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

• Market Cap: ¥14.07B
• Dividend Yield: 1.79%
• Average Volume (3M): 11.64K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.57
• 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: 71 Outperform
• Price Target: ¥3,624.00 ▲(14.50% Upside)

The score is driven primarily by solid financial performance (strong balance sheet with low leverage and improving profitability) and strong technical uptrend (price above major moving averages and positive MACD). These positives are tempered by overbought signals (RSI ~83) and a relatively high P/E with only a modest dividend yield.

Positive Factors

Strong balance sheet

Low leverage and a healthy equity ratio provide durable financial flexibility, supporting capital investment, bidding on public works, and resilience through project payment cycles. This reduces refinancing risk and underpins long-term stability for infrastructure and maintenance contracts.

Improving margins and revenue

Sustained improvement in gross and operating margins alongside notable TTM revenue growth signals structural uplift in pricing, mix, or cost efficiency. That supports repeatable profitability on engineering and service contracts across municipal and industrial water projects.

Free cash flow turnaround

A material shift to positive free cash flow and strong year-over-year FCF growth enhances the company's ability to fund maintenance, capex, and working capital internally. This strengthens long-term cash generation credibility for project-based business.

Negative Factors

Revenue volatility

Past fluctuations in revenue reflect sensitivity to project timing, public procurement cycles and industrial demand. Such variability can pressure margins and forecasting accuracy, complicating capacity planning and long-term investment decisions for engineering firms.

Historic cash flow instability

Prior periods of negative operating cash flow indicate potential working-capital strain in downturns or slow collections on large projects. Even with current recovery, lingering operational cash risks can limit consistent reinvestment and make planning for long-duration contracts harder.

Low returns and slim net margins

Modest ROE and single-digit net margins constrain the company's ability to generate high shareholder returns from its asset base. In capital-intensive infrastructure services, low profitability can limit reinvestment capacity and make it harder to build scale advantages over time.

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 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

Overall financials are solid: Income Statement score (74) reflects improving revenue and margins but with historical revenue volatility; Balance Sheet score (81) shows low leverage (Debt-to-Equity 0.19) and a healthy equity ratio (39.1%); Cash Flow score (68) indicates a strong recent free cash flow turnaround but prior periods of negative operating cash flow add risk.

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: 3165.00
• 50DMA: Positive
• 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:6403, the sentiment is Positive. The current price of 3165 is below the 20-day moving average (MA) of 3396.75, below the 50-day MA of 3184.84, and above the 200-day MA of 2606.84, indicating a neutral trend. The MACD of 73.66 indicates Positive momentum. The RSI at 46.55 is Neutral, neither overbought nor oversold. The STOCH value of 11.15 is Positive, 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	83 Outperform	¥5.13B	9.15	―	1.80%	-0.27%	0.09%
5698	73 Outperform	¥25.77B	17.68	―	2.62%	-9.37%	590.66%
6403	71 Outperform	¥14.07B	23.94	―	1.79%	23.19%	-37.04%
4245	67 Neutral	¥9.12B	38.56	―	3.34%	7.12%	-43.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4657	56 Neutral	¥2.11B	77.00	―	1.93%	-1.19%	-89.91%