Suncorporation (6736) AI Stock Analysis

• Market Cap: $189.47B
• Dividend Yield: 1.08%
• Average Volume (3M): 84.28K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.30
• Revenue Growth: -12.94%
• EPS Growth: 2390.52%
• Country: JP
• Employees: 301
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 120.11
• 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: 0.62
• Enterprise Value/Revenue: 10.70
• Enterprise Value/Gross Profit: 42.43
• Enterprise Value/Ebitda: 22.38
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: ¥9,845.00 ▲(6.66% Upside)

Suncorporation's overall stock score is driven by its strong financial turnaround and robust balance sheet, despite cash flow challenges. The technical analysis indicates neutral market conditions, while the valuation suggests the stock is undervalued. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Suncorporation's products, supporting long-term business expansion and market presence.

Balance Sheet Strength

A robust balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Profitability Turnaround

The turnaround in profitability demonstrates effective management strategies and positions the company for sustainable growth.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates difficulties in converting profits into cash, which could constrain future investments and operations.

Operational Inefficiencies

Low margins suggest operational inefficiencies and cost pressures, which may impact profitability if not addressed.

Cash Management Issues

Inefficiencies in cash management can hinder the company's ability to fund operations and growth, posing risks to long-term financial health.

Suncorporation Business Overview & Revenue Model

Company Description

Suncorporation (6736) is a diversified technology company based in Japan, primarily engaged in the development and manufacturing of advanced electronic components and systems. The company operates in various sectors, including semiconductors, electronic devices, and energy solutions. Suncorporation's core products include high-performance semiconductor materials, electronic circuit components, and innovative energy management systems, catering to a global clientele across multiple industries such as consumer electronics, automotive, and renewable energy.

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

Suncorporation demonstrated a strong turnaround in profitability with significant improvements in net income. The balance sheet is robust, characterized by low leverage and high equity. However, the company faces cash flow challenges that need addressing to sustain 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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: Neutral
• Last Price: 9230.00
• 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:6736, the sentiment is Neutral. The current price of 9230 is above the 20-day moving average (MA) of 8982.00, above the 50-day MA of 9029.00, and above the 200-day MA of 7348.38, indicating a neutral trend. The MACD of -15.58 indicates Positive momentum. The RSI at 44.14 is Neutral, neither overbought nor oversold. The STOCH value of 21.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6736.

Suncorporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6794	76 Outperform	¥58.70B	13.75	―	2.94%	6.41%	16.71%
6736	70 Neutral	$189.47B	10.09	51.06%	1.08%	-12.94%	2390.52%
6632	69 Neutral	¥176.92B	10.42	13.53%	1.28%	0.48%	-1.86%
6952	66 Neutral	$277.75B	49.58	5.53%	3.48%	-5.43%	55.21%
6810	66 Neutral	¥95.37B	18.23	―	2.24%	3.71%	-3.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6753	59 Neutral	¥505.44B	8.62	―	―	-10.88%	―

Suncorporation Corporate Events

Suncorporation Halts Interim Dividends to Focus on Long-Term Growth

Suncorporation announced its decision to refrain from paying interim dividends for the fiscal year ending March 2026, citing a strategic focus on strengthening its management base and enhancing corporate value. This decision reflects the company’s policy of balancing shareholder returns with long-term business performance and future prospects, although the year-end dividend forecast remains undecided.

The most recent analyst rating on (JP:6736) stock is a Hold with a Yen9705.00 price target. To see the full list of analyst forecasts on Suncorporation stock, see the JP:6736 Stock Forecast page.

Suncorporation Reports Mixed Financial Results Amidst Declining Sales

Suncorporation reported a decline in net sales by 18.9% for the six months ending September 30, 2025, compared to the previous year. Despite this, the company saw a significant increase in profit attributable to owners of the parent, reaching 4,442 million yen. The financial position remains strong with an equity-to-asset ratio of 88.5%. The company has not declared any dividends for the fiscal year ending March 31, 2026, and the forecast for the full year shows a significant increase in net sales and ordinary profit, indicating a potential recovery and growth in the upcoming period.

The most recent analyst rating on (JP:6736) stock is a Hold with a Yen9705.00 price target. To see the full list of analyst forecasts on Suncorporation stock, see the JP:6736 Stock Forecast page.