Tsuzuki Denki Co., Ltd. (8157) AI Stock Analysis

• Market Cap: ¥68.06B
• Dividend Yield: 2.82%
• Average Volume (3M): 48.16K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.90
• Revenue Growth: -5.63%
• EPS Growth: 52.73%
• Country: JP
• Employees: 1,239
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 83.00
• Shares Outstanding: 18,977,894
• 10 Day Avg. Volume: 23,240
• 30 Day Avg. Volume: 48,160
• PEG Ratio: -0.63
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 13.08
• 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: ¥4,697.00 ▲(34.78% Upside)
• Action: Upgraded Date: 01/31/26
• Date: Action: Upgraded 01/31/26

The score is driven primarily by solid financial health (notably a strong balance sheet) and supportive technical trend strength (price above key moving averages with positive MACD). Valuation further boosts the outlook due to a low P/E and reasonable dividend yield, while weaker recent revenue growth and softer/variable free cash flow keep the score from being higher.

Positive Factors

Strong balance sheet / high equity ratio

An improved debt-to-equity and a 55.14% equity ratio signal durable financial flexibility. This capital structure reduces refinancing risk, supports investment or M&A capacity, and helps the company withstand cyclical ICT project slowdowns without compromising operations or service commitments.

Sustainable operating margins

Relatively stable gross margins and solid EBIT/EBITDA margins reflect persistent operational efficiency and pricing power in equipment sales and services. Sustained margins help preserve cash available for reinvestment and support profitability even if top-line growth moderates.

Diversified ICT and services business model

A diversified mix of product supply, systems integration, and recurring maintenance/services spreads revenue across sectors and customer types. This reduces single-market cyclicality, supports steadier revenue streams, and enhances customer stickiness through long-term engineering and support relationships.

Negative Factors

Weakened revenue growth trend

A slowing top-line diminishes the company’s ability to leverage fixed costs and limits scope for margin expansion. Persistent revenue deceleration can constrain investment in new services, hinder market-share gains in ICT projects, and reduce long-term earnings momentum.

Variable free cash flow and recent decline

Volatile and recently declining free cash flow erodes capacity to self-fund capex, pay steady dividends, or reduce debt. If this pattern persists, it will stress liquidity planning, limit strategic investments in higher-margin service offerings, and force greater reliance on external financing.

Modest net margins limiting profitability

Net margins in the mid-single digits constrain retained earnings and the ability to rapidly scale ROE. Low absolute margins mean adverse cost or pricing pressure could quickly compress profitability, reducing the firm's buffer to invest in growth initiatives or absorb sector disruption.

Tsuzuki Denki Co., Ltd. Business Overview & Revenue Model

Company Description

Tsuzuki Denki Co., Ltd. engages in the design, development, construction, and maintenance of network and information systems. It operates in two segments, Information Network Solutions and Electronic Devices. The Information Network Solutions segment offers technical services in consulting, design, development, and system construction; and operates and maintains information and communication equipment and software, as well as provides monthly cloud and other subscription services. The Electronic Devices segment provides device solutions, and contract design and development services. The company was founded in 1932 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tsuzuki Denki generates revenue through the sale of its electrical equipment and components. The company has multiple revenue streams, including direct sales to industrial clients, partnerships with original equipment manufacturers (OEMs), and contracts for custom engineering solutions. A significant portion of its earnings comes from long-term contracts and recurring sales of replacement parts and maintenance services for its products. Additionally, strategic alliances with other technology firms enhance its market reach and allow for collaborative product development, which further contributes to its financial performance.

Tsuzuki Denki Co., Ltd. Financial Statement Overview

Summary

Solid overall fundamentals led by a strong balance sheet (improving debt-to-equity, 55.14% equity ratio). Profitability/operating efficiency is decent, but revenue growth has weakened and free cash flow has been variable with a recent decline, which limits the score.

Income Statement

Gross profit margin has been relatively stable with a slight increase to 23.06% in the latest year. However, the net profit margin has decreased from 4.38% to 4.85% over the last two years, suggesting some pressure on net earnings. Revenue growth rate shows a decline in the most recent year, highlighting potential challenges in sustaining top-line growth. Despite these concerns, EBIT and EBITDA margins remain decent, indicating operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved, reflecting a strong balance sheet with reduced leverage. The company's equity ratio is robust at 55.14%, indicating a solid capital structure. ROE has been consistent, though there is room for improvement. Overall, the balance sheet is strong, with a favorable equity position and controlled debt levels.

Cash Flow

Free cash flow has shown variability, with a decline in the most recent year. The operating cash flow to net income ratio indicates that cash generation is in line with accounting earnings, but the recent decline in operating cash flow is a concern. Free cash flow to net income ratio remains positive, but the trend suggests a need for improvement in cash generation efficiency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	98.33B	98.26B	124.86B	123.90B	119.32B	120.00B
Gross Profit	22.91B	22.66B	25.31B	24.18B	22.51B	21.47B
EBITDA	8.55B	8.29B	10.13B	7.91B	7.18B	5.82B
Net Income	5.04B	4.76B	5.48B	3.52B	2.80B	2.35B
Balance Sheet
Total Assets	75.55B	80.06B	81.07B	83.21B	79.23B	76.20B
Cash, Cash Equivalents and Short-Term Investments	41.30B	38.71B	38.70B	20.88B	19.16B	15.94B
Total Debt	9.83B	9.55B	10.19B	10.99B	12.51B	12.85B
Total Liabilities	31.57B	35.43B	40.20B	47.82B	46.03B	45.03B
Stockholders Equity	43.57B	44.16B	40.40B	34.95B	32.85B	30.93B
Cash Flow
Free Cash Flow	0.00	3.13B	4.01B	3.17B	3.69B	-1.44B
Operating Cash Flow	0.00	3.41B	4.95B	4.26B	5.56B	749.00M
Investing Cash Flow	0.00	-792.00M	15.47B	39.00M	-4.00M	-1.27B
Financing Cash Flow	0.00	-2.60B	-2.61B	-2.61B	-2.41B	-2.03B

