Senshu Electric Co., Ltd. (9824) AI Stock Analysis

• Market Cap: ¥104.44B
• Dividend Yield: 2.72%
• Average Volume (3M): 78.49K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 1.07
• Revenue Growth: -0.41%
• EPS Growth: -10.32%
• Country: JP
• Employees: 825
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 102.42
• Shares Outstanding: 18,000,000
• 10 Day Avg. Volume: 115,970
• 30 Day Avg. Volume: 78,486
• PEG Ratio: -1.14
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 9.54
• 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): 446.1
• Revenue Forecast (FY): ¥149.50B

• Rating: 75 Outperform
• Price Target: ¥7,256.00 ▲(34.12% Upside)
• Action: Reiterated Date: 12/19/25
• Date: Action: Reiterated 12/19/25

Senshu Electric Co., Ltd. scores well due to its strong financial stability and positive technical indicators. The stock's valuation is reasonable, with a solid dividend yield. However, challenges in revenue growth and net profit margin slightly temper the overall score. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Low Leverage / Strong Balance Sheet

An extremely low debt-to-equity ratio indicates durable financial stability and low solvency risk. This balance sheet strength provides long-term flexibility to fund capex, weather demand slowdowns, and pursue strategic investments without relying on costly external financing.

Strong Cash Generation

Consistently positive operating cash flow and high conversion of net income into free cash flow support sustainable capital allocation (dividends, capex, debt reduction). Reliable cash generation underpins resilience and funds growth initiatives without overreliance on external capital.

Stable Gross Margins

A steady gross margin band signals consistent product mix and pricing power at the gross level, helping preserve core profitability. Over a multi-month horizon this supports forecasting earnings stability and gives management room to address downstream margin pressures.

Negative Factors

Declining Revenue Growth

A shift to negative revenue growth undermines top-line momentum and constrains long-term earnings expansion. Sustained or recurring revenue declines limit operating leverage, force tougher resource allocation decisions, and weaken the company's ability to scale fixed-cost absorption.

Compression in Net Margins

Declining net and operating margins indicate growing cost pressure or reduced pricing power. Margin compression erodes retained earnings for reinvestment and reduces cushion against cyclical downturns, making sustainable profitability and dividend coverage more uncertain over the medium term.

Volatile Free Cash Flow Growth

High volatility in free cash flow undermines predictability of funds available for capex, dividends, and debt servicing. Even with good conversion metrics, irregular FCF trends raise execution risk for multi-quarter investment plans and weaken confidence in cash-based resiliency.

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

Company Description

Senshu Electric Co.,Ltd. engages in the trading of various cables, wires, and materials related to electrical construction work in Japan and internationally. The company develops, sells, and consults data processing and communication systems; manufactures and sells electronic control appliances and equipment; and installs and sells air conditioning equipment, household electrical appliances, and office equipment. It is also involved in the operation and management of power generation business; and sale and purchase of electric power. In addition, the company engages in the real estate leasing business. Senshu Electric Co.,Ltd. was founded in 1947 and is headquartered in Suita, Japan.

How the Company Makes Money

Senshu Electric Co., Ltd. generates revenue primarily through the sale of electrical components and equipment. The company's key revenue streams include direct sales to industrial clients and collaborations with manufacturers for the supply of specialized electrical products. Significant partnerships with leading component manufacturers enhance its product offerings, enabling it to meet diverse customer needs. The company also leverages its expertise in systems integration to provide value-added services, which contribute to its earnings.

Senshu Electric Co., Ltd. Financial Statement Overview

Summary

Senshu Electric Co., Ltd. demonstrates financial stability with low leverage and strong equity financing. While profitability margins are stable, the recent decline in revenue growth and net profit margin indicates potential challenges in maintaining growth momentum. Cash flow generation is strong, but the volatility in free cash flow growth suggests potential fluctuations in cash reserves.

