STG CO.LTD. (5858) AI Stock Analysis

• Market Cap: ¥2.88B
• Dividend Yield: 1.07%
• Average Volume (3M): 10.65K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.94
• Revenue Growth: 22.57%
• EPS Growth: 87.87%
• Country: JP
• Employees: 659
• Sector: Industrials
• Sector Strength: 89
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 42.43
• Shares Outstanding: 2,072,600
• 10 Day Avg. Volume: 9,760
• 30 Day Avg. Volume: 10,650
• PEG Ratio: 0.19
• Price to Book (P/B): 6.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 59.66
• 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: ¥1,573.00
• Price Target Upside: 10.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥1,630.00 ▲(14.47%Upside)

STG CO.LTD. demonstrates strong financial performance with solid revenue growth and profitability, which heavily influences the overall score. Valuation metrics suggest the stock is attractively priced with a low P/E ratio. However, technical analysis is mixed, with potential bearish momentum counteracting positive short-term trends. The absence of recent earnings call data and corporate events leaves these areas neutral in impact.

STG CO.LTD. Business Overview & Revenue Model

Company Description

STG CO., LTD. (5858) is a Japan-based company specializing in the manufacturing and sale of precision machinery and components. The company operates primarily in the industrial machinery sector, providing high-quality products such as machine tools, measuring instruments, and other precision equipment to various industries worldwide.

How the Company Makes Money

STG CO., LTD. generates revenue through the sale of its precision machinery and components. The company caters to a wide range of industries, including automotive, aerospace, and electronics, by offering customized solutions that meet the specific needs of its clients. Revenue streams include direct sales of equipment, after-sales services such as maintenance and repairs, and long-term contracts with key industrial partners. Additionally, STG CO., LTD. engages in research and development activities to innovate and enhance its product offerings, thereby maintaining a competitive edge in the market. Strategic partnerships and collaborations with other companies further bolster its earnings by expanding its market reach and customer base.

STG CO.LTD. Financial Statement Overview

Summary

STG CO.LTD. presents a strong financial profile with robust revenue growth of 22.56%, improving profit margins, and effective cash flow management. The balance sheet reflects a stable financial position with moderate leverage, enhancing profitability and cash generation capabilities.

Income Statement

STG CO.LTD. demonstrates solid growth with a consistent increase in total revenue from 2020 to 2025, culminating in a remarkable revenue growth rate of 22.56% in the latest period. Gross profit margin improved significantly from 29.50% in 2020 to 23.71% in 2025, showcasing enhanced cost efficiency. The net profit margin increased from 6.52% to 6.05% over the same period, indicating steady profitability. Additionally, the EBIT and EBITDA margins showed improvement, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio of 1.18, reflecting a balanced approach to leverage. Return on equity improved significantly from 19.31% in 2020 to 16.06% in 2025, showcasing the company's ability to generate profits from shareholders' investments. The equity ratio improved, highlighting a strengthening financial position with increased equity relative to assets.

Cash Flow

STG CO.LTD. shows robust cash flow management, with a substantial increase in free cash flow from negative in 2024 to positive in 2025, indicating effective capital expenditure control and operational efficiency. The operating cash flow to net income ratio suggests strong cash generation relative to reported profits, which supports sustainability in operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.17B	6.43B	5.24B	4.68B	3.50B	1.98B
Gross Profit	1.53B	1.52B	1.17B	1.03B	785.13M	541.43M
EBITDA	914.38M	981.65M	699.33M	619.40M	378.48M	209.23M
Net Income	449.86M	389.16M	198.01M	191.52M	88.44M	75.02M
Balance Sheet
Total Assets	6.55B	6.65B	5.89B	5.08B	4.14B	4.26B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.06B	996.16M	900.02M	492.38M	1.06B
Total Debt	3.03B	2.87B	3.05B	2.73B	2.51B	2.61B
Total Liabilities	4.33B	4.23B	4.19B	3.84B	3.23B	3.41B
Stockholders Equity	2.22B	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: Neutral
• Last Price: 1424.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Neutral. The current price of 1424 is above the 20-day moving average (MA) of 1408.40, above the 50-day MA of 1395.18, and above the 200-day MA of 1291.25, indicating a neutral trend. The MACD of -8.43 indicates Negative momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 72.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5858.

STG CO.LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5858	74 Outperform	¥2.88B	7.32		1.07%	22.57%	87.87%
6138	72 Outperform	¥2.51B	12.31		2.96%	5.38%	―
6150	68 Neutral	¥2.64B	8.77		2.79%	-11.59%	-40.79%
Sector *	65 Neutral	$10.82B	15.59	5.20%	1.89%	3.09%	-26.84%
5994	54 Neutral	¥3.56B	―		2.47%	0.78%	63.89%
2962	48 Neutral	¥2.73B	―		―	-25.31%	-864.55%
6433	47 Neutral	¥2.52B	―		0.24%	-2.83%	7.97%