Terasaki Electric Co., Ltd. (6637) AI Stock Analysis

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Terasaki Electric Co., Ltd.

(TSE/TYO:6637)

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Rating:74Outperform

Price Target:JPY 3,870.00▲(12.01% Upside)

Action:upgraded

Date:08/21/26

The score is driven primarily by solid financial strength and profitability trends, tempered by inconsistent and recently negative free cash flow. Technicals are constructive with the stock trading above key moving averages and positive momentum indicators, while valuation is reasonable with a moderate P/E but only a modest dividend yield.

Positive Factors

Multi-year revenue growthThe substantial increase in revenue over five years indicates that Terasaki has expanded demand for its electrical equipment and related systems. Continued growth through FY2026 strengthens its operating scale, supports investment in the business, and provides a durable foundation for future earnings.

Negative Factors

Recent negative free cash flowNegative free cash flow in FY2026 weakens confidence that reported earnings are consistently translating into cash. If this persists, Terasaki may have less internally generated funding for capital investment, product development, and shareholder returns despite its strong accounting profitability.

Terasaki Electric Co., Ltd. (6637) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 42.37B
Dividend Yield: 1.77%
Average Volume (3M): 30.09K
Price to Earnings (P/E): 10.2
Beta (1Y): 1.37
Revenue Growth: 15.89%
EPS Growth: 2.08%
Country: Japan
Employees: 2,219
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

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

Company Description

Terasaki Electric Co.,Ltd., founded in Osaka, Japan, in 1923, is a global manufacturer and supplier specializing in a diverse range of electrical and electronic solutions. The company's core offerings span marine and industrial systems, power protect...

How the Company Makes Money

The company primarily makes money by manufacturing and selling low-voltage electrical equipment and related components/systems. Key revenue streams generally include (1) sales of circuit breakers and other protection devices used in power distributio...

Terasaki Electric Co., Ltd. Financial Statement Overview

Summary

Strong revenue and earnings growth with a conservatively levered balance sheet, but cash flow quality is a clear weakness: free cash flow turned negative in FY2026 after prior volatility, reducing confidence in earnings-to-cash conversion.

Income Statement

82Very Positive

Balance Sheet

88Very Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	66.03B	62.86B	56.40B	52.07B	44.25B	37.86B
Gross Profit	17.50B	16.94B	15.60B	14.32B	11.71B	9.39B
EBITDA	8.51B	8.09B	7.24B	6.45B	4.10B	2.76B
Net Income	4.29B	4.19B	4.45B	4.01B	2.35B	1.28B
Balance Sheet
Total Assets	81.75B	81.43B	73.90B	68.04B	59.94B	52.42B
Cash, Cash Equivalents and Short-Term Investments	15.43B	13.93B	17.61B	13.21B	11.36B	11.77B
Total Debt	5.86B	4.71B	4.90B	4.77B	4.50B	2.14B
Total Liabilities	25.47B	25.98B	22.46B	21.25B	19.31B	14.55B
Stockholders Equity	56.28B	55.45B	51.43B	46.79B	40.58B	37.83B
Cash Flow
Free Cash Flow	0	-1.51B	5.48B	1.42B	-2.09B	-806.99M
Operating Cash Flow	0	1.17B	8.33B	3.82B	-663.79M	39.92M
Investing Cash Flow	0	-2.89B	-3.19B	-2.42B	-1.31B	-933.75M
Financing Cash Flow	0	-2.98B	-743.17M	-212.61M	1.20B	-923.15M

Terasaki Electric Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price3455.00

Price Trends

50DMA4039.26Negative

100DMA3949.18Negative

200DMA3948.24Negative

Market Momentum

MACD-166.73Positive

RSI37.05Neutral

STOCH61.40Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6637, the sentiment is Negative. The current price of 3455.00 is below the 20-day moving average (MA) of 3769.75, below the 50-day MA of 4039.26, and below the 200-day MA of 3948.24, indicating a bearish trend. The MACD of -166.73 indicates Positive momentum. The RSI at 37.05 is Neutral, neither overbought nor oversold. The STOCH value of 61.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6637.

Terasaki Electric Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6637 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6504	76Outperform	JPY 1.66T	14.67	14.39%	1.93%	9.29%	34.43%
JP:6637	74Outperform	JPY 46.38B	10.19	―	1.77%	15.89%	2.08%
JP:6503	70Outperform	JPY 10.44T	18.91	11.51%	1.26%	12.06%	31.99%
JP:6804	67Neutral	JPY 110.85B	5.98	12.49%	5.05%	25.40%	46.48%
JP:6506	57Neutral	JPY 999.65B	27.33	7.43%	1.85%	5.82%	-37.13%
JP:5801	56Neutral	JPY 1.61T	12.89	28.07%	0.75%	15.50%	237.49%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6637 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6637	Terasaki Electric Co., Ltd.	3455.00	-1353.83	-28.15%
JP:6503	Mitsubishi Electric Corp	4755.00	530.48	12.56%
JP:6504	Fuji Electric Co	11330.00	942.62	9.07%
JP:5801	Furukawa Electric Co	2167.50	1144.51	111.88%
JP:6804	Hosiden Corp	2217.00	-192.37	-7.98%
JP:6506	Yaskawa Electric Corporation	3791.00	-168.33	-4.25%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 21, 2026

Terasaki Electric Co., Ltd. AI Stock Analysis