Shizuki Electric Company Inc. (6994) AI Stock Analysis

• Market Cap: ¥32.93B
• Dividend Yield: 2.35%
• Average Volume (3M): 92.33K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.70
• Revenue Growth: 5.15%
• EPS Growth: 480.70%
• Country: JP
• Employees: 1,280
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 23.18
• Shares Outstanding: 33,061,005
• 10 Day Avg. Volume: 76,830
• 30 Day Avg. Volume: 92,330
• PEG Ratio: 0.01
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 8.37
• 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): 73.3
• Revenue Forecast (FY): ¥28.50B

• Rating: 80 Outperform
• Price Target: ¥1,148.00 ▲(36.83% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by strong financial health (low leverage, solid equity base, and improving profitability) and supportive technical strength (price above major moving averages with positive momentum). A low P/E and modest dividend yield further enhance the valuation profile, while cash flow volatility and still-developing operating margins limit upside.

Positive Factors

Low leverage / strong equity base

A low D/E of 0.38 and ~61% equity ratio provide durable financial flexibility, reducing refinancing and solvency risk through cycles. This strengthens creditworthiness, supports capital expenditures or selective M&A, and helps the company withstand cyclical weakness in industrial end markets.

Positive free cash flow generation

Sustained positive FCF and an FCF-to-net-income above 1 indicate the business converts earnings to cash, enabling reinvestment, dividends, or debt paydown. Over 2–6 months this cash generation underpins balance-sheet strength and funds operational resilience.

Modest revenue growth with improving margins

Consistent top-line growth alongside rising gross and net margins shows durable demand for capacitor products and better margin capture. This trend supports higher internal funding for product development and steady operating leverage if volume growth continues.

Negative Factors

Moderate operating margins

EBIT and EBITDA margins are modest for manufacturing of electrical components, limiting margin buffer against raw material or pricing pressure. This structural constraint can cap profitability expansion and reduce resilience versus higher-margin peers over medium term.

Historical cash-flow volatility

Although FCF is currently positive, prior swings and episodes of negative FCF indicate working-capital or order-cycle sensitivity. Persistent cash volatility can impair consistent capex, dividend policy, or inventory management during industry slowdowns.

End-market and product concentration risk

Revenue dependence on industrial and power infrastructure end-markets and product mix (standard vs custom capacitors) raises exposure to cyclical capex and commodity-driven demand swings. Limited visibility on major customers increases concentration and demand-risk.

Shizuki Electric Company Inc. Business Overview & Revenue Model

Company Description

Shizuki Electric Company Inc. provides capacitors, and related equipment and facilities; and electrical machinery and equipment in Japan and internationally. It offers power factor correction products, harmonic filters, and voltage sag compensators; and AC and DC filter capacitors, and snubber capacitors for automotive inverters, power electronics circuits, and home appliances. The company was founded in 1939 and is based in Nishinomiya, Japan.

How the Company Makes Money

Shizuki Electric Company Inc. makes money primarily by selling capacitors and capacitor-related equipment into industrial and power/electrical infrastructure use cases. Key revenue streams typically include (1) product sales of power capacitors used for functions such as power factor correction and filtering in electrical systems, and (2) sales of capacitor-applied assemblies or related equipment supplied to industrial customers and system integrators. Revenue is generally recognized through shipment/delivery of manufactured products, with earnings influenced by manufacturing volume, product mix (standard components vs. higher-specification/custom solutions), and demand from end markets such as factory electrical systems and power equipment. Specific details on segment revenue breakdowns, named major customers/partnerships, and the relative contribution of services or aftermarket support are null.

Shizuki Electric Company Inc. Financial Statement Overview

Summary

Strong overall fundamentals supported by a solid balance sheet (low leverage with 0.38 debt-to-equity and a 60.98% equity ratio) and improving profitability (net margin up to 4.37%). Cash flow has improved to positive free cash flow (¥1.24B), but prior volatility and room to improve EBIT/EBITDA margins temper the score.

Income Statement

Shizuki Electric Company Inc. has shown consistent revenue growth with a 3.95% increase in the latest annual period, supported by an improving gross profit margin of 24.66%. The net profit margin has increased significantly to 4.37%, reflecting enhanced profitability. However, there is room for improvement in EBIT and EBITDA margins, which currently stand at 7.15% and 11.78%, respectively.

Balance Sheet

The company maintains a solid balance sheet with a Debt-to-Equity Ratio of 0.38, indicating low leverage. The Return on Equity is healthy at 5.11%, showing efficient use of equity capital. The Equity Ratio of 60.98% suggests a strong equity base relative to total assets, providing financial stability.

Cash Flow

Operating cash flow has improved significantly, leading to a positive Free Cash Flow of 1.24 billion yen. The Free Cash Flow to Net Income Ratio is 1.04, indicating strong cash generation relative to net income. However, historical volatility in operating cash flow and past negative free cash flows suggest potential cash flow management challenges.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	27.27B	27.35B	26.31B	26.13B	23.87B	21.83B
Gross Profit	7.27B	6.87B	5.75B	5.17B	5.13B	5.04B
EBITDA	3.52B	3.33B	2.52B	2.31B	2.30B	1.99B
Net Income	1.35B	1.19B	182.15M	760.68M	946.79M	1.16B
Balance Sheet
Total Assets	38.34B	38.34B	36.48B	38.12B	32.14B	31.36B
Cash, Cash Equivalents and Short-Term Investments	7.02B	5.93B	4.53B	9.35B	4.05B	5.68B
Total Debt	8.80B	8.81B	8.12B	6.80B	2.30B	1.81B
Total Liabilities	14.71B	14.60B	13.71B	12.38B	7.18B	7.02B
Stockholders Equity	23.26B	23.38B	22.29B	25.32B	24.58B	23.98B
Cash Flow
Free Cash Flow	0.00	1.25B	-1.81B	1.66B	-1.57B	1.38B
Operating Cash Flow	0.00	3.56B	-271.66M	2.47B	196.10M	2.52B
Investing Cash Flow	0.00	-2.57B	-2.09B	-1.42B	-2.04B	-1.41B
Financing Cash Flow	0.00	305.30M	-2.55B	4.18B	163.73M	-210.30M

Shizuki Electric Company Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 839.00
• 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:6994, the sentiment is Neutral. The current price of 839 is below the 20-day moving average (MA) of 1054.55, below the 50-day MA of 948.48, and above the 200-day MA of 673.71, indicating a neutral trend. The MACD of 32.69 indicates Positive momentum. The RSI at 48.34 is Neutral, neither overbought nor oversold. The STOCH value of 32.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6994.

Shizuki Electric Company Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6994	80 Outperform	¥32.93B	9.27	―	2.35%	5.15%	480.70%
5819	75 Outperform	¥12.70B	10.63	―	3.02%	3.43%	3.75%
6516	75 Outperform	¥175.15B	16.57	―	1.53%	3.37%	21.35%
6637	72 Outperform	¥53.74B	12.37	―	0.91%	5.28%	18.38%
6804	72 Outperform	¥139.49B	3.86	8.07%	2.64%	79.29%	35.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥49.52B	195.39	―	5.01%	-32.74%	-117.06%