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Sodick (JP:6143)
:6143

Sodick (6143) AI Stock Analysis

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JP:6143

Sodick

(6143)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
¥1,584.00
▲(74.07% Upside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by improving financial performance (return to profitability, revenue growth, and a sturdy balance sheet) tempered by historically volatile cash flow. Technicals are supportive given strong trend and momentum, but overbought indicators add near-term risk. Valuation is broadly reasonable with a mid-range P/E and modest dividend yield.
Positive Factors
Revenue rebound & return to profit
Sodick's two-year rebound to positive revenue growth and restored net income signals durable demand recovery for its precision machine tools. Sustained profitability improves capacity to reinvest in product development, support installed base services, and reduce solvency risk versus prior cyclical losses.
Sturdy balance sheet & improved leverage
Growing equity alongside stable debt materially strengthens financial flexibility. Improved leverage gives Sodick room to fund capex, support R&D/automation programs, withstand demand troughs, and pursue opportunistic investments without immediate pressure on liquidity or capital structure.
Installed-base recurring revenue
A steady stream of consumables, parts and service tied to installed EDM machines creates predictable recurring revenue and higher-margin annuity cash flow. This installed-base economics increases customer stickiness, smooths cyclicality of new machine sales and supports long-term cash conversion.
Negative Factors
Inconsistent cash generation
Operating and free cash flow have swung materially year-to-year, driven by working-capital and investment timing. Such variability undermines predictable funding for capex, dividends or buybacks, and raises financing risk if a downturn coincides with weak cash conversion.
Margins and returns still below prior peaks
Profitability and ROE remain volatile and below historical bests, reflecting operating leverage in machine-tool cycles. Until structural margin restoration (via pricing, mix or scale), earnings can swing sharply, limiting sustainable shareholder returns during weaker demand periods.
Slowing revenue growth
Decelerating top-line expansion may signal market saturation in core segments or softer capital spending by customers. Slower growth constrains the company's ability to leverage fixed costs, hampers long-term EPS progression, and places more emphasis on margin or service expansion to drive durable earnings growth.

Sodick (6143) vs. iShares MSCI Japan ETF (EWJ)

Sodick Business Overview & Revenue Model

Company DescriptionSodick 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 MoneySodick 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
Fundamentals show a rebound after a weak 2023: revenue grew in 2024 (+9.7%) and 2025 (+3.2%) and the company returned to profitability. The balance sheet appears solid with moderate leverage and rising equity, but cash flow consistency has been volatile across the cycle and profitability has not fully recovered to prior peak levels.
Income Statement
66
Positive
Profitability and growth have been uneven but improving. Revenue rebounded in 2024 (+9.7%) and continued to grow in 2025 (+3.2%) after a sharp decline in 2023 (-16.5%). The company returned to profit in 2024–2025 (net income ~4.1–4.5B) after a sizable loss in 2023 (-4.6B). However, margins have not yet recovered to prior peaks (e.g., 2021–2022), and the 2023 loss highlights sensitivity to cycle/operating leverage.
Balance Sheet
72
Positive
Balance sheet looks reasonably sturdy with moderate leverage and improving equity. Total debt has been fairly stable (~36–37B in 2023–2025), while equity has grown (77.1B in 2023 to 90.5B in 2025), supporting the capital base. Leverage is moderate (debt-to-equity ~0.39–0.47 in 2022–2024, improved from ~0.71 in 2020). The key watch-out is that returns on equity have been volatile (negative in 2023), reflecting earnings cyclicality rather than balance-sheet stress.
Cash Flow
61
Positive
Cash generation has recovered, but consistency is a concern. Operating cash flow and free cash flow were solid in 2024 (9.97B and 7.21B) and remained positive in 2025 (7.15B and 5.06B), supporting reinvestment and flexibility. That said, 2023 saw a sharp cash flow breakdown (near-zero operating cash flow and negative free cash flow), and 2022 also had negative free cash flow despite positive earnings—suggesting working-capital swings and/or investment timing can materially impact cash conversion.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue78.05B80.57B73.67B67.17B80.50B75.17B
Gross Profit26.72B27.98B24.07B19.28B26.82B25.71B
EBITDA10.69B7.88B5.94B1.83B12.13B12.46B
Net Income4.40B4.51B4.12B-4.60B6.02B6.59B
Balance Sheet
Total Assets136.06B155.69B144.99B134.07B138.43B134.87B
Cash, Cash Equivalents and Short-Term Investments40.54B49.06B47.76B34.62B36.05B45.27B
Total Debt31.18B36.61B37.15B35.96B31.34B33.74B
Total Liabilities54.28B65.10B60.57B56.94B57.44B60.43B
Stockholders Equity81.70B90.52B84.38B77.07B80.93B74.38B
Cash Flow
Free Cash Flow0.005.06B7.21B-5.34B-664.00M5.19B
Operating Cash Flow0.007.15B9.97B-14.00M3.54B7.64B
Investing Cash Flow0.00-3.96B-1.63B-2.49B-10.96B-2.20B
Financing Cash Flow0.00-2.48B-1.04B1.42B-6.01B-1.93B

