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

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

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JP:6901

Sawafuji Electric Co., Ltd.

(6901)

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Neutral 54 (OpenAI - 5.2)
Rating:54Neutral
Price Target:
¥1,320.00
▲(1.69% Upside)
Action:ReiteratedDate:10/23/25
The overall stock score of 54 reflects significant challenges in financial performance, particularly in cash flow and profitability, which are the most impactful factors. Technical analysis shows mixed signals, with some potential for short-term recovery. Valuation concerns due to a negative P/E ratio are partially offset by a decent dividend yield.
Positive Factors
Diversified OEM and aftermarket revenue streams
Sawafuji's dual revenue model—supplying OEMs and selling to aftermarket channels—provides structural demand diversification. OEM contracts give scale and predictable production volumes, while aftermarket sales supply recurring replacement demand, reducing revenue cyclicality and supporting stable cash flow over months.
Negative Factors
Weak cash generation and negative free cash flow
Persistent negative operating cash flow and -1,407 million free cash flow materially limit internal funding for capex, working capital and dividends. Reliance on external financing or equity could increase, reducing strategic flexibility and raising long-term liquidity risk if trends persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified OEM and aftermarket revenue streams
Sawafuji's dual revenue model—supplying OEMs and selling to aftermarket channels—provides structural demand diversification. OEM contracts give scale and predictable production volumes, while aftermarket sales supply recurring replacement demand, reducing revenue cyclicality and supporting stable cash flow over months.
Read all positive factors

Sawafuji Electric Co., Ltd. (6901) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
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, h...
How the Company Makes Money
Sawafuji Electric primarily makes money by manufacturing and selling automotive electrical components—most notably alternators and starter motors. Revenue is generated through (1) OEM supply: sales of these components to vehicle manufacturers and ...

Sawafuji Electric Co., Ltd. Financial Statement Overview

Summary
Sawafuji Electric Co., Ltd. faces challenges in revenue growth and profitability, with declining income statement metrics. The balance sheet remains relatively strong with a healthy equity position, but cash flow constraints pose risks to financial stability.
Income Statement
65
Positive
Balance Sheet
72
Positive
Cash Flow
48
Neutral
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
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 Liabilities12.05B12.34B13.01B10.94B9.58B9.43B
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
Positive
Last Price1298.00
Price Trends
50DMA
1293.74
Positive
100DMA
1200.03
Positive
200DMA
1083.36
Positive
Market Momentum
MACD
1.55
Positive
RSI
63.98
Neutral
STOCH
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6901, the sentiment is Positive. The current price of 1298 is above the 20-day moving average (MA) of 1291.30, above the 50-day MA of 1293.74, and above the 200-day MA of 1083.36, indicating a bullish trend. The MACD of 1.55 indicates Positive momentum. The RSI at 63.98 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
81
Outperform
¥48.32B7.978.46%2.64%-6.35%18.49%
81
Outperform
¥259.75B8.293.36%1.36%139.77%
78
Outperform
¥287.12B8.566.37%2.88%4.86%10.95%
76
Outperform
¥703.65B14.057.20%2.41%-0.73%88.36%
70
Outperform
¥54.98B14.590.99%-0.83%-27.20%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
54
Neutral
¥5.58B8.752.46%-9.28%-219.81%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6901
Sawafuji Electric Co., Ltd.
1,294.00
580.91
81.46%
JP:7276
Koito Manufacturing Co
2,493.50
972.68
63.96%
JP:6923
Stanley Electric Co
2,911.50
528.23
22.16%
JP:7244
Ichikoh Industries,Ltd.
502.00
177.01
54.47%
JP:6995
TOKAI RIKA CO., LTD.
3,010.00
1,130.41
60.14%
JP:7280
Mitsuba Corporation
1,213.00
548.71
82.60%
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: Oct 23, 2025