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

• Market Cap: ¥373.50B
• Dividend Yield: 1.01%
• Average Volume (3M): 288.85K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 1.54
• Revenue Growth: 14.47%
• EPS Growth: 30.85%
• Country: JP
• Employees: 3,683
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 88.79
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 422.87
• Revenue Forecast (FY): ¥126.35B

• Rating: 74 Outperform
• Price Target: ¥14,762.00 ▲(62.76% Upside)
• Action: Upgraded Date: 01/17/26
• Date: Action: Upgraded 01/17/26

The score is driven primarily by strong financial performance—solid growth, profitability, low leverage, and improving free cash flow. Technicals are supportive due to the clear uptrend, but overbought signals temper the outlook. Valuation is the main constraint, with a higher P/E and low dividend yield reducing the attractiveness versus fundamentals.

Positive Factors

Revenue Growth & Margins

Sustained 16.1% revenue growth with double-digit EBIT and net margins indicates durable end-market demand and effective cost control. Healthy margins support reinvestment and profitability persistence, improving the firm's ability to fund expansion and weather moderate downturns.

Robust Cash Generation

A large jump in free cash flow and near-par operating cash flow conversion show the business converts earnings into cash reliably. Strong FCF supports capex, working capital needs, debt reduction or strategic M&A without heavy external financing, enhancing resilience.

Conservative Balance Sheet

Low leverage and a strong equity base provide financial flexibility and lower refinancing risk. Combined with a solid ROE, the balance sheet supports strategic investments and cushions cyclical stress, enabling long-term execution without compromising liquidity.

Negative Factors

Concentrated End Markets / Cyclicality

Concentration in industrial automation and transport equipment ties revenues to capital spending cycles and infrastructure budgets. This structural exposure can produce multi-quarter swings in orders and margins when manufacturing capex or transport investment slows, raising earnings variability.

Limited Income Return

A low dividend yield implies shareholders rely primarily on growth for returns rather than recurring income. In periods of slower top-line growth, weak yield reduces downside income support and may make the stock less attractive to income-oriented investors over the medium term.

Above-Average Market Sensitivity

A beta near 1.54 signals higher sensitivity to market and economic swings. For a capital-intensive machinery supplier, this likely reflects earnings cyclicality and can increase perceived risk for financing and planning, potentially raising the cost of capital for long-term projects.

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

Company Description

Sinfonia Technology Co.,Ltd. manufactures and sells various equipment worldwide. The company offers aerospace products, including servo-actuators, lift trucks, electrical components, and ground power vehicles; clutches and brakes; and servo actuators, such as DD motors, HD motors, HD linear motors, compact DC motors, AC servo-motors, and alignment stages. It also provides transportation and power control systems comprising vending machines for contactless IC cards, IC card replenishment devices, meal ticket vending machines, ticket vending machines, barrier-free ticket vending machines, balance display machines for IC cards, flapper gates for use with contactless IC cards, and bicycle parking lot management systems. In addition, the company offers printer systems; and automotive testing systems that include high speed dynamometers, engine benches, powertrain and vehicle collision testing systems, inverter load simulators for electric vehicles, and ultra-low inertia dynamos. Further, it provides vibrating equipment, feeders, conveyors, and screens, as well as dryers and cooler systems; parts feeders; and lifting magnets, refrigerator motors, generators, cryogenic motors, cogeneration systems, and biomass power generators. Additionally, the company offers central monitoring systems for waterworks systems, underground manhole pump control boxes, sludge incinerators for final processing, electrical equipment for sewer systems, hybrid power generation systems, landslide sensing/early-warning systems, road management systems, electrical equipment for road management, continuous air monitoring systems, and tunnel maintenance and management systems for civil infrastructure. The company was formerly known as Shinko Electric Co., Ltd. and changed its name to Sinfonia Technology Co.,Ltd. in April 2009. Sinfonia Technology Co.,Ltd. was founded in 1917 and is headquartered in Tokyo, Japan.

