SK-Electronics Co., Ltd. (6677) AI Stock Analysis

• Market Cap: ¥28.56B
• Dividend Yield: 4%
• Average Volume (3M): 41.32K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.51
• Revenue Growth: 5.60%
• EPS Growth: 26.47%
• Country: JP
• Employees: 387
• Sector: Technology
• Sector Strength: 87
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 58.03
• Shares Outstanding: 11,368,400
• 10 Day Avg. Volume: 57,480
• 30 Day Avg. Volume: 41,316
• PEG Ratio: 0.02
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.20
• 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: ¥3,300.00
• Price Target Upside: 21.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 83 Outperform
• Price Target: ¥2,979.00 ▲(9.40%Upside)

The overall score for SK-Electronics reflects strong technical trends and an attractive valuation, supported by solid financial performance. The upward momentum and low valuation are the key strengths driving the stock's appeal. However, challenges in sustaining revenue growth and managing free cash flow are potential risks to monitor.

SK-Electronics Co., Ltd. Business Overview & Revenue Model

Company Description

SK-Electronics CO.,LTD. manufactures and sells large-format photomasks in Japan and internationally. The company offers photomasks for use in display panels, including liquid crystal displays, plasma display panel, OLEDs, and TSPs; and other electronic devices, such as semiconductor packages, light guides, micro electro mechanical systems, and other components and tools for equipment inspections. It also provides radio frequency identification products; and healthcare/medical devices, including electrical stimulators, carbonhand for self support, and stethoscopes and percussion hammers. The company was incorporated in 2001 and is headquartered in Kyoto, Japan.

How the Company Makes Money

SK-Electronics Co., Ltd. generates revenue primarily through the sale of its photomask products. These photomasks are essential in the photolithography process of semiconductor fabrication, where they are used to transfer circuit patterns onto semiconductor wafers. The company benefits from long-term contracts and partnerships with leading semiconductor manufacturers, ensuring a steady demand for its products. Additionally, SK-Electronics invests in research and development to maintain its competitive edge in photomask technology, thereby creating value through innovative solutions that meet the evolving needs of the semiconductor and display industries.

SK-Electronics Co., Ltd. Financial Statement Overview

Summary

SK-Electronics demonstrates strong profitability with good operational efficiency and a robust financial position, as reflected in its impressive balance sheet. However, challenges exist in maintaining revenue growth and managing free cash flow, leading to some concerns about financial sustainability.

Income Statement

SK-Electronics demonstrates strong profitability with a consistent improvement in net profit margin over time, indicating effective cost management and growing net income. The gross profit margin and EBIT margin are healthy, reflecting good operational efficiency. However, revenue growth has shown some fluctuations, with a recent decline compared to the previous period, which could indicate a potential challenge in maintaining growth momentum.

Balance Sheet

The company maintains a robust financial position with a very low debt-to-equity ratio, suggesting low financial leverage and a strong equity base. The significant equity ratio further supports the stability of the company. Return on Equity is impressive, indicating effective use of equity capital to generate profits. Overall, the balance sheet reflects strength and stability.

Cash Flow

Cash flow shows mixed performance, with notable fluctuations in free cash flow. Despite a strong operating cash flow, the free cash flow has been volatile, mainly due to high capital expenditures. The operating cash flow to net income ratio is favorable, indicating good conversion of net income into cash. However, the inconsistency in free cash flow suggests potential challenges in managing cash outflows effectively.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	26.32B	25.73B	28.11B	24.88B	20.44B	19.10B
Gross Profit	6.60B	5.94B	7.51B	6.36B	3.87B	1.56B
EBITDA	7.02B	5.90B	8.09B	7.32B	4.46B	4.08B
Net Income	3.20B	2.29B	3.38B	3.32B	1.07B	-971.84M
Balance Sheet
Total Assets	42.74B	39.67B	41.81B	39.45B	32.88B	31.78B
Cash, Cash Equivalents and Short-Term Investments	12.41B	12.48B	15.28B	13.93B	8.84B	10.33B
Total Debt	600.00M	800.00M	1.60B	2.40B	3.35B	4.45B
Total Liabilities	10.21B	7.51B	10.19B	10.85B	8.51B	9.39B
Stockholders Equity	32.52B	32.17B	31.62B	28.60B	24.38B	22.39B
Cash Flow
Free Cash Flow	0.00	-258.52M	2.83B	5.76B	-636.59M	-1.41B
Operating Cash Flow	0.00	3.89B	5.34B	6.27B	3.66B	1.99B
Investing Cash Flow	0.00	-4.15B	-2.51B	-529.68M	-4.30B	-3.39B
Financing Cash Flow	0.00	-2.51B	-1.49B	-1.28B	-1.22B	3.31B

SK-Electronics Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2723.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6677, the sentiment is Positive. The current price of 2723 is above the 20-day moving average (MA) of 2593.85, above the 50-day MA of 2484.56, and above the 200-day MA of 2243.01, indicating a bullish trend. The MACD of 73.82 indicates Negative momentum. The RSI at 64.99 is Neutral, neither overbought nor oversold. The STOCH value of 79.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6677.

SK-Electronics Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6677	83 Outperform	¥28.56B	8.52		4.00%	5.60%	26.47%
Sector *	56 Neutral	$7.08B	5.28	-5.20%	5.56%	8.18%	-38.45%
KACPF		$193.06M	124.78	0.29%	0.02%	―	―
6915	81 Outperform	¥28.99B	9.97		5.62%	1.17%	8.92%
6266	79 Outperform	¥31.20B	6.70		1.54%	24.08%	55.82%
6800	79 Outperform	¥31.91B	14.33		3.51%	7.79%	47.38%
6958	61 Neutral	¥22.51B	6.28		5.99%	5.43%	-16.17%