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

• Market Cap: ¥15.96B
• Dividend Yield: 2.71%
• Average Volume (3M): 31.64K
• Price to Earnings (P/E): 47.5
• Beta (1Y): 0.94
• Revenue Growth: -6.08%
• EPS Growth: -56.08%
• Country: JP
• Employees: 485
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• 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: ¥1,540.00 ▲(25.61% Upside)
• Action: Reiterated Date: 11/05/25
• Date: Action: Reiterated 11/05/25

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

Low leverage and strong equity position

A near-zero debt-to-equity ratio and high equity ratio give Suzumo durable financial flexibility. Minimal leverage reduces solvency risk, supports sustained investment or capex funding, and allows the company to weather sector cyclicality without heavy interest burdens.

High and sustainable margins

Robust gross and operating margins indicate structural pricing power and efficient manufacturing. Such margin profiles support reinvestment, cushion against input cost swings, and help maintain profitability across business cycles, underpinning long-term cash generation.

Recurring B2B after-sales and export demand

A B2B model with an installed base that generates maintenance, parts and service revenue provides predictable recurring cash flows. Combined with exports and structural demand for labor-saving automation, this supports steady revenue and customer stickiness over time.

Negative Factors

Recent revenue decline

Trailing revenue contraction near 8% signals weakening demand or market share pressure. Persistent top-line declines can erode scale economics, constrain reinvestment, and pressure margins and cash generation if not reversed over the medium term.

Weak free cash flow and capex pressure

Negative FCF growth and a very low FCF-to-net-income ratio reflect that earnings are not translating into durable cash. Higher capex driving the decline limits internal funding for dividends, debt paydown or strategic M&A, increasing reliance on balance-sheet flexibility.

Earnings contraction and volatility

A roughly 77% EPS decline indicates material earnings volatility or one-off impacts that reduce forecasting reliability. Such swings undermine confidence in sustained profitability, complicate capital allocation, and may pressure management priorities over the medium term.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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 1409.60, below the 50-day MA of 1345.82, and below the 200-day MA of 1525.39, indicating a neutral trend. The MACD of 19.04 indicates Negative momentum. The RSI at 63.91 is Neutral, neither overbought nor oversold. The STOCH value of 78.96 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	¥42.81B	10.77	9.42%	3.31%	0.61%	0.47%
6144	75 Outperform	¥44.91B	12.41	―	3.00%	12.75%	96.71%
6137	74 Outperform	¥52.23B	19.43	―	2.78%	0.25%	-18.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6405	61 Neutral	¥15.96B	47.49	―	2.71%	-6.08%	-56.08%
6151	59 Neutral	¥34.38B	17.03	―	2.13%	1.13%	-66.14%
6279	51 Neutral	¥24.63B	64.03	―	1.10%	9.21%	-46.66%