SUNNY SIDE UP GROUP Inc. (2180) AI Stock Analysis

• Market Cap: ¥14.72B
• Dividend Yield: 2.6%
• Average Volume (3M): 38.49K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.45
• Revenue Growth: 16.35%
• EPS Growth: 57.53%
• Country: JP
• Employees: 360
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 32.30
• Shares Outstanding: 15,197,600
• 10 Day Avg. Volume: 20,750
• 30 Day Avg. Volume: 38,486
• PEG Ratio: 0.44
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 3.95
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥1,131.00 ▲(29.70% Upside)
• Action: Reiterated Date: 11/14/25
• Date: Action: Reiterated 11/14/25

SUNNY SIDE UP GROUP Inc. demonstrates strong financial performance with robust revenue growth and profitability, supported by a solid balance sheet and cash flow. Technical indicators are generally positive, although the high RSI suggests caution due to potential overbought conditions. The stock's valuation is attractive, with a reasonable P/E ratio and a healthy dividend yield, making it a compelling investment opportunity.

Positive Factors

Cash generation

SUNNY SIDE UP's material rise in free cash flow and favorable operating cash flow to net income ratio signal durable internal funding capacity. Over the next 2–6 months this strengthens the company’s ability to fund strategic investments, pay dividends, and reduce leverage without relying on external financing.

Low leverage and capital efficiency

A low debt-to-equity ratio combined with a strong 20.4% ROE provides long-term financial flexibility and demonstrates effective capital allocation. This structural balance sheet strength lowers default risk and supports disciplined growth or opportunistic M&A over a multi-month horizon.

Revenue and margin improvement

Consistent top-line growth alongside rising gross and net margins reflects improving business scale and operational efficiency. These trends, if maintained, indicate the core PR/communications model is generating healthier unit economics and can support sustainable profitability over several quarters.

Negative Factors

Thin net profitability

A 4.8% net margin leaves a relatively narrow earnings buffer against cost inflation, client spend variability, or weaker demand. Structurally thin profitability increases the risk that adverse industry or operational shocks could materially compress net income in the medium term without continued margin initiatives.

Dependence on cost management

The explicit need to monitor cost control indicates margins remain sensitive to operating expenses and labor. For an agency business, persistent pressure on SG&A or campaign costs can erode profitability, making long-term margin durability contingent on successful cost discipline and pricing power.

Moderate recent revenue growth

While positive, a 7.8% annual revenue rise is moderate for sustaining faster margin and cash-flow expansion. Absent acceleration or diversification, the company may face growth ceiling risks in a competitive advertising services market, limiting medium-term scalability and return expansion.

SUNNY SIDE UP GROUP Inc. Business Overview & Revenue Model

Company Description

Sunny Side Up Group, Inc., together with its subsidiaries, engages in the public relations business in Japan. It offers sales promotion, merchandising, OEM, and other services; and is involved in planning and promoting marketing communication strategies for casting of advertisement, films, program and creative consulting, commercial productions, graphic content, program creation, media purchasing, event productions, promotional activities, Web productions, video productions, content productions, casting, publicity, and others. The company also provides human resource education, certification tests, staffing agency, apprenticeship support, student ambassador, etc.; and develops and manages restaurants under the bills name. The company was formerly known as Sunny Side Up Inc. and changed its name to Sunny Side Up Group, Inc. in January 2020. Sunny Side Up Group, Inc. was founded in 1985 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SUNNY SIDE UP GROUP generates revenue through several key streams. Primarily, the company sells its breakfast products directly to consumers through retail outlets and its e-commerce platform, which provides a steady stream of sales. Additionally, partnerships with restaurants and cafes allow the company to supply its products on a larger scale, expanding its market reach. The company may also engage in promotional agreements with other brands, enhancing visibility and driving sales. Furthermore, SUNNY SIDE UP GROUP invests in marketing campaigns to increase brand awareness and foster customer loyalty, which contributes to recurring revenue. Seasonal promotions and product launches also play a significant role in boosting sales during peak times.

SUNNY SIDE UP GROUP Inc. Financial Statement Overview

Summary

SUNNY SIDE UP GROUP Inc. exhibits a strong financial position with consistent revenue growth, solid profitability, and robust cash flow generation. The low leverage and high return on equity further enhance its financial stability. Continued focus on cost management and strategic investments will support sustained growth and shareholder value.

Income Statement

SUNNY SIDE UP GROUP Inc. has demonstrated strong revenue growth with a 7.8% increase in the latest year, supported by a healthy gross profit margin of 23.4%. The net profit margin improved to 4.8%, indicating enhanced profitability. EBIT and EBITDA margins are also robust, reflecting efficient operations. However, the company should continue to monitor cost management to sustain these margins.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.17, showcasing low leverage and financial stability. The return on equity is strong at 20.4%, indicating effective use of shareholder funds. The equity ratio of 44.8% suggests a well-capitalized structure. Continued focus on maintaining low debt levels will be beneficial.

