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

• Market Cap: ¥33.04B
• Dividend Yield: 4.25%
• Average Volume (3M): 99.45K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.85
• Revenue Growth: 13.45%
• EPS Growth: 19.19%
• Country: JP
• Employees: 387
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 61.28
• Shares Outstanding: 11,368,400
• 10 Day Avg. Volume: 73,710
• 30 Day Avg. Volume: 99,450
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 73 Outperform
• Price Target: ¥3,169.00 ▲(0.13% Upside)

SK-Electronics benefits from strong financial stability and an attractive valuation, making it appealing for value and income investors. However, technical indicators suggest potential short-term weakness, and challenges in revenue growth and cash flow management could impact future performance.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low debt enhances financial stability and flexibility, allowing the company to invest in growth opportunities without significant financial risk.

Profitability

Consistent profitability and improving net profit margins indicate effective cost management and operational efficiency, supporting long-term financial health and shareholder value.

Competitive Edge

The company's technological expertise and state-of-the-art production facilities provide a competitive advantage in the photomask market, crucial for sustaining market position and client relationships.

Negative Factors

Revenue Growth Challenges

Fluctuating revenue growth may indicate challenges in maintaining momentum, potentially impacting long-term expansion and market share if not addressed.

Free Cash Flow Volatility

Volatile free cash flow can hinder the company's ability to invest consistently in growth initiatives and manage unexpected expenses, affecting financial planning and stability.

EPS Growth Decline

A decline in EPS growth suggests potential issues in profitability or increased costs, which could impact investor confidence and the company's ability to generate shareholder returns.

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 generates revenue primarily through the sale of its electronic components and systems to various industries, including consumer electronics, automotive, and industrial sectors. Key revenue streams include direct sales to OEMs (Original Equipment Manufacturers), contracts for custom electronic solutions, and long-term supply agreements with major corporations. The company also benefits from partnerships with technology firms and research institutions, allowing it to stay at the forefront of innovation and expand its product offerings. Additionally, SK-Electronics engages in R&D to develop next-generation technologies, which not only enhances its product portfolio but also opens up new markets, further contributing to its earnings.

SK-Electronics Co., Ltd. Financial Statement Overview

Summary

SK-Electronics demonstrates strong profitability and financial stability with a robust balance sheet. However, challenges in maintaining revenue growth and managing cash flow volatility are notable concerns.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	28.13B	29.19B	25.73B	28.11B	24.88B	20.44B
Gross Profit	6.89B	6.92B	5.94B	7.51B	6.36B	3.87B
EBITDA	6.61B	7.16B	5.90B	8.09B	7.32B	4.46B
Net Income	2.64B	2.73B	2.29B	3.38B	3.32B	1.07B
Balance Sheet
Total Assets	41.72B	42.52B	39.67B	41.81B	39.45B	32.88B
Cash, Cash Equivalents and Short-Term Investments	7.96B	9.68B	12.48B	15.28B	13.93B	8.84B
Total Debt	627.04M	0.00	800.00M	1.60B	2.40B	3.35B
Total Liabilities	7.72B	7.93B	7.51B	10.19B	10.85B	8.51B
Stockholders Equity	33.99B	34.59B	32.17B	31.62B	28.60B	24.38B
Cash Flow
Free Cash Flow	0.00	195.54M	-258.52M	2.83B	5.76B	-636.59M
Operating Cash Flow	0.00	5.13B	3.89B	5.34B	6.27B	3.66B
Investing Cash Flow	0.00	-6.14B	-4.15B	-2.51B	-529.68M	-4.30B
Financing Cash Flow	0.00	-1.97B	-2.51B	-1.49B	-1.28B	-1.22B

SK-Electronics Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3165.00
• 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 3165 is above the 20-day moving average (MA) of 3108.00, above the 50-day MA of 3072.32, and above the 200-day MA of 2677.11, indicating a bullish trend. The MACD of 31.08 indicates Negative momentum. The RSI at 53.76 is Neutral, neither overbought nor oversold. The STOCH value of 46.42 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
6800	79 Outperform	¥51.10B	17.12	―	2.20%	4.75%	164.54%
6958	76 Outperform	¥35.27B	13.88	―	3.75%	2.98%	-56.70%
6915	75 Outperform	¥27.23B	11.28	―	4.78%	-7.10%	6.38%
6677	73 Outperform	¥33.04B	11.98	―	4.25%	13.45%	19.19%
6266	68 Neutral	¥31.66B	7.30	―	1.63%	12.91%	11.46%
6999	67 Neutral	¥47.01B	25.87	2.45%	2.19%	5.79%	193.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%