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Suncorporation (JP:6736)
:6736
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Suncorporation (6736) AI Stock Analysis

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JP:6736

Suncorporation

(OTC:6736)

Rating:64Neutral
Price Target:
¥5,675.00
▲(4.70%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 (6736) vs. iShares MSCI Japan ETF (EWJ)

Suncorporation Business Overview & Revenue Model

Company DescriptionSuncorporation (6736) is a Japanese company that operates in various sectors, primarily focusing on technology and telecommunications. The company is involved in the development and sale of mobile communication devices, network equipment, and information technology products. Suncorporation also engages in the gaming industry, offering online gaming services and related software solutions.
How the Company Makes MoneySuncorporation generates revenue through multiple channels, primarily driven by the sale of mobile communication devices and network equipment. The company capitalizes on its expertise in telecommunications to offer products that cater to both consumer and business markets. Additionally, Suncorporation earns income from its online gaming platform by offering subscription services and in-game purchases. Partnerships with other technology firms and service providers also contribute to its earnings, enabling Suncorporation to expand its market reach and enhance its product offerings. Furthermore, the company invests in research and development to innovate and maintain its competitive edge in the rapidly evolving tech industry.

Suncorporation Financial Statement Overview

Summary
Suncorporation demonstrated a significant improvement in net income, moving from a loss to a substantial profit, with solid revenue growth. However, low EBIT and EBITDA margins and cash flow challenges, such as negative free cash flow, indicate areas for operational and financial improvement.
Income Statement
65
Positive
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
80
Positive
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
50
Neutral
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue10.88B10.84B10.05B37.45B37.21B26.66B
Gross Profit2.98B2.77B2.96B25.54B26.34B18.83B
EBITDA292.94M18.30B-3.81B15.51B10.84B1.75B
Net Income12.98B17.23B-3.78B6.88B2.82B47.38M
Balance Sheet
Total Assets44.85B53.13B46.84B41.76B82.09B49.79B
Cash, Cash Equivalents and Short-Term Investments4.21B9.95B1.73B3.18B32.78B32.53B
Total Debt2.66B2.55B1.39B454.28M3.79B6.45B
Total Liabilities5.94B5.52B9.58B6.74B55.05B28.96B
Stockholders Equity38.92B47.61B37.26B35.01B27.04B16.44B
Cash Flow
Free Cash Flow-603.27M-1.92B2.22B-14.57B2.49B5.43B
Operating Cash Flow-577.30M-1.67B2.51B-13.52B3.63B6.11B
Investing Cash Flow-61.79M2.95B-3.56B-25.13B4.02B-910.83M
Financing Cash Flow458.81M-829.42M-385.21M25.57B-3.04B3.60B

Suncorporation Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price5420.00
Price Trends
50DMA
5819.80
Negative
100DMA
6515.76
Negative
200DMA
7550.66
Negative
Market Momentum
MACD
-116.21
Negative
RSI
52.28
Neutral
STOCH
70.51
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 5420 is below the 20-day moving average (MA) of 5497.00, below the 50-day MA of 5819.80, and below the 200-day MA of 7550.66, indicating a neutral trend. The MACD of -116.21 indicates Negative momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 70.51 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥40.90B10.51
3.24%12.38%68.86%
71
Outperform
¥188.53B9.3116.78%1.24%3.02%60.53%
69
Neutral
$273.53B33.803.45%3.75%-2.63%-31.17%
68
Neutral
¥234.20B14.887.50%2.60%9.27%5.76%
68
Neutral
¥83.05B20.62
2.60%0.52%-44.10%
64
Neutral
¥126.76B7.1140.05%1.75%7.88%
51
Neutral
¥443.24B12.23
-6.97%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6736
Suncorporation
5,730.00
1,030.99
21.94%
JP:6753
Sharp Corporation
680.00
-180.60
-20.99%
JP:6794
Foster Electric Company, Limited
1,852.00
342.84
22.72%
JP:6810
Maxell, Ltd.
1,922.00
242.25
14.42%
JP:6632
JVCKENWOOD Corporation
1,213.50
348.89
40.35%
JP:6952
Casio Computer Co
1,194.50
36.37
3.14%

Suncorporation Corporate Events

Suncorporation Evaluates Investment Unit Reduction for Enhanced Stock Liquidity
Jun 26, 2025

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
May 15, 2025

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
May 15, 2025

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
May 15, 2025

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
May 15, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025