IRISO Electronics Co., Ltd. (6908) AI Stock Analysis

• Market Cap: ¥76.05B
• Dividend Yield: 3.08%
• Average Volume (3M): 104.86K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.86
• Revenue Growth: 10.79%
• EPS Growth: 12.28%
• Country: JP
• Employees: 3,037
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 73.57
• Shares Outstanding: 24,460,878
• 10 Day Avg. Volume: 110,170
• 30 Day Avg. Volume: 104,856
• PEG Ratio: -0.44
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 17.02
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥3,259.00 ▲(0.28% Upside)

IRISO Electronics Co., Ltd. receives a score of 70, driven by its stable financial performance and attractive dividend yield. The technical analysis indicates a neutral market sentiment, with no significant momentum. The valuation is reasonable, offering a balance between growth potential and income. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Strong Margins

Strong margins suggest that the company is effectively managing its costs, which can lead to sustained profitability and competitive pricing power in the long term.

Financial Stability

A high equity ratio and low leverage indicate financial resilience, providing the company with flexibility to invest in growth opportunities and weather economic downturns.

Consistent Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and meet customer demand, supporting long-term business sustainability.

Negative Factors

Declining Net Income

A decline in net income can impact the company's ability to reinvest in its business and return value to shareholders, posing a challenge to future growth.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests that capital expenditures are outpacing cash generation, which could limit the company's ability to fund new projects or reduce debt.

Decreased Return on Equity

A decrease in return on equity indicates less efficient use of shareholders' equity, which may affect investor confidence and the company's ability to attract new investment.

IRISO Electronics Co., Ltd. Business Overview & Revenue Model

Company Description

IRISO Electronics Co., Ltd. (6908) is a leading manufacturer specializing in electronic components, particularly in the fields of connectors and sensor technology. Established in Japan, the company operates across various sectors, including automotive, industrial automation, and consumer electronics. Its core products include high-performance connectors, sensor modules, and customized electronic solutions tailored to meet the specific needs of its diverse clientele.

How the Company Makes Money

IRISO Electronics generates revenue primarily through the sale of its electronic components and systems. The company's key revenue streams are derived from its extensive product portfolio, which includes connectors and sensors used in various applications across multiple industries. Additionally, IRISO benefits from long-term partnerships with major firms in the automotive and industrial sectors, which provide a steady demand for its products. The company also engages in research and development to innovate and improve its offerings, thereby enhancing customer satisfaction and fostering repeat business. Furthermore, IRISO's global distribution network allows it to reach a wide market, contributing to its overall revenue growth.

IRISO Electronics Co., Ltd. Financial Statement Overview

Summary

IRISO Electronics Co., Ltd. showcases stable financial performance with consistent revenue growth and strong margins. The balance sheet reflects low leverage and high equity, supporting financial resilience. Cash flow generation is robust, although capital expenditures have impacted free cash flow growth. Areas needing attention include improving net income and managing capital expenditures.

Income Statement

IRISO Electronics Co., Ltd. has demonstrated consistent revenue growth, with a revenue increase of 2% in the latest year. However, the net profit margin has declined, primarily due to a decrease in net income. The gross profit margin remains strong, indicating effective cost management. EBIT and EBITDA margins are also solid, although there has been a slight decline in EBIT margin over the past year.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 77.3%, indicating financial stability. The debt-to-equity ratio is low, suggesting low leverage and reduced financial risk. Return on equity remains positive, although it has decreased due to a drop in net income. Overall, the balance sheet is robust with good equity positioning.

Cash Flow

Operating cash flow is strong, and the company has maintained positive free cash flow. However, the free cash flow growth rate is negative due to higher capital expenditures. The operating cash flow to net income ratio is favorable, indicating efficient cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.96B	56.33B	55.27B	52.90B	43.86B	36.52B
Gross Profit	18.91B	17.94B	17.14B	17.32B	14.34B	11.20B
EBITDA	10.78B	10.50B	13.35B	13.29B	9.96B	7.60B
Net Income	2.80B	2.66B	5.59B	5.54B	3.91B	2.14B
Balance Sheet
Total Assets	90.88B	91.37B	96.86B	82.49B	73.15B	63.94B
Cash, Cash Equivalents and Short-Term Investments	24.37B	24.31B	26.69B	18.64B	14.07B	14.26B
Total Debt	12.08B	9.32B	6.82B	2.49B	410.00M	398.00M
Total Liabilities	23.14B	20.17B	19.84B	14.47B	11.38B	9.21B
Stockholders Equity	67.74B	70.62B	76.23B	67.42B	61.34B	54.35B
Cash Flow
Free Cash Flow	0.00	3.44B	3.88B	3.19B	519.00M	1.42B
Operating Cash Flow	0.00	12.04B	12.93B	11.61B	6.69B	6.23B
Investing Cash Flow	0.00	-8.78B	-9.09B	-8.18B	-6.25B	-4.88B
Financing Cash Flow	0.00	-5.50B	2.31B	516.00M	-1.61B	-1.38B

