STG CO.LTD. (5858) AI Stock Analysis

• Market Cap: ¥3.33B
• Dividend Yield: 0.92%
• Average Volume (3M): 23.40K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.05
• Revenue Growth: 15.18%
• EPS Growth: -10.95%
• Country: JP
• Employees: 659
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -33.25
• Shares Outstanding: 2,083,200
• 10 Day Avg. Volume: 28,890
• 30 Day Avg. Volume: 23,396
• PEG Ratio: 0.12
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 16.22
• 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: 62 Neutral
• Price Target: ¥1,645.00 ▼(-26.89% Downside)

STG CO.LTD. has a solid financial foundation with strong revenue and profit growth, which is the most significant positive factor. However, bearish technical indicators and modest valuation metrics weigh down the overall score. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for STG's products and successful market expansion, supporting long-term business stability.

Cash Flow Management

Improved cash flow management enhances financial flexibility, allowing STG to invest in growth opportunities and manage obligations effectively.

Profitability

Strong profitability margins reflect efficient operations and cost management, positioning STG well for sustained financial health.

Negative Factors

Debt Levels

While leverage is manageable, the company should monitor its debt levels to maintain financial stability and avoid potential cash flow constraints.

Dividend Yield

A low dividend yield may deter income-focused investors, potentially limiting the attractiveness of STG's stock to a broader investor base.

Technical Indicators

Bearish technical indicators can impact investor sentiment and stock performance, potentially affecting capital raising and market perception.

STG CO.LTD. Business Overview & Revenue Model

Company Description

STG CO.LTD. (5858) is a dynamic company operating primarily in the technology and manufacturing sectors. The company specializes in the development and production of advanced electronic components, focusing on high-precision instruments and innovative solutions for various industries, including telecommunications, automotive, and consumer electronics. STG CO.LTD. is committed to leveraging cutting-edge technology to enhance product performance and reliability, positioning itself as a leader in the electronics market.

How the Company Makes Money

STG CO.LTD. generates revenue through multiple streams, primarily from the sale of its electronic components to manufacturers across different sectors. The company employs a B2B sales model, forming long-term partnerships with key industry players who rely on STG's products for their production needs. Additionally, STG CO.LTD. invests in research and development to create new technologies, which allows it to introduce innovative products that can command higher prices in the market. The company also benefits from strategic collaborations and joint ventures with other technology firms, enhancing its market reach and operational capabilities. These partnerships often lead to co-development projects, further solidifying STG's presence in competitive markets and contributing to its overall profitability.

STG CO.LTD. Financial Statement Overview

Summary

STG CO.LTD. exhibits strong financial performance with robust revenue and profit growth, efficient operations, and improved cash flow management. The balance sheet shows moderate leverage, but the company maintains a healthy capital structure. Overall, the financial health of STG CO.LTD. is solid, with potential for continued growth and stability.

Income Statement

STG CO.LTD. has demonstrated strong revenue growth, with a 22.6% increase from 2024 to 2025. The gross profit margin is robust at 23.7%, and the net profit margin improved to 6.1%. The EBIT and EBITDA margins are healthy at 7.5% and 15.3%, respectively, indicating efficient operations. Overall, the company shows strong profitability and growth trends.

Balance Sheet

The debt-to-equity ratio is 1.18, reflecting moderate leverage. Return on equity is strong at 16.1%, indicating effective use of equity to generate profits. The equity ratio is 36.4%, suggesting a balanced capital structure. While leverage is manageable, the company should monitor its debt levels to maintain financial stability.

Cash Flow

Operating cash flow has increased significantly, supporting a positive free cash flow of 166.7 million. The operating cash flow to net income ratio is 1.4, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 0.43, showing a positive trend. The company has improved its cash flow management, enhancing its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.66B	6.43B	5.24B	4.68B	3.50B	1.98B
Gross Profit	1.61B	1.52B	1.17B	1.03B	785.13M	541.43M
EBITDA	989.00M	981.65M	699.33M	619.40M	378.48M	209.23M
Net Income	479.01M	389.16M	198.01M	191.52M	88.44M	75.02M
Balance Sheet
Total Assets	7.25B	6.65B	5.89B	5.08B	4.14B	4.26B
Cash, Cash Equivalents and Short-Term Investments	1.85B	1.06B	996.16M	900.02M	492.38M	1.06B
Total Debt	3.25B	2.96B	3.05B	2.73B	2.51B	2.61B
Total Liabilities	4.32B	4.23B	4.19B	3.84B	3.23B	3.41B
Stockholders Equity	2.93B	2.42B	1.71B	1.24B	913.15M	845.03M
Cash Flow
Free Cash Flow	0.00	166.72M	-142.77M	235.75M	-333.00M	-157.31M
Operating Cash Flow	0.00	542.92M	242.53M	519.88M	-8.49M	141.01M
Investing Cash Flow	0.00	-360.09M	-381.55M	-233.14M	-355.51M	-890.91M
Financing Cash Flow	0.00	-205.44M	207.26M	85.19M	-217.66M	1.24B

STG CO.LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2250.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5858, the sentiment is Negative. The current price of 2250 is above the 20-day moving average (MA) of 1796.05, above the 50-day MA of 2073.12, and above the 200-day MA of 1643.70, indicating a bearish trend. The MACD of -167.89 indicates Positive momentum. The RSI at 37.35 is Neutral, neither overbought nor oversold. The STOCH value of 84.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5858.

STG CO.LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5994	69 Neutral	¥7.91B	4.10	―	1.27%	6.41%	―
6138	68 Neutral	¥2.69B	7.48	―	2.80%	3.89%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6150	63 Neutral	¥2.76B	12.44	―	2.72%	-17.16%	-47.34%
5858	62 Neutral	¥3.33B	10.80	―	0.92%	15.18%	-10.95%
2962	46 Neutral	¥3.68B	―	―	―	-19.32%	-171.53%
6433	43 Neutral	¥3.94B	-18.91	―	0.23%	-10.82%	-69.03%