tiprankstipranks
Trending News
More News >
Sonec Corporation (JP:1768)
:1768
Japanese Market

Sonec Corporation (1768) AI Stock Analysis

Compare
0 Followers

Top Page

JP

Sonec Corporation

(1768)

Rating:66Neutral
Price Target:
Sonec Corporation faces challenges with declining revenue and profitability, as reflected in the financial statements. However, a strong balance sheet mitigates some risks. Technical indicators suggest stable market trends with potential for positive movement. Valuation metrics, including a reasonable P/E ratio and attractive dividend yield, support the stock's appeal. Overall, while there are financial challenges to address, the stock presents a balanced risk-reward profile.

Sonec Corporation (1768) vs. iShares MSCI Japan ETF (EWJ)

Sonec Corporation Business Overview & Revenue Model

Company DescriptionSonec 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.
How the Company Makes Money

Sonec Corporation Financial Statement Overview

Summary
Sonec Corporation's financials reveal pressures on revenue and profitability, impacting margins and overall financial health. While the balance sheet remains robust with low leverage, the cash flow statement indicates significant cash management challenges. This mixed financial performance suggests a need for strategic adjustments to enhance cash flow and profitability.
Income Statement
62
Positive
Sonec Corporation experienced a significant decline in revenue from the previous year, with a notable decrease in net income. The gross profit margin decreased to 6.05% from 8.97%, and the net profit margin fell to 0.90% from 3.82%. EBIT and EBITDA margins also dropped to 1.54% and 1.89% respectively, indicating reduced operational efficiency. This suggests challenges in maintaining profitability despite revenue generation.
Balance Sheet
87
Very Positive
The company demonstrates a strong balance sheet with an impressive equity ratio of 74.96%, indicating a solid equity base relative to total assets. The debt-to-equity ratio is low at 0.0008, reflecting minimal leverage and low financial risk. However, return on equity dropped to 1.66% from 7.96%, suggesting lower profitability relative to shareholder investments.
Cash Flow
45
Neutral
There was a dramatic decline in cash flow, with a negative free cash flow growth rate of -1,531%. The operating cash flow to net income ratio is troubling at -18.40, indicating issues converting profits into cash. Despite negative cash flow figures, the company maintains significant cash reserves, which could help in navigating short-term liquidity challenges.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
14.91B16.18B18.04B17.16B16.30B15.86B
Gross Profit
1.20B979.41M1.62B1.70B1.78B1.37B
EBIT
441.59M249.30M940.21M1.11B1.21B806.34M
EBITDA
625.76M306.00M1.08B1.15B1.25B866.25M
Net Income Common Stockholders
326.62M144.95M688.85M800.15M866.79M539.82M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.13B2.66B5.59B3.94B4.23B2.95B
Total Assets
11.10B11.62B11.55B11.29B11.26B11.29B
Total Debt
0.007.34M965.00K2.38M3.81M5.24M
Net Debt
-1.13B-2.66B-5.59B-3.94B-4.23B-2.95B
Total Liabilities
2.28B2.91B2.90B3.18B3.66B4.53B
Stockholders Equity
8.82B8.71B8.65B8.11B7.60B6.76B
Cash FlowFree Cash Flow
0.00-2.68B1.87B-17.99M1.45B-853.90M
Operating Cash Flow
0.00-2.67B2.14B177.89M1.53B-822.10M
Investing Cash Flow
0.00-39.60M-270.03M-212.26M-106.88M-33.69M
Financing Cash Flow
0.00-222.91M-218.98M-256.24M-149.28M-147.71M

Sonec Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price893.00
Price Trends
50DMA
861.76
Positive
100DMA
841.83
Positive
200DMA
845.98
Positive
Market Momentum
MACD
10.78
Positive
RSI
60.22
Neutral
STOCH
55.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1768, the sentiment is Positive. The current price of 893 is above the 20-day moving average (MA) of 884.70, above the 50-day MA of 861.76, and above the 200-day MA of 845.98, indicating a bullish trend. The MACD of 10.78 indicates Positive momentum. The RSI at 60.22 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1768.

Sonec Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥6.13B19.08
1.90%7.57%-14.81%
71
Outperform
¥6.09B6.95
3.36%58.30%-15.58%
70
Outperform
¥7.28B15.57
0.97%2.39%5.65%
70
Outperform
¥7.42B10.33
4.96%20.94%107.44%
68
Neutral
¥6.49B18.03
4.95%10.82%-47.86%
66
Neutral
¥6.56B13.10
3.34%-5.23%96.32%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1768
Sonec Corporation
898.00
-12.41
-1.36%
JP:1401
MBS Co., Ltd.
950.00
240.79
33.95%
JP:1434
JESCO Holdings, Inc.
896.00
64.44
7.75%
JP:1438
Gifu landscape architect Co.,Ltd.
1,903.00
193.06
11.29%
JP:1905
Tenox Corporation
1,170.00
-14.27
-1.20%
JP:2311
EPCO Co.,Ltd.
736.00
-53.29
-6.75%
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.