Suzumo Machinery Co., Ltd. (6405) AI Stock Analysis

• Market Cap: ¥15.71B
• Dividend Yield: 2.71%
• Average Volume (3M): 31.64K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.96
• Revenue Growth: -6.08%
• EPS Growth: -56.08%
• Country: JP
• Employees: 485
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 3.29
• Shares Outstanding: 12,960,000
• 10 Day Avg. Volume: 28,440
• 30 Day Avg. Volume: 31,636
• PEG Ratio: 0.70
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 213.17
• 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: 61 Neutral
• Price Target: ¥1,485.00 ▲(21.13% Upside)

The overall stock score is primarily influenced by strong financial performance, despite challenges in cash flow. Technical analysis indicates bearish momentum, which is a significant risk factor. Valuation is moderate, offering a reasonable P/E ratio and dividend yield but not enough to offset the technical weaknesses.

Positive Factors

Balance sheet strength

Extremely low leverage and a high equity ratio provide durable financial resilience, enabling the company to weather downturns and fund targeted capex or strategic initiatives without reliance on external financing. Strong ROE shows efficient long-term use of shareholder capital.

High and sustainable margins

Robust gross and operating margins reflect structural cost efficiency and pricing power in machine manufacturing. Sustained profitability generates internal funds for R&D and service investments, improving resilience to competition and supporting long-term margin maintenance.

Recurring after-sales revenue and export demand

After-sales maintenance, parts and service revenues create recurring cash flows that smooth equipment sales cyclicality. Coupled with export opportunities for labor-saving automation, this supports steadier revenue and scalable international expansion over the medium term.

Negative Factors

Negative revenue and EPS trends

Declining revenue and steep EPS contraction signal weakening demand or margin pressures. If persistent, these trends can reduce reinvestment capacity, strain profitability improvement efforts, and make it harder to convert operational strength into durable earnings recovery.

Weak free cash flow generation

Negative FCF growth and very low FCF-to-net-income ratio indicate poor cash conversion driven by higher capex. This constrains the company’s ability to fund dividends, buybacks, or organic expansion despite accounting profits, raising medium-term funding and allocation risks.

Narrow product/market concentration

Concentration in sushi and rice-preparation machinery limits addressable market and increases exposure to demand swings in a narrow vertical. Long-term growth depends on geographic expansion or product adjacencies; concentration raises scalability and competitive risk.

Suzumo Machinery Co., Ltd. Business Overview & Revenue Model

Company Description

Suzumo Machinery Company Limited manufactures and sells food machines for small kitchens and factories worldwide. The company provides rice washing machines, rice cookers, and cooked rice mixers; sushi roll machines and cutters, and rice sheet machines; nigiri sushi makers; sushi wrapping machines, sushi robots, rice weight measuring machines, rice serving machines, rice ball forming and wrapping machines, and rice ball makers; and other rice dish makers. It also offers rice cooking net, rice pack, Shari container cart, softon plus, easy-open sushi wrapping film, anti-fog wrap, Shari containers and trays, and polyethylene disposable gloves. The company was incorporated in 1961 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Suzumo Machinery generates revenue primarily through the sale of its machinery and equipment tailored for the food industry, with a significant focus on sushi production technology. Key revenue streams include direct sales of sushi robots, rice cookers, and other food processing machines, as well as after-sales services such as maintenance and support. The company may also engage in licensing technology or providing training services to clients. Partnerships with restaurants, food service providers, and distributors contribute to its earnings by expanding its market reach and ensuring a steady demand for its innovative products. Additionally, participation in international trade shows and exhibitions helps Suzumo to showcase its offerings and attract new customers.

Suzumo Machinery Co., Ltd. Financial Statement Overview

Summary

Suzumo Machinery Co., Ltd. shows strong financial health with a robust income statement and balance sheet, marked by consistent growth and minimal leverage. However, cash flow performance needs improvement, particularly in sustaining free cash flow growth.

