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: ¥1,509.00 ▲(23.08% 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

Balance Sheet Strength

An extremely low debt-to-equity ratio (0.01), high equity ratio (81.8%) and ROE of 9.2% provide durable financial resilience. Low leverage reduces bankruptcy risk, preserves borrowing capacity for strategic investments, and enables stable capital allocation through economic cycles.

High Profitability & Margins

Robust gross margin (50.5%) and healthy operating margins (EBIT 12.1%, EBITDA 15.6%, net 9.4%) indicate structural product and manufacturing advantages. Sustainable margins support reinvestment, pricing power and resilience to input-cost swings over the medium term.

Recurring After‑sales & Export Demand

Recurring revenue from maintenance, parts and service tied to the installed base creates predictable, high-margin cash flows. Combined with export demand for labor-saving sushi/rice automation, this diversifies revenue and supports long-term growth beyond single-unit sales cycles.

Negative Factors

Declining Revenue Trend

A revenue decline of -7.88% signals weakening top-line momentum. Sustained negative revenue growth undermines operating leverage, pressures margins and ROI, and could force cost reductions or slower investment, limiting the firm's ability to expand in the 2–6 month horizon without demand recovery.

Earnings Volatility (EPS Drop)

A sharp EPS decline (~-77%) reveals significant earnings volatility or one-off impacts that erode retained earnings. This reduces internal funding for capex/dividends, weakens financial flexibility, and can harm stakeholder confidence if earnings do not stabilize.

Weak Free Cash Flow Conversion

Negative free cash flow growth and a low FCF-to-net-income ratio (0.09) mean reported profits are not translating into spendable cash. Capex-driven FCF declines constrain the ability to fund growth, service unexpected shocks, or return capital without increasing leverage or external financing.

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 1410.15, below the 50-day MA of 1349.76, and below the 200-day MA of 1523.51, indicating a neutral trend. The MACD of 18.75 indicates Negative momentum. The RSI at 56.57 is Neutral, neither overbought nor oversold. The STOCH value of 77.33 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%

Suzumo Machinery Co., Ltd. Corporate Events

Suzumo Machinery Reports Q3 FY2026 Consolidated Financial Results

Suzumo Machinery has released its consolidated financial results for the third quarter of the fiscal year ending March 31, 2026, detailing performance trends in both domestic and overseas markets. The disclosure covers year-on-year results, sales breakdowns by geography and customer category, quarterly sales dynamics, and movements in operating profit, net sales, and the consolidated balance sheet, providing stakeholders with a comprehensive view of current business performance and financial position.

The report highlights domestic own-machine sales segmented by customer type and overseas sales by region, indicating how demand is evolving across key markets. By presenting year-on-year changes in operating profit alongside regional sales composition, Suzumo offers investors and partners insight into the profitability and growth balance of its global operations, which may inform expectations about its competitive positioning and capital allocation going forward.

The most recent analyst rating on (JP:6405) stock is a Hold with a Yen1584.00 price target. To see the full list of analyst forecasts on Suzumo Machinery Co., Ltd. stock, see the JP:6405 Stock Forecast page.

Suzumo Machinery’s Nine-Month Profit Plunges as Margins and Equity Ratio Weaken

Suzumo Machinery reported consolidated net sales of ¥11.27 billion for the nine months to December 31, 2025, down 6.6% year on year, with operating profit plunging 75.1% to ¥430 million and profit attributable to owners dropping 87.6% to ¥153 million, sharply compressing earnings per share to ¥12.77. The weaker profitability, alongside a fall in comprehensive income and a decline in the equity ratio to 64.5% from 81.8%, reflects a more strained balance sheet despite maintaining a total annual dividend forecast of ¥35 per share, while full-year guidance points to modest revenue slippage and profit contracting by roughly two-thirds, signaling continued pressure on margins and returns for shareholders.

Total assets edged down to ¥19.17 billion while net assets fell more markedly to ¥12.41 billion, partly influenced by a sharp increase in treasury shares to over 1.8 million, which reduced the average number of shares outstanding and mechanically lifted per-share figures relative to absolute profit. The company also completed the absorption-type merger and dissolution of Japan System Project Co., Ltd., simplifying its consolidation scope, and confirmed that no changes were made to its previously announced earnings and dividend forecasts despite the significant deterioration in interim performance, suggesting management is either banking on a recovery in the final quarter or is prepared to tolerate lower full-year profitability.

The most recent analyst rating on (JP:6405) stock is a Hold with a Yen1584.00 price target. To see the full list of analyst forecasts on Suzumo Machinery Co., Ltd. stock, see the JP:6405 Stock Forecast page.