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

• Market Cap: ¥17.35B
• Dividend Yield: 1.79%
• Average Volume (3M): 11.64K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.66
• Revenue Growth: 23.19%
• EPS Growth: -37.04%
• Country: JP
• Employees: 581
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 38.15
• 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: ¥4,354.00 ▲(37.57% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by solid financial health (notably low leverage and improving profitability/cash generation) and strong technical momentum. Valuation is reasonable but not especially cheap, and the dividend yield is modest.

Positive Factors

Strong Balance Sheet

Low leverage (D/E 0.19) and a 39.1% equity ratio give Suido Kiko durable financial flexibility. This reduces refinancing risk, supports bidding on public infrastructure projects and necessary capex, and helps absorb sector cycles without heavy external debt over the medium term.

Free Cash Flow Turnaround

The shift to positive free cash flow and a 218% YoY FCF jump signals improved cash generation and operational conversion. Sustained FCF enables funding of maintenance, capex and working capital for multi-month projects, reducing dependence on external financing over the coming quarters.

Improving Margins & Revenue

Expansion of gross margin alongside meaningful revenue growth indicates better pricing power or cost control and stronger project execution. These structural improvements support more durable operating margins and greater internal reinvestment capacity across typical project cycles.

Negative Factors

Thin Net Margin

A net profit margin near 1.6% provides a small buffer against cost inflation, contract overruns or competitive pricing. Low absolute profitability limits retained earnings, constrains long-term reinvestment and makes returns sensitive to modest adverse swings in costs or revenues.

Revenue Volatility

Recurring revenue fluctuations reflect lumpy project timing and sensitivity to contract cycles. This complicates capacity and working capital planning, producing uneven cashflow and utilization that can hinder consistent margin expansion and reliable medium-term forecasting.

Inconsistent Operating Cash Flow

Prior negative operating cash flows show cash conversion can be inconsistent despite recent improvement. If receivable timing or project delays recur, liquidity could be strained, forcing precautionary borrowing or tighter contract terms that impair long-term financial resilience.

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

Solid overall fundamentals supported by a strong balance sheet (low leverage, healthy equity ratio) and improved profitability. Cash flow has turned positive with strong recent free cash flow growth, though historical volatility in revenue and prior negative operating cash flow add some 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• 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 3878.25, below the 50-day MA of 3515.54, and above the 200-day MA of 2805.11, indicating a bullish trend. The MACD of 164.15 indicates Positive momentum. The RSI at 70.91 is Negative, neither overbought nor oversold. The STOCH value of <0.01 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
6403	75 Outperform	¥17.35B	21.56	―	1.79%	23.19%	-37.04%
5698	73 Outperform	¥27.90B	15.20	―	2.62%	-9.37%	590.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5699	62 Neutral	¥5.05B	8.18	―	1.80%	-0.27%	0.09%
4245	57 Neutral	¥9.24B	19.99	―	3.34%	7.12%	-43.68%
4657	56 Neutral	¥2.27B	53.38	―	1.93%	-1.19%	-89.91%