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Suzuki Co., Ltd. (JP:6785)
:6785

Suzuki Co., Ltd. (6785) AI Stock Analysis

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JP:6785

Suzuki Co., Ltd.

(6785)

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Outperform 76 (OpenAI - 5.2)
Rating:76Outperform
Price Target:
¥2,703.00
▲(12.16% Upside)
Suzuki Co., Ltd. demonstrates strong financial performance and attractive valuation, making it a compelling investment. The technical indicators suggest strong momentum, though caution is advised due to overbought signals. The absence of recent earnings call data and corporate events does not detract from the overall positive outlook.
Positive Factors
Cash Generation
Suzuki's strong operating cash flow relative to net income and near-par free cash flow conversion indicate durable internal funding for capex, R&D, dividends and debt reduction. Reliable cash generation enhances resilience across cycles and supports strategic investments over 2–6 months.
Balance Sheet Strength
Very low leverage and a high equity ratio provide Suzuki with financial flexibility to absorb shocks, fund product development, or pursue partnerships without refinancing stress. A solid ROE reflects effective capital use, underpinning long-term solvency and strategic optionality.
Diversified Product & Market Footprint
A multi-vehicle product mix and entrenched partnerships—notably through Maruti Suzuki—create diversified revenue streams and distribution advantages in both emerging and developed markets. Structural geographic and product diversity reduces single-market risk and supports steady demand.
Negative Factors
Revenue Growth Variability
While recent revenue rose, the modest 7.9% reported growth and explicit caution about fluctuations highlight sensitivity to market demand. Vehicle sales are cyclical; without consistent product refresh or expanded segments, top-line momentum could stall amid economic or demand shifts.
Margin Vulnerability
Margins are healthy but exposed to structural risks: commodity input swings, competitive pricing in compact car and motorcycle segments, and mix shifts toward lower-margin models. Sustaining profitability over multiple quarters requires disciplined cost control and product premiumization.
Concentration in Automotive Segment & Key Markets
Heavy reliance on the automotive segment and concentrated exposure to specific partners and markets (e.g., Maruti/India) creates structural concentration risk. Market-specific regulatory, tariff or demand shocks could disproportionately affect earnings and growth durability.

Suzuki Co., Ltd. (6785) vs. iShares MSCI Japan ETF (EWJ)

Suzuki Co., Ltd. Business Overview & Revenue Model

Company DescriptionSuzuki Co.,Ltd. manufactures and sells connectors for car electronics parts in Japan. It also offers precision press and mold dies, connector contacts and housings, connector contacts for automotive wire harnesses, machines for semiconductors, various customized machines, and medical instrument assembly. The company was incorporated in 1933 and is headquartered in Suzaka, Japan.
How the Company Makes MoneySuzuki generates revenue primarily through the sale of its vehicles, including passenger cars, motorcycles, and all-terrain vehicles. The automotive segment is the largest source of income, driven by the production and sale of popular models in both domestic and international markets. Additionally, Suzuki earns revenue from spare parts, accessories, and after-sales services. The company has established significant partnerships with local manufacturers and distributors, particularly in markets like India, where it holds a substantial market share through its subsidiary, Maruti Suzuki. Furthermore, Suzuki benefits from joint ventures and collaborations in various regions, enhancing its market presence and operational efficiencies, which contribute to its overall earnings.