Income Statement

Suzumo Machinery Co., Ltd. has demonstrated a strong growth trajectory with consistent revenue growth over the years. The gross profit margin for the latest year is robust at 50.5%, reflecting efficient cost management. Net profit margin improved to 9.4%, indicating increased profitability. EBIT and EBITDA margins are healthy at 12.1% and 15.6% respectively, showing operational efficiency. Overall, the income statement indicates a solid financial performance with positive growth trends.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.01, reflecting minimal leverage and financial stability. Return on equity is impressive at 9.2%, demonstrating effective use of shareholder funds. The equity ratio is high at 81.8%, indicating a solid equity position relative to total assets. The balance sheet reflects financial strength and an ability to withstand economic fluctuations.

Cash Flow

Cash flow analysis indicates a mixed performance. The operating cash flow to net income ratio is 0.9, suggesting a good conversion of net income into cash. However, the free cash flow growth rate is negative, reflecting a decline in free cash flow due to higher capital expenditures. The free cash flow to net income ratio is 0.09, indicating potential constraints in cash generation compared to net income. Overall, cash flow stability needs improvement despite healthy operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.31B	15.57B	14.51B	13.46B	11.57B	9.49B
Gross Profit	7.67B	7.86B	6.86B	6.37B	5.68B	4.39B
EBITDA	2.01B	2.42B	2.05B	1.59B	1.88B	1.29B
Net Income	1.12B	1.46B	1.14B	825.92M	1.07B	683.40M
Balance Sheet
Total Assets	19.08B	19.47B	18.20B	17.03B	16.42B	14.69B
Cash, Cash Equivalents and Short-Term Investments	4.44B	5.60B	6.02B	4.87B	8.28B	7.34B
Total Debt	0.00	153.86M	209.97M	270.51M	239.45M	90.34M
Total Liabilities	3.46B	3.50B	3.62B	3.32B	3.16B	2.50B
Stockholders Equity	15.58B	15.93B	14.55B	13.69B	13.24B	12.18B
Cash Flow
Free Cash Flow	0.00	136.30M	1.39B	-3.24B	1.15B	810.26M
Operating Cash Flow	0.00	1.37B	2.29B	-11.21M	1.34B	1.25B
Investing Cash Flow	0.00	-1.37B	-653.63M	-3.06B	-268.05M	-344.28M
Financing Cash Flow	0.00	-535.98M	-538.92M	-463.57M	-194.78M	-184.10M

Suzumo Machinery Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1226.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6405, the sentiment is Positive. The current price of 1226 is below the 20-day moving average (MA) of 1341.30, below the 50-day MA of 1284.30, and below the 200-day MA of 1580.81, indicating a neutral trend. The MACD of 39.70 indicates Negative momentum. The RSI at 63.19 is Neutral, neither overbought nor oversold. The STOCH value of 59.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6405.

Suzumo Machinery Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6272	79 Outperform	¥41.23B	11.15	9.42%	3.31%	0.61%	0.47%
6144	75 Outperform	¥39.16B	11.18	―	3.00%	12.75%	96.71%
6137	74 Outperform	¥41.75B	14.90	―	2.78%	0.25%	-18.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6405	61 Neutral	¥15.71B	25.28	―	2.71%	-6.08%	-56.08%
6151	59 Neutral	¥35.09B	68.37	―	2.13%	1.13%	-66.14%
6279	51 Neutral	¥26.42B	66.07	―	1.10%	9.21%	-46.66%

Suzumo Machinery Co., Ltd. Corporate Events

Suzumo Machinery Reports Sharp Decline in Interim Financial Results

Suzumo Machinery Co., Ltd. reported a significant decline in its financial performance for the first half of the fiscal year ending March 31, 2026, with net sales dropping by 11% and profits plummeting by over 90% compared to the previous year. The company also announced the exclusion of Japan System Project Co., Ltd. from its consolidation scope due to a merger, indicating a strategic shift in its operational structure.

The most recent analyst rating on (JP:6405) stock is a Hold with a Yen1340.00 price target. To see the full list of analyst forecasts on Suzumo Machinery Co., Ltd. stock, see the JP:6405 Stock Forecast page.