Sotoh Co., Ltd. (3571) AI Stock Analysis

• Market Cap: ¥9.80B
• Dividend Yield: 5.26%
• Average Volume (3M): 9.96K
• Price to Earnings (P/E): 34.0
• Beta (1Y): 0.39
• Revenue Growth: -5.24%
• EPS Growth: -89.49%
• Country: JP
• Employees: 547
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 15.65
• Shares Outstanding: 13,933,757
• 10 Day Avg. Volume: 9,730
• 30 Day Avg. Volume: 9,963
• PEG Ratio: -0.25
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.86
• P/FCF Ratio: -6.50
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥791.00 ▲(4.08% Upside)

Sotoh Co., Ltd.'s overall stock score is primarily influenced by its mixed financial performance and technical analysis. The company's strong balance sheet is offset by revenue volatility and cash flow concerns. Technical indicators suggest a lack of strong momentum, and the high P/E ratio indicates potential overvaluation, despite an attractive dividend yield.

Sotoh Co., Ltd. Business Overview & Revenue Model

Company Description

Sotoh Co., Ltd. (3571) is a Japanese company primarily engaged in the manufacturing and distribution of high-quality electronic components and materials. Operating within the technology sector, Sotoh specializes in producing advanced semiconductors and other electronic devices that cater to various industries, including consumer electronics, automotive, and telecommunications. The company is known for its commitment to innovation and quality, providing essential components that enhance the performance and efficiency of electronic systems.

How the Company Makes Money

Sotoh Co., Ltd. generates revenue through multiple streams, primarily by selling its electronic components to original equipment manufacturers (OEMs) and other industrial clients. The company's revenue model is centered around direct sales of its products, which include semiconductors, capacitors, and other electronic materials. In addition to product sales, Sotoh may also engage in long-term contracts and partnerships with key players in the technology and automotive sectors, providing a stable source of recurring income. Furthermore, the company invests in research and development to innovate new products and improve existing offerings, which helps to attract new clients and retain existing ones. Overall, the combination of diverse product offerings, strategic partnerships, and a focus on quality and innovation are significant contributors to Sotoh's earnings.

Sotoh Co., Ltd. Financial Statement Overview

Summary

Sotoh Co., Ltd. displays mixed financial health. The balance sheet is robust with low leverage and strong equity, but the income statement shows volatility in revenue and profitability. Cash flow issues due to negative free cash flow highlight potential liquidity concerns. The company needs to enhance revenue growth and operational efficiency to sustain its financial stability.

Income Statement

The company shows a decline in revenue from 2024 to 2025, with a negative EBIT margin indicating operating losses. However, there is a net profit in 2025, suggesting some cost efficiencies or non-operating income improvements. Historical revenue growth has been inconsistent, posing a challenge for long-term growth strategies.

Balance Sheet

The company maintains a strong equity position with a high equity ratio and a low debt-to-equity ratio indicating financial stability. The improvement in stockholders' equity over the years is a positive sign, although total assets have not consistently grown, reflecting potential asset management issues.

Cash Flow

The operating cash flow remains positive, albeit lower compared to previous years, indicating operational challenges. Free cash flow is negative, suggesting high capital expenditures or other cash outflows, which could strain the company's liquidity if not managed properly.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.17B	10.04B	10.71B	9.83B	7.51B	7.55B
Gross Profit	943.16M	936.36M	1.31B	456.98M	314.87M	286.86M
EBITDA	744.43M	969.73M	3.42B	-113.88M	-565.83M	172.97M
Net Income	285.01M	406.79M	2.70B	-723.43M	-1.13B	-831.87M
Balance Sheet
Total Assets	19.75B	19.85B	18.81B	14.41B	14.71B	15.62B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.90B	3.48B	1.15B	2.75B	2.68B
Total Debt	590.28M	700.59M	516.28M	173.75M	152.00M	171.50M
Total Liabilities	4.95B	5.12B	4.54B	3.85B	3.43B	2.67B
Stockholders Equity	14.80B	14.73B	14.27B	10.57B	11.28B	12.95B
Cash Flow
Free Cash Flow	0.00	-1.33B	-156.48M	-2.15B	-255.72M	-82.28M
Operating Cash Flow	0.00	477.90M	564.99M	-793.70M	-71.06M	1.02B
Investing Cash Flow	0.00	-1.27B	1.90B	-323.71M	174.04M	-413.64M
Financing Cash Flow	0.00	-793.31M	64.91M	-271.83M	-338.85M	-238.26M

Sotoh Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 760.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3571, the sentiment is Neutral. The current price of 760 is below the 20-day moving average (MA) of 766.90, below the 50-day MA of 773.62, and above the 200-day MA of 700.46, indicating a neutral trend. The MACD of -2.63 indicates Positive momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 15.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3571.

Sotoh Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3123	77 Outperform	¥7.38B	9.66	―	2.62%	-4.76%	8.44%
8127	76 Outperform	¥12.31B	85.93	―	2.68%	-8.02%	-59.41%
3320	71 Outperform	¥9.49B	6.74	―	2.91%	-1.05%	-9.49%
7126	63 Neutral	¥4.66B	9.61	―	2.36%	2.62%	11.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3571	56 Neutral	¥9.80B	34.00	―	5.26%	-5.24%	-89.49%
9885	44 Neutral	¥5.86B	-6.41	―	2.16%	-3.36%	-814.41%