Suzuki Co., Ltd. Financial Statement Overview

Summary
Suzuki Co., Ltd. exhibits strong financial health with robust revenue growth, efficient operational management, and solid cash flow generation. The company's low leverage and effective use of equity capital further strengthen its financial stability.
Income Statement
Suzuki Co., Ltd. has demonstrated strong revenue growth with a 7.94% increase in the latest year, supported by a solid gross profit margin of 20.78%. The net profit margin of 8.29% indicates healthy profitability. EBIT and EBITDA margins are robust at 12.88% and 21.08% respectively, showing efficient operational management. However, the company should monitor any potential fluctuations in revenue growth.
Balance Sheet
The company maintains a stable financial position with a low debt-to-equity ratio of 0.09, indicating prudent leverage management. The return on equity is strong at 10.26%, reflecting effective use of equity capital. The equity ratio of 67.69% suggests a solid capital structure, though continuous monitoring of asset growth is advisable.
Cash Flow
Suzuki Co., Ltd. shows impressive free cash flow growth, with a significant increase in the latest period. The operating cash flow to net income ratio of 1.99 indicates strong cash generation relative to net income. The free cash flow to net income ratio of 0.98 further supports the company's ability to generate cash, enhancing financial flexibility.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue33.32B33.32B27.73B26.37B23.41B32.71B
Gross Profit6.92B6.93B5.65B5.36B4.99B4.99B
EBITDA7.02B7.02B6.03B5.41B5.75B5.40B
Net Income2.76B2.76B2.27B1.96B2.09B2.05B
Balance Sheet
Total Assets39.77B39.77B37.06B34.43B32.26B28.81B
Cash, Cash Equivalents and Short-Term Investments6.81B6.81B6.01B4.50B4.15B3.37B
Total Debt2.45B2.45B2.92B3.53B3.41B2.00B
Total Liabilities11.87B11.87B11.00B10.88B10.55B9.14B
Stockholders Equity26.92B26.92B25.21B22.91B21.18B19.21B
Cash Flow
Free Cash Flow0.002.71B2.85B794.27M67.67M1.63B
Operating Cash Flow0.005.50B5.45B3.88B4.12B4.83B
Investing Cash Flow0.00-3.09B-2.48B-2.98B-3.95B-3.21B
Financing Cash Flow0.00-1.93B-1.34B-521.24M790.96M-403.21M

Suzuki Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2410.00
Price Trends
50DMA
2268.60
Positive
100DMA
2191.52
Positive
200DMA
1920.27
Positive
Market Momentum
MACD
35.29
Positive
RSI
54.95
Neutral
STOCH
35.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6785, the sentiment is Positive. The current price of 2410 is above the 20-day moving average (MA) of 2366.30, above the 50-day MA of 2268.60, and above the 200-day MA of 1920.27, indicating a bullish trend. The MACD of 35.29 indicates Positive momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 35.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6785.

Suzuki Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥51.10B17.122.20%4.75%164.54%
76
Outperform
¥34.12B11.9610.77%3.56%17.56%14.00%
76
Outperform
¥35.27B13.883.75%2.98%-56.70%
73
Outperform
¥27.42B8.581.78%4.47%12.28%
73
Outperform
¥33.04B11.984.25%13.45%19.19%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
47
Neutral
¥33.69B137.840.39%-2.53%-85.61%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6785
Suzuki Co., Ltd.
2,376.00
683.70
40.40%
JP:6997
Nippon Chemi-Con Corporation
1,471.00
570.00
63.26%
JP:6626
Semitec Corporation
2,411.00
556.02
29.97%
JP:6677
SK-Electronics Co., Ltd.
3,150.00
1,220.94
63.29%
JP:6800
Yokowo Co., Ltd.
2,192.00
557.01
34.07%
JP:6958
CMK Corporation
523.00
137.12
35.53%

Suzuki Co., Ltd. Corporate Events

Suzuki Co., Ltd. Announces Key Personnel Change
Dec 12, 2025

Suzuki Co., Ltd. announced a personnel change effective January 1, 2026, following a resolution by its Board of Directors. Noriaki Sato will transition from his current role as Manager of the Accounting Department in the Administration Division to become an Executive Officer and Deputy Manager of the Administration Division, reflecting the company’s strategic internal realignment.

The most recent analyst rating on (JP:6785) stock is a Buy with a Yen2410.00 price target. To see the full list of analyst forecasts on Suzuki Co., Ltd. stock, see the JP:6785 Stock Forecast page.

Suzuki Co., Ltd. Reports Strong Financial Growth in Q3 2025
Nov 13, 2025

Suzuki Co., Ltd. reported a significant increase in its financial performance for the three months ending September 30, 2025, with net sales rising by 14.6% year-on-year. The company also saw a notable improvement in its operating and ordinary profits, indicating strong operational efficiency and market positioning.

The most recent analyst rating on (JP:6785) stock is a Buy with a Yen2410.00 price target. To see the full list of analyst forecasts on Suzuki Co., Ltd. stock, see the JP:6785 Stock Forecast page.

Suzuki Co., Ltd. Completes Treasury Share Disposal
Nov 5, 2025

Suzuki Co., Ltd. has completed the payment procedures for the disposal of 6,500 treasury shares as restricted stock compensation, following a decision made in the Board of Directors meeting on October 8, 2025. This move is part of the company’s strategic financial management, potentially impacting its stock value and stakeholder interests.

The most recent analyst rating on (JP:6785) stock is a Buy with a Yen2410.00 price target. To see the full list of analyst forecasts on Suzuki Co., Ltd. stock, see the JP:6785 Stock Forecast page.

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: Aug 29, 2025