Income Statement

Senshu Electric Co., Ltd. shows a stable gross profit margin around 14.5% to 15.5% over the years, indicating consistent profitability. However, the net profit margin has slightly decreased to 4.95% in the latest year from 5.57% previously, reflecting some pressure on net earnings. The revenue growth rate has turned negative at -2.03% after a period of growth, which is a concern. EBIT and EBITDA margins have also slightly declined, suggesting reduced operational efficiency.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.0117, indicating strong financial stability and low leverage risk. Return on equity is healthy at 11.48%, though it has decreased from previous years, reflecting a slight decline in profitability. The equity ratio remains robust, suggesting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow is strong, with a positive operating cash flow to net income ratio, indicating good cash generation relative to net income. However, free cash flow growth has been volatile, with a significant decline in the latest year. The free cash flow to net income ratio remains high at 87.10%, showing efficient conversion of earnings into cash.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	135.59B	136.15B	124.97B	113.63B	92.46B
Gross Profit	19.73B	21.15B	18.68B	17.09B	13.92B
EBITDA	10.63B	11.77B	9.40B	8.44B	5.68B
Net Income	6.72B	7.58B	5.92B	5.31B	3.58B
Balance Sheet
Total Assets	111.00B	112.46B	101.37B	95.38B	83.99B
Cash, Cash Equivalents and Short-Term Investments	34.97B	30.53B	28.54B	27.19B	26.34B
Total Debt	686.00M	599.00M	927.00M	985.00M	141.00M
Total Liabilities	52.08B	56.86B	50.65B	48.98B	41.11B
Stockholders Equity	58.50B	55.23B	50.39B	46.16B	42.72B
Cash Flow
Free Cash Flow	8.22B	6.36B	3.88B	5.92B	9.03B
Operating Cash Flow	9.44B	8.24B	6.94B	6.33B	9.40B
Investing Cash Flow	-3.86B	-2.54B	-3.12B	-3.73B	63.00M
Financing Cash Flow	-3.75B	-3.88B	-2.40B	-2.09B	-1.74B

Senshu Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5410.00
• 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:9824, the sentiment is Positive. The current price of 5410 is below the 20-day moving average (MA) of 6323.50, below the 50-day MA of 5862.20, and above the 200-day MA of 4783.71, indicating a bullish trend. The MACD of 185.45 indicates Positive momentum. The RSI at 60.75 is Neutral, neither overbought nor oversold. The STOCH value of 55.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9824.

Senshu Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8154	81 Outperform	¥220.11B	7.63	14.97%	2.94%	9.67%	45.58%
8093	76 Outperform	¥25.64B	13.58	―	3.83%	41.87%	167.99%
9824	75 Outperform	¥104.44B	16.64	―	2.72%	-0.41%	-10.32%
8137	74 Outperform	¥54.37B	19.94	―	4.12%	-4.88%	-26.05%
6638	66 Neutral	¥56.10B	9.40	―	3.07%	1.56%	1.72%
7537	65 Neutral	¥33.03B	11.35	―	5.16%	1.71%	-29.37%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Senshu Electric Co., Ltd. Corporate Events

Senshu Electric to Grant Restricted Treasury Shares to Employee Shareholding Association

Senshu Electric Co., Ltd., a TSE Prime–listed supplier of electrical components and related materials, is moving to strengthen long-term alignment between its workforce and shareholders through changes to its employee equity programs. By deepening stock-based participation, the company aims to heighten employees’ sensitivity to its performance and share price and to reinforce its focus on sustainable corporate value.

The board has approved the disposal of up to 30,300 shares of treasury stock as restricted stock to the Senshu Electric Employee Shareholding Association, with a reference disposal price of ¥6,420 per share, under a new restricted stock incentive plan. Eligible employees will receive special incentive payments that they must contribute to the shareholding association, which will in turn make an in-kind contribution to acquire the restricted shares under an allocation agreement that imposes transfer restrictions and allows the company to acquire shares without compensation in certain cases, tightening retention incentives and governance around employee ownership.

The most recent analyst rating on (JP:9824) stock is a Buy with a Yen7346.00 price target. To see the full list of analyst forecasts on Senshu Electric Co., Ltd. stock, see the JP:9824 Stock Forecast page.

Senshu Electric to Grant Restricted Stock to Directors via Treasury Share Disposal

Senshu Electric Co., Ltd. has approved the disposal of 9,300 treasury shares as restricted stock, valued at a total of ¥59.7 million, to seven internal directors. The move is executed under an existing restricted stock compensation plan and prices the shares at ¥6,420 each, based on the recent Tokyo Stock Exchange closing price.

