Seiwa Electric Mfg. Co., Ltd. (6748) AI Stock Analysis

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Seiwa Electric Mfg. Co., Ltd.

(TSE/TYO:6748)

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Rating:79Outperform

Price Target:JPY 851.00▲(17.06% Upside)

Action:reiterated

Date:08/06/26

The overall stock score is primarily driven by the company's exceptionally strong balance sheet, robust cash flow generation, and an attractive valuation profile with a low P/E ratio. Positive short-term technical momentum further supports the stock's profile, making it a compelling candidate despite minor recent margin pressure.

Positive Factors

Revenue RecoveryA 27.3% revenue rebound in 2025 signals a durable recovery in end-market demand and improved product uptake. Sustained higher top-line provides foundation for better capacity utilization, pricing power and longer-term operating leverage if the company maintains execution.

Negative Factors

Cash-Flow VolatilityHistorical swings in cash flow, including negative periods, indicate persistent working-capital or conversion risk. Such volatility undermines predictability of internal funding for capex/dividends and raises the chance of reactive financing needs under stress.

Seiwa Electric Mfg. Co., Ltd. (6748) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 8.84B
Dividend Yield: 2.78%
Average Volume (3M): 15.28K
Price to Earnings (P/E): 8.1
Beta (1Y): 0.63
Revenue Growth: -4.19%
EPS Growth: -28.25%
Country: Japan
Employees: 637
Sector: Industrials
Sector Strength: 63
Industry: Electrical Equipment & Parts

Seiwa Electric Mfg. Co., Ltd. Business Overview & Revenue Model

Company Description

Established in 1945 and headquartered in Joyo, Japan, Seiwa Electric Mfg. Co., Ltd. is a manufacturer specializing in a wide array of electrical and electronic solutions for the Japanese market. Its product portfolio encompasses cutting-edge informat...

How the Company Makes Money

Seiwa Electric Mfg. Co., Ltd. generates revenue primarily through the sale of the electronic components and related products it manufactures. Detailed disclosure on the company’s exact revenue breakdown by product category, customer/industry mix, rec...

Seiwa Electric Mfg. Co., Ltd. Financial Statement Overview

Summary

Exhibits a robust financial profile anchored by a pristine balance sheet (0.19 D/E ratio) and strong free cash flow generation, effectively offsetting slight top-line margin compression.

Income Statement

70Positive

Balance Sheet

88Very Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.09B	25.39B	25.22B	23.76B	23.43B	26.23B
Gross Profit	5.87B	6.08B	6.03B	5.09B	5.57B	5.27B
EBITDA	1.98B	2.19B	2.33B	1.63B	2.13B	2.11B
Net Income	1.10B	1.23B	1.35B	793.73M	1.10B	909.14M
Balance Sheet
Total Assets	30.40B	30.22B	30.38B	27.94B	28.31B	30.14B
Cash, Cash Equivalents and Short-Term Investments	4.13B	3.44B	3.83B	3.15B	3.61B	2.56B
Total Debt	2.86B	3.54B	5.63B	5.26B	6.05B	9.13B
Total Liabilities	9.85B	11.13B	13.11B	12.29B	14.20B	16.94B
Stockholders Equity	20.52B	19.06B	17.24B	15.62B	14.08B	13.18B
Cash Flow
Free Cash Flow	0	1.78B	473.39M	304.68M	4.15B	-688.67M
Operating Cash Flow	0	2.11B	981.28M	529.99M	4.50B	47.48M
Investing Cash Flow	0	-127.90M	-203.10M	-364.49M	-131.05M	-801.27M
Financing Cash Flow	0	-2.40B	98.78M	-989.73M	-3.28B	906.74M

Seiwa Electric Mfg. Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:6748 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5819	87Outperform	JPY 11.20B	9.31	―	4.26%	-0.88%	-1.47%
JP:6643	87Outperform	JPY 24.31B	6.59	―	3.16%	12.19%	39.80%
JP:6748	79Outperform	JPY 9.45B	8.05	―	2.78%	-4.19%	-28.25%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:6804	63Neutral	JPY 113.51B	5.67	12.49%	5.00%	40.52%	147.61%
JP:6943	61Neutral	JPY 4.71B	6.31	―	2.23%	24.22%	―
JP:6905	50Neutral	JPY 50.96B	-17.32	―	4.55%	17.15%	-463.16%

* Industrials Sector Average

Performance Comparison

JP:6748 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6748	Seiwa Electric Mfg. Co., Ltd.	727.00	-37.12	-4.86%
JP:6804	Hosiden Corp	2242.00	-92.67	-3.97%
JP:5819	Canare Electric Co., Ltd.	1665.00	-171.09	-9.32%
JP:6643	Togami Electric Mfg.Co., Ltd.	4745.00	995.71	26.56%
JP:6905	Cosel Co., Ltd.	1208.00	52.78	4.57%
JP:6943	NKK SWITCHES CO., LTD.	5820.00	1422.68	32.35%

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 06, 2026

Seiwa Electric Mfg. Co., Ltd. AI Stock Analysis