Suncorporation (6736) AI Stock Analysis

• Market Cap: ¥156.56B
• Dividend Yield: 1.15%
• Average Volume (3M): 84.28K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.22
• Revenue Growth: -12.94%
• EPS Growth: 2390.52%
• Country: JP
• Employees: 301
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 113.49
• Shares Outstanding: 24,007,729
• 10 Day Avg. Volume: 168,150
• 30 Day Avg. Volume: 84,276
• PEG Ratio: -0.02
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 14.85
• P/FCF Ratio: -83.96
• 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: 61 Neutral
• Price Target: ¥8,439.00 ▼(-7.67% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily supported by improved profitability and a very strong, low-leverage balance sheet, but it is materially constrained by negative free cash flow and weak cash conversion. Technicals are bearish with the stock trading below key moving averages and a negative MACD, while valuation is reasonable with a modest dividend yield.

Positive Factors

Balance Sheet Strength

An 89.6% equity ratio and 0.05 debt-to-equity signal durable financial stability and minimal leverage. This low-debt profile preserves strategic optionality for capex, R&D or M&A, reduces solvency risk in downturns, and supports capital returns without pressuring liquidity.

Profitability Turnaround

Moving from a loss to a profit with 7.9% revenue growth reflects durable operational improvement and demand recovery. Sustained profitability rebuilds retained earnings, enhances reinvestment capacity, and indicates management effectiveness in restoring core business economics.

Niche Market Focus

A focused product set in outdoor, mobility and marine leisure supports differentiated positioning and specialized customer relationships. This niche orientation can sustain pricing power, enable targeted R&D and cross-selling, and be more resilient than commoditized consumer electronics segments.

Negative Factors

Negative Free Cash Flow

Negative free cash flow, despite reported profits, constrains the firm's ability to fund maintenance capex, growth investments or shareholder returns organically. Over months this limits strategic flexibility and may force external financing or cutbacks that impair long-term growth execution.

Weak Cash Conversion

A negative operating-cash-flow-to-net-income ratio indicates earnings quality and working capital issues; profits are not converting to cash. Persisting this pattern raises liquidity risk, reduces capacity to self-fund expansion, and increases sensitivity to supplier or financing pressures.

Low Margins & Cost Pressure

Low operating margins and a declining gross margin point to structural cost or pricing challenges. Over time, limited margins reduce return on incremental sales, require higher volumes to achieve scale, and weaken defensive buffers against competitive pricing or input-cost shocks.

Suncorporation Business Overview & Revenue Model

Company Description

Sun Corporation engages in the mobile data solutions, entertainment, information technology, and other businesses in Japan. It develops, manufactures, and sells mobile data transfer devices and mobile data solutions for law enforcement authorities, as well as sells Mobilogy brand products to mobile device stores. The company also offers IoT/M2M routers; Bacsoft IoT platform that enables remote monitoring and control of manufacturing and agricultural, and remote facilities; SunDMS, a device management service that enables centralized remote controls; and OKUDAKE-sensors. In addition, it provides AceReal, a high-precision, and high-definition see-through binocular smart glasses; and develops and distributes original gaming content, including puzzle games, as well as immersive games. Further, the company plans, develops, and manufactures amusement machines, including hardware to software in developing game machines. Sun Corporation was founded in 1971 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Suncorporation generates revenue through multiple streams, primarily by selling its semiconductor products and electronic components to manufacturers in various sectors. The company has established long-term contracts with key players in the electronics and automotive industries, which provide a steady income flow. Additionally, Suncorporation earns revenue from its energy solutions division, which focuses on providing energy management systems and services to both commercial and residential customers. Strategic partnerships with leading technology firms and participation in joint ventures further enhance its market presence and profitability. Furthermore, the company invests in research and development to innovate its product offerings, which helps in attracting new clients and retaining existing ones, thereby contributing to its overall earnings.

Suncorporation Financial Statement Overview

Summary

Profitability improved sharply with a turnaround from a 2024 loss to a 2025 profit and 7.9% YoY revenue growth, supported by a very strong balance sheet (89.6% equity ratio, 0.05 debt-to-equity). The score is held back by weak cash conversion and negative free cash flow in 2025, plus low EBIT/EBITDA margins and slight gross margin pressure.