The transaction is designed to tie director compensation more closely to long-term corporate value creation and shareholder value sharing, with a stringent 30-year transfer restriction on the allocated shares. By reinforcing equity-based incentives for top management, Senshu Electric aims to strengthen governance and align director interests with those of shareholders over an extended horizon.

The most recent analyst rating on (JP:9824) stock is a Buy with a Yen7346.00 price target. To see the full list of analyst forecasts on Senshu Electric Co., Ltd. stock, see the JP:9824 Stock Forecast page.

Senshu Electric Reports Progress on Ongoing Share Buyback Program

Senshu Electric Co., Ltd. has reported the latest progress in its share buyback program, disclosing that it acquired 13,900 shares of its common stock on the Tokyo Stock Exchange between January 1 and January 31, 2026, at a total cost of ¥77.32 million. This repurchase forms part of a broader board-approved program, authorized on October 31, 2025, to buy back up to 100,000 shares or ¥500 million by April 30, 2026, under which the company has cumulatively acquired 49,600 shares for approximately ¥254.53 million as of January 31, 2026, signaling ongoing capital management efforts that may support shareholder returns and optimize its capital structure.

The most recent analyst rating on (JP:9824) stock is a Buy with a Yen6118.00 price target. To see the full list of analyst forecasts on Senshu Electric Co., Ltd. stock, see the JP:9824 Stock Forecast page.

Senshu Electric Reports Progress on Ongoing Share Buyback Program

Senshu Electric Co., Ltd. has disclosed the latest progress of its share buyback program authorized under Japan’s Companies Act, reporting that it repurchased 19,900 common shares for a total of ¥105,070,500 on the Tokyo Stock Exchange between December 1 and December 31, 2025. Under a board resolution dated October 31, 2025, the company is permitted to buy back up to 100,000 shares or ¥500 million by April 30, 2026, and as of December 31, 2025, it has cumulatively acquired 35,700 shares at a total cost of ¥177,203,500, signaling an ongoing capital policy focused on enhancing shareholder value and optimizing its capital structure.

The most recent analyst rating on (JP:9824) stock is a Buy with a Yen6064.00 price target. To see the full list of analyst forecasts on Senshu Electric Co., Ltd. stock, see the JP:9824 Stock Forecast page.

Senshu Electric Updates Management Strategy to Enhance Shareholder Value

Senshu Electric Co., Ltd. has updated its management strategy to better align with capital costs and stock prices, setting ambitious targets for ROE, dividend payout, and shareholder return ratios. Despite not meeting all targets, the company has made significant progress, particularly in shareholder returns. Future initiatives include improving profitability through business expansion and digital transformation, enhancing shareholder returns, and strengthening investor relations.

The most recent analyst rating on (JP:9824) stock is a Buy with a Yen5039.00 price target. To see the full list of analyst forecasts on Senshu Electric Co., Ltd. stock, see the JP:9824 Stock Forecast page.

Senshu Electric Introduces Restricted Stock Incentive Plan

Senshu Electric Co., Ltd. has announced the introduction of a restricted stock incentive plan for its employees through the Senshu Electric Employee Shareholding Association. This plan aims to enhance employee asset building, align employee interests with shareholder value, and boost motivation to improve corporate performance. By offering restricted stock, the company seeks to foster a shared sense of value with shareholders and increase awareness of its performance and share price.

The most recent analyst rating on (JP:9824) stock is a Buy with a Yen5039.00 price target. To see the full list of analyst forecasts on Senshu Electric Co., Ltd. stock, see the JP:9824 Stock Forecast page.

Senshu Electric Reports 2025 Financial Results with Optimistic 2026 Outlook

Senshu Electric Co., Ltd. reported a slight decrease in net sales and profits for the fiscal year ended October 31, 2025, with net sales at ¥135,591 million, a 0.4% decline from the previous year. Despite the downturn, the company has increased its annual dividend per share from ¥130.00 to ¥150.00, reflecting confidence in future performance. The company forecasts a positive outlook for the fiscal year ending October 31, 2026, with expected growth in net sales and profits, indicating a strategic focus on improving financial health and shareholder value.

The most recent analyst rating on (JP:9824) stock is a Buy with a Yen5039.00 price target. To see the full list of analyst forecasts on Senshu Electric Co., Ltd. stock, see the JP:9824 Stock Forecast page.