Sawafuji Electric Co., Ltd. (6901) AI Stock Analysis

• Market Cap: ¥4.58B
• Dividend Yield: 3.01%
• Average Volume (3M): 3.79K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.64
• Revenue Growth: -12.15%
• EPS Growth: -123.44%
• Country: JP
• Employees: 881
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -48.52
• Shares Outstanding: 4,322,000
• 10 Day Avg. Volume: 2,810
• 30 Day Avg. Volume: 3,793
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥983.00
• Price Target Upside: -7.44% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥983.00 ▼(-7.44% Downside)

Sawafuji Electric Co., Ltd.'s stock score is driven primarily by technical strength and a reasonable valuation. However, the financial performance is hindered by weak cash flow and profitability challenges, which present risks to overall stability.

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

Company Description

Sawafuji Electric Co., Ltd. manufactures and sells electronic components for trucks and buses, portable electronic equipment, and portable refrigerators in Japan. The company offers automotive electrical equipment, such as starters, alternators, hybrid (HV) motors, control devices, battery packs, relays, and DC motors. It also provides refrigerators under the ENGEL brand; and gasoline and diesel engine generators and welders under the Elemax brand, as well as generators for use in ships, power plants, and industrial applications. In addition, the company engages in the transportation and freightage businesses. It exports its products to approximately 100 countries worldwide. The company was formerly known as Sawafuji Electric Manufactory and changed its name to Sawafuji Electric Co., Ltd. in 1934. Sawafuji Electric Co., Ltd. was founded in 1908 and is headquartered in Ota, Japan.

How the Company Makes Money

Sawafuji Electric Co., Ltd. generates revenue primarily through the sale of its electrical equipment and components. The company's key revenue streams include the manufacturing and distribution of automotive electrical components such as alternators and starters, which are supplied to major automotive manufacturers. Additionally, the company earns income from the sale of power generators, which are used in various applications, including industrial and residential settings. Sawafuji also engages in partnerships and collaborations with other firms to enhance its product offerings and reach. Factors contributing to its earnings include technological innovation, a strong distribution network, and the ability to meet diverse customer needs across different sectors.

Sawafuji Electric Co., Ltd. Financial Statement Overview

Summary

Sawafuji Electric Co., Ltd. has faced challenges with declining revenue and profitability, pressure evident from low EBIT and EBITDA margins. While the balance sheet is stable, with a decent equity cushion, cash flow constraints pose significant risks to financial stability.

Income Statement

The company has experienced a decline in revenue over recent years. Gross profit margin has slightly improved to 14.66%, but net profit margin decreased to 1.05%, highlighting pressure on profitability. EBIT and EBITDA margins remain low, indicating operational challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.38, suggesting a balanced leverage. Stockholders' equity is stable, representing 50.07% of total assets, providing a solid equity cushion. However, the slight increase in total debt raises caution.

Cash Flow

Cash flow is weak with negative free cash flow of -1407 million and operating cash flow also negative. The operating cash flow to net income ratio is negative due to operating cash flow challenges, indicating potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.60B	23.60B	26.74B	29.34B	28.76B	26.66B
Gross Profit	3.46B	3.46B	3.84B	3.56B	3.47B	2.74B
EBITDA	880.50M	1.09B	1.49B	1.34B	1.33B	1.23B
Net Income	247.00M	247.00M	517.00M	285.00M	395.00M	283.00M
Balance Sheet
Total Assets	25.12B	25.12B	26.73B	21.46B	19.70B	19.04B
Cash, Cash Equivalents and Short-Term Investments	769.00M	769.00M	1.58B	1.17B	1.45B	1.16B
Total Debt	4.77B	4.77B	3.80B	3.21B	2.83B	3.10B
Total Liabilities	12.34B	12.34B	13.02B	10.95B	9.58B	9.43B
Stockholders Equity	12.58B	12.58B	13.51B	10.33B	9.95B	9.45B
Cash Flow
Free Cash Flow	0.00	-1.41B	-102.00M	-490.00M	633.00M	-497.00M
Operating Cash Flow	0.00	-268.00M	1.13B	149.00M	1.23B	380.00M
Investing Cash Flow	0.00	-1.33B	-1.22B	-766.00M	-593.00M	-783.00M
Financing Cash Flow	0.00	747.00M	460.00M	261.00M	-382.00M	851.00M

Sawafuji Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1062.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6901, the sentiment is Positive. The current price of 1062 is above the 20-day moving average (MA) of 1024.30, above the 50-day MA of 981.20, and above the 200-day MA of 910.10, indicating a bullish trend. The MACD of 23.89 indicates Negative momentum. The RSI at 67.81 is Neutral, neither overbought nor oversold. The STOCH value of 76.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6901.

Sawafuji Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6901	68 Neutral	¥4.58B	16.91	―	3.01%	-12.15%	-123.44%
6699	66 Neutral	¥5.05B	9.57	1.63%	6.32%	0.86%	―
6776	66 Neutral	¥4.53B	3.42	12.07%	1.88%	-2.14%	51.20%
7284	66 Neutral	¥4.22B	7.34	3.77%	4.15%	4.93%	―
7266	55 Neutral	¥16.83B	-65.10	-0.52%	2.88%	-7.01%	-108.77%
7214	54 Neutral	¥4.87B	-9.87	-2.24%	4.37%	4.74%	-193.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%