Sodick (6143) AI Stock Analysis

• Market Cap: $46.76B
• Dividend Yield: 3.3%
• Average Volume (3M): 302.46K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.77
• Revenue Growth: 16.57%
• EPS Growth: N/A
• Country: JP
• Employees: 3,417
• Sector: Industrials
• Sector Strength: 88
• Industry: Industrial - Machinery
• EPS (TTM): 18.72
• Shares Outstanding: 54,792,240
• 10 Day Avg. Volume: 403,860
• 30 Day Avg. Volume: 302,460
• PEG Ratio: 0.26
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $1,077.54
• Price Target Upside: 16.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,038.00 ▲(12.22%Upside)

Sodick's strong financial performance, characterized by a robust recovery in profitability and low leverage, significantly boosts its stock score. The attractive valuation, with a low P/E ratio and solid dividend yield, further supports the stock's appeal. However, the technical indicators highlight short-term bearish momentum, mitigating the overall score.

Sodick Business Overview & Revenue Model

Company Description

Sodick Co., Ltd. (6143) is a Japanese company specializing in the manufacturing and distribution of precision machinery and equipment. The company operates primarily in the sectors of electrical discharge machines (EDMs), machining centers, injection molding machines, and other equipment related to manufacturing and production processes. Sodick is renowned for its state-of-the-art technology and innovation in the field of precision machining, catering to a diverse range of industries, including automotive, aerospace, electronics, and medical devices.

How the Company Makes Money

Sodick generates revenue primarily through the sale of its manufactured machinery, including electrical discharge machines, injection molding machines, and high-speed machining centers. The company benefits from its strong reputation for precision and reliability, which attracts a wide range of clients looking for advanced manufacturing solutions. Additionally, Sodick may engage in long-term service agreements and maintenance contracts, providing ongoing support and parts replacement, which further contribute to its revenue streams. The company also invests in research and development to continuously enhance its product offerings, thereby maintaining its competitive edge in the precision equipment market. Any significant partnerships with industry leaders or collaborations with research institutions can also play a role in bolstering its market presence and 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. Overall, the company is positioned well in the industrial goods sector with a promising financial trajectory.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.67B	67.17B	80.50B	75.17B	58.03B
Gross Profit	24.07B	20.41B	26.82B	25.71B	18.25B
EBITDA	5.94B	1.83B	9.56B	10.40B	5.34B
Net Income	4.12B	-4.60B	6.02B	6.59B	1.35B
Balance Sheet
Total Assets	144.99B	134.07B	138.43B	134.87B	116.12B
Cash, Cash Equivalents and Short-Term Investments	47.76B	34.62B	36.05B	45.27B	38.92B
Total Debt	37.15B	35.96B	31.34B	33.74B	41.38B
Total Liabilities	60.57B	56.94B	57.44B	60.43B	58.14B
Stockholders Equity	84.38B	77.07B	80.93B	74.38B	57.90B
Cash Flow
Free Cash Flow	7.21B	-5.34B	-664.00M	5.19B	3.56B
Operating Cash Flow	9.97B	-14.00M	3.54B	7.64B	5.27B
Investing Cash Flow	-1.63B	-2.49B	-10.96B	-2.20B	-1.41B
Financing Cash Flow	-1.04B	1.42B	-6.01B	-1.93B	1.67B

Sodick Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 925.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6143, the sentiment is Neutral. The current price of 925 is below the 20-day moving average (MA) of 958.30, below the 50-day MA of 925.59, and above the 200-day MA of 809.81, indicating a neutral trend. The MACD of -16.12 indicates Positive momentum. The RSI at 39.99 is Neutral, neither overbought nor oversold. The STOCH value of 13.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6143.

Sodick Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6137	86 Outperform	¥30.93B	8.06		3.21%	7.43%	18.47%
6144	80 Outperform	¥30.80B	12.41		4.20%	4.62%	39.04%
6143	74 Outperform	$46.76B	8.44	6.80%	3.30%	16.57%	―
6118	73 Outperform	¥53.77B	10.58		3.21%	4.49%	88.35%
Sector *	71 Outperform	¥270.65B	14.28	8.44%	2.84%	6.34%	11.66%
6125	71 Outperform	¥32.18B	14.74		3.26%	-12.88%	-70.22%
6145	66 Neutral	¥37.09B	27.78		2.05%	8.00%	-50.92%

Sodick Corporate Events

Sodick Forms Strategic Alliance with Advantage Advisors to Boost Growth

Sodick Co., Ltd. has announced a strategic business alliance with Advantage Advisors, a part of the Advantage Partners Group known for its expertise in Japanese private equity funds. This collaboration aims to enhance Sodick’s corporate value and accelerate its growth strategy by leveraging Advantage Advisors’ experience in consulting and growth support for publicly listed companies. The partnership is expected to provide transformative growth opportunities for Sodick, potentially impacting its market positioning and offering significant benefits to its stakeholders.

Sodick Co., Ltd. Announces Share Subscription Rights and Convertible Bonds Issuance

Sodick Co., Ltd. announced its decision to issue share subscription rights and unsecured convertible bonds through third-party allotment, aimed at raising significant funds. This move is expected to enhance the company’s financial flexibility and potentially strengthen its market position, although it comes with specific conditions and restrictions for the planned allottee.

Sodick Co., Ltd. Forms Strategic Alliance with Advantage Advisors

Sodick Co., Ltd. has announced a business alliance with Advantage Advisors Co., Ltd. to enhance its corporate value and management strategies. This partnership will provide Sodick with advanced management assistance, strengthen its sales and management systems, and support its global expansion and M&A activities, ultimately aiming to accelerate business growth and improve corporate governance.

Sodick Completes Treasury Shares Disposal for Stock Compensation

Sodick Co., Ltd. has completed the payment procedure for the disposal of 82,900 treasury shares as restricted stock compensation, a decision made by the Board of Directors in April 2025. This move, involving shares allocated to directors, executive officers, and employees, is part of the company’s strategy to incentivize and retain key personnel, potentially impacting its operational dynamics and stakeholder engagement.

Sodick Co., Ltd. Reports Strong Q1 2025 Financial Growth

Sodick Co., Ltd. reported significant financial growth in the first quarter of 2025, with net sales increasing by 20.4% year-on-year, indicating a strong recovery from the previous year’s downturn. The company’s improved financial performance, including a return to profitability, suggests a positive impact on its market positioning and potential benefits for stakeholders.