SUNCALL CORPORATION (5985) AI Stock Analysis

• Market Cap: ¥59.64B
• Dividend Yield: 0.55%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 4.9
• Beta (1Y): 0.67
• Revenue Growth: 7.65%
• EPS Growth: N/A
• Country: JP
• Employees: 2,172
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 46.79
• Shares Outstanding: 34,057,922
• 10 Day Avg. Volume: 1,059,930
• 30 Day Avg. Volume: 1,296,726
• PEG Ratio: 0.13
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -3.93
• 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: 66 Neutral
• Price Target: ¥2,127.00 ▲(130.69% Upside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is driven most by inexpensive valuation (low P/E and high dividend yield) and strong technical uptrend (price above major moving averages and positive MACD). These are offset by financial performance concerns, particularly ongoing net losses and negative free cash flow despite improving revenue and gross margin.

Positive Factors

Top-line growth

SUNCALL's 24.1% YoY revenue increase signals expanding product demand or market share in its auto-parts segment. Durable revenue growth supports scaling fixed costs, provides room to invest in efficiency and product development, and underpins medium-term recovery of profitability.

Gross margin recovery

A sharp gross margin improvement to 14.5% indicates structural progress on pricing, sourcing or manufacturing efficiency. Sustained higher gross margins materially improve the company's ability to reach operating profitability and absorb SG&A, making future earnings less reliant on volume alone.

Moderate leverage and equity cushion

A debt-to-equity of 0.58 and 44.2% equity ratio reflect manageable leverage and a solid equity cushion. This balance-sheet posture preserves access to funding, reduces refinancing risk, and gives flexibility to support capex or working-capital needs during the multi-month recovery phase.

Negative Factors

Persistent net loss

Despite revenue and margin gains, the company remains unprofitable, producing a net loss that depresses return on equity. Persistent losses undermine retained capital, constrain reinvestment, and can force reliance on external financing, limiting long-term strategic options.

Negative free cash flow

Continued negative free cash flow, albeit improved, indicates operations and capex still consume cash. Over months this pressures liquidity, requires external funding or asset sales, and reduces ability to self-fund growth initiatives or sustainably raise dividends.

Low operating margins

Thin operating margins leave limited buffer against raw-material or demand shocks and constrain internal reinvestment. Over the medium term, low EBIT/EBITDA margins make the business sensitive to cost inflation and reduce capacity to meaningfully scale profitability without structural efficiency gains.

SUNCALL CORPORATION Business Overview & Revenue Model

Company Description

Suncall Corporation manufactures and distributes automotive parts and materials, hard disk-related parts, and printer and communication-related products in Japan, the United States, China, the Philippines, and internationally. The company offers precision shaped wires and steel wires for valve springs; and automotive products, including valve springs, transmission springs, detent springs, drive plates, press parts, shaped rings, spiral springs for variable valves and seat belts, sensor rings, boot clamps, shunt on bus bars, small springs, motor/stator cores, ring gears, heat-resistant springs, inspection pins for wire harnesses, reactor coils, wave rings/wave springs, bus bars, ECU control parts, valve cotters, accordion springs, tension reducers, and bus rings. It also provides hard disk drive suspensions, such as highly shock-resistant suspensions and DSA suspensions for HDD; and printer-related products comprising tube shafts, carriage guide shafts, shafts for business machines, small springs, press parts, torque limiters, resin-coated tube shafts, clutches for business machines, and screw conveyors. In addition, the company offers connectors and adapters for optical communications; bamboo charcoal for environmental related issues; and measuring instruments-related/other products, such as inspection pins for wire harnesses, cams, probes, and unit assemblies for inspections. The company was formerly known as Sanko Senzai Kogyo Co., Ltd. and changed its name to Suncall Corporation in April 1991. Suncall Corporation was founded in 1943 and is headquartered in Kyoto, Japan.

How the Company Makes Money

null

SUNCALL CORPORATION Financial Statement Overview

Summary

Strong revenue growth (+24.1% YoY) and a sharp improvement in gross margin (14.5% vs 3% in 2024) are positives, but profitability remains weak with a net loss and limited operating efficiency (EBIT margin 5.4%, EBITDA margin 5.8%). Cash generation is also a concern with negative free cash flow (-2.44B) despite improving year over year.

Income Statement

SUNCALL CORPORATION's income statement reveals a mixed performance. The gross profit margin improved significantly to 14.5% in 2025 from 3% in 2024, indicating better cost management. However, the net profit margin remains negative due to a net loss, showing profitability challenges. Revenue grew by 24.1% from 2024 to 2025, suggesting strong top-line growth, but the EBIT margin of 5.4% and EBITDA margin of 5.8% indicate limited operational efficiency.

Balance Sheet

The balance sheet shows a stable equity position with a debt-to-equity ratio of 0.58 in 2025, indicating moderate leverage. However, the return on equity remains negative due to the net loss. The equity ratio is strong at 44.2%, reflecting a solid equity cushion. Despite the leverage being manageable, the negative net income impacts the overall financial standing.

Cash Flow

Cash flow analysis indicates challenges, with a negative free cash flow of -2.44 billion in 2025, though improved from -3.95 billion in 2024. The operating cash flow to net income ratio is unfavorable due to the net loss, and the free cash flow to net income ratio is also negative. The company needs to enhance cash generation and control capital expenditures to improve its cash flow position.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	65.04B	63.94B	51.50B	53.40B	47.44B	40.14B
Gross Profit	12.53B	9.30B	2.01B	5.76B	5.87B	3.65B
EBITDA	7.56B	3.73B	-5.48B	5.25B	5.47B	4.54B
Net Income	3.47B	-769.00M	-11.82B	557.00M	904.00M	61.00M
Balance Sheet
Total Assets	57.56B	60.17B	60.45B	63.73B	57.93B	53.38B
Cash, Cash Equivalents and Short-Term Investments	9.93B	9.20B	7.42B	7.71B	7.51B	7.57B
Total Debt	14.32B	15.58B	14.79B	11.03B	7.22B	4.34B
Total Liabilities	29.30B	33.58B	31.10B	25.70B	20.75B	17.06B
Stockholders Equity	28.25B	26.59B	29.35B	38.03B	37.18B	36.32B
Cash Flow
Free Cash Flow	0.00	-2.44B	-3.95B	-2.32B	-2.07B	-2.19B
Operating Cash Flow	0.00	654.00M	678.00M	1.69B	3.17B	3.01B
Investing Cash Flow	0.00	1.00B	-4.32B	-4.95B	-4.82B	-4.36B
Financing Cash Flow	0.00	-284.00M	2.88B	2.78B	1.15B	250.00M

SUNCALL CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 922.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5985, the sentiment is Positive. The current price of 922 is below the 20-day moving average (MA) of 1245.15, below the 50-day MA of 1083.68, and above the 200-day MA of 825.22, indicating a bullish trend. The MACD of 118.32 indicates Negative momentum. The RSI at 72.37 is Negative, neither overbought nor oversold. The STOCH value of 90.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5985.

SUNCALL CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5185	77 Outperform	¥27.09B	14.38	―	4.20%	-1.15%	-34.09%
5985	66 Neutral	¥59.64B	4.93	―	0.55%	7.65%	―
5988	66 Neutral	¥42.33B	50.47	―	5.35%	-6.20%	-64.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5162	58 Neutral	¥3.47B	10.35	―	3.03%	4.17%	-693.96%
6584	47 Neutral	¥26.77B	-5.63	―	3.33%	-3.91%	-36.53%