Sinfonia Technology Co., Ltd. (6507) AI Stock Analysis

• Market Cap: ¥297.39B
• Dividend Yield: 0.95%
• Average Volume (3M): 288.85K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 1.50
• Revenue Growth: 14.47%
• EPS Growth: 30.85%
• Country: JP
• Employees: 3,683
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 102.66
• Shares Outstanding: 29,789,122
• 10 Day Avg. Volume: 343,490
• 30 Day Avg. Volume: 288,846
• PEG Ratio: 0.23
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 20.09
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥11,591.00 ▲(15.45% Upside)

Sinfonia Technology Co., Ltd. receives a strong overall score driven by its robust financial performance and positive technical indicators. However, the high P/E ratio suggests a premium valuation, which may limit upside potential. The absence of earnings call data and corporate events does not impact the score significantly.

Sinfonia Technology Co., Ltd. Business Overview & Revenue Model

Company Description

Sinfonia Technology Co., Ltd. (6507) is a prominent company specializing in the development and manufacturing of electronic components and systems, particularly for industrial applications. Operating primarily in the sectors of telecommunications, automotive electronics, and consumer electronics, the company is known for its innovative solutions that enhance connectivity and system efficiency. Sinfonia's core products include high-performance circuit boards, electronic modules, and various related components that cater to a diverse range of industries.

How the Company Makes Money

Sinfonia Technology Co., Ltd. generates revenue through the sale of its electronic components and systems to various industries, with key revenue streams coming from long-term contracts with major manufacturers in the telecommunications and automotive sectors. The company benefits from economies of scale due to its production capabilities and strategic partnerships with leading technology firms that enhance its market reach. Additionally, Sinfonia invests in research and development to create advanced products that meet the evolving needs of its customers, thus driving sales and maintaining competitive pricing. The company's focus on high-quality manufacturing and customer service further solidifies its revenue base by fostering repeat business.

Sinfonia Technology Co., Ltd. Financial Statement Overview

Summary

Sinfonia Technology Co., Ltd. exhibits strong financial health with robust revenue growth, healthy profitability margins, and solid cash flow generation. The balance sheet is stable with low leverage, positioning the company well for future opportunities.

Income Statement

Sinfonia Technology Co., Ltd. demonstrates strong revenue growth, with a notable increase from ¥102.657 billion to ¥119.15 billion year-over-year, reflecting a 16.1% growth rate. The company maintains healthy profitability with a gross profit margin of approximately 26.7% and a net profit margin of 10.1% in the most recent year. EBITDA and EBIT margins are robust at 16.7% and 13.2%, respectively, indicating effective cost management and operational efficiency.

Balance Sheet

The balance sheet of Sinfonia Technology shows a strong equity base with an equity ratio of 58.7%, ensuring financial stability. The debt-to-equity ratio is a conservative 0.19, indicating low leverage. The return on equity is commendable at 15.1%, reflecting efficient use of shareholders' equity to generate earnings.

Cash Flow

Sinfonia Technology's cash flow position is solid, with a significant increase in free cash flow by 222.4% to ¥8.398 billion, suggesting improved cash generation capabilities. The operating cash flow to net income ratio is 0.94, highlighting strong cash conversion efficiency. The free cash flow to net income ratio is an impressive 0.69, indicating effective capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	120.71B	119.15B	102.66B	108.81B	94.58B	87.31B
Gross Profit	32.62B	31.86B	25.34B	26.73B	21.44B	18.06B
EBITDA	19.26B	19.93B	13.93B	14.18B	11.25B	8.06B
Net Income	11.95B	12.10B	7.51B	8.10B	5.59B	3.68B
Balance Sheet
Total Assets	133.36B	136.47B	137.06B	127.32B	116.80B	109.35B
Cash, Cash Equivalents and Short-Term Investments	8.99B	10.22B	9.57B	9.49B	8.73B	12.36B
Total Debt	15.06B	14.94B	21.78B	21.96B	21.78B	23.79B
Total Liabilities	54.33B	56.33B	62.61B	64.71B	62.71B	58.00B
Stockholders Equity	79.03B	80.13B	74.45B	62.61B	54.09B	51.35B
Cash Flow
Free Cash Flow	0.00	8.40B	2.60B	1.95B	1.34B	3.66B
Operating Cash Flow	0.00	11.37B	9.84B	6.03B	2.95B	6.81B
Investing Cash Flow	0.00	-1.92B	-7.50B	-4.06B	-1.85B	-2.91B
Financing Cash Flow	0.00	-8.96B	-2.36B	-1.28B	-4.76B	843.00M

Sinfonia Technology Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10040.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6507, the sentiment is Neutral. The current price of 10040 is below the 20-day moving average (MA) of 10469.50, above the 50-day MA of 9248.40, and above the 200-day MA of 7819.63, indicating a neutral trend. The MACD of 246.91 indicates Positive momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 38.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6507.

Sinfonia Technology Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6134	77 Outperform	$282.39B	18.83	6.44%	2.71%	12.95%	47.00%
6508	76 Outperform	€295.81B	16.06	14.28%	2.23%	8.03%	23.50%
6507	74 Outperform	¥297.39B	24.90	―	0.95%	14.47%	30.85%
6371	74 Outperform	€217.98B	9.57	8.83%	3.93%	1.48%	8.86%
6457	69 Neutral	¥189.78B	19.77	4.88%	3.04%	-11.88%	-68.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6925	59 Neutral	$226.36B	68.82	2.20%	3.06%	-3.70%	-38.72%

Sinfonia Technology Co., Ltd. Corporate Events

Sinfonia Technology Reports Q1 2025 Financial Results with Increased Sales but Lower Profits

Sinfonia Technology Co., Ltd. reported its financial results for the three months ended June 30, 2025, showing a 7.3% increase in net sales compared to the previous year. Despite the rise in sales, the company’s ordinary profit decreased by 1.4%, and profit attributable to owners of the parent fell by 8.1%. The financial position remains stable with a slight increase in the equity capital ratio. The company also announced the consolidation of a new subsidiary, Sinfonia Technology (America) Inc., which could impact its operations and market presence in the American region.