Matsuo Electric Co., Ltd. (6969) AI Stock Analysis

• Market Cap: ¥2.91B
• Dividend Yield: N/A
• Average Volume (3M): 20.75K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.84
• Revenue Growth: 16.21%
• EPS Growth: 3915.63%
• Country: JP
• Employees: 289
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -8.91
• Shares Outstanding: 3,210,000
• 10 Day Avg. Volume: 10,500
• 30 Day Avg. Volume: 20,746
• PEG Ratio: <0.01
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -4.06
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,022.00 ▲(14.32% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven by strong improving profitability and a solid balance sheet, supported by an established technical uptrend. The main offset is weak cash flow conversion (including negative 2025 operating cash flow), while the low P/E provides a valuation cushion.

Positive Factors

Profitability Recovery

A sustained swing from loss to substantial net profit signals durable operational improvement and cost control. Over 2–6 months this supports reinvestment capacity, strengthens creditor confidence, and provides a foundation for stable margins and strategic spending rather than relying on cyclical upticks.

Revenue Growth

Mid-teens revenue expansion demonstrates the company is regaining/expanding market share in passive components. Sustained double-digit growth over recent periods implies structural demand or share gains, improving capacity utilization and supporting long-term margin leverage if maintained.

Balance Sheet Strength

A stable equity base and controlled leverage provide financial flexibility for capex and working capital needs. Over several months this reduces refinancing risk, supports capital allocation choices, and cushions the business against industry cyclicality common in electronic components.

Negative Factors

Weak Cash Conversion

Inability to consistently convert profit into operating cash reduces free cash flow and limits self-funded investment or shareholder returns. Persisting negative OCF amid capex pressures can force external financing or cutbacks, constraining strategic initiatives over the medium term.

Reduced Liquidity

Falling cash balances weaken the company's buffer against demand swings or supply shocks. Over a 2–6 month horizon this raises funding risk if cash conversion remains weak, potentially increasing reliance on debt or delaying maintenance and growth capex, which can impair competitiveness.

Margin Volatility

Variable operating margins point to exposure to input cost swings, pricing pressure, or utilization gaps. Persistent margin volatility undermines predictable cash flows and complicates long-term planning, making it harder to sustain investment in product quality or capacity in the passive components market.

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

Company Description

Matsuo Electric Co.,Ltd. manufactures and markets tantalum capacitors, film capacitors, and circuit protection components in Japan and internationally. Its products are used in the aerospace, automotive, industrial instrument, fire alarm, power tool, electric assist bicycle, PC, display, electric device, hearing aid, and portable audio player products. Matsuo Electric Co.,Ltd. was incorporated in 1949 and is headquartered in Toyonaka, Japan.

How the Company Makes Money

Matsuo Electric generates revenue primarily through the sale of its electrical components and equipment to various industries, including automotive and telecommunications. The company's revenue model is based on direct sales to original equipment manufacturers (OEMs) and distributors, which includes both domestic and international markets. Key revenue streams include the production and supply of transformers, inductors, and custom electromagnetic solutions. Additionally, Matsuo Electric may benefit from strategic partnerships and collaborations with other technology firms, enhancing its market reach and product offerings. The company also invests in research and development to innovate and expand its product line, which can lead to increased sales and profitability.

Matsuo Electric Co., Ltd. Financial Statement Overview

Summary

Strong revenue and profit recovery (net income turning from a 2022 loss to a substantial 2025 profit) and a stable balance sheet with manageable leverage are positives. The main drag is cash flow quality: inconsistent operating cash flow and negative 2025 operating cash flow with capex pressuring free cash flow.

Income Statement

The income statement exhibits a strong recovery and growth trajectory with a significant increase in net income from a loss in 2022 to a substantial profit in 2025. Gross profit margins are consistently healthy, indicating efficient production cost management. Revenue growth is robust, especially from 2024 to 2025, showcasing the company's ability to capture market share. However, fluctuations in EBIT and EBITDA margins suggest some volatility in operating efficiency.

Balance Sheet

The balance sheet reflects a solid equity base with improving stockholders' equity over the years. The debt-to-equity ratio is manageable, indicating controlled leverage. However, the decrease in cash and short-term investments from 2024 to 2025 indicates reduced liquidity, which might pose risks if not addressed. The equity ratio remains stable, supporting financial stability.

Cash Flow

The cash flow statement shows challenges in generating positive free cash flow, with significant capital expenditures impacting free cash flow negatively. Operating cash flow has been inconsistent, with a concerning negative figure in 2025. The company's ability to convert net income into cash needs improvement, highlighting potential inefficiencies in cash management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.55B	4.21B	4.65B	4.71B	3.80B
Gross Profit	1.43B	1.14B	1.47B	1.50B	993.24M
EBITDA	661.33M	357.53M	422.00M	-112.54M	147.13M
Net Income	449.97M	28.80M	306.63M	-223.94M	134.47M
Balance Sheet
Total Assets	6.59B	6.61B	6.92B	6.43B	5.60B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.79B	2.06B	1.84B	1.31B
Total Debt	2.33B	2.62B	2.89B	2.50B	2.52B
Total Liabilities	3.83B	4.30B	4.64B	4.45B	3.90B
Stockholders Equity	2.76B	2.31B	2.28B	1.97B	1.70B
Cash Flow
Free Cash Flow	-385.02M	-26.61M	-29.72M	88.13M	-271.38M
Operating Cash Flow	-85.07M	375.92M	244.34M	290.07M	-156.44M
Investing Cash Flow	-298.61M	-405.21M	-268.12M	-197.03M	79.61M
Financing Cash Flow	-247.38M	-239.08M	242.61M	437.47M	368.81M

Matsuo Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 894.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6969, the sentiment is Positive. The current price of 894 is above the 20-day moving average (MA) of 835.25, above the 50-day MA of 840.26, and above the 200-day MA of 834.07, indicating a bullish trend. The MACD of 10.96 indicates Negative momentum. The RSI at 69.41 is Neutral, neither overbought nor oversold. The STOCH value of 72.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6969.

Matsuo Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6958	76 Outperform	¥42.28B	19.91	―	3.75%	2.98%	-56.70%
6969	75 Outperform	¥2.91B	7.18	―	―	16.21%	3915.63%
6989	71 Outperform	¥22.00B	11.05	―	3.15%	2.48%	39.69%
6772	62 Neutral	¥9.48B	47.03	―	1.78%	-1.17%	-42.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6976	56 Neutral	¥624.42B	91.69	―	2.57%	4.81%	-49.43%
6977	45 Neutral	¥1.16B	-3.18	―	3.16%	-10.07%	-133.40%