Fuji Electric Industry. Co.,Ltd (6654) AI Stock Analysis

Fuji Electric Industry. Co.,Ltd

(TSE/TYO:6654)

Select Model

Rating:65Neutral

Price Target:JPY 1,171.00▲(8.53% Upside)

Action:reiterated

Date:08/04/26

The score is primarily supported by strong financial stability driven by extremely low leverage and consistently positive cash generation. It is held back by weaker profitability trends (margin compression and uneven cash conversion), a mixed technical picture with muted momentum, and a relatively high P/E despite a reasonable dividend yield.

Positive Factors

Very Low LeverageExtremely low debt-to-equity (~0.01) gives durable financial flexibility and low refinancing risk. Over a 2–6 month horizon this underpins resilience through cycles, supports capital allocation choices, and reduces vulnerability to interest-rate or liquidity shocks.

Negative Factors

Margin CompressionMeaningful gross and net margin declines over recent years signal weakening pricing power or rising costs. If structural, margin compression can erode free cash flow and ROE, limiting ability to expand profits despite stable top-line, and weighing on long-term earnings quality.

Fuji Electric Industry. Co.,Ltd (6654) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.61B
Dividend Yield: 2.97%
Average Volume (3M): 7,025
Price to Earnings (P/E): 26.5
Beta (1Y): 0.34
Revenue Growth: -0.10%
EPS Growth: 11.75%
Country: Japan
Employees: 114
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Fuji Electric Industry. Co.,Ltd Business Overview & Revenue Model

Company Description

Fuji Electric Industry Co., Ltd. is a Japanese enterprise specializing in the production and global distribution of essential electrical components. Its core offerings encompass a diverse range of control switches, sophisticated connecting devices, p...

How the Company Makes Money

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Fuji Electric Industry. Co.,Ltd Financial Statement Overview

Summary

Financials are stable with a standout balance sheet. Very low leverage (debt-to-equity ~0.01) supports resilience, and operating/free cash flow are positive each year. Offsetting this, profitability has cooled since 2024 with meaningful margin compression and uneven cash conversion (operating cash flow to net income below 1.0 in most years), limiting the score.

Income Statement

62Positive

Balance Sheet

88Very Positive

Cash Flow

67Positive

Financial statement breakdown
Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	3.80B	3.78B	3.93B	3.72B	3.71B	3.66B
Gross Profit	1.15B	1.19B	1.21B	1.28B	1.25B	1.21B
EBITDA	439.88M	476.08M	501.45M	614.61M	576.76M	573.77M
Net Income	217.46M	236.02M	240.48M	349.92M	262.53M	205.38M
Balance Sheet
Total Assets	11.48B	11.28B	11.35B	11.41B	10.98B	10.98B
Cash, Cash Equivalents and Short-Term Investments	4.37B	3.90B	3.78B	4.64B	4.47B	4.51B
Total Debt	120.00M	120.00M	120.00M	120.00M	120.00M	120.00M
Total Liabilities	1.01B	839.89M	977.88M	964.14M	808.36M	748.97M
Stockholders Equity	10.47B	10.44B	10.37B	10.45B	10.17B	10.23B
Cash Flow
Free Cash Flow	0	263.83M	322.09M	338.18M	333.61M	524.02M
Operating Cash Flow	0	466.90M	434.50M	453.32M	399.03M	658.70M
Investing Cash Flow	0	-503.04M	-372.10M	-109.74M	26.97M	265.12M
Financing Cash Flow	0	-355.34M	-417.92M	-178.48M	-413.65M	-461.25M

Fuji Electric Industry. Co.,Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6654 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6503	70Outperform	JPY 9.75T	18.45	11.51%	1.29%	12.06%	31.99%
JP:6637	70Outperform	JPY 48.47B	10.97	―	1.64%	15.89%	2.08%
JP:6504	68Neutral	JPY 1.76T	16.00	14.39%	1.77%	9.29%	34.41%
JP:6654	65Neutral	JPY 5.80B	26.47	―	2.97%	-0.10%	11.75%
JP:6506	63Neutral	JPY 1.04T	28.78	7.43%	1.75%	5.82%	-37.13%
JP:6905	60Neutral	JPY 51.46B	-19.22	―	4.40%	17.15%	-463.16%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6654 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6654	Fuji Electric Industry. Co.,Ltd	1079.00	7.40	0.69%
JP:6503	Mitsubishi Electric Corp	4640.00	371.98	8.72%
JP:6504	Fuji Electric Co	12355.00	1486.09	13.67%
JP:6506	Yaskawa Electric Corporation	3992.00	-195.19	-4.66%
JP:6637	Terasaki Electric Co., Ltd.	3720.00	-1039.56	-21.84%
JP:6905	Cosel Co., Ltd.	1251.00	74.74	6.35%

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 04, 2026

Fuji Electric Industry. Co.,Ltd AI Stock Analysis