Sodick Technical Analysis

Technical Analysis Sentiment
Positive
Last Price910.00
Price Trends
50DMA
1138.04
Positive
100DMA
1030.66
Positive
200DMA
958.95
Positive
Market Momentum
MACD
111.67
Negative
RSI
68.86
Neutral
STOCH
83.17
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6143, the sentiment is Positive. The current price of 910 is below the 20-day moving average (MA) of 1323.00, below the 50-day MA of 1138.04, and below the 200-day MA of 958.95, indicating a bullish trend. The MACD of 111.67 indicates Negative momentum. The RSI at 68.86 is Neutral, neither overbought nor oversold. The STOCH value of 83.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6143.

Sodick Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥94.96B45.115.02%3.23%-10.00%-51.92%
74
Outperform
¥63.21B12.632.54%2.00%39.80%
73
Outperform
¥308.29B24.041.65%14.49%-21.17%
69
Neutral
¥74.81B16.607.00%3.02%15.78%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥31.74B19.353.56%-3.85%-45.64%
61
Neutral
¥104.97B26.273.59%2.94%4.76%4.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6143
Sodick
1,480.00
576.49
63.81%
JP:6104
Shibaura Machine Co., Ltd.
4,315.00
745.92
20.90%
JP:7718
Star Micronics Co., Ltd
2,194.00
273.00
14.21%
JP:6118
Aida Engineering,Ltd.
1,166.00
360.18
44.70%
JP:6125
Okamoto Machine Tool Works,Ltd.
4,750.00
1,154.83
32.12%
JP:6622
Daihen Corporation
13,710.00
7,216.87
111.15%

Sodick Corporate Events

Sodick Marks 50th Year With Vision to Grow Into Next Era
Feb 17, 2026

Sodick Co., Ltd. announced that it will celebrate the 50th anniversary of its establishment in August 2026, marking a significant milestone for the industrial machinery maker. The company framed the anniversary as a launchpad for its next phase, declaring a vision to “Grow Forward in the Next Era,” signaling continued evolution of its operations and strategic positioning as it enters its second half-century.

While the details of its FY2025 results briefing were not disclosed in the statement, the anniversary message suggests a focus on long-term growth and adaptation to future market demands. This forward-looking stance indicates Sodick’s intent to reinforce its role in precision manufacturing and sustain its competitiveness for stakeholders amid ongoing industry change.

The most recent analyst rating on (JP:6143) stock is a Buy with a Yen1233.00 price target. To see the full list of analyst forecasts on Sodick stock, see the JP:6143 Stock Forecast page.

Sodick Launches ¥1 Billion Share Buyback to Boost Shareholder Returns
Feb 13, 2026

Sodick Co., Ltd. has authorized a share buyback of up to 1,000,000 common shares, representing about 1.97% of its outstanding shares excluding treasury stock, with a maximum aggregate purchase price of ¥1 billion. The purchases will be conducted on the Tokyo Stock Exchange between February 16 and April 15, 2026, as part of a capital policy aimed at enhancing stock value and improving shareholder returns in response to changing business conditions, a move that could support the share price and signal management’s confidence to investors.

The board-approved repurchase program comes on top of an existing base of 4,144,554 treasury shares, against 50,647,685 shares outstanding excluding treasury stock as of January 31, 2026. By tightening its free float and redeploying capital to shareholders, Sodick is aligning with common capital management practices in Japan’s listed manufacturing sector, potentially improving capital efficiency metrics and strengthening its market positioning among investors focused on shareholder-friendly policies.

The most recent analyst rating on (JP:6143) stock is a Buy with a Yen1233.00 price target. To see the full list of analyst forecasts on Sodick stock, see the JP:6143 Stock Forecast page.

Sodick Marks 50th Anniversary With Commemorative Dividend and Higher Payout Policy
Feb 13, 2026

Sodick will celebrate its 50th anniversary in August 2026 and has approved a special commemorative dividend to thank shareholders and other stakeholders for their longstanding support. The board has resolved to add a ¥6 per share commemorative component to the interim dividend for the fiscal year ending December 31, 2026, highlighting the company’s focus on shareholder returns.

For fiscal 2026, Sodick forecasts an interim dividend of ¥20 per share, including the ¥6 commemorative portion, and a year-end dividend of ¥15, for a total annual payout of ¥35 per share. The company has also committed to a progressive dividend policy under which it will not cut dividends and aims to maintain or increase an annual dividend level of at least ¥35 per share from fiscal 2027 onward, signaling confidence in its earnings outlook and reinforcing its attractiveness to income-focused investors.

