STG CO.LTD. (5858) AI Stock Analysis

• Market Cap: ¥3.21B
• Dividend Yield: 0.93%
• Average Volume (3M): 25.17K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.99
• Revenue Growth: 15.18%
• EPS Growth: -10.95%
• Country: JP
• Employees: 659
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 55.43
• Shares Outstanding: 2,124,800
• 10 Day Avg. Volume: 16,590
• 30 Day Avg. Volume: 25,173
• PEG Ratio: 0.08
• 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: ¥1,847.00 ▼(-17.91% Downside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

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

Sustained 22.6% revenue growth indicates expanding market penetration and stronger demand for STG's electronic components. Over a multi‑month horizon, rising top‑line supports reinvestment in R&D, capacity expansion and strengthens customer partnerships central to its B2B business model.

Robust Profitability Margins

Healthy gross and operating margins reflect efficient manufacturing and pricing power in high‑precision components. Durable margin structure supports profitability through cycles, funds R&D and differentiates STG vs lower‑margin competitors, reinforcing long‑term competitive advantage.

Strong Cash Generation

Improved operating cash flow and meaningful free cash flow indicate solid internal funding for capex, R&D and debt servicing. Reliable cash generation enhances financial flexibility, reduces reliance on external financing and supports strategic partnerships and product development.

Negative Factors

Moderate Leverage

A debt/equity ratio around 1.18 signals meaningful leverage that can constrain financial flexibility and increase interest expense sensitivity. In a cyclical manufacturing industry, sustained leverage elevates refinancing and downturn risks, warranting close monitoring of cash flow coverage.

Negative EPS Growth

Negative EPS growth points to earnings volatility despite revenue gains, possibly from dilution, one‑offs, or cost items. Over the medium term, falling EPS can undermine shareholder returns and raises questions about operating leverage and capital allocation effectiveness.

Limited Public Disclosure

Absence of earnings calls or regular management commentary reduces transparency and makes it harder to assess forward guidance, execution risk and strategic priorities. For investors, limited disclosure increases information asymmetry and heightens governance and monitoring concerns.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	952.34M	886.05M	637.26M	501.43M	300.01M	76.29M
Net Income	478.74M	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	-132.42M	242.63M	-320.79M	-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: Neutral

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 1599.50, above the 50-day MA of 1652.18, and above the 200-day MA of 1726.24, indicating a bearish trend. The MACD of -33.23 indicates Positive momentum. The RSI at 36.95 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, 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
6138	77 Outperform	¥3.31B	2.79	―	2.66%	3.89%	―
5644	72 Outperform	¥15.72B	4.33	―	2.87%	2.38%	-5.80%
5994	69 Neutral	¥6.70B	-102.51	―	1.06%	6.41%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6150	63 Neutral	¥3.03B	4.03	―	2.66%	-17.16%	-47.34%
5858	62 Neutral	¥3.21B	7.59	―	0.93%	15.18%	-10.95%
5852	54 Neutral	¥21.07B	3.53	―	4.33%	5.12%	―