Cosel Co., Ltd. (6905) AI Stock Analysis

• Market Cap: ¥44.05B
• Dividend Yield: 5.01%
• Average Volume (3M): 103.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -32.74%
• EPS Growth: -117.06%
• Country: JP
• Employees: 721
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.52
• Shares Outstanding: 41,186,100
• 10 Day Avg. Volume: 97,630
• 30 Day Avg. Volume: 103,766
• PEG Ratio: 3.81
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 1.63
• P/FCF Ratio: 21.15
• 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: ¥1,200.00
• Price Target Upside: 12.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥1,285.00 ▲(19.98% Upside)

The overall stock score is primarily influenced by the company's strong balance sheet and positive cash flow metrics, despite challenges in revenue and profitability. Technical analysis shows a positive trend, but valuation is impacted by a negative P/E ratio. The high dividend yield offers some compensation for valuation concerns.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage risk provides financial stability and flexibility to invest in growth opportunities.

Positive Cash Flow Management

Effective cash management and positive cash flow growth indicate the company's ability to generate cash, supporting operations and strategic initiatives.

Stable Gross Profit Margin

A stable gross profit margin suggests operational efficiency, which can help sustain profitability even during revenue challenges.

Negative Factors

Declining Revenue Growth

Declining revenue growth indicates challenges in market demand or competitive positioning, which could impact long-term growth prospects.

Negative Profitability

Negative profitability reflects operational challenges and may limit the company's ability to reinvest in business expansion or innovation.

Decreased EBIT and EBITDA Margins

Decreased EBIT and EBITDA margins suggest reduced operational efficiency and profitability, potentially affecting long-term financial health.

Cosel Co., Ltd. Business Overview & Revenue Model

Company Description

Cosel Co., Ltd. manufactures and sells electrical components and EMI filters in Japan and internationally. It offers AC-DC switching power supplies; DC-DC converters; and semiconductor devices, such as IC, FET, transistors, diodes, etc. for use in industrial and consumer equipment. The company was formerly known as Elco Co., Ltd. and changed its name to Cosel Co., Ltd. in April 1992. Cosel Co., Ltd. was incorporated in 1969 and is headquartered in Toyama, Japan.

How the Company Makes Money

Cosel generates revenue primarily through the sale of its power supply products, which are essential components in various electronic systems across multiple industries. The company has a diversified revenue model that includes direct sales to original equipment manufacturers (OEMs) and distributors, as well as a growing presence in global markets. Key revenue streams come from contracts with industrial automation firms, medical device manufacturers, and telecommunications companies that require reliable power solutions. Additionally, Cosel benefits from strategic partnerships with major technology firms, enhancing its market reach and product development capabilities. The company's commitment to innovation and quality allows it to command premium pricing, further contributing to its profitability.

Cosel Co., Ltd. Financial Statement Overview

Summary

Cosel Co., Ltd. faces challenges with declining revenue and profitability, as evidenced by negative growth rates and margins. However, the company maintains a strong balance sheet with low leverage and a healthy equity ratio. Cash flow metrics are positive, indicating effective cash management. The company needs to address revenue and profitability issues to improve its financial standing.

Income Statement

Cosel Co., Ltd. has experienced a significant decline in revenue growth, with a negative growth rate of -24.82% in the most recent year. The company also reported a negative net profit margin, indicating a loss. However, the gross profit margin remains relatively stable, suggesting some operational efficiency. The EBIT and EBITDA margins have decreased significantly, reflecting challenges in maintaining profitability.

Balance Sheet

The company's balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.005, indicating minimal leverage risk. However, the return on equity is negative, reflecting the recent net losses. The equity ratio is healthy, suggesting a stable financial structure despite recent profitability issues.

Cash Flow

Cosel Co., Ltd. has shown improvement in free cash flow growth, with a positive growth rate of 20.99%. The operating cash flow to net income ratio is strong, indicating good cash generation relative to earnings. The free cash flow to net income ratio is also positive, suggesting effective cash management despite recent net losses.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.13B	27.05B	35.27B	41.44B	28.08B	27.02B
Gross Profit	8.50B	7.21B	10.62B	13.74B	7.96B	8.30B
EBITDA	2.10B	1.85B	6.50B	8.95B	4.21B	3.90B
Net Income	-181.68M	-113.66M	3.16B	5.17B	1.90B	1.08B
Balance Sheet
Total Assets	59.24B	60.00B	48.67B	54.40B	45.72B	44.51B
Cash, Cash Equivalents and Short-Term Investments	28.41B	28.09B	13.38B	16.91B	15.38B	18.26B
Total Debt	266.00M	281.75M	323.90M	325.08M	432.77M	112.58M
Total Liabilities	4.05B	4.16B	6.35B	7.14B	4.78B	5.15B
Stockholders Equity	55.19B	55.84B	42.21B	47.09B	40.87B	39.31B
Cash Flow
Free Cash Flow	2.31B	2.09B	169.00M	4.32B	-1.90B	1.84B
Operating Cash Flow	3.86B	3.86B	1.03B	5.53B	-1.02B	2.44B
Investing Cash Flow	-1.62B	-1.62B	676.50M	-1.83B	1.93B	2.73B
Financing Cash Flow	9.23B	9.23B	-2.12B	-1.60B	-1.35B	-816.15M

Cosel Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1071.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6905, the sentiment is Negative. The current price of 1071 is below the 20-day moving average (MA) of 1147.15, below the 50-day MA of 1169.26, and below the 200-day MA of 1112.61, indicating a bearish trend. The MACD of -25.50 indicates Positive momentum. The RSI at 27.65 is Positive, neither overbought nor oversold. The STOCH value of 4.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6905.

Cosel Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6617	80 Outperform	¥61.02B	12.33	―	1.61%	-3.41%	13.79%
6763	80 Outperform	¥25.58B	14.46	―	3.16%	12.72%	53.85%
6637	72 Outperform	¥55.83B	11.62	―	0.91%	5.28%	18.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥12.71B	34.69	―	4.42%	-11.74%	-84.61%
6905	59 Neutral	¥44.05B	-110.59	―	5.01%	-32.74%	-117.06%

Cosel Co., Ltd. Corporate Events

Cosel Co., Ltd. to Dissolve Shanghai Subsidiary for Operational Efficiency

Cosel Co., Ltd. has decided to dissolve its subsidiary, Shanghai Cosel International Trading Co., Ltd., to streamline operations by transferring its functions to Wuxi Cosel Electronics Co., Ltd. This move is expected to improve customer service and service quality, with minimal impact on the company’s financial results.

Cosel Co., Ltd. Reports Decline in Quarterly Financial Performance

Cosel Co., Ltd. reported a significant decline in its financial performance for the three months ending August 20, 2025, with net sales dropping by 39.6% compared to the previous year. Despite the downturn, the company maintains a strong equity-to-asset ratio, indicating financial stability, and has not revised its cash dividend forecast, suggesting confidence in future recovery.

Cosel Co., Ltd. Strengthens Alliance with LITE-ON Technology

Cosel Co., Ltd. has announced its ongoing capital and business alliance with LITE-ON Technology Corporation, its largest shareholder holding 19.99% of voting rights. This partnership aims to integrate technological capabilities and establish a global framework for delivering value-added products and services, thereby enhancing corporate value and achieving sustainable growth. Despite LITE-ON’s involvement in the board, Cosel maintains its management independence.