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

• Market Cap: ¥12.01B
• Dividend Yield: 1.96%
• Average Volume (3M): 36.05K
• Price to Earnings (P/E): 570.9
• Beta (1Y): 0.42
• Revenue Growth: 22.44%
• EPS Growth: -96.06%
• Country: JP
• Employees: 581
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -152.99
• Shares Outstanding: 4,295,968
• 10 Day Avg. Volume: 9,740
• 30 Day Avg. Volume: 36,053
• 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

• Rating: 58 Neutral
• Price Target: ¥2,855.00 ▲(4.01% Upside)

Suido Kiko Kaisha, Ltd. has a solid financial foundation with strong revenue growth and a stable balance sheet. However, technical indicators suggest weak market momentum, and the stock appears overvalued based on its high P/E ratio. The dividend yield offers some compensation, but the overall outlook is tempered by these valuation concerns.

Suido Kiko Kaisha, Ltd. Business Overview & Revenue Model

Company Description

Suido Kiko Kaisha, Ltd. operates as a water treatment company in the fields of sewage and industrial wastewater treatment in Japan and internationally. It offers various water treatment equipment, such as water generators and purifiers, indicator controllers, automatic valves, and digital residual chlorine measurement devices. The company also engages in the design and construction of water treatment, waterworks and industrial water supply, sewerage and small scale sewage treatment, industrial water and wastewater treatment, rural community water and sewerage, sludge reclamation, and sanitary landfill leachate treatment plants; design, manufacture, and sale of water treatment facility equipment and devices; operation, maintenance, and management of water treatment plants and facilities; and production and sale of industrial and chemical agents. In addition, it provides water quality inspection analysis and worker dispatching services. The company was incorporated in 1936 and is headquartered in Tokyo, Japan. Suido Kiko Kaisha, Ltd. operates as a subsidiary of Toray Industries, Inc.

How the Company Makes Money

Suido Kiko Kaisha, Ltd. generates revenue through its engineering and construction services for water treatment facilities. The company earns money by securing contracts for designing and building water purification and wastewater treatment systems. These projects often involve long-term maintenance agreements, providing a recurring revenue stream. Additionally, the company may partner with government bodies and private enterprises to develop and implement sustainable water management solutions, contributing to its revenue. Factors such as infrastructure development projects, environmental regulations, and technological advancements in water treatment influence the company's earnings.

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: Negative
• Last Price: 2745.00
• 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:6403, the sentiment is Negative. The current price of 2745 is below the 20-day moving average (MA) of 2928.50, below the 50-day MA of 2855.56, and above the 200-day MA of 2100.00, indicating a neutral trend. The MACD of -37.17 indicates Positive momentum. The RSI at 43.99 is Neutral, neither overbought nor oversold. The STOCH value of 43.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥4.68B	11.14	―	1.79%	-5.80%	-23.45%
1712	77 Outperform	¥31.01B	21.71	―	0.81%	15.80%	11.11%
5698	69 Neutral	¥15.11B	12.63	―	2.97%	-5.98%	117.10%
4245	67 Neutral	¥9.17B	34.81	―	3.49%	7.87%	-43.45%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6403	58 Neutral	¥12.01B	570.87	―	1.96%	22.44%	-96.06%
4657	54 Neutral	¥2.07B	260.89	―	1.83%	9.02%	-96.84%