Tsuzuki Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3485.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8157, the sentiment is Positive. The current price of 3485 is below the 20-day moving average (MA) of 3891.25, below the 50-day MA of 3639.40, and above the 200-day MA of 3185.16, indicating a bullish trend. The MACD of 139.04 indicates Negative momentum. The RSI at 70.73 is Negative, neither overbought nor oversold. The STOCH value of 88.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8157.

Tsuzuki Denki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8081	78 Outperform	¥48.21B	13.27	―	3.48%	18.42%	51.06%
8157	75 Outperform	¥68.06B	11.93	―	2.82%	-5.63%	52.73%
8070	74 Outperform	¥26.39B	5.86	―	3.66%	-18.88%	42.17%
8057	68 Neutral	¥109.09B	9.68	―	2.91%	31.48%	83.15%
4685	66 Neutral	¥45.83B	12.09	―	2.70%	17.96%	30.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Tsuzuki Denki Co., Ltd. Corporate Events

Tsuzuki Denki Lifts FY2026 Profit Outlook and Hikes Dividend on Stronger Earnings

Tsuzuki Denki has sharply revised upward its full-year earnings forecasts for the fiscal year ending March 31, 2026, while keeping net sales unchanged at ¥102.5 billion but raising operating income to ¥8.0 billion, ordinary income to ¥8.15 billion and profit attributable to owners of parent to ¥6.0 billion, reflecting the impact of its transformation measures and extraordinary gains from the partial sale of investment securities. In tandem with the stronger profit outlook and in line with its shareholder return policy targeting a 40% payout ratio (based on business operating income) and a minimum consolidated DOE of 3.5%, the company has lifted its year-end dividend forecast from ¥50 to ¥71 per share, taking the expected annual dividend to ¥121 per share and signaling a more generous return to shareholders compared with the prior fiscal year.

The most recent analyst rating on (JP:8157) stock is a Hold with a Yen3882.00 price target. To see the full list of analyst forecasts on Tsuzuki Denki Co., Ltd. stock, see the JP:8157 Stock Forecast page.

Tsuzuki Denki Posts Record Operating and Ordinary Profits on Higher Sales and Margin Gains

Tsuzuki Denki Co., Ltd. reported that for the nine months ended December 31, 2025, net sales rose to ¥67.3 billion, while gross profit margin improved to 24.0%, and SG&A expenses were kept nearly flat as a percentage of sales. Operating profit and ordinary profit climbed sharply, up 66.9% and 64.3% year on year respectively, with profit attributable to owners of parent nearly doubling, leading to record-high operating and ordinary profits and underscoring stronger profitability and operational efficiency compared with the prior year period.

The most recent analyst rating on (JP:8157) stock is a Hold with a Yen3882.00 price target. To see the full list of analyst forecasts on Tsuzuki Denki Co., Ltd. stock, see the JP:8157 Stock Forecast page.

Tsuzuki Denki Lifts Earnings Outlook and Dividends on Strong Nine-Month Results

Tsuzuki Denki reported consolidated net sales of ¥67.3 billion for the nine months ended December 31, 2025, up 3.1% year on year, with operating income surging 66.9% to ¥4.0 billion and profit attributable to owners of parent jumping 91.6% to ¥3.3 billion, reflecting a strong recovery in profitability and an improved shareholders’ equity ratio of 58.6%. On the back of this performance, the company raised its full-year forecast to ¥102.5 billion in net sales and ¥6.0 billion in profit attributable to owners of parent, and upgraded its dividend outlook to a total of ¥121 per share for the year ending March 31, 2026, signaling stronger shareholder returns and confidence in sustained earnings growth.

The most recent analyst rating on (JP:8157) stock is a Hold with a Yen3882.00 price target. To see the full list of analyst forecasts on Tsuzuki Denki Co., Ltd. stock, see the JP:8157 Stock Forecast page.

Tsuzuki Denki Discloses Interim Results and Ownership Structure of Parent ASO CORPORATION

Tsuzuki Denki announced that interim financial results for the second quarter of the fiscal year ending March 31, 2026, at its unlisted parent company ASO CORPORATION, have been finalized, underscoring the close capital and business ties between the two groups. The disclosure highlights ASO’s core operations in medical-related and real estate businesses, its 24.03% voting stake in Tsuzuki Denki, and a shareholder structure dominated by the Aso family and related entities, indicating a tightly held ownership base that may support stable governance and long-term strategic alignment between the parent and its listed affiliate.

The most recent analyst rating on (JP:8157) stock is a Hold with a Yen3364.00 price target. To see the full list of analyst forecasts on Tsuzuki Denki Co., Ltd. stock, see the JP:8157 Stock Forecast page.