Suncorporation (6736) AI Stock Analysis

• Market Cap: $117.64B
• Dividend Yield: 1.89%
• Average Volume (3M): 49.33K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.22
• Revenue Growth: 7.88%
• EPS Growth: N/A
• Country: JP
• Employees: 301
• Sector: Technology
• Sector Strength: 87
• Industry: Consumer Electronics
• EPS (TTM): 7.02
• Shares Outstanding: 24,007,729
• 10 Day Avg. Volume: 49,910
• 30 Day Avg. Volume: 49,333
• PEG Ratio: 0.04
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.11
• 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

• Rating: 64 Neutral
• Price Target: ¥5,675.00 ▲(6.67%Upside)

Suncorporation's stock score reflects robust valuation and improved profitability, tempered by bearish technical indicators and cash flow challenges. While the stock is undervalued, operational and cash management inefficiencies necessitate caution.

Suncorporation Business Overview & Revenue Model

Company Description

Suncorporation (6736) is a diversified technology company headquartered in Japan. The company operates across several sectors, primarily focusing on information technology, entertainment, and security solutions. It offers a range of products and services, including mobile data communication equipment, gaming software, and IT security systems. Suncorporation is known for its innovative approaches in developing software and hardware solutions that cater to both consumer and enterprise markets.

How the Company Makes Money

Suncorporation generates revenue through multiple streams, with its primary income derived from the sale of its technology products and services. The company earns money from its mobile data communication equipment by selling devices and associated software solutions to both individual consumers and businesses. Additionally, the gaming sector contributes to its earnings through the development and distribution of gaming software and applications. Another significant revenue stream comes from its IT security solutions, where Suncorporation provides software and services that help protect businesses from cyber threats. The company also benefits from strategic partnerships and collaborations that enhance its market reach and technological capabilities, further driving its revenue growth.

Suncorporation Financial Statement Overview

Summary

Suncorporation demonstrated a strong turnaround in profitability with significant improvements in net income and a robust balance sheet characterized by low leverage and high equity. However, cash flow challenges persist, indicating inefficiencies in converting profits into cash, which could impact long-term growth.

Income Statement

Suncorporation showed a significant improvement in net income, moving from a loss in 2024 to a substantial profit in 2025. The revenue growth rate was solid at 7.9% year-over-year. However, the EBIT and EBITDA margins were low, indicating potential challenges in operational efficiency. The gross profit margin also declined slightly, suggesting increased cost pressures.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of 89.6%, indicating financial stability and low leverage risk. The debt-to-equity ratio is low at 0.05, reflecting prudent financial management. The return on equity improved significantly, showcasing effective utilization of shareholder funds.

Cash Flow

The free cash flow turned negative in 2025, indicating cash flow challenges. The operating cash flow to net income ratio was negative, highlighting inefficiencies in converting profits into cash. The free cash flow to net income ratio also indicated a concerning trend, as cash generation from operations was insufficient.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.88B	10.84B	10.05B	37.45B	37.21B	26.66B
Gross Profit	2.98B	2.77B	2.96B	25.54B	26.34B	18.83B
EBITDA	292.94M	18.30B	-3.81B	15.51B	10.84B	1.75B
Net Income	12.98B	17.23B	-3.78B	6.88B	2.82B	47.38M
Balance Sheet
Total Assets	44.85B	53.13B	46.84B	41.76B	82.09B	49.79B
Cash, Cash Equivalents and Short-Term Investments	4.21B	9.95B	1.73B	3.18B	32.78B	32.53B
Total Debt	2.66B	2.55B	1.39B	454.28M	3.79B	6.45B
Total Liabilities	5.94B	5.52B	9.58B	6.74B	55.05B	28.96B
Stockholders Equity	38.92B	47.61B	37.26B	35.01B	27.04B	16.44B
Cash Flow
Free Cash Flow	-603.27M	-1.92B	2.22B	-14.57B	2.49B	5.43B
Operating Cash Flow	-577.30M	-1.67B	2.51B	-13.52B	3.63B	6.11B
Investing Cash Flow	-61.79M	2.95B	-3.56B	-25.13B	4.02B	-910.83M
Financing Cash Flow	458.81M	-829.42M	-385.21M	25.57B	-3.04B	3.60B

Suncorporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5320.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6736, the sentiment is Negative. The current price of 5320 is below the 20-day moving average (MA) of 5788.50, below the 50-day MA of 6368.00, and below the 200-day MA of 7637.05, indicating a bearish trend. The MACD of -240.97 indicates Positive momentum. The RSI at 33.39 is Neutral, neither overbought nor oversold. The STOCH value of 10.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6736.

Suncorporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6794	80 Outperform	¥34.80B	8.94		5.12%	12.38%	68.86%
6952	73 Outperform	¥250.98B	31.28	3.45%	4.08%	-2.63%	-31.17%
6632	71 Outperform	€174.58B	8.56	16.78%	1.73%	3.02%	60.53%
6810	68 Neutral	¥82.40B	20.54		2.61%	0.52%	-44.10%
6736	64 Neutral	$117.64B	6.83	40.05%	1.89%	7.88%	―
Sector *	63 Neutral	£566.00M	24.41	-6.00%	2.49%	3.52%	-29.29%
6753	53 Neutral	¥447.72B	12.33		―	-6.97%	―

Suncorporation Corporate Events

Suncorporation Evaluates Investment Unit Reduction for Enhanced Stock Liquidity

Suncorporation has announced its intention to consider reducing the investment unit of its stocks to enhance liquidity and accessibility for investors. The company is evaluating this measure by taking into account stock market trends and demands, which could potentially impact investor engagement and market positioning.

Suncorporation Unveils New Stock Compensation Plans to Boost Corporate Value

Suncorporation has announced the introduction of a new stock compensation plan called the ‘Board Benefit Trust’ (BBT) to align the interests of its directors with those of shareholders by linking compensation to stock performance. Additionally, the company plans to introduce an ‘Employee Stock Ownership Plan’ (J-ESOP) to enhance employee participation in management, with details to be announced later. This move is expected to enhance the company’s medium- to long-term performance and corporate value.

Suncorporation Reports Earnings Discrepancies Due to Mixed Business Performance

Suncorporation announced discrepancies between its forecasted and actual earnings for the fiscal year ending March 31, 2025. Despite strong sales in its Global Data Intelligence and IT businesses, the company faced challenges in its entertainment segment, leading to lower sales and operating profits than anticipated. Contributing factors included delays in product development and increased expenses to strengthen future sales capabilities. However, ordinary profit and earnings per share exceeded expectations due to gains from its affiliate, Cellebrite.

Suncorporation Announces Dividend from Surplus

Suncorporation announced a resolution to pay dividends from surplus, with a record date of March 31, 2025, and an effective date of June 25, 2025. The company plans to distribute a year-end dividend of 50 yen per share, resulting in an annual dividend of 100 yen per share, reflecting its policy to return profits to shareholders while considering long-term business prospects.

Suncorporation Reports Strong Financial Recovery and Strategic Expansion

Suncorporation reported a significant improvement in its financial performance for the fiscal year ended March 31, 2025, with net sales increasing by 7.9% and a notable recovery in profitability. The company also announced a substantial increase in dividends, reflecting its strong financial position and commitment to returning value to shareholders. The inclusion of Sun Digital Health, Inc. in its consolidation scope indicates a strategic expansion into digital health, which could enhance its market positioning and growth prospects.

Suncorporation Announces Strategic Organizational Restructuring

Suncorporation announced significant organizational and personnel changes to streamline operations and improve profitability. The restructuring involves renaming and establishing departments to enhance decision-making and promote business growth, with a focus on digital transformation and strategic alliances.