Sonec Corporation (1768) AI Stock Analysis

• Market Cap: ¥7.30B
• Dividend Yield: 3%
• Average Volume (3M): 8.44K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.19
• Revenue Growth: 12.81%
• EPS Growth: 614.41%
• Country: JP
• Employees: 128
• Sector: Industrials
• Sector Strength: 79
• Industry: Engineering & Construction
• EPS (TTM): 27.00
• Shares Outstanding: 7,500,000
• 10 Day Avg. Volume: 9,040
• 30 Day Avg. Volume: 8,440
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• 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 Business Overview & Revenue Model

Company Description

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.

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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.20B	15.20B	16.18B	18.04B	17.16B	16.30B
Gross Profit	1.44B	1.44B	979.41M	1.62B	1.70B	1.78B
EBITDA	863.72M	739.00M	306.00M	1.08B	1.15B	1.25B
Net Income	500.06M	500.00M	144.95M	688.85M	800.15M	866.79M
Balance Sheet
Total Assets	12.90B	12.90B	11.62B	11.55B	11.29B	11.26B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.31B	2.66B	5.59B	3.94B	4.23B
Total Debt	5.82M	0.00	7.34M	965.00K	2.38M	3.81M
Total Liabilities	3.84B	3.84B	2.91B	2.90B	3.18B	3.66B
Stockholders Equity	9.06B	9.06B	8.71B	8.65B	8.11B	7.60B
Cash Flow
Free Cash Flow	0.00	-982.00M	-2.68B	1.87B	-17.99M	1.45B
Operating Cash Flow	0.00	-654.00M	-2.67B	2.14B	177.89M	1.53B
Investing Cash Flow	0.00	-472.00M	-39.60M	-270.03M	-212.26M	-106.88M
Financing Cash Flow	0.00	-219.00M	-222.91M	-218.98M	-256.24M	-149.28M

Sonec Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 992.00
• 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:1768, the sentiment is Positive. The current price of 992 is above the 20-day moving average (MA) of 978.40, above the 50-day MA of 938.78, and above the 200-day MA of 860.83, indicating a bullish trend. The MACD of 18.36 indicates Negative momentum. The RSI at 66.38 is Neutral, neither overbought nor oversold. The STOCH value of 78.40 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1434	76 Outperform	¥7.87B	11.69		3.67%	48.04%	24.48%
1438	76 Outperform	¥6.33B	16.86		1.70%	18.23%	1.32%
1401	70 Outperform	¥10.57B	21.17		0.93%	8.18%	20.47%
1905	70 Outperform	¥8.52B	8.62		3.64%	6.74%	543.41%
2311	68 Neutral	¥7.13B	15.30		4.00%	13.11%	-8.17%
1768	66 Neutral	¥7.30B	10.74		3.00%	12.81%	614.41%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%