Tensho Electric Industries Co., Ltd. (6776) AI Stock Analysis

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Tensho Electric Industries Co., Ltd.

(TSE/TYO:6776)

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Rating:57Neutral

Price Target:JPY 268.00▼(-1.47% Downside)

Action:reiterated

Date:11/07/26

The score is anchored by mixed financial performance: a significantly strengthened balance sheet supports resilience, but the latest period shows notable revenue contraction, thin margins, and inconsistent free-cash-flow conversion. Technical indicators are clearly bearish and weigh on the score, while valuation (low P/E and modest yield) provides partial support.

Positive Factors

Improved Balance SheetSubstantially lower leverage and higher equity improve Tensho Electric Industries' financial resilience and flexibility. A smaller debt burden can reduce balance-sheet pressure, support continued investment, and provide greater capacity to manage weaker industrial demand over the next several quarters.

Negative Factors

Revenue ContractionA sharp revenue contraction exposes the company to weaker demand or customer and program volatility within its industrial component markets. Sustained top-line pressure can reduce scale benefits, limit investment capacity, and make recovery in operating profit more difficult over the coming quarters.

Tensho Electric Industries Co., Ltd. (6776) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.66B
Dividend Yield: 1.84%
Average Volume (3M): 19.05K
Price to Earnings (P/E): 10.2
Beta (1Y): 0.64
Revenue Growth: -14.84%
EPS Growth: -65.46%
Country: Japan
Employees: 468
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Manufacturing - Miscellaneous

Tensho Electric Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Tensho Electric Industries Co., Ltd. operates extensively in the realm of plastic product design, manufacturing, and global distribution, encompassing both its home market in Japan and international territories. The firm's comprehensive offerings spa...

How the Company Makes Money

Tensho Electric Industries Co., Ltd. generates revenue primarily through the manufacture and sale of its electrical/electronic components to business customers (B2B), typically as part of industrial equipment, machinery, or system assemblies. Its cor...

Tensho Electric Industries Co., Ltd. Financial Statement Overview

Summary

Mixed fundamentals. The balance sheet is a clear strength with materially improved leverage (debt-to-equity down to ~0.34 in 2026), but operating performance weakened with a sharp revenue decline in 2026 (-17.23% YoY) and net margin compression (~2.3% vs ~4.5% in 2025). Cash generation remains a concern: while operating cash flow is positive, free cash flow has been volatile and often negative, with 2026 improving but still covering only ~41% of net income.

Income Statement

54Neutral

Balance Sheet

72Positive

Cash Flow

47Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	26.43B	21.88B	27.89B	26.91B	23.90B	19.45B
Gross Profit	4.20B	4.04B	4.28B	4.32B	3.75B	2.87B
EBITDA	3.81B	2.82B	4.01B	3.73B	2.73B	2.25B
Net Income	1.32B	504.00M	1.26B	949.00M	612.00M	245.00M
Balance Sheet
Total Assets	22.17B	21.02B	22.12B	27.95B	27.56B	21.32B
Cash, Cash Equivalents and Short-Term Investments	3.75B	3.24B	3.30B	5.19B	5.50B	4.08B
Total Debt	4.57B	3.77B	4.49B	8.12B	7.84B	5.27B
Total Liabilities	11.67B	10.00B	11.49B	17.02B	18.04B	13.23B
Stockholders Equity	10.50B	11.01B	10.62B	9.25B	7.93B	7.06B
Cash Flow
Free Cash Flow	0	778.00M	-582.00M	-48.00M	-1.46B	606.00M
Operating Cash Flow	0	1.90B	2.49B	2.69B	2.67B	2.43B
Investing Cash Flow	0	-1.23B	-2.64B	-2.69B	-3.87B	-1.32B
Financing Cash Flow	0	-806.00M	148.00M	-622.00M	2.48B	-8.00M

Tensho Electric Industries Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price272.00

Price Trends

50DMA285.54Negative

100DMA277.25Negative

200DMA272.99Negative

Market Momentum

MACD-3.88Positive

RSI43.28Neutral

STOCH46.67Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6776, the sentiment is Negative. The current price of 272.00 is below the 20-day moving average (MA) of 279.55, below the 50-day MA of 285.54, and below the 200-day MA of 272.99, indicating a bearish trend. The MACD of -3.88 indicates Positive momentum. The RSI at 43.28 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6776.

Tensho Electric Industries Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:6776 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7266	66Neutral	JPY 19.12B	6.44	―	3.39%	-4.68%	―
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:7280	61Neutral	JPY 54.94B	4.37	―	2.06%	3.27%	-17.13%
JP:6699	58Neutral	JPY 5.62B	3.93	―	5.72%	5.85%	-4.12%
JP:7297	58Neutral	JPY 5.94B	11.80	―	3.91%	1.24%	―
JP:6776	57Neutral	JPY 4.68B	10.16	―	1.84%	-14.84%	-65.46%

* Consumer Cyclical Sector Average

Performance Comparison

JP:6776 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6776	Tensho Electric Industries Co., Ltd.	272.00	15.85	6.19%
JP:6699	Diamond Electric Holdings Co., Ltd.	437.00	-106.48	-19.59%
JP:7266	Imasen Electric Industrial Co., Ltd.	914.00	147.01	19.17%
JP:7280	Mitsuba Corporation	1110.00	191.95	20.91%
JP:7297	Car Mate Mfg. Co Ltd	843.00	28.77	3.53%

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: Nov 07, 2026

Tensho Electric Industries Co., Ltd. AI Stock Analysis