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

Strong fundamentals supported by 16.1% revenue growth and healthy profitability (net margin 10.1%, EBIT margin 13.2%). Balance sheet is stable with low leverage (debt-to-equity 0.19, equity ratio 58.7%) and good ROE (15.1%). Cash generation is solid with sharply higher free cash flow (+222.4%) and strong cash conversion (operating cash flow to net income 0.94).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 9070.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6507, the sentiment is Positive. The current price of 9070 is below the 20-day moving average (MA) of 11607.00, below the 50-day MA of 10704.80, and below the 200-day MA of 9388.80, indicating a bullish trend. The MACD of 563.50 indicates Negative momentum. The RSI at 75.77 is Negative, neither overbought nor oversold. The STOCH value of 93.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
6371	81 Outperform	¥277.17B	11.68	8.83%	3.85%	1.48%	8.86%
6507	74 Outperform	¥373.50B	29.93	―	1.01%	14.47%	30.85%
6457	72 Outperform	¥208.52B	29.87	5.40%	2.74%	-15.49%	-59.00%
6508	71 Outperform	¥360.23B	15.98	14.28%	2.40%	8.03%	23.50%
6925	69 Neutral	¥284.41B	51.19	2.20%	2.81%	-3.70%	-36.38%
6134	68 Neutral	¥580.70B	28.98	6.46%	2.22%	12.95%	46.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sinfonia Technology Co., Ltd. Corporate Events

Sinfonia Technology Overhauls Leadership as It Enters New Phase of Growth

Sinfonia Technology has announced a broad reshuffle of its top management and officer lineup as it enters what it describes as a new phase of growth. Effective April 1, 2026, Director and Senior Managing Executive Officer Minoru Yamakuni will become Representative Director and President, while Director and Senior Officer Hiroharu Senju will be promoted to Representative Director and Senior Managing Executive Officer.

Current Representative Director and Chairman Shozo Buto will move to the role of Chairman, and President Shinichi Hirano will step down as Representative Director and President to become Director and Senior Advisor, later serving as Senior Advisor. The company framed the transition as a generational shift following the steady execution of its three-year medium-term plan, “SINFONIA NEW STAGE 2024,” which has stabilized performance and bolstered its business base.

In addition, Sinfonia plans to add Officer Hideyo Tsuchida to its board as Director following the June 2026 shareholders’ meeting, with Director Hirano slated to retire from the board at that time. The firm will also maintain governance continuity by designating incumbent Substitute Corporate Auditor Koji Sasakawa again as a substitute corporate auditor candidate.

Operationally, the company is refreshing its officer ranks to support key business segments, appointing new officers to lead the Electrical Products & Systems Works at the Toyohashi Plant, the Engineering Department of the Aerospace Systems Works at the Ise Plant, and the FA System Sales Department in the Electronics & Precision Products Division. Several existing officers, including Makoto Motoyoshi and Hiroshi Saito, will retire from officer posts, with some continuing in advisory or specialized roles, signaling a reconfigured but continuous leadership structure aimed at enhancing agility and corporate value.

The most recent analyst rating on (JP:6507) stock is a Buy with a Yen12454.00 price target. To see the full list of analyst forecasts on Sinfonia Technology Co., Ltd. stock, see the JP:6507 Stock Forecast page.

Sinfonia Technology to Dispose of Treasury Shares for Performance-Linked Stock Compensation Trust

Sinfonia Technology has resolved to dispose of 14,800 shares of its treasury stock, worth approximately ¥159 million, by allotting them to a trust account at Custody Bank of Japan as part of its performance-linked stock compensation system for internal directors and executive officers. The transaction, representing about 0.05% of the company’s issued shares and voting rights, is structured as an additional contribution to an existing Board Benefit Trust, with the disposal price set at ¥10,740 per share based on the latest closing price, and is intended to secure shares for grants over three fiscal years, aligning management incentives with corporate performance while causing only limited shareholder dilution deemed reasonable by the company.

The most recent analyst rating on (JP:6507) stock is a Buy with a Yen12454.00 price target. To see the full list of analyst forecasts on Sinfonia Technology Co., Ltd. stock, see the JP:6507 Stock Forecast page.

Sinfonia Technology Posts Steady Profit Growth and Confirms FY2026 Outlook

For the nine months ended December 31, 2025, Sinfonia Technology reported consolidated net sales of ¥82.4 billion, up 4.6% year on year, with operating profit rising 6.8% to ¥9.3 billion and profit attributable to owners of parent increasing 4.9% to ¥7.1 billion, reflecting steady earnings growth and a stronger comprehensive income position. Total assets climbed to ¥148.4 billion and equity reached ¥86.7 billion, while the equity ratio remained stable at around 58%, underscoring a solid financial base; the company kept its full-year forecast unchanged, projecting ¥125.0 billion in net sales and ¥16.5 billion in operating profit for the fiscal year ending March 2026, alongside a planned annual dividend increase to ¥120 per share and the first-time consolidation of SINFONIA TECHNOLOGY (AMERICA) INC., signaling ongoing international expansion and stable shareholder returns.

The most recent analyst rating on (JP:6507) stock is a Buy with a Yen12454.00 price target. To see the full list of analyst forecasts on Sinfonia Technology Co., Ltd. stock, see the JP:6507 Stock Forecast page.