SIG Group Co., Ltd. (4386) AI Stock Analysis

• Market Cap: ¥5.20B
• Dividend Yield: 2.99%
• Average Volume (3M): 11.68K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.79
• Revenue Growth: 26.64%
• EPS Growth: 30.76%
• Country: JP
• Employees: 669
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 21.04
• Shares Outstanding: 5,935,140
• 10 Day Avg. Volume: 8,000
• 30 Day Avg. Volume: 11,676
• PEG Ratio: 0.08
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 8.31
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥909.00 ▲(0.22% Upside)

The overall stock score of 78 reflects a strong financial performance and attractive valuation. The technical analysis indicates a positive trend, although the high RSI suggests caution due to potential overbought conditions. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, enhancing long-term business sustainability and competitiveness.

Financial Stability

A strong balance sheet with effective leverage management provides financial stability and flexibility, supporting long-term strategic initiatives.

Cash Generation

Robust cash generation supports operational needs and strategic investments, ensuring the company can sustain growth and withstand economic fluctuations.

Negative Factors

Cash Flow Variability

Variability in cash flows from investing and financing activities could impact the company's ability to consistently fund growth initiatives and manage financial obligations.

Leverage Concerns

Fluctuations in cash flow activities may indicate challenges in managing financial leverage, potentially affecting long-term financial health.

Operational Cash Flow

While operational cash flow is strong, reliance on it amidst fluctuating non-operational cash flows could strain resources if external conditions change.

SIG Group Co., Ltd. Business Overview & Revenue Model

Company Description

SIG Group Co., Ltd. (4386) is a prominent player in the technology sector, specializing in the development and manufacturing of advanced electronic components and systems. The company operates primarily in sectors such as telecommunications, automotive, and industrial automation, offering a wide range of products including semiconductors, sensors, and integrated circuits. With a commitment to innovation and quality, SIG Group aims to provide cutting-edge solutions that enhance connectivity and operational efficiency across various industries.

How the Company Makes Money

SIG Group generates revenue through multiple streams, primarily from the sale of its electronic components and systems to manufacturers in the telecommunications, automotive, and industrial sectors. The company's revenue model is largely based on direct sales, with a focus on long-term contracts and partnerships with key industry players. Significant revenue is derived from the development of customized solutions tailored to specific customer needs, which often leads to repeat business. Additionally, SIG Group benefits from strategic partnerships with technology firms and suppliers, enhancing its market reach and product offerings. The company's investments in research and development also play a critical role in driving innovation, allowing it to stay competitive and expand its product lines, further contributing to its overall earnings.

SIG Group Co., Ltd. Financial Statement Overview

Summary

SIG Group Co., Ltd. presents a strong financial position with impressive revenue growth and profitability. The balance sheet reflects robust financial stability with effective leverage management. While the cash flow statement is generally positive, some fluctuations in investing and financing activities warrant attention.

Income Statement

SIG Group Co., Ltd. has demonstrated strong revenue growth with a consistent upward trend over the past few years. The gross profit margin has remained healthy, and the net profit margin has shown improvement, indicating effective cost management. The EBIT and EBITDA margins are strong, reflecting operational efficiency. Overall, the income statement reflects solid growth and profitability.

Balance Sheet

The balance sheet shows a strong equity position with a favorable debt-to-equity ratio, indicating sound financial leverage management. The company's return on equity is robust, showcasing the ability to generate returns from shareholders' investments. The equity ratio also indicates a solid asset base funded by equity. Overall, the balance sheet reflects financial stability and prudent management of liabilities.

Cash Flow

The cash flow statement shows positive operating cash flow, suggesting the company is effectively converting its earnings into cash. The free cash flow has been growing, although there are fluctuations in investing and financing cash flows. The operating cash flow to net income ratio is solid, indicating strong cash generation relative to net income. Overall, the cash flow position is healthy but shows some variability in non-operational cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.30B	8.77B	6.91B	5.42B	4.92B	4.40B
Gross Profit	2.01B	1.89B	1.47B	1.30B	1.16B	1.04B
EBITDA	774.97M	807.85M	456.65M	506.91M	426.76M	349.64M
Net Income	455.59M	480.57M	239.28M	301.79M	274.08M	239.61M
Balance Sheet
Total Assets	5.92B	5.82B	4.58B	4.28B	3.16B	2.60B
Cash, Cash Equivalents and Short-Term Investments	2.36B	2.21B	1.81B	1.18B	1.13B	714.28M
Total Debt	1.57B	1.61B	1.04B	1.12B	644.03M	337.61M
Total Liabilities	3.44B	3.36B	2.52B	2.38B	1.45B	1.05B
Stockholders Equity	2.47B	2.45B	2.06B	1.90B	1.69B	1.55B
Cash Flow
Free Cash Flow	0.00	452.39M	468.23M	151.50M	465.11M	-21.28M
Operating Cash Flow	0.00	526.35M	514.11M	235.19M	484.67M	-6.67M
Investing Cash Flow	0.00	-567.04M	271.39M	-500.66M	-107.60M	-678.94M
Financing Cash Flow	0.00	478.30M	-153.56M	308.35M	43.46M	-197.13M

SIG Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 907.00
• 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:4386, the sentiment is Positive. The current price of 907 is below the 20-day moving average (MA) of 909.90, above the 50-day MA of 847.14, and above the 200-day MA of 750.31, indicating a neutral trend. The MACD of 15.82 indicates Positive momentum. The RSI at 59.65 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4386.

SIG Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4386	78 Outperform	¥5.20B	10.49	―	2.99%	26.64%	30.76%
3996	71 Outperform	¥3.54B	23.25	―	―	-1.26%	-39.08%
4068	66 Neutral	¥3.40B	34.53	―	―	9.33%	133.75%
3682	63 Neutral	¥4.54B	18.37	―	2.99%	1.14%	23.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4416	57 Neutral	¥3.63B	82.56	―	―	5.05%	-50.80%
2493	53 Neutral	¥4.20B	52.87	―	0.53%	17.13%	-41.14%