Morio Denki Co., Ltd. (6647) AI Stock Analysis

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Morio Denki Co., Ltd.

(TSE/TYO:6647)

Select Model

Rating:66Neutral

Price Target:JPY 4,039.00▲(18.27% Upside)

Action:reiterated

Date:08/25/26

The score is driven by attractive valuation (low P/E) and a strong technical uptrend, but is held back by weak cash conversion (negative free cash flow in 2025–2026) despite improving reported profitability and a generally solid balance sheet.

Positive Factors

Improving ProfitabilityThe sustained increase in net income and operating profit indicates meaningful earnings improvement rather than a single-period recovery. If maintained, stronger profitability can improve internal funding capacity and reinforce the company’s financial resilience.

Negative Factors

Weak Cash ConversionNegative free cash flow despite rising earnings raises questions about earnings quality and the timing of cash realization. Persistent working-capital needs or investment demands could require external funding and limit the durability of reported profits.

Morio Denki Co., Ltd. (6647) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.52B
Dividend Yield: 1.90%
Average Volume (3M): 1,998
Price to Earnings (P/E): 6.0
Beta (1Y): 0.43
Revenue Growth: -3.11%
EPS Growth: 20.41%
Country: Japan
Employees: 218
Sector: Industrials
Sector Strength: 63
Industry: Electrical Equipment & Parts

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

Company Description

Morio Denki Co., Ltd. specializes in the design, manufacturing, and global distribution of electronic and electrical components, primarily serving the transportation sector both in Japan and internationally. Their extensive product line includes vari...

Morio Denki Co., Ltd. Financial Statement Overview

Summary

Profitability has improved materially (net income rising into 2025–2026) and the balance sheet is solid with moderate leverage and growing equity. However, cash flow is a major weakness: operating cash flow turned negative in 2025 and free cash flow has been negative in 2025–2026, raising concerns about earnings quality and funding needs as debt has been trending up since 2024.

Income Statement

63Positive

Balance Sheet

74Positive

Cash Flow

36Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	9.00B	8.64B	9.21B	7.45B	7.90B	8.51B
Gross Profit	2.18B	2.01B	1.86B	1.38B	1.32B	1.55B
EBITDA	1.25B	1.11B	957.79M	566.71M	520.54M	777.61M
Net Income	752.35M	648.52M	568.71M	211.84M	148.92M	270.39M
Balance Sheet
Total Assets	9.41B	9.55B	8.91B	8.22B	7.77B	7.95B
Cash, Cash Equivalents and Short-Term Investments	1.06B	900.99M	933.73M	979.28M	905.75M	830.36M
Total Debt	1.32B	1.69B	1.41B	1.15B	1.34B	1.31B
Total Liabilities	3.24B	3.49B	3.75B	3.49B	3.42B	3.73B
Stockholders Equity	6.17B	6.06B	5.16B	4.73B	4.35B	4.21B
Cash Flow
Free Cash Flow	0	-120.57M	-187.78M	382.58M	145.54M	590.42M
Operating Cash Flow	0	45.51M	-91.92M	604.34M	243.90M	730.81M
Investing Cash Flow	0	-229.37M	-96.08M	-226.43M	-85.69M	-137.92M
Financing Cash Flow	0	145.94M	144.36M	-312.00M	-86.91M	-913.85M

Morio Denki Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price3415.00

Price Trends

50DMA3489.70Negative

100DMA3109.75Positive

200DMA2864.52Positive

Market Momentum

MACD-23.97Positive

RSI46.31Neutral

STOCH78.38Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6647, the sentiment is Positive. The current price of 3415.00 is below the 20-day moving average (MA) of 3474.75, below the 50-day MA of 3489.70, and above the 200-day MA of 2864.52, indicating a neutral trend. The MACD of -23.97 indicates Positive momentum. The RSI at 46.31 is Neutral, neither overbought nor oversold. The STOCH value of 78.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6647.

Morio Denki Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:6647 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6643	87Outperform	JPY 23.84B	8.44	―	2.92%	12.68%	31.19%
JP:5819	79Outperform	JPY 11.37B	9.70	―	4.21%	-0.88%	-1.47%
JP:6943	71Outperform	JPY 4.86B	6.77	―	2.20%	24.22%	―
JP:6637	67Neutral	JPY 48.47B	10.97	―	1.64%	15.89%	2.08%
JP:6647	66Neutral	JPY 4.70B	6.02	―	1.90%	-3.11%	20.41%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:6905	60Neutral	JPY 51.46B	-19.22	―	4.40%	17.15%	-463.16%

* Industrials Sector Average

Performance Comparison

JP:6647 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6647	Morio Denki Co., Ltd.	3415.00	1038.86	43.72%
JP:5819	Canare Electric Co., Ltd.	1685.00	-118.39	-6.56%
JP:6637	Terasaki Electric Co., Ltd.	3720.00	-1039.56	-21.84%
JP:6643	Togami Electric Mfg.Co., Ltd.	5140.00	1020.65	24.78%
JP:6905	Cosel Co., Ltd.	1251.00	74.74	6.35%
JP:6943	NKK SWITCHES CO., LTD.	5910.00	1410.19	31.34%

Morio Denki Co., Ltd. Corporate Events

Morio Denki Delivers Strong First-Quarter Earnings and Solidifies Financial Base

Aug 7, 2026

Morio Denki Co., Ltd. is a Japan-based general business company listed on the Tokyo Stock Exchange Standard Market. Operating in the electrical and industrial components sector, it generates revenue through the sale of electronic and related equipmen...

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 25, 2026

Morio Denki Co., Ltd. AI Stock Analysis

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