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Foster Electric Company, Limited (6794) AI Stock Analysis

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JP:6794

Foster Electric Company, Limited

(TSE/TYO:6794)

Select Model
Rating:68.5Neutral
Price Target:JPY 3,747.00▼(-4.29% Downside)
Action:reiterated
Date:08/17/26

The score is driven primarily by solid financial stability and improved profitability, offset by a meaningful near-term red flag in cash generation (TTM negative free cash flow). Technicals are supportive with price above key moving averages and positive MACD, while valuation is fair (P/E ~19) with a moderate dividend yield (~2.6%).

Positive Factors
Conservative Balance SheetLow leverage gives Foster Electric financial flexibility to continue product development, support customer programs, and withstand operating volatility without heavy debt-service pressure. The improved capital structure should also reduce refinancing risk and preserve options for disciplined investment over the next several quarters.
Negative Factors
Negative Recent Free Cash FlowNegative trailing free cash flow weakens the conversion of reported earnings into deployable cash and may constrain reinvestment or shareholder returns if it persists. The reversal from stronger prior periods also signals that working-capital or capital-spending demands require close monitoring over the coming quarters.

Foster Electric Company, Limited (6794) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%60%JP:6794+59.44%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 96.50B
Dividend Yield
2.55%
Average Volume (3M)
188.07K
Price to Earnings (P/E)
22.1
Beta (1Y)
1.17
Revenue Growth
2.98%
EPS Growth
1.10%
Country
Japan
Employees
16,260
Sector
Technology
Sector Strength
61
Industry
Consumer Electronics

Foster Electric Company, Limited Business Overview & Revenue Model

Company Description

Foster Electric Company, Limited operates globally as a manufacturer and distributor of a diverse range of audio and electronic devices. Its operations are structured into three principal segments. The Speaker division focuses on developing and suppl...

How the Company Makes Money

Foster Electric makes money primarily by designing, manufacturing, and selling electro-acoustic components and finished audio-related products to corporate customers, typically on a B2B/OEM or ODM basis. Key revenue streams include (1) sales of speak...

Foster Electric Company, Limited Financial Statement Overview

Summary

Profitability has materially recovered versus 2022 and the balance sheet is conservatively levered, but recent cash conversion has weakened: TTM free cash flow is negative despite positive earnings, pointing to near-term quality-of-earnings and working-capital/capex timing risk.

Income Statement

71Positive

Balance Sheet

78Positive

Cash Flow

45Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue137.87B134.91B137.61B122.45B121.34B91.11B
Gross Profit23.02B23.64B24.12B18.84B16.16B7.49B
EBITDA10.04B11.07B9.99B7.61B6.01B-4.55B
Net Income3.59B4.95B3.90B2.31B849.00M-7.02B
Balance Sheet
Total Assets113.07B112.24B106.83B102.75B92.87B86.15B
Cash, Cash Equivalents and Short-Term Investments19.98B20.66B21.50B20.86B13.65B13.19B
Total Debt11.88B8.97B8.57B16.94B17.46B13.37B
Total Liabilities36.70B35.31B38.09B38.42B36.35B34.51B
Stockholders Equity67.30B67.71B60.87B58.01B51.10B47.16B
Cash Flow
Free Cash Flow-1.81B242.00M11.21B10.67B-2.18B-15.43B
Operating Cash Flow6.08B6.94B14.83B15.43B354.00M-12.77B
Investing Cash Flow-7.89B-5.78B-844.00M-8.54B-1.32B-3.07B
Financing Cash Flow-1.95B-2.33B-9.88B-4.44B1.78B6.77B

Foster Electric Company, Limited Technical Analysis

Technical Analysis SentimentPositive
Last Price3915.00

Price Trends

50DMA3199.76Positive
100DMA3037.87Positive
200DMA2973.98Positive

Market Momentum

MACD11.50Negative
RSI70.99Negative
STOCH66.19Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6794, the sentiment is Positive. The current price of 3915.00 is above the 20-day moving average (MA) of 3287.50, above the 50-day MA of 3199.76, and above the 200-day MA of 2973.98, indicating a bullish trend. The MACD of 11.50 indicates Negative momentum. The RSI at 70.99 is Negative, neither overbought nor oversold. The STOCH value of 66.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6794.

Foster Electric Company, Limited Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:6794 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6758JP:675869NeutralJPY 25.11T-210.22-1.61%0.71%1.94%-110.37%
JP:6794JP:679469NeutralJPY 71.54B22.11―2.55%2.98%1.10%
JP:6632JP:663265NeutralJPY 110.54B6.6612.17%2.73%2.28%8.82%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:6752JP:675260NeutralJPY 7.39T23.596.17%1.44%3.66%1.36%
JP:6810JP:681060NeutralJPY 80.73B9.43―2.40%6.30%92.01%
JP:6694JP:669447NeutralJPY 3.41B-3.22―3.97%5.19%-292.89%

* Technology Sector Average

Performance Comparison

0%50%100%150%JP:6794JP:6752JP:6758JP:6632JP:6694JP:6810Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6794 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6794Foster Electric Company, Limited3915.001428.5957.46%
JP:6752Panasonic Corporation3257.001515.8287.06%
JP:6758Sony Corporation4200.00-428.70-9.26%
JP:6632JVCKENWOOD Corporation805.00-589.39-42.27%
JP:6694Zoom Corp.806.00206.1834.37%
JP:6810Maxell, Ltd.2205.0087.694.14%

Foster Electric Company, Limited Corporate Events

Foster Electric Revises Fiscal 2027 Year-End Dividend Forecast

Nov 10, 2026

Foster Electric Company, listed on the Tokyo Stock Exchange Prime Market under code 6794, revised its year-end dividend forecast for the fiscal year ending March 31, 2027, citing recent earnings performance. The forecast rose to ¥190 per share from ¥...

Foster Electric Reports Six-Month Results

Nov 10, 2026

Foster Electric Company, Limited reported six-month net sales of ¥73,490 million, up 10.3% year on year, while operating profit fell 27.8% to ¥3,126 million; ordinary profit was ¥3,864 million, unchanged year on year, and profit attributable to owner...

Foster Electric Announces Tender Offer for ESTec Shares

Nov 10, 2026

Foster Electric announced the commencement of a tender offer by wholly owned subsidiary FFEK Co., Ltd. to acquire all ESTec shares not already held by Foster Electric or held as treasury shares. Foster Electric currently owns 49.41% of ESTec, which i...

Foster Electric Announces Medium-Term Business Plan 2031

Nov 10, 2026

Foster Electric Company, Limited is listed on the Tokyo Stock Exchange Prime Market under code 6794. The release focuses on the role of sound but does not specify particular products, services or market segments.The company announced the formulation...

Asset Value Investors Lifts Stake in Foster Electric to Over 10%

Oct 15, 2026

Foster Electric Company, Limited has reported a change in its major shareholders following a disclosure to the Kanto Local Finance Bureau. The filing concerns London-based Asset Value Investors Limited, an investment management firm led by Joe Bauern...

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 17, 2026