Suido Kiko Kaisha, Ltd. (6403) AI Stock Analysis

• Market Cap: ¥13.62B
• Dividend Yield: 1.71%
• Average Volume (3M): 11.64K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.44
• Revenue Growth: 23.19%
• EPS Growth: -37.04%
• Country: JP
• Employees: 581
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 151.86
• Shares Outstanding: 4,295,968
• 10 Day Avg. Volume: 6,540
• 30 Day Avg. Volume: 11,643
• PEG Ratio: 1.09
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 2.85
• 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: 75 Outperform
• Price Target: ¥3,716.00 ▲(20.45% Upside)

Suido Kiko Kaisha, Ltd. demonstrates strong financial performance and technical indicators, suggesting a positive outlook. The stock's valuation is reasonable, though not particularly compelling. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Suido Kiko Kaisha's water treatment solutions, enhancing its market position and long-term sustainability.

Balance Sheet Health

A low Debt-to-Equity Ratio demonstrates financial stability and provides the company with flexibility to invest in growth opportunities without excessive leverage.

Cash Flow Improvement

Significant improvement in free cash flow reflects effective cash management and enhances the company's ability to fund operations and strategic initiatives.

Negative Factors

Earnings Volatility

Historical volatility in revenue and cash flow suggests potential instability in income generation, posing a risk to consistent financial performance.

Profit Margin Concerns

Despite improvements, the low net profit margin indicates challenges in converting revenue into profit, which could impact long-term profitability.

Cash Flow Risks

Past negative operating cash flows highlight potential risks in cash management, which could affect liquidity during challenging periods.

Suido Kiko Kaisha, Ltd. Business Overview & Revenue Model

Company Description

Suido Kiko Kaisha, Ltd. (6403) is a Japanese company primarily engaged in the manufacturing and sale of water treatment equipment and systems. The company operates in sectors such as industrial machinery and environmental solutions, providing products that include pumps, valves, and other equipment essential for water management and treatment processes. Suido Kiko Kaisha is known for its innovative technologies aimed at improving water quality and efficiency in various applications, catering to a diverse range of industries including municipal, industrial, and agricultural sectors.

How the Company Makes Money

Suido Kiko Kaisha generates revenue through the sale of its water treatment equipment and systems, which includes a variety of pumps, valves, and associated machinery. Key revenue streams come from both direct sales to end customers and contracts with municipalities and industrial clients for large-scale water treatment projects. The company also earns income through maintenance services and after-sales support, ensuring the longevity and efficiency of its products. Significant partnerships with government entities and private sector companies further enhance its revenue potential, as these collaborations often lead to long-term contracts and recurring revenue streams, particularly in infrastructure development and environmental sustainability projects.

Suido Kiko Kaisha, Ltd. Financial Statement Overview

Summary

Suido Kiko Kaisha, Ltd. exhibits solid financial health with strong growth in revenue and profitability, backed by a stable balance sheet with low leverage. The company's ability to generate cash has improved significantly, though historical volatility in revenue and cash flow poses potential risks.

Income Statement

Suido Kiko Kaisha, Ltd. demonstrates a strong improvement in revenue and profitability metrics. The company's TTM revenue showed a significant growth from the previous year, along with an increase in both gross and net profit margins. Gross Profit Margin improved to 23.4% from 20.2% in the prior year, and the Net Profit Margin increased to 1.6% from 1.7%. The EBIT and EBITDA margins also reflect operational efficiency. However, the company has faced fluctuations in revenue over the years, indicating volatility in its income-generating capabilities.

Balance Sheet

The balance sheet of Suido Kiko Kaisha, Ltd. is robust, with a good equity ratio of 39.1%, showing a strong equity base relative to its total assets. The Debt-to-Equity Ratio remains low at 0.19, indicating low leverage and financial stability. Return on Equity improved to 4.2% from 3.7%, showing better returns for shareholders. However, the company experienced fluctuations in total assets and liabilities, which might indicate changing financial strategies or market conditions.

Cash Flow

The cash flow statement shows a remarkable turnaround with a positive free cash flow in the TTM period, reflecting a free cash flow growth rate of 218.2% from the previous year. The Operating Cash Flow to Net Income ratio indicates strong cash generation relative to reported profits. However, the company has experienced negative operating cash flows in previous years, highlighting a potential risk in cash management during challenging periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.43B	25.97B	21.63B	21.93B	22.66B	25.17B
Gross Profit	5.96B	6.07B	4.36B	4.25B	4.35B	4.66B
EBITDA	1.51B	1.57B	816.00M	557.00M	302.00M	975.00M
Net Income	21.00M	427.00M	367.00M	273.00M	39.00M	807.00M
Balance Sheet
Total Assets	25.09B	26.05B	24.14B	21.20B	21.75B	22.09B
Cash, Cash Equivalents and Short-Term Investments	9.22B	4.68B	1.97B	3.59B	5.50B	4.88B
Total Debt	0.00	1.98B	1.50B	0.00	0.00	494.00M
Total Liabilities	15.67B	15.87B	14.15B	11.49B	12.01B	12.21B
Stockholders Equity	9.42B	10.18B	9.99B	9.71B	9.74B	9.88B
Cash Flow
Free Cash Flow	0.00	2.69B	-2.27B	-807.00M	1.36B	-581.00M
Operating Cash Flow	0.00	2.85B	-2.04B	-593.00M	1.63B	-455.00M
Investing Cash Flow	0.00	-464.00M	-845.00M	-1.03B	-247.00M	68.00M
Financing Cash Flow	0.00	198.00M	1.26B	-269.00M	-769.00M	-251.00M

Suido Kiko Kaisha, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3085.00
• 50DMA: Positive
• 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:6403, the sentiment is Positive. The current price of 3085 is below the 20-day moving average (MA) of 3085.95, above the 50-day MA of 2985.06, and above the 200-day MA of 2282.54, indicating a neutral trend. The MACD of 30.22 indicates Positive momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 61.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6403.

Suido Kiko Kaisha, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5699	81 Outperform	¥4.71B	8.40	―	1.79%	-0.27%	0.09%
5698	77 Outperform	¥15.41B	13.09	―	2.47%	-9.37%	590.66%
1712	77 Outperform	¥31.01B	21.71	―	0.81%	15.80%	11.11%
6403	75 Outperform	¥13.62B	23.17	―	1.71%	23.19%	-37.04%
4245	67 Neutral	¥9.41B	39.79	―	3.35%	7.12%	-43.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4657	56 Neutral	¥2.01B	73.32	―	1.92%	-1.19%	-89.91%