Sonec Corporation (1768) AI Stock Analysis

• Market Cap: ¥6.59B
• Dividend Yield: 3.33%
• Average Volume (3M): 12.76K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.15
• Revenue Growth: -5.23%
• EPS Growth: 96.32%
• Country: JP
• Employees: 128
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): 29.40
• Shares Outstanding: 7,500,000
• 10 Day Avg. Volume: 2,730
• 30 Day Avg. Volume: 12,756
• PEG Ratio: 0.04
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
14.91B	16.18B	18.04B	17.16B	16.30B	15.86B
	Gross Profit
1.20B	979.41M	1.62B	1.70B	1.78B	1.37B
	EBIT
441.59M	249.30M	940.21M	1.11B	1.21B	806.34M
	EBITDA
625.76M	306.00M	1.08B	1.15B	1.25B	866.25M
	Net Income Common Stockholders
326.62M	144.95M	688.85M	800.15M	866.79M	539.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.13B	2.66B	5.59B	3.94B	4.23B	2.95B
	Total Assets
11.10B	11.62B	11.55B	11.29B	11.26B	11.29B
	Total Debt
0.00	7.34M	965.00K	2.38M	3.81M	5.24M
	Net Debt
-1.13B	-2.66B	-5.59B	-3.94B	-4.23B	-2.95B
	Total Liabilities
2.28B	2.91B	2.90B	3.18B	3.66B	4.53B
	Stockholders Equity
8.82B	8.71B	8.65B	8.11B	7.60B	6.76B
Cash Flow		Free Cash Flow
0.00	-2.68B	1.87B	-17.99M	1.45B	-853.90M
	Operating Cash Flow
0.00	-2.67B	2.14B	177.89M	1.53B	-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 Price: 900.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 900 is above the 20-day moving average (MA) of 882.35, above the 50-day MA of 859.68, and above the 200-day MA of 845.97, indicating a bullish trend. The MACD of 11.83 indicates Negative momentum. The RSI at 67.23 is Neutral, neither overbought nor oversold. The STOCH value of 82.16 is Negative, 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
1438	75 Outperform	¥6.20B	19.30		1.73%	7.57%	-14.81%
1434	71 Outperform	¥6.09B	6.95		3.42%	58.30%	-15.58%
1401	70 Outperform	¥6.39B	13.68		1.56%	2.39%	5.65%
1905	70 Outperform	¥7.36B	10.24		4.31%	20.94%	107.44%
2311	68 Neutral	¥6.50B	18.05		4.39%	10.82%	-47.86%
1768	66 Neutral	¥6.59B	13.16		3.33%	-5.23%	96.32%
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%