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

• Market Cap: ¥52.26B
• Dividend Yield: 3%
• Average Volume (3M): 48.16K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.93
• Revenue Growth: -5.63%
• EPS Growth: 52.73%
• Country: JP
• Employees: 1,239
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 85.06
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥3,364.00 ▲(5.95% Upside)

The stock's overall score is primarily driven by its solid financial performance and reasonable valuation. However, technical indicators suggest a lack of strong upward momentum, which tempers the overall score. The absence of recent earnings call insights or significant corporate events means these factors do not influence the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with reduced leverage enhances financial stability and provides flexibility for future investments and growth.

Stable Profit Margins

Stable profit margins indicate effective cost management and pricing strategies, supporting long-term profitability and competitiveness.

Robust Equity Ratio

A robust equity ratio signifies strong financial health, reducing risk and enhancing the company's ability to withstand economic fluctuations.

Negative Factors

Declining Revenue Growth

Declining revenue growth may indicate challenges in market expansion or product demand, potentially impacting long-term financial performance.

Cash Flow Variability

Variability in cash flow can affect the company's ability to fund operations and investments, posing a risk to financial stability and growth.

Net Profit Margin Pressure

Pressure on net profit margins suggests challenges in maintaining profitability, which could affect future earnings and shareholder value.

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

Company Description

Tsuzuki Denki Co., Ltd. (8157) is a Japanese company specializing in the manufacture and sale of electrical equipment and components. The company operates primarily in the sectors of industrial machinery, electronic components, and power systems. Tsuzuki Denki is known for its innovative solutions in power electronics, providing products such as transformers, power supply units, and energy-efficient systems to a wide range of industries, including automotive, telecommunications, and manufacturing.

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

Tsuzuki Denki Co., Ltd. demonstrates overall financial strength with a solid balance sheet and efficient operations. However, challenges in revenue growth and cash flow stability are notable. The company's profitability margins are stable, but a focus on enhancing revenue growth and cash flow generation will be critical for future success.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 3175.00
• 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:8157, the sentiment is Positive. The current price of 3175 is above the 20-day moving average (MA) of 3173.75, above the 50-day MA of 3165.50, and above the 200-day MA of 2832.39, indicating a bullish trend. The MACD of -1.39 indicates Negative momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 79.56 is Neutral, 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	¥43.70B	11.35	―	3.55%	18.42%	51.06%
8070	74 Outperform	¥26.34B	8.82	―	3.76%	-18.88%	42.17%
8157	68 Neutral	¥52.26B	10.38	―	3.00%	-5.63%	52.73%
8057	68 Neutral	¥99.43B	9.14	―	2.96%	31.48%	83.15%
4685	66 Neutral	¥42.52B	11.37	―	2.89%	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 Reports Extraordinary Gains and Losses in Q2

Tsuzuki Denki Co., Ltd. announced extraordinary income and losses for the second quarter of the fiscal year ending March 31, 2026. The company gained 990 million yen from selling certain investment securities, aligning with its strategic shareholding policy. Conversely, a loss of 956 million yen was recorded due to a reassessment of its ERP system implementation, opting for a more efficient modification of existing systems. Despite these financial adjustments, the company expects minimal impact on its consolidated results for the fiscal year.

Tsuzuki Denki Reports Strong Financial Performance for H1 2025

Tsuzuki Denki Co., Ltd. reported a significant improvement in its financial performance for the six months ending September 30, 2025, with net sales increasing by 3.8% and operating profit surging by 78.6% compared to the previous year. This strong performance reflects the company’s robust market positioning and operational efficiency, potentially enhancing stakeholder confidence and reinforcing its competitive standing in the industry.