NEW COSMOS ELECTRIC CO.,LTD.6824

Why the market may be pricing it low

• The core household gas detector had its replacement cycle stretched from 3 to 5 years, leaving a lingering demand gap that marks it as a mature, low-growth product.

  この２年の延長期間が期限切れによる交換需要のない期間となり、以来このサイクルが残ったまま現在に至っております。Risk factors

• The payout ratio is still only 22.4%, with the 30% target set as a future goal, so the market does not see it as a company aggressively returning profits.

  『中期経営計画2025-2027』において配当性向（連結）30％を目指すことを掲げておりDividend policy

What could close the gap

• If the North American battery methane detector business is recognized as a durable new growth engine, market perception could shift.

  北米向け電池式メタン警報器の販売が好調に推移し、グループ全体の売上増加に大きく寄与しました。MD&A

• A large 35-yen dividend increase this period could be viewed as a shift toward shareholder returns if it continues toward the 30% payout goal.

  １株当たりの期末配当を前事業年度より35円増配し95円とさせて頂きます。Dividend policy

• If Europe's carbon-neutral hydrogen market development starts visibly contributing to results, the mature single-segment narrative could break down.

  欧州では、カーボンニュートラル（水素）市場の基盤づくりを行っています。Management policy

How a buyer could still lose (value trap)

• The business is a single gas-detector segment where both household and industrial products swing with economic and capex cycles, offering no real diversification cushion.

  当商品の需給、価格は、景気動向の変動に伴う設備投資需要の変動サイクルによる影響が顕著です。Risk factors

• Recent profit growth leans heavily on the North American battery methane detector surge; if that single driver cools, the 'cheap' earnings base itself could shrink.

  北米向けの電池式メタン警報器および警報器用ガスセンサの販売が引き続き好調に推移しました。MD&A

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✓ROA up on last year
• ✓Cash flow exceeds net profit
• ✓Leverage down on last year
• ✓Current ratio up on last year
• ✓No new shares issued
• ✗Gross margin up on last year
• ✓Asset turnover up on last year

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

¥50.1bn

Operating profit

¥7.4bn

Net profit

¥5.2bn

Operating cash flow

¥6.0bn

Cash

¥22.3bn

Debt

¥4.0bn

Equity

¥57.4bn

Annual report for the year to 2026-03-31