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Sawafuji Electric Co., Ltd. (JP:6901)
:6901
Japanese Market
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Sawafuji Electric Co., Ltd. (6901) AI Stock Analysis

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JP:6901

Sawafuji Electric Co., Ltd.

(6901)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
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. (6901) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSawafuji 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 MoneySawafuji 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
65
Positive
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
72
Positive
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
48
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue23.04B23.60B26.74B29.34B28.76B26.66B
Gross Profit3.12B3.46B3.84B3.56B3.47B2.74B
EBITDA625.00M1.09B1.49B1.34B1.33B1.23B
Net Income-105.00M247.00M517.00M285.00M395.00M283.00M
Balance Sheet
Total Assets24.53B25.12B26.73B21.46B19.70B19.04B
Cash, Cash Equivalents and Short-Term Investments869.00M769.00M1.58B1.17B1.45B1.16B
Total Debt4.69B4.77B3.80B3.21B2.83B3.10B
Total Liabilities12.05B12.34B13.02B10.95B9.58B9.43B
Stockholders Equity12.29B12.58B13.51B10.33B9.95B9.45B
Cash Flow
Free Cash Flow0.00-1.41B-102.00M-490.00M633.00M-497.00M
Operating Cash Flow0.00-268.00M1.13B149.00M1.23B380.00M
Investing Cash Flow0.00-1.33B-1.22B-766.00M-593.00M-783.00M
Financing Cash Flow0.00747.00M460.00M261.00M-382.00M851.00M

Sawafuji Electric Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1012.00
Price Trends
50DMA
994.31
Positive
100DMA
956.97
Positive
200DMA
908.02
Positive
Market Momentum
MACD
4.88
Positive
RSI
48.16
Neutral
STOCH
43.78
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥4.16B7.234.20%4.93%
68
Neutral
¥4.37B3.16%-12.15%-123.44%
63
Neutral
¥4.66B8.846.64%0.86%
62
Neutral
¥4.47B3.361.92%-2.14%51.20%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
51
Neutral
¥16.34B7.963.23%-7.01%-108.77%
48
Neutral
¥4.53B4.71%4.74%-193.39%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6901
Sawafuji Electric Co., Ltd.
1,012.00
-13.95
-1.36%
JP:6699
Diamond Electric Holdings Co., Ltd.
565.00
0.08
0.01%
JP:6776
Tensho Electric Industries Co., Ltd.
264.00
-35.35
-11.81%
JP:7214
GMB Corporation
848.00
-274.72
-24.47%
JP:7266
Imasen Electric Industrial Co., Ltd.
764.00
255.12
50.13%
JP:7284
Meiwa Industry Co., Ltd.
1,190.00
47.42
4.15%
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 27, 2025