Cash Flow

SUNNY SIDE UP GROUP Inc. has shown impressive cash flow performance with a significant increase in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio is favorable, highlighting efficient cash conversion. The company should leverage this cash flow strength for strategic investments and debt management.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	19.59B	17.91B	18.96B	16.19B	15.36B
Gross Profit	4.59B	4.24B	4.15B	3.52B	2.97B
EBITDA	1.79B	1.58B	1.32B	1.28B	867.08M
Net Income	948.77M	795.17M	884.61M	581.21M	298.70M
Balance Sheet
Total Assets	10.41B	8.47B	8.60B	7.55B	7.16B
Cash, Cash Equivalents and Short-Term Investments	4.66B	3.19B	3.09B	3.23B	2.60B
Total Debt	787.66M	991.28M	1.22B	1.72B	1.92B
Total Liabilities	5.71B	4.34B	4.87B	4.73B	4.82B
Stockholders Equity	4.66B	4.10B	3.70B	2.80B	2.33B
Cash Flow
Free Cash Flow	2.05B	524.95M	757.17M	1.14B	168.34M
Operating Cash Flow	2.19B	655.38M	846.33M	1.19B	339.90M
Investing Cash Flow	-129.79M	-120.30M	-274.94M	-274.42M	-311.91M
Financing Cash Flow	-547.32M	-470.53M	-744.47M	-294.98M	423.08M

SUNNY SIDE UP GROUP Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 872.00
• 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:2180, the sentiment is Positive. The current price of 872 is below the 20-day moving average (MA) of 952.55, below the 50-day MA of 901.59, and above the 200-day MA of 719.25, indicating a bullish trend. The MACD of 25.97 indicates Negative momentum. The RSI at 61.39 is Neutral, neither overbought nor oversold. The STOCH value of 67.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2180.

SUNNY SIDE UP GROUP Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2436	80 Outperform	¥8.78B	10.32	―	1.24%	11.42%	29.26%
2180	79 Outperform	¥14.72B	9.52	―	2.60%	16.35%	57.53%
2461	69 Neutral	¥31.23B	23.86	―	5.08%	3.22%	13.97%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4751	58 Neutral	¥658.60B	16.86	18.07%	1.27%	9.04%	94.01%
2433	58 Neutral	¥421.07B	20.13	3.96%	2.75%	-8.56%	-47.89%
4324	48 Neutral	¥719.19B	-2.22	-34.34%	4.19%	0.24%	-731.34%

SUNNY SIDE UP GROUP Inc. Corporate Events

Sunny Side Up Group Secures ¥1.2 Billion Loan to Fund BILCOM Acquisition

Sunny Side Up Group Inc. has approved a new monetary loan agreement with Sumitomo Mitsui Banking Corporation to finance the acquisition of all shares of BILCOM Inc., which the company plans to make a wholly owned subsidiary. The ¥1.2 billion loan, with a repayment period running from March 31, 2026, to February 28, 2033, is unsecured and is tied directly to funding this strategic expansion move.

The loan agreement includes strict financial covenants requiring Sunny Side Up Group to maintain 100% voting rights in BILCOM, preserve at least 75% of its consolidated net assets compared with the previous year, and avoid posting ordinary income losses for two consecutive reporting periods. These conditions underscore the lender’s focus on financial discipline while indicating the company’s commitment to stable earnings as it integrates BILCOM, with the overall impact on fiscal 2026 results expected to be minor.

The most recent analyst rating on (JP:2180) stock is a Buy with a Yen1151.00 price target. To see the full list of analyst forecasts on SUNNY SIDE UP GROUP Inc. stock, see the JP:2180 Stock Forecast page.

SUNNY SIDE UP GROUP Lifts Earnings Outlook and Dividend on Strong Brand Communications Growth

SUNNY SIDE UP GROUP Inc. revised its full-year consolidated financial forecasts for the fiscal year ending June 30, 2026, raising net sales, operating profit, ordinary profit, and profit attributable to owners of parent on the back of strong first-half performance, especially in its Brand Communications business. The company also expects improved profit margins to continue and is scrutinizing the earnings impact of its recent acquisition of BILCOM Inc.

Reflecting stronger earnings and adherence to a policy of stable shareholder returns with a target payout ratio of around 30%, SUNNY SIDE UP GROUP increased its year-end dividend forecast, lifting the planned annual dividend compared with the previous fiscal year. The higher dividend signals management’s confidence in ongoing business momentum while balancing shareholder returns with internal reserves to support future growth and maintain financial soundness.

