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

• Market Cap: ¥2.67B
• Dividend Yield: N/A
• Average Volume (3M): 20.90K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.78
• Revenue Growth: 16.21%
• EPS Growth: 3915.63%
• Country: JP
• Employees: 289
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 31.04
• Shares Outstanding: 3,210,000
• 10 Day Avg. Volume: 11,160
• 30 Day Avg. Volume: 20,903
• 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: 68 Neutral
• Price Target: ¥877.00 ▼(-1.90% Downside)

The overall stock score of 68 reflects strong financial performance and attractive valuation, offset by weak technical indicators. The company's robust revenue and profit growth, coupled with a low P/E ratio, suggest potential for long-term appreciation. However, the bearish technical signals and cash flow challenges highlight areas of concern that investors should monitor.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market strategies and the ability to capture market share, supporting long-term business expansion.

Profit Growth

The turnaround from losses to profits demonstrates improved operational efficiency and successful cost management, enhancing financial stability.

Market Position

Specialization in key components for diverse industries strengthens market position and provides resilience against sector-specific downturns.

Negative Factors

Cash Flow Challenges

Inconsistent cash flow and negative operating cash flow highlight inefficiencies in cash management, potentially impacting liquidity and investment capacity.

Liquidity Concerns

Reduced liquidity due to declining cash reserves may limit the company's ability to respond to unforeseen expenses or investment opportunities.

Margin Volatility

Volatile margins indicate potential instability in cost control and pricing strategies, which could affect profitability if not addressed.

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

Company Description

Matsuo Electric Co., Ltd. (6969) is a Japan-based company primarily engaged in the manufacturing and sales of electrical equipment and components. Established in the electronics sector, the company specializes in producing a range of products including transformers, inductors, and other electromagnetic components, serving various industries such as automotive, telecommunications, and consumer electronics. With a commitment to innovation and quality, Matsuo Electric aims to meet the evolving needs of its clients through advanced technology and effective solutions.

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

Matsuo Electric Co., Ltd. demonstrates strong revenue and profit growth, reflecting effective market strategies and cost management. The balance sheet shows stability with a manageable debt level, though liquidity needs attention. Cash flow management poses challenges, particularly in converting profits into cash. Overall, while the company shows promising growth and stability, cash flow issues require strategic focus.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• 100DMA: Negative
• 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 820.50, above the 50-day MA of 862.42, and above the 200-day MA of 745.24, indicating a neutral trend. The MACD of -2.49 indicates Negative momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 33.71 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	¥33.24B	13.08	―	4.06%	2.98%	-56.70%
6989	71 Outperform	¥21.32B	9.12	―	3.23%	2.48%	39.69%
6969	68 Neutral	¥2.67B	4.52	―	―	16.21%	3915.63%
6772	65 Neutral	¥12.56B	32.45	―	1.72%	-1.17%	-42.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6976	54 Neutral	¥427.12B	98.77	―	2.65%	4.81%	-49.43%
6977	54 Neutral	¥1.18B	-3.38	―	3.09%	-10.07%	-133.40%