S E Corporation (3423) AI Stock Analysis

• Market Cap: ¥8.88B
• Dividend Yield: 4.94%
• Average Volume (3M): 21.34K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.42
• Revenue Growth: -4.23%
• EPS Growth: -64.20%
• Country: JP
• Employees: 558
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.77
• Shares Outstanding: 31,256,600
• 10 Day Avg. Volume: 19,600
• 30 Day Avg. Volume: 21,343
• PEG Ratio: -0.34
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 8.64
• 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: 69 Neutral
• Price Target: ¥323.00 ▲(20.97% Upside)
• Action: Downgraded Date: 09/23/25
• Date: Action: Downgraded 09/23/25

S E Corporation's stock score is driven by solid financial performance, particularly in revenue growth and a strong balance sheet. However, challenges in profitability and cash flow consistency, along with neutral technical indicators, moderate the overall score. The valuation is attractive due to a reasonable P/E ratio and a high dividend yield, which supports the stock's appeal.

Positive Factors

Healthy Equity Ratio / Strong Balance Sheet

A healthy equity ratio and moderate debt-to-equity indicate the company has a solid capital structure and lower refinancing risk. This durability supports capital spending for engineering projects, cushions cyclical downturns, and preserves financial flexibility for strategic investments over the next 2–6 months.

Stable Gross Margins

Stable gross margins point to persistent cost control and pricing strength in core operations. That structural margin resilience helps absorb input cost swings and underpins longer-term operating profitability even if net margins fluctuate, supporting consistent project economics and competitive positioning.

Consistent Revenue Growth Trend

A multi-year revenue expansion suggests sustained demand and successful business development in its markets. Continued top-line growth improves scale economics, funds reinvestment in capabilities, and provides a base for margin recovery and cash generation over the medium term.

Negative Factors

Declining Return on Equity

Falling ROE signals reduced efficiency in converting equity into profits and may reflect rising costs or suboptimal capital allocation. Unless reversed, declining ROE can erode shareholder returns and indicate that incremental investments are delivering lower returns than historical levels.

Inconsistent Cash Generation / Free Cash Flow Volatility

Variable operating and free cash flows, including a notable drop in 2023, weaken the firm's ability to reliably fund capex, dividends, or debt servicing. Persistent cash volatility raises execution risk for projects and limits strategic flexibility during adverse cycles.

Declining Net Profit Margins and Operational Volatility

Shrinking net margins and fluctuating operating margins suggest rising operating costs or project-level inefficiencies. If margin compression persists, it will reduce retained earnings, constrain reinvestment, and make returns more sensitive to revenue volatility.

S E Corporation Business Overview & Revenue Model

Company Description

SE Corporation engages in construction material and equipment business in Japan and internationally. The company supplies environmental and disaster prevention equipment, such as environmental conservation and landslide prevention, anti-seismic reinforcement of port and harbor facilities and underground structures, anti-seismic ties for bridge girders, and systems for durability monitoring; SEEE prestressing cables for prestressed concrete, outer cables, stay cables, and other products, as well as incidental engineering services for bridge and civil structures field; and PPP/concession works. It also manufactures and sells snap ties for construction of buildings and condominiums; and metal components for concrete forming and interior finishing materials. In addition, the company offers construction consulting services; repair and reinforcement services for roads, bridges, tunnels, dams, ports, and other facilities; construction management services for expressways; design check services for cable-stayed bridges; slope countermeasure survey and design services to prevent soil disasters; and stay materials and cable erection services for the bridge. SE Corporation was founded in 1967 and is headquartered in Tokyo, Japan.

How the Company Makes Money

S E Corporation generates revenue primarily through the sale of its electronic components and related services. The company operates on a business-to-business (B2B) model, supplying products to manufacturers in the automotive and telecommunications sectors, among others. Key revenue streams include direct sales of components, long-term contracts with major industry players, and after-sales service and support. Additionally, the company has established strategic partnerships with other technology firms to co-develop products, which further enhances its market reach and revenue potential. Factors contributing to its earnings include a growing demand for advanced electronic solutions, ongoing investment in R&D, and a robust supply chain that enables efficient production and delivery.

S E Corporation Financial Statement Overview

Summary

S E Corporation demonstrates solid revenue growth and stable gross margins, but faces challenges in maintaining net profitability and consistent cash flow. The balance sheet is strong, with a healthy equity position, but declining ROE highlights potential inefficiencies. Cash flow management shows variability, suggesting the need for improved operational cash conversion.

Income Statement

S E Corporation has shown a consistent revenue growth trend over the years, with a notable increase from 2020 to 2024. The gross profit margin has been stable, indicating efficient cost management. However, there is a decline in net profit margin from 2022 to 2025, suggesting rising expenses or other operational challenges. The EBIT and EBITDA margins have also shown fluctuations, reflecting some volatility in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. Return on equity has seen a decline, which could be a concern for investors seeking high returns. The equity ratio is healthy, demonstrating a strong asset base relative to liabilities. Overall, the balance sheet reflects stability but with some room for improvement in profitability.

Cash Flow

Operating cash flow has been positive in most years, except for 2023, indicating generally good cash generation from operations. Free cash flow growth has been inconsistent, with a significant drop in 2023. The operating cash flow to net income ratio suggests that cash generation is not always aligned with reported earnings, which could indicate timing issues or working capital fluctuations.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	25.40B	25.89B	26.47B	25.45B	24.15B	22.80B
Gross Profit	6.86B	6.92B	7.18B	6.68B	7.12B	6.00B
EBITDA	1.63B	1.68B	2.16B	2.03B	2.94B	1.56B
Net Income	505.13M	543.83M	969.86M	870.02M	1.61B	632.41M
Balance Sheet
Total Assets	23.80B	25.47B	26.43B	25.49B	23.67B	23.61B
Cash, Cash Equivalents and Short-Term Investments	4.08B	5.12B	5.35B	4.63B	5.17B	4.55B
Total Debt	4.86B	5.50B	6.07B	5.92B	4.71B	5.58B
Total Liabilities	13.04B	14.25B	15.41B	15.07B	13.71B	14.81B
Stockholders Equity	10.73B	11.20B	10.98B	10.39B	9.91B	8.79B
Cash Flow
Free Cash Flow	0.00	951.15M	964.78M	-1.59B	1.66B	1.56B
Operating Cash Flow	0.00	1.71B	2.11B	-637.94M	2.31B	2.13B
Investing Cash Flow	0.00	-897.87M	-1.15B	-656.17M	-367.19M	-654.52M
Financing Cash Flow	0.00	-1.04B	-254.05M	749.14M	-1.25B	-347.87M

S E Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 267.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3423, the sentiment is Positive. The current price of 267 is below the 20-day moving average (MA) of 291.90, below the 50-day MA of 282.90, and below the 200-day MA of 268.22, indicating a bullish trend. The MACD of 2.80 indicates Positive momentum. The RSI at 59.90 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3423.

S E Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1997	78 Outperform	¥7.95B	8.77	―	2.89%	3.52%	42.80%
5915	72 Outperform	¥9.82B	-81.16	―	3.74%	-29.79%	278.17%
5923	71 Outperform	¥8.87B	-10.52	―	4.38%	-16.09%	-163.96%
2311	70 Outperform	¥7.18B	16.94	―	3.77%	11.25%	26.01%
4642	70 Outperform	¥8.03B	16.79	―	2.03%	16.10%	-10.63%
3423	69 Neutral	¥8.88B	17.68	―	4.94%	-4.23%	-64.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%