Sonec Corporation (1768) AI Stock Analysis

• Market Cap: ¥7.17B
• Dividend Yield: 3.05%
• Average Volume (3M): 9.52K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.19
• Revenue Growth: 12.81%
• EPS Growth: 614.41%
• Country: JP
• Employees: 128
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 27.00
• Shares Outstanding: 7,500,000
• 10 Day Avg. Volume: 4,500
• 30 Day Avg. Volume: 9,523
• PEG Ratio: 0.05
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -6.32
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥1,109.00 ▲(11.12% Upside)

Sonec Corporation's stock is supported by strong technical momentum and an attractive valuation, despite mixed financial performance. The robust balance sheet and low P/E ratio are significant positives, while cash flow challenges present a risk that needs addressing.

Sonec Corporation Business Overview & Revenue Model

Company Description

Sonec Corporation (1768) is a diversified company primarily engaged in the manufacturing and distribution of advanced electronic components and industrial systems. With a strong presence in the technology and industrial sectors, Sonec specializes in producing high-quality semiconductors, automation equipment, and smart technology solutions that cater to a wide range of industries, including automotive, telecommunications, and consumer electronics.

How the Company Makes Money

Sonec Corporation generates revenue through multiple streams, primarily by selling its electronic components and industrial systems to OEMs (Original Equipment Manufacturers) and other businesses in various sectors. The company leverages long-term contracts with key clients, ensuring a steady flow of income. Additionally, Sonec invests in research and development to innovate its product offerings, which allows it to maintain a competitive edge and command premium prices. Partnerships with leading technology firms enhance its market reach and provide access to new customer bases, further contributing to its revenue. The company also offers after-sales services and maintenance contracts, providing a continuous revenue stream beyond the initial sale of its products.

Sonec Corporation Financial Statement Overview

Summary

Sonec Corporation exhibits a mixed financial performance. The balance sheet is strong with low leverage, but the income statement shows inconsistent revenue growth and fluctuating profitability. Cash flow issues, particularly negative free cash flow, highlight potential liquidity concerns.

Income Statement

Sonec Corporation has shown a mixed performance in its income statement. The gross profit margin has been relatively stable, but the net profit margin has seen fluctuations, indicating some volatility in profitability. Revenue growth has been inconsistent, with recent years showing a decline. However, the company maintains decent EBIT and EBITDA margins, suggesting operational efficiency.

Balance Sheet

The balance sheet of Sonec Corporation is strong, with a very low debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity is moderate, reflecting reasonable profitability relative to shareholder equity. The equity ratio is healthy, suggesting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows in recent periods, indicating potential liquidity issues. The free cash flow to net income ratio is high, suggesting that the company is generating cash relative to its net income, but the negative growth in free cash flow is concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.97B	15.20B	16.18B	18.04B	17.16B	16.30B
Gross Profit	1.71B	1.44B	979.41M	1.62B	1.70B	1.78B
EBITDA	1.10B	739.00M	306.00M	1.01B	1.15B	1.25B
Net Income	678.67M	500.00M	144.95M	688.85M	800.15M	866.79M
Balance Sheet
Total Assets	13.66B	12.90B	11.62B	11.55B	11.29B	11.26B
Cash, Cash Equivalents and Short-Term Investments	5.79B	1.31B	2.66B	5.59B	3.94B	4.23B
Total Debt	15.72M	5.82M	7.34M	965.00K	2.38M	3.81M
Total Liabilities	4.59B	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: 998.00
• 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 998 is above the 20-day moving average (MA) of 991.25, above the 50-day MA of 992.74, and above the 200-day MA of 891.91, indicating a bullish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 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	¥8.30B	7.69	―	3.35%	28.80%	5.99%
1438	76 Outperform	¥6.33B	16.83	―	1.85%	18.23%	1.32%
1768	72 Outperform	¥7.17B	10.55	―	3.05%	12.81%	614.41%
1905	72 Outperform	¥8.36B	8.37	―	4.16%	6.74%	543.41%
2311	68 Neutral	¥7.22B	15.18	―	3.95%	13.11%	-8.17%
1401	67 Neutral	¥10.55B	18.41	―	0.96%	21.18%	53.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%