Strong Balance Sheet / Low LeverageVery low leverage and a healthy equity ratio reduce financial risk and increase resilience through construction cycles. This durable capital structure supports access to funding for projects, cushions cash-flow swings, and preserves strategic optionality over the next several months.

Operational Margin ResilienceStable gross margins coupled with decent EBIT/EBITDA margins point to lasting operational efficiency. In engineering and construction, sustained margin control boosts cash generation potential (once cash flow normalizes) and enables competitive bidding and reinvestment into backlog.

Low Business Volatility & Moderate ROEA low beta signals lower external earnings volatility; a moderate ROE shows the company earns reasonable returns on equity. Together these durable traits support steadier capital allocation, reduced refinancing risk, and more predictable cash needs across 2-6 months.

Bears Say

Negative Operating And Free Cash FlowPersistent negative operating and free cash flow constrains liquidity and limits the firm's ability to fund capex, backlogs, or distributions from internal sources. Over months this increases reliance on external financing and raises execution risk on projects.

Inconsistent Revenue Growth / Recent DeclineErratic top-line performance and recent revenue declines weaken long-term planning and scale economics. For a project-centric engineering firm, inconsistent revenue reduces predictability of margins, utilization and backlog conversion over multiple quarters.

Profitability VolatilityFluctuating net margins create earnings unpredictability and can erode retained earnings needed for growth. Margin swings make it harder to sustainably fund reinvestment or absorb cost inflation, increasing operational and financial strain over the medium term.

1768 FAQ

What was Sonec Corporation’s price range in the past 12 months?

Sonec Corporation lowest stock price was ¥808.00 and its highest was ¥1796.00 in the past 12 months.

What is Sonec Corporation’s market cap?

Sonec Corporation’s market cap is ¥11.83B.

When is Sonec Corporation’s upcoming earnings report date?

Sonec Corporation’s upcoming earnings report date is May 07, 2026 which is in 80 days.

How were Sonec Corporation’s earnings last quarter?

Sonec Corporation released its earnings results on Feb 06, 2026. The company reported ¥54.11 earnings per share for the quarter, beating the consensus estimate of N/A by ¥54.11.

Is Sonec Corporation overvalued?

According to Wall Street analysts Sonec Corporation’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Sonec Corporation pay dividends?

Sonec Corporation pays a Annually dividend of ¥50 which represents an annual dividend yield of 2.16%. See more information on Sonec Corporation dividends here

What is Sonec Corporation’s EPS estimate?

Sonec Corporation’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Sonec Corporation have?

Sonec Corporation has 7,500,000 shares outstanding.

What happened to Sonec Corporation’s price movement after its last earnings report?

Sonec Corporation reported an EPS of ¥54.11 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -2.899%.

Which hedge fund is a major shareholder of Sonec Corporation?

Currently, no hedge funds are holding shares in JP:1768

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Sonec Corporation

Sonec Corporation engages in the general construction business. It constructs medical, welfare, education/childcare/cultural, commercial, production/logistics, and religious facilities, as well as housing complexes. The company also engages in the civil engineering construction businesses, including road and bridge, and river/sabo construction activities. In addition, it offers building repair and maintenance, and other renewal services. Further, the company is involved in design and construction supervision; and lending of construction machinery and equipment. Sonec Corporation was founded in 1944 and is headquartered in Takasago, Japan.