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Santec Corporation
(6777)
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Rating:69Neutral
Price Target:
¥22,141.00
▲(142.51% Upside)
Action:Downgraded
Date:07/09/26
Overall score is supported by strong financial performance (growth, margin expansion, and low leverage). This is meaningfully offset by weak technicals (below major moving averages with negative MACD and bearish momentum). Valuation is on the expensive side (P/E ~31.7) with only a modest dividend yield (~1.04%), limiting upside support from pricing.
Positive Factors
Revenue & Margin Expansion
Sustained double-digit revenue expansion alongside rising gross and net margins indicates a scalable product mix and operating leverage in photonics hardware. This durable improvement supports reinvestment in R&D and after-sales services and strengthens long-term profit conversion.
Negative Factors
Inconsistent Cash Conversion
Cash conversion has been uneven, with notable working-capital and timing swings across years. That variability makes free-cash forecasts less reliable, can transiently strain liquidity, and raises the risk that short-term working-capital needs hamper planned reinvestment or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Expansion
Sustained double-digit revenue expansion alongside rising gross and net margins indicates a scalable product mix and operating leverage in photonics hardware. This durable improvement supports reinvestment in R&D and after-sales services and strengthens long-term profit conversion.
Read all positive factors
Santec Corporation (6777) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥256.97B
Dividend Yield2.3%
Average Volume (3M)43.49K
Price to Earnings (P/E)29.3
Beta (1Y)1.70
Revenue Growth31.13%
EPS Growth51.29%
CountryJP
Employees427
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)651.94
Shares Outstanding11,961,100
10 Day Avg. Volume42,240
30 Day Avg. Volume43,493
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)6.95
Price to Sales (P/S)6.14
P/FCF Ratio29.49
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)578.2
Revenue Forecast (FY)¥32.00B
Santec Corporation Business Overview & Revenue Model
Company Description
santec Holdings Corporation, originally founded in Komaki, Japan, in 1979 as Santec Corporation and rebranded in April 2023, is a global leader in the development, manufacturing, and distribution of advanced optical components and systems. The com...
How the Company Makes Money
Santec makes money primarily by selling photonics hardware—especially optical test and measurement instruments (e.g., optical spectrum analyzers, tunable laser sources and other evaluation tools) used by customers in optical communications and pho...
Santec Corporation Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 31.51B | 24.03B | 18.87B | 15.25B | 8.89B |
| Gross Profit | 18.05B | 13.78B | 10.20B | 8.03B | 4.30B |
| EBITDA | 11.53B | 8.14B | 6.57B | 4.88B | 2.30B |
| Net Income | 7.67B | 5.07B | 3.85B | 3.00B | 1.65B |
Balance Sheet | |||||
| Total Assets | 39.12B | 29.53B | 25.83B | 19.61B | 16.35B |
| Cash, Cash Equivalents and Short-Term Investments | 16.32B | 12.65B | 9.45B | 6.64B | 4.72B |
| Total Debt | 2.82B | 2.91B | 2.13B | 1.16B | 1.28B |
| Total Liabilities | 11.28B | 8.10B | 8.09B | 5.27B | 4.48B |
| Stockholders Equity | 27.84B | 21.43B | 17.74B | 14.33B | 11.87B |
Cash Flow | |||||
| Free Cash Flow | 6.56B | 4.27B | 2.90B | 2.62B | 1.01B |
| Operating Cash Flow | 8.10B | 6.00B | 3.28B | 3.11B | 1.41B |
| Investing Cash Flow | -3.94B | -1.88B | -194.81M | -788.10M | -2.10B |
| Financing Cash Flow | -2.48B | -700.47M | -213.34M | -773.99M | 832.59M |
Santec Corporation Technical Analysis
Neutral
9130.00
Price Trends
25925.00
Negative
24152.34
Negative
16895.86
Positive
Market Momentum
-1473.19
Positive
40.91
Neutral
24.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6777, the sentiment is Neutral. The current price of 9130 is below the 20-day moving average (MA) of 24593.50, below the 50-day MA of 25925.00, and below the 200-day MA of 16895.86, indicating a neutral trend. The MACD of -1473.19 indicates Positive momentum. The RSI at 40.91 is Neutral, neither overbought nor oversold. The STOCH value of 24.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6777.
Santec Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥1.21T | 29.33 | 11.99% | 0.65% | 8.38% | 8.43% | |
72 Outperform | ¥775.54B | 51.25 | 4.03% | 2.25% | 5.36% | -24.06% | |
72 Outperform | ¥429.40B | 19.05 | ― | 2.04% | -8.82% | 18.33% | |
70 Outperform | ¥1.26T | 19.91 | 11.14% | 1.46% | 4.02% | 13.81% | |
69 Neutral | ¥256.97B | 29.34 | 25.32% | 2.30% | 31.13% | 51.29% | |
64 Neutral | ¥544.60B | 41.23 | 7.44% | 1.76% | 3.97% | 29.55% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:6777
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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.