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

• Market Cap: ¥29.02B
• Dividend Yield: 4.63%
• Average Volume (3M): 99.45K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.90
• Revenue Growth: 5.20%
• EPS Growth: -3.07%
• Country: JP
• Employees: 387
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 41.65
• Shares Outstanding: 11,368,400
• 10 Day Avg. Volume: 73,710
• 30 Day Avg. Volume: 99,450
• PEG Ratio: -0.32
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.93
• P/FCF Ratio: -92.75
• 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: ¥3,334.50
• Price Target Upside: 20.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ¥3,169.00 ▲(14.53% 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.

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

Company Description

SK-Electronics Co., Ltd. (6677) is a leading firm in the electronics manufacturing sector, specializing in the development and production of high-quality electronic components and systems. The company operates across various sectors, including consumer electronics, automotive components, and industrial automation, delivering innovative solutions that enhance efficiency and performance. Its core products include semiconductors, electronic circuits, and integrated systems, catering to both domestic and international markets.

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 exhibits strong profitability and financial stability, with an impressive balance sheet featuring low debt and strong equity. However, challenges in revenue growth and free cash flow volatility slightly temper the overall financial strength.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.13B	25.73B	28.11B	24.88B	20.44B	19.10B
Gross Profit	6.89B	5.94B	7.51B	6.36B	3.87B	1.56B
EBITDA	6.61B	5.90B	8.09B	7.32B	4.46B	4.08B
Net Income	2.64B	2.29B	3.38B	3.32B	1.07B	-971.84M
Balance Sheet
Total Assets	41.72B	39.67B	41.81B	39.45B	32.88B	31.78B
Cash, Cash Equivalents and Short-Term Investments	7.96B	12.48B	15.28B	13.93B	8.84B	10.33B
Total Debt	627.04M	800.00M	1.60B	2.40B	3.35B	4.45B
Total Liabilities	7.72B	7.51B	10.19B	10.85B	8.51B	9.39B
Stockholders Equity	33.99B	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: Neutral
• Last Price: 2767.00
• 50DMA: Negative
• 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:6677, the sentiment is Neutral. The current price of 2767 is below the 20-day moving average (MA) of 2865.42, below the 50-day MA of 2817.56, and above the 200-day MA of 2396.05, indicating a neutral trend. The MACD of -18.74 indicates Positive momentum. The RSI at 45.84 is Neutral, neither overbought nor oversold. The STOCH value of 44.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6915	83 Outperform	¥33.14B	12.77	―	5.06%	-4.88%	-8.72%
6266	74 Outperform	¥35.51B	9.30	―	1.42%	7.20%	-10.52%
6677	73 Outperform	¥29.02B	10.87	―	4.63%	5.20%	-3.07%
6800	71 Outperform	¥34.73B	42.41	―	3.23%	4.30%	-66.03%
6958	69 Neutral	¥24.61B	10.66	―	5.63%	3.34%	-57.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6999	54 Neutral	$40.76B	143.89	0.39%	2.50%	1.06%	-85.13%