Tomita Electric Co., Ltd. (6898) AI Stock Analysis

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Tomita Electric Co., Ltd.

(TSE/TYO:6898)

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Rating:60Neutral

Price Target:JPY 6,521.00▲(5.18% Upside)

Action:reiterated

Date:09/09/26

The overall score of 60 reflects a highly polarized investment profile. The stock's exceptional price momentum and the company's pristine zero-debt balance sheet are major strengths. However, these factors are significantly weighed down by extreme valuation premiums and severe cash flow burn from struggling core operations.

Positive Factors

Debt-free balance sheetThe absence of reported debt and the large equity base reduce interest, refinancing, and solvency pressure through business cycles. This gives Tomita Electric greater flexibility to manage volatility, preserve liquidity, and fund operations without relying heavily on external borrowing.

Negative Factors

Negative operating profitabilityDespite the return to positive net income, the core business still does not cover operating costs at the EBIT level. Continued operating losses weaken earnings quality and suggest that revenue recovery alone has not yet established a sustainable profit structure for the next several quarters.

Tomita Electric Co., Ltd. (6898) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.06B
Dividend Yield: ―
Average Volume (3M): 4,773
Price to Earnings (P/E): 95.3
Beta (1Y): -0.34
Revenue Growth: 28.89%
EPS Growth: 106.89%
Country: Japan
Employees: 271
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Tomita Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Tomita Electric Co.,Ltd. manufactures and sells ferrite cores and electronic components in Japan, Asia, and internationally. The company offers soft ferrite cores; and coils and transformers. Its products are used in switching power supply transforme...

How the Company Makes Money

Tomita Electric generates revenue primarily through the manufacture and sale of magnetic materials and related components. Its main cash inflows come from (1) product sales of ferrite and other magnetic materials (including processed/formed parts) to...

Tomita Electric Co., Ltd. Financial Statement Overview

Summary

The company possesses a fortress balance sheet with zero debt, offering massive stability. However, this is heavily offset by negative core operating margins and severe cash flow burn.

Income Statement

45Neutral

Balance Sheet

95Very Positive

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	1.84B	1.60B	1.42B	1.49B	2.00B	1.83B
Gross Profit	545.48M	414.74M	276.35M	403.76M	635.46M	567.89M
EBITDA	120.61M	-12.06M	-122.13M	21.10M	191.79M	174.75M
Net Income	53.30M	123.76M	-171.15M	-33.59M	95.44M	106.72M
Balance Sheet
Total Assets	4.74B	4.66B	4.79B	4.70B	4.56B	4.26B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.11B	1.25B	1.32B	1.06B	1.04B
Total Debt	0	0	0	0	0	0
Total Liabilities	650.48M	678.39M	938.63M	917.13M	1.02B	970.07M
Stockholders Equity	4.09B	3.98B	3.85B	3.78B	3.54B	3.29B
Cash Flow
Free Cash Flow	0	-137.50M	-221.67M	43.68M	-34.10M	28.61M
Operating Cash Flow	0	-117.13M	-109.14M	77.92M	40.02M	59.36M
Investing Cash Flow	0	-26.84M	-118.20M	-40.38M	-82.26M	-35.08M
Financing Cash Flow	0	15.07M	78.47M	177.29M	-5.59M	-11.96M

Tomita Electric Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price6200.00

Price Trends

50DMA5116.90Positive

100DMA4400.30Positive

200DMA4090.97Positive

Market Momentum

MACD366.32Negative

RSI70.23Negative

STOCH93.29Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6898, the sentiment is Positive. The current price of 6200.00 is above the 20-day moving average (MA) of 5489.25, above the 50-day MA of 5116.90, and above the 200-day MA of 4090.97, indicating a bullish trend. The MACD of 366.32 indicates Negative momentum. The RSI at 70.23 is Negative, neither overbought nor oversold. The STOCH value of 93.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6898.

Tomita Electric Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6898 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6927	79Outperform	JPY 15.27B	8.51	―	10.81%	65.55%	189.55%
JP:5906	78Outperform	JPY 11.10B	5.54	―	1.97%	4.45%	23.49%
JP:6794	69Neutral	JPY 87.12B	23.52	―	2.26%	2.98%	1.10%
JP:6632	65Neutral	JPY 112.79B	6.74	12.17%	2.66%	2.28%	8.82%
JP:6898	60Neutral	JPY 4.10B	95.31	―	―	28.89%	106.89%
JP:6810	60Neutral	JPY 81.28B	9.34	―	2.44%	6.30%	92.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6898 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6898	Tomita Electric Co., Ltd.	6200.00	2820.00	83.43%
JP:6632	JVCKENWOOD Corporation	820.00	-371.06	-31.15%
JP:5906	MK Seiko Co., Ltd.	761.00	222.00	41.19%
JP:6794	Foster Electric Company, Limited	4635.00	2182.47	88.99%
JP:6810	Maxell, Ltd.	2188.00	79.49	3.77%
JP:6927	Helios Techno Holding Co., Ltd.	844.00	-167.61	-16.57%

Tomita Electric Co., Ltd. Corporate Events

Tomita Electric Delivers Higher Sales and Returns to Operating Profit in Q2 2026

Sep 11, 2026

Tomita Electric Co., Ltd. reported consolidated net sales of ¥972 million for the second quarter ended July 2026, up 33.1% year on year, reflecting solid top-line growth. Operating profit swung to ¥48 million from a loss in the prior-year period, whi...

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: Sep 09, 2026

Tomita Electric Co., Ltd. AI Stock Analysis