The most recent analyst rating on (JP:2180) stock is a Buy with a Yen1058.00 price target. To see the full list of analyst forecasts on SUNNY SIDE UP GROUP Inc. stock, see the JP:2180 Stock Forecast page.

SUNNY SIDE UP GROUP Lifts Dividends Amid Share Buybacks and Acquisition Moves

SUNNY SIDE UP GROUP Inc. has approved an interim dividend of ¥11 per share for the fiscal year ending June 30, 2026, with a record date of December 31, 2025, up from ¥7 in the previous year and in line with its prior forecast. The payout, totaling ¥161 million and funded from retained earnings, reflects the company’s commitment to stable shareholder returns while balancing future funding needs and cash flow.

The company has also been actively reshaping its capital structure, spending ¥199 million to buy back treasury shares and deciding to use part of those shares as consideration in its acquisition of BILCOM Inc. At the same time, it raised its year-end dividend forecast to ¥15 per share, lifting the planned annual dividend to ¥26 per share, signaling stronger shareholder returns and a focus on capital efficiency alongside growth investments.

The most recent analyst rating on (JP:2180) stock is a Buy with a Yen1058.00 price target. To see the full list of analyst forecasts on SUNNY SIDE UP GROUP Inc. stock, see the JP:2180 Stock Forecast page.

SUNNY SIDE UP GROUP Doubles Profit and Lifts Forecasts, Plans Higher Dividend

SUNNY SIDE UP GROUP reported strong consolidated results for the six months ended December 31, 2025, with net sales climbing 36.6% year on year to ¥13.5 billion and profit attributable to owners of parent doubling to ¥1.1 billion. Operating and ordinary profits both rose more than 80%, lifting the equity ratio to 48.1% and driving basic earnings per share to ¥77.06.

Reflecting this momentum, the company raised its full-year forecast, now projecting fiscal 2026 net sales of ¥23.2 billion and a 34.9% increase in full-year profit to ¥1.28 billion, alongside a planned dividend hike to a total of ¥26 per share. The stronger guidance and higher shareholder returns underscore improved profitability and a firmer financial base, signaling enhanced value prospects for investors and a more robust competitive stance in its market.

The most recent analyst rating on (JP:2180) stock is a Buy with a Yen1058.00 price target. To see the full list of analyst forecasts on SUNNY SIDE UP GROUP Inc. stock, see the JP:2180 Stock Forecast page.

SUNNY SIDE UP GROUP Uses Treasury Shares to Help Fund BILCOM Acquisition and Bolster Tech Capabilities

SUNNY SIDE UP GROUP has resolved to dispose of 171,800 treasury shares via a third-party allotment to NGK LLC and BILCOM director Kurara Hayakawa at 875 yen per share, raising 150.3 million yen, with the transaction structured as an in-kind contribution linked to the consideration for acquiring shares in BILCOM Inc. The treasury share disposal functions as partial settlement under a share purchase agreement to make BILCOM a subsidiary, aligning the interests of BILCOM’s key management with the group and supporting the strategic integration of BILCOM’s SaaS and data infrastructure into SUNNY SIDE UP’s brand communication services, with the aim of enhancing proposal capabilities, scalability, and competitive advantage in AI and technology over the medium to long term.

The most recent analyst rating on (JP:2180) stock is a Buy with a Yen810.00 price target. To see the full list of analyst forecasts on SUNNY SIDE UP GROUP Inc. stock, see the JP:2180 Stock Forecast page.

SUNNY SIDE UP to Acquire PR Tech Firm BILCOM, Bolstering Tech-Driven Brand Communication

SUNNY SIDE UP GROUP Inc. will acquire shares of PR tech firm BILCOM Inc. and make it a consolidated subsidiary, as part of its final phase of its current growth strategy focused on strengthening technology capabilities. BILCOM, founded in 2003 and based in Tokyo, offers integrated PR consulting and operates “PR Analyzer,” an AI-powered SaaS platform that measures PR performance across TV, print, digital and social media, alongside an advertising media database. By integrating BILCOM’s SaaS products, data infrastructure and in-house development expertise with its existing brand communication services, SUNNY SIDE UP aims to enhance proposal capabilities, improve repeatability and added value for clients, and address its technology and AI gaps. The company expects substantial synergies between BILCOM’s PR tech services and its core operations, supporting stronger earnings from brand communication and reinforcing its long-term corporate value and market competitiveness.

The most recent analyst rating on (JP:2180) stock is a Buy with a Yen810.00 price target. To see the full list of analyst forecasts on SUNNY SIDE UP GROUP Inc. stock, see the JP:2180 Stock Forecast page.