The most recent analyst rating on (JP:6143) stock is a Buy with a Yen1233.00 price target. To see the full list of analyst forecasts on Sodick stock, see the JP:6143 Stock Forecast page.

Sodick Sets Four-Year Growth Plan and Sharply Raises Shareholder Return Targets
Feb 13, 2026

Sodick has adopted a new four-year, commitment-based medium-term management plan covering fiscal years 2026 to 2029, shifting from its previous rolling three-year framework to better track progress, sharpen strategy execution, and strengthen communication with stakeholders. Under the plan, the company is targeting net sales of ¥100 billion and operating profit of ¥10 billion by fiscal 2029, alongside financial goals including a price-to-book ratio of at least 1.0 times, return on equity of 8% or higher, and earnings per share of at least ¥130.

In tandem with the new plan, Sodick has significantly revised its shareholder return policy to emphasize long-term distribution and capital efficiency, replacing its former DOE-focused approach with a progressive dividend framework. From fiscal 2026, it plans a total dividend of ¥35 per share including a commemorative element, will use ¥35 as a baseline from fiscal 2027 with dividends not falling below that level, and aims to maintain a total shareholder return ratio of at least 40% annually while targeting 70% or more over the four-year period through 2029 via dividends and share buybacks.

The most recent analyst rating on (JP:6143) stock is a Buy with a Yen1233.00 price target. To see the full list of analyst forecasts on Sodick stock, see the JP:6143 Stock Forecast page.

Sodick Swings Back to Loss as 2025 Results Undercut Recent Recovery
Feb 13, 2026

Sodick reported detailed supplemental financial data for the fiscal year ended December 31, 2025, showing year-on-year declines in net sales and gross profit in several quarters, compressing margins and leading to operating and net losses despite continued sales volumes. Rising selling, general and administrative expenses weighed on profitability, with operating margins turning negative for much of the year, indicating cost pressures and softer demand that could challenge the company’s near-term earnings profile and operational flexibility.

Comparative figures for fiscal 2023 and 2024 highlight that the latest year marks a reversal from prior periods of revenue growth and improving gross margins, when Sodick had restored positive operating and ordinary profits. The shift back into losses in 2025 underscores a deterioration in business conditions versus the recovery trend seen in 2023–24, potentially affecting investor sentiment and signaling that management may need to adjust its cost structure or strategic focus to restore sustainable profitability.

The most recent analyst rating on (JP:6143) stock is a Buy with a Yen1233.00 price target. To see the full list of analyst forecasts on Sodick stock, see the JP:6143 Stock Forecast page.

Sodick Beats FY2025 Profit Forecast on FX and Investment Gains
Feb 13, 2026

Sodick reported consolidated results for the year ended December 31, 2025 that modestly exceeded its earlier sales forecast while substantially outperforming profit projections. Net sales reached ¥80.6 billion versus guidance of ¥77.4 billion, and profit attributable to owners of the parent surged to ¥4.5 billion, lifting earnings per share to ¥89.19 and marking an improvement on the prior year.

The upside in ordinary profit and bottom-line results was driven mainly by foreign exchange gains and gains on sales of investment securities tied to the disposal of policy shareholdings. While operating profit came in slightly below plan, the strong non-operating income boosted overall profitability, potentially strengthening Sodick’s financial position and signaling improved returns for shareholders compared with its earlier outlook.

The most recent analyst rating on (JP:6143) stock is a Buy with a Yen1233.00 price target. To see the full list of analyst forecasts on Sodick stock, see the JP:6143 Stock Forecast page.

Sodick Lifts FY2025 Profits and Targets Further Growth With Higher 2026 Dividend
Feb 13, 2026

Sodick reported consolidated net sales of ¥80.6 billion for the year to December 2025, up 9.4% year on year, with operating profit nearly doubling to ¥4.2 billion and profit attributable to owners of parent rising 9.7% to ¥4.5 billion. The company strengthened its financial position with higher net assets and cash balances, maintained an annual dividend of ¥29 per share, and incorporated two new subsidiaries in Italy and Mexico, while also adopting revised accounting standards.

For 2026, Sodick forecasts further growth to ¥88.5 billion in net sales and a 30.2% increase in operating profit, alongside a planned higher total dividend of ¥35 per share including a 50th anniversary commemorative payout. The expansion of its consolidated group and rising profitability signal a proactive growth strategy and could reinforce its market position in precision manufacturing equipment, with improved returns for shareholders through both earnings and dividends.

The most recent analyst rating on (JP:6143) stock is a Buy with a Yen1233.00 price target. To see the full list of analyst forecasts on Sodick stock, see the JP:6143 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 25, 2026