also negative. The operating cash flow to net income ratio is negative due to operating cash flow challenges, indicating potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.04B	23.60B	26.74B	29.34B	28.76B	26.66B
Gross Profit	3.12B	3.46B	3.84B	3.56B	3.47B	2.74B
EBITDA	625.00M	1.09B	1.49B	1.34B	1.33B	1.23B
Net Income	-105.00M	247.00M	517.00M	285.00M	395.00M	283.00M
Balance Sheet
Total Assets	24.53B	25.12B	26.73B	21.46B	19.70B	19.04B
Cash, Cash Equivalents and Short-Term Investments	869.00M	769.00M	1.58B	1.17B	1.45B	1.16B
Total Debt	4.69B	4.77B	3.80B	3.21B	2.83B	3.10B
Total Liabilities	12.05B	12.34B	13.02B	10.95B	9.58B	9.43B
Stockholders Equity	12.29B	12.58B	13.51B	10.33B	9.95B	9.45B
Cash Flow
Free Cash Flow	0.00	-1.41B	-102.00M	-490.00M	633.00M	-497.00M
Operating Cash Flow	0.00	-268.00M	1.13B	149.00M	1.23B	380.00M
Investing Cash Flow	0.00	-1.33B	-1.22B	-766.00M	-593.00M	-783.00M
Financing Cash Flow	0.00	747.00M	460.00M	261.00M	-382.00M	851.00M

Sawafuji Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1012.00
• 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:6901, the sentiment is Neutral. The current price of 1012 is below the 20-day moving average (MA) of 1028.27, above the 50-day MA of 994.31, and above the 200-day MA of 908.02, indicating a neutral trend. The MACD of 4.88 indicates Positive momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 43.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6901.

Sawafuji Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7284	71 Outperform	¥4.16B	7.23	―	4.20%	4.93%	―
6901	68 Neutral	¥4.37B	―	―	3.16%	-12.15%	-123.44%
6699	63 Neutral	¥4.66B	8.84	―	6.64%	0.86%	―
6776	62 Neutral	¥4.47B	3.36	―	1.92%	-2.14%	51.20%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7266	51 Neutral	¥16.34B	7.96	―	3.23%	-7.01%	-108.77%
7214	48 Neutral	¥4.53B	―	―	4.71%	4.74%	-193.39%