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 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	11.07B	10.84B	10.05B	37.45B	37.21B	26.66B
Gross Profit	2.79B	2.77B	2.96B	25.54B	26.34B	18.83B
EBITDA	5.29B	18.30B	-3.81B	15.51B	10.84B	1.75B
Net Income	18.80B	17.23B	-3.78B	6.88B	2.82B	47.38M
Balance Sheet
Total Assets	53.87B	53.13B	46.84B	41.76B	82.09B	49.79B
Cash, Cash Equivalents and Short-Term Investments	9.59B	9.95B	1.73B	3.18B	32.78B	32.53B
Total Debt	2.73B	2.55B	1.39B	454.28M	3.79B	6.45B
Total Liabilities	6.62B	5.52B	9.58B	6.74B	55.05B	28.96B
Stockholders Equity	47.25B	47.61B	37.26B	35.01B	27.04B	16.44B
Cash Flow
Free Cash Flow	-1.31B	-1.92B	2.22B	-14.57B	2.49B	5.43B
Operating Cash Flow	-1.09B	-1.67B	2.51B	-13.52B	3.63B	6.11B
Investing Cash Flow	3.01B	2.95B	-3.56B	-25.13B	4.02B	-910.83M
Financing Cash Flow	-1.29B	-829.42M	-385.21M	25.57B	-3.04B	3.60B

Suncorporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9140.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 9140 is above the 20-day moving average (MA) of 8284.00, above the 50-day MA of 8627.40, and above the 200-day MA of 7682.65, indicating a bearish trend. The MACD of -248.36 indicates Positive momentum. The RSI at 25.82 is Positive, neither overbought nor oversold. The STOCH value of 7.33 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	73 Outperform	¥69.65B	17.44	―	2.73%	6.41%	16.71%
6632	66 Neutral	¥196.15B	10.26	13.53%	1.34%	0.48%	-1.86%
6810	66 Neutral	¥98.73B	20.05	―	1.99%	3.71%	-3.32%
6752	62 Neutral	¥5.92T	29.16	6.73%	1.99%	-6.96%	-7.22%
6736	61 Neutral	¥156.56B	13.28	51.06%	1.15%	-12.94%	2390.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6753	49 Neutral	¥418.19B	3.90	―	―	-10.88%	―

Suncorporation Corporate Events

Suncorporation Details Nine-Month Results and FY2026 Outlook

Suncorporation has released a supplementary presentation outlining financial results for the nine months ended December 31, 2025, and providing a consolidated forecast for the fiscal year ending March 2026. The materials highlight segment performance in global data intelligence, entertainment, IT-related and wellness businesses, along with an analysis of changes in operating loss and the company’s balance sheet.

By breaking out quarterly consolidated and segment results, the company offers stakeholders greater transparency into earnings trends and the drivers behind its operating loss. The inclusion of full-year forecasts indicates management’s current expectations for performance and may guide investor assessment of Suncorporation’s progress in improving profitability and optimizing its business portfolio.

The most recent analyst rating on (JP:6736) stock is a Hold with a Yen8866.00 price target. To see the full list of analyst forecasts on Suncorporation stock, see the JP:6736 Stock Forecast page.

Suncorporation Slashes Sales Outlook but Lifts Profit Forecast on Equity Gains

Suncorporation has sharply revised its full-year earnings outlook for the fiscal year ending March 31, 2026, cutting net sales and operating profit forecasts but more than doubling projected profit attributable to owners of parent, largely due to a gain on change in equity and solid contributions from equity-method subsidiary Cellebrite. While its Global Data Intelligence segment is benefiting from strong forensic and intelligence demand and a new government-backed misinformation detection project, the entertainment and IT-related businesses face weaker shipments, delays in 5G and edge AI products, and slower progress on industrial security and M&A deals, tempering near-term growth despite improving strategic investments.

The most recent analyst rating on (JP:6736) stock is a Hold with a Yen8866.00 price target. To see the full list of analyst forecasts on Suncorporation stock, see the JP:6736 Stock Forecast page.

Suncorporation Posts Lower Sales but Strong Ordinary Profit and Halts Interim Dividend

Suncorporation reported nine-month consolidated net sales of ¥7.4 billion, down 6.7% year on year, with an operating loss of ¥136 million but a sharp rise in ordinary profit to ¥3.5 billion, while profit attributable to owners of parent fell 59.6% to ¥6.9 billion as prior-year results were boosted by one-off factors. The company’s equity ratio remains high at 87.2% despite a slight decline in total assets and net assets, and it has suspended interim dividends for the current fiscal year while keeping the full-year dividend forecast undecided, even as it revises its full-year outlook to project lower sales but a substantial rebound in ordinary profit and solid earnings per share, supported in part by an increased volume of treasury shares.

The most recent analyst rating on (JP:6736) stock is a Hold with a Yen8866.00 price target. To see the full list of analyst forecasts on Suncorporation stock, see the JP:6736 Stock Forecast page.