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Suzumo Machinery Co., Ltd. (JP:6405)
:6405
Japanese Market

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

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JP

Suzumo Machinery Co., Ltd.

(6405)

Rating:71Outperform
Price Target:
¥2,094.00
▲(18.91%Upside)
Suzumo Machinery Co., Ltd. is positioned well financially with strong growth and minimal debt. However, technical indicators suggest bearish momentum, and cash flow challenges persist. The valuation is fair, supported by a moderate P/E ratio and a reasonable dividend yield.

Suzumo Machinery Co., Ltd. (6405) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSuzumo Machinery Co., Ltd. is a Japanese company primarily engaged in the development, manufacture, and sale of food processing machinery. Established in 1955, the company has become a leader in the automation of sushi production, offering a range of machines designed to streamline the preparation of rice and sushi products. Its core products include sushi robots, rice washers, and rice cooking systems. Suzumo's innovative technologies cater to restaurants, food service providers, and retailers looking to improve efficiency and product consistency in food preparation.
How the Company Makes MoneySuzumo Machinery Co., Ltd. generates revenue through the sale of its food processing machines, with a strong focus on sushi automation technology. The company's primary revenue streams include the direct sale of machinery to restaurants, food service businesses, and retailers. Additionally, Suzumo may earn income from providing maintenance services, training, and support for its equipment. The company benefits from its reputation for quality and innovation, which helps maintain a competitive edge in the growing market for automated food processing solutions. Strategic partnerships with distributors and food service chains can also contribute to its earnings by expanding its market reach and customer base.

Suzumo Machinery Co., Ltd. Financial Statement Overview

Summary
Suzumo Machinery Co., Ltd. shows strong financial health with solid income and balance sheet performance, characterized by consistent revenue growth and minimal leverage. However, cash flow performance needs improvement due to declining free cash flow.
Income Statement
88
Very Positive
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
90
Very Positive
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
75
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue16.04B15.57B14.51B13.46B11.57B9.49B
Gross Profit8.03B7.86B6.86B6.37B5.68B4.39B
EBITDA2.70B2.42B2.05B1.59B1.88B1.29B
Net Income1.72B1.46B1.14B825.92M1.07B683.40M
Balance Sheet
Total Assets19.48B19.47B18.20B17.03B16.42B14.69B
Cash, Cash Equivalents and Short-Term Investments5.37B5.60B6.02B4.87B8.28B7.34B
Total Debt168.20M153.86M209.97M270.51M239.45M90.34M
Total Liabilities4.03B3.50B3.62B3.32B3.16B2.50B
Stockholders Equity15.41B15.93B14.55B13.69B13.24B12.18B
Cash Flow
Free Cash Flow0.00136.30M1.39B-3.24B1.15B810.26M
Operating Cash Flow0.001.37B2.29B-11.21M1.34B1.25B
Investing Cash Flow0.00-1.37B-653.63M-3.06B-268.05M-344.28M
Financing Cash Flow0.00-535.98M-538.92M-463.57M-194.78M-184.10M

Suzumo Machinery Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1761.00
Price Trends
50DMA
1881.94
Negative
100DMA
2047.86
Negative
200DMA
1901.37
Negative
Market Momentum
MACD
-37.05
Positive
RSI
33.86
Neutral
STOCH
6.92
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6405, the sentiment is Negative. The current price of 1761 is below the 20-day moving average (MA) of 1809.85, below the 50-day MA of 1881.94, and below the 200-day MA of 1901.37, indicating a bearish trend. The MACD of -37.05 indicates Positive momentum. The RSI at 33.86 is Neutral, neither overbought nor oversold. The STOCH value of 6.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6405.

Suzumo Machinery Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥29.29B7.63
3.33%7.43%18.47%
81
Outperform
¥32.84B8.4610.31%3.43%4.01%5.67%
77
Outperform
¥28.41B12.10
4.46%4.40%18.82%
71
Outperform
¥22.40B15.32
2.04%7.26%28.17%
71
Outperform
¥252.71B13.078.49%3.07%6.30%13.10%
63
Neutral
¥33.72B25.06
1.99%0.68%-22.82%
50
Neutral
¥25.63B
0.98%-1.44%-108.44%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6405
Suzumo Machinery Co., Ltd.
1,732.00
268.04
18.31%
JP:6137
Koike Sanso Kogyo Co., Ltd.
1,316.00
220.95
20.18%
JP:6144
Seibu Electric & Machinery Co., Ltd.
1,871.00
-273.26
-12.74%
JP:6151
Nitto Kohki Co., Ltd.
1,802.00
-349.60
-16.25%
JP:6279
Zuiko Corporation
975.00
-77.60
-7.37%
JP:6272
Rheon Automatic Machinery Co
1,221.00
-394.28
-24.41%

Suzumo Machinery Co., Ltd. Corporate Events

Suzumo Machinery Co., Ltd. Reports FY2025 Financial Results
May 26, 2025

Suzumo Machinery Co., Ltd. reported its financial results for the fiscal year ending March 31, 2025, highlighting a comprehensive performance analysis across domestic and international markets. The release outlines key financial metrics, including net sales, operating profit, and SG&A expenses, providing insights into the company’s strategic positioning and future performance expectations. This announcement is crucial for stakeholders as it reflects the company’s operational health and potential growth trajectory in the machinery sector.

Suzumo Machinery Co., Ltd. Reports Strong Financial Growth for FY 2025
May 22, 2025

Suzumo Machinery Co., Ltd. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 7.3% and operating profit increasing by 28.1%. This growth reflects the company’s strong market positioning and operational efficiency, with implications for enhanced shareholder value and potential future investments.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 05, 2025