Sodick (6143) AI Stock Analysis

• Market Cap: ¥47.21B
• Dividend Yield: 3.12%
• Average Volume (3M): 291.83K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.73
• Revenue Growth: 15.78%
• EPS Growth: N/A
• Country: JP
• Employees: 3,417
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 21.37
• Shares Outstanding: 54,792,240
• 10 Day Avg. Volume: 203,320
• 30 Day Avg. Volume: 291,826
• PEG Ratio: -0.05
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 5.19
• 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): 64.32
• Revenue Forecast (FY): ¥78.09B

• Rating: 80 Outperform
• Price Target: ¥1,150.00 ▲(26.37% Upside)

The stock's strong technical indicators and solid financial performance are the primary drivers of its high score. The reasonable valuation further supports its attractiveness. However, the lack of earnings call data and potential volatility in financial performance slightly temper the overall score.

Positive Factors

Revenue Growth

Sodick's positive revenue growth indicates a strong demand for its precision machinery, supporting long-term business expansion and market presence.

Balance Sheet Health

Low leverage enhances financial stability, providing Sodick with the flexibility to invest in growth opportunities and weather economic fluctuations.

Cash Generation Ability

Healthy cash generation relative to net earnings supports ongoing operations and strategic investments, bolstering long-term financial health.

Negative Factors

Earnings Volatility

Volatility in earnings can impact predictability and investor confidence, potentially affecting long-term strategic planning and financial stability.

Cash Flow Variability

Variability in cash flow can challenge cash management, affecting the company's ability to consistently fund operations and growth initiatives.

Profitability Concerns

Moderate profitability may limit reinvestment capacity and shareholder returns, potentially hindering competitive positioning and growth prospects.

Sodick Business Overview & Revenue Model

Company Description

Sodick Co., Ltd. (6143) is a Japanese company specializing in the design and manufacture of precision machinery, particularly in the fields of electrical discharge machining (EDM), 3D printing, and injection molding machines. Founded in 1976, the company serves various sectors, including automotive, aerospace, and medical device manufacturing, providing high-quality solutions that enhance productivity and precision in manufacturing processes.

How the Company Makes Money

Sodick generates revenue primarily through the sale of its machinery and equipment, including EDM machines, milling machines, and 3D printers. The company also earns income from after-sales services such as maintenance, repair, and parts supply, which provide a recurring revenue stream. Additionally, Sodick may engage in strategic partnerships with other technology firms or manufacturers to expand its product offerings and market reach, further contributing to its earnings. The demand for precision machining in various industries and the ongoing advancements in manufacturing technology also play a significant role in bolstering Sodick's financial performance.

Sodick Financial Statement Overview

Summary

Sodick demonstrates a solid financial standing with strong recovery in profitability and cash flow, supported by a robust balance sheet with low leverage. While there is a positive trend in revenue and operational margins, historical fluctuations in earnings and cash flow suggest some underlying volatility.

Income Statement

The company showed a strong gross profit margin of 32.7% and a net profit margin of 5.6% in the latest year, indicating efficient cost management. Revenue growth was positive at 9.7% compared to the previous year. The EBIT margin improved to 3.0% from negative figures, and the EBITDA margin was 8.1%, showing a recovery in operational efficiency. However, historical fluctuations in EBIT and net income suggest some volatility.

Balance Sheet

The company's debt-to-equity ratio stood at 0.44, reflecting low leverage, which is favorable for financial stability. The return on equity was 4.9%, showing a moderate level of profitability for shareholders. An equity ratio of 58.2% highlights strong capitalization and asset backing, reducing financial risk.

Cash Flow

There was a strong recovery in free cash flow from a negative position in the previous year, resulting in a positive free cash flow to net income ratio of 1.75. The operating cash flow to net income ratio was 2.42, indicating healthy cash generation relative to net earnings. However, the historical variability in cash flow figures highlights potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	78.05B	73.67B	67.17B	80.50B	75.17B	58.03B
Gross Profit	26.72B	24.07B	19.28B	26.82B	25.71B	18.25B
EBITDA	10.69B	5.94B	1.83B	12.13B	12.46B	5.34B
Net Income	4.40B	4.12B	-4.60B	6.02B	6.59B	1.35B
Balance Sheet
Total Assets	136.06B	144.99B	134.07B	138.43B	134.87B	116.12B
Cash, Cash Equivalents and Short-Term Investments	40.54B	47.76B	34.62B	36.05B	45.27B	38.92B
Total Debt	31.18B	37.15B	35.96B	31.34B	33.74B	41.38B
Total Liabilities	54.28B	60.57B	56.94B	57.44B	60.43B	58.14B
Stockholders Equity	81.70B	84.38B	77.07B	80.93B	74.38B	57.90B
Cash Flow
Free Cash Flow	0.00	7.21B	-5.34B	-664.00M	5.19B	3.56B
Operating Cash Flow	0.00	9.97B	-14.00M	3.54B	7.64B	5.27B
Investing Cash Flow	0.00	-1.63B	-2.49B	-10.96B	-2.20B	-1.41B
Financing Cash Flow	0.00	-1.04B	1.42B	-6.01B	-1.93B	1.67B

Sodick Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 910.00
• 50DMA: Negative
• 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:6143, the sentiment is Negative. The current price of 910 is below the 20-day moving average (MA) of 942.70, below the 50-day MA of 930.38, and above the 200-day MA of 881.45, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 47.34 is Neutral, neither overbought nor oversold. The STOCH value of 45.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6143.

Sodick Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6144	81 Outperform	¥32.34B	13.03	―	3.65%	12.75%	96.71%
6137	81 Outperform	¥34.76B	10.20	―	3.02%	0.25%	-18.79%
6143	80 Outperform	¥47.21B	8.05	7.00%	3.12%	15.78%	―
6118	74 Outperform	¥61.85B	11.93	―	2.62%	2.00%	39.80%
6145	72 Outperform	¥41.19B	15.09	―	2.15%	20.20%	37.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6125	62 Neutral	¥32.48B	13.25	―	3.80%	-3.85%	-45.64%

Sodick Corporate Events

Sodick Co., Ltd. Reports Q2 2025 Financial Results and Strategic Expansion

Sodick Co., Ltd. reported its financial results for the second quarter of the fiscal year ending December 31, 2025, showing a 13.1% increase in net sales compared to the previous year. The company also announced the addition of Prima Additive S.r.l to its scope of consolidation, indicating strategic growth and expansion in its operations.

Sodick Completes Payment for Share Subscription Rights and Convertible Bonds

Sodick Co., Ltd. announced the completion of payment for its first series of share subscription rights and second series of unsecured convertible bonds with share subscription rights through third-party allotment. This strategic financial move is expected to raise significant funds, enhancing the company’s capital structure and potentially strengthening its market position by enabling further investment in its core manufacturing operations.