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

• Market Cap: ¥3.06B
• Dividend Yield: N/A
• Average Volume (3M): 20.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• 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: 70 Outperform
• Price Target: ¥1,100.00 ▲(23.04% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven primarily by improving financial performance (profit recovery and balance sheet stability) and strong technical momentum (price above key moving averages with positive MACD). This is tempered by weak cash-flow conversion and a negative P/E that reduces valuation confidence.

Positive Factors

Profit recovery & revenue growth

A multi-year swing from loss to substantial profit demonstrates durable demand recovery and improved operating leverage. Sustained revenue growth enables reinvestment in capacity, supports margin expansion over cycles, and strengthens the firm's ability to compete in component markets.

Solid equity base and controlled leverage

A solid equity base and manageable leverage provide long-term financial flexibility, lowering refinancing risk and enabling capital allocation for capex or M&A. This stability supports supplier and customer confidence and helps the company weather cyclical demand swings in electronics.

Consistently healthy gross margins

Persistent healthy gross margins point to effective manufacturing processes and cost control, giving lasting pricing power and resilience to raw material cost volatility. Strong margins enable sustained investment in product quality and capacity, supporting competitiveness in components.

Negative Factors

Weak cash flow conversion

Inability to consistently convert earnings into cash constrains internal funding for growth and exposes the company to financing risk. Ongoing negative free cash flow driven by heavy capex reduces buffer for downturns and may force reliance on external capital or slower investment pacing.

Declining liquidity

Falling cash balances weaken the short-term liquidity cushion, increasing vulnerability to supply chain shocks or demand slowdowns. Reduced liquid reserves limit flexibility to absorb cyclical swings, potentially pressuring working capital and necessitating costly external financing.

Volatile operating margins

Earnings margin volatility undermines predictability of cash flows and strategic planning. Persistent swings in operating efficiency may reflect exposure to raw material price cycles or underutilized capacity, making long-term margin sustainability and forecasting more uncertain.

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

The company primarily makes money by manufacturing and selling passive electronic components—especially capacitors—to equipment manufacturers and electronics supply chains. Revenue is generated from product shipments (unit sales) across its component lineup, typically through direct sales to OEM/industrial customers and via electronics distributors/agents that handle sales channels and logistics. Profitability is influenced by product mix (e.g., higher-specification components vs. general-purpose parts), production volume and factory utilization, raw material and energy costs, and demand trends in end markets that consume passive components (such as industrial equipment and electronic devices). Specific details on revenue breakdown by product line, major customers/partners, pricing structure, or segment-level financial contributions are null.

Matsuo Electric Co., Ltd. Financial Statement Overview

Summary

Strong revenue and net income rebound (loss in 2022 to substantial profit by 2025) and a solid equity base support the score, but liquidity declined and cash flow quality is a key concern, with inconsistent operating cash flow and negative free cash flow pressured by heavy capital expenditures.

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	2.38B	2.62B	2.89B	2.47B	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: Neutral
• Last Price: 894.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6969, the sentiment is Neutral. The current price of 894 is below the 20-day moving average (MA) of 1011.60, below the 50-day MA of 903.66, and above the 200-day MA of 871.85, indicating a neutral trend. The MACD of 34.79 indicates Positive momentum. The RSI at 47.02 is Neutral, neither overbought nor oversold. The STOCH value of 6.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6658	76 Outperform	¥11.47B	5.54	―	4.44%	1.68%	15.79%
6626	73 Outperform	¥29.92B	7.34	―	1.78%	4.47%	12.28%
6853	73 Outperform	¥19.30B	18.81	―	2.93%	-1.58%	12.24%
6969	70 Outperform	¥3.06B	-23.67	―	―	16.21%	3915.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6664	48 Neutral	¥4.44B	-9.65	―	―	5.29%	47.66%
6926	46 Neutral	¥4.52B	-3.85	―	―	-6.31%	-64.22%