IRISO Electronics Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3250.00
• 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:6908, the sentiment is Positive. The current price of 3250 is above the 20-day moving average (MA) of 3230.50, above the 50-day MA of 3132.26, and above the 200-day MA of 2822.66, indicating a bullish trend. The MACD of 36.68 indicates Positive momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 37.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6908.

IRISO Electronics Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6787	76 Outperform	¥280.48B	15.55	―	0.78%	15.02%	46.62%
6814	76 Outperform	¥245.40B	14.83	―	1.97%	6.56%	106.55%
6957	75 Outperform	¥109.67B	33.69	―	2.12%	3.95%	-32.30%
6908	70 Outperform	¥76.05B	19.27	―	3.08%	10.79%	12.28%
6806	68 Neutral	¥557.70B	18.50	8.09%	2.88%	11.18%	-0.75%
6807	64 Neutral	¥175.18B	21.19	5.91%	2.37%	-3.24%	-25.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

IRISO Electronics Co., Ltd. Corporate Events

IRISO Electronics Reports Strong Half-Year Financial Results and Announces Dividend

IRISO Electronics Co., Ltd. reported a strong financial performance for the six months ending September 30, 2025, with a notable increase in net sales and profits compared to the previous year. The company has revised its financial forecast for the fiscal year ending March 31, 2026, indicating confidence in continued growth, and has announced a commemorative dividend, highlighting its robust financial health and commitment to shareholder returns.

IRISO Electronics Revises Earnings and Dividend Forecasts Amid Strong Market Performance

IRISO Electronics Co., Ltd. has revised its full-year consolidated earnings forecast for the fiscal year ending March 2026, citing stronger-than-expected business performance in the infotainment and xEV powertrain markets. The company has also announced an increased dividend forecast, including a special 60th-anniversary commemorative dividend, reflecting its gratitude to shareholders and stakeholders.

IRISO Electronics Announces Corrections to Financial Results

IRISO Electronics Co., Ltd. announced corrections to its consolidated financial results for the three months ended June 30, 2025, due to errors found in the aggregation of its quarterly consolidated statements. The corrections did not affect net sales, operating profit, or ordinary profit figures, but comprehensive income for the period was adjusted to reflect a loss, impacting the company’s financial outlook and potentially influencing stakeholder confidence.

IRISO Electronics to Dissolve Hong Kong Subsidiary for Operational Efficiency

IRISO Electronics Co., Ltd. announced the decision to dissolve and liquidate its foreign consolidated subsidiary, IRISO ELECTRONICS (HONG KONG) LIMITED, to enhance operational efficiency and resource utilization. The Hong Kong subsidiary’s logistical functions have decreased in importance, prompting this strategic move. The Taiwan branch will continue as part of IRISO’s operations, while the South Korea branch will become a local entity. The company anticipates minimal financial impact from this dissolution.

IRISO Electronics Completes Share Acquisition Below Initial Targets

IRISO Electronics Co., Ltd. announced the completion of its share acquisition plan, initially resolved in May 2024. The acquisition did not reach the predetermined upper limits due to the company refraining from purchasing shares while holding material non-public information. Ultimately, 1,000,000 shares were acquired at a cost of approximately ¥2.66 billion, which is below the maximum target of 2,000,000 shares and ¥6 billion.

IRISO Electronics Updates on Share Acquisition Status

IRISO Electronics Co., Ltd. announced the status of its share acquisition plan, initially resolved by the Board of Directors in November 2024. Despite the plan to acquire up to 2 million shares, no shares were acquired in September 2025, with a cumulative acquisition of 1 million shares by the end of that month. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.