Satori Electric Co., Ltd. (7420) AI Stock Analysis

• Market Cap: ¥28.91B
• Dividend Yield: 4.88%
• Average Volume (3M): 34.07K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.94
• Revenue Growth: 3.32%
• EPS Growth: 31.11%
• Country: JP
• Employees: 793
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 14,946,826
• 10 Day Avg. Volume: 41,950
• 30 Day Avg. Volume: 34,073
• PEG Ratio: 0.50
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 22.87
• 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: 66 Neutral
• Price Target: ¥2,175.00 ▲(15.81% Upside)
• Action: Reiterated Date: 10/17/25
• Date: Action: Reiterated 10/17/25

Satori Electric Co., Ltd. has a solid valuation with an attractive P/E ratio and dividend yield, making it appealing for value and income investors. However, technical indicators suggest bearish momentum, and financial performance highlights the need for improved profitability and cash flow stability. The absence of earnings call data and corporate events leaves these areas unassessed.

Positive Factors

Revenue Growth

A 37.3% year‑over‑year revenue increase indicates durable demand for Satori Electric's products across industrial, automotive and consumer segments. Sustained top‑line growth supports scale advantages, expands customer relationships, and provides levers for continued investment over months.

Operational Efficiency

Improving gross margins and stable EBIT/EBITDA margins point to effective cost management and consistent operating processes. This structural efficiency supports margin resiliency against input swings and underpins sustainable operating cash generation over the medium term.

Free Cash Flow Conversion

Improved free cash flow and a strong FCF-to-net-income ratio indicate the company can convert earnings into discretionary cash. That durable cash generation enables reinvestment, debt servicing or dividends without relying solely on external financing over the coming quarters.

Negative Factors

Increased Leverage

Rising debt-to-equity raises financial risk and interest burden, reducing flexibility to fund capex or absorb shocks. Over a multi-month horizon, elevated leverage can constrain strategic initiatives and increase vulnerability to margin pressure or slower cash conversion.

Operating Cash Flow Weakness

A decline and volatility in operating cash flow signals challenges in converting accounting profits into cash from core operations. If persistent, this undermines sustainable funding for working capital, capex, and debt service even if reported net income or FCF metrics look healthier.

Low Net Profit Margin

A relatively low net margin limits retained earnings and weakens resilience to cost or demand shocks. Despite revenue growth and gross margin gains, constrained net profitability reduces long‑run earnings power and the ability to rapidly scale investments or raises shareholder returns.

Satori Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Satori Electric Co., Ltd., together with its subsidiaries, distributes electronic components and equipment in Japan, China, Taiwan, and internationally. The company operates through two segments, Device Solution and System Solution. It offers discrete semiconductors, electrical parts and materials, control components, and factory automation and systems; and IoT and embedded solutions, as well as contract services. The company is also involved in the development and production of information control systems and switching devices, as well as in the design, development, and testing of customized integrated circuits and microprocessors; and promotion and information gathering activities. In addition, it designs, develops, manufactures, and sells switch products for electric tools. The company was founded in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Satori Electric Co., Ltd. generates revenue through the sale of its electrical products and components to various sectors, including industrial, automotive, and consumer electronics. The company's key revenue streams include direct sales to manufacturers, wholesale distribution agreements, and contracts with government and private enterprises for specialized electrical solutions. Additionally, Satori Electric may benefit from partnerships with other technology firms to co-develop new products, thus expanding its market reach and enhancing its revenue potential. The continuous demand for energy-efficient and reliable electrical equipment contributes significantly to the company's earnings.

Satori Electric Co., Ltd. Financial Statement Overview

Summary

Satori Electric Co., Ltd. shows strong revenue growth and operational efficiency, but faces challenges with profitability and cash flow stability. The balance sheet reflects increased leverage, which requires careful management.

Income Statement

Satori Electric Co., Ltd. has demonstrated strong revenue growth with a 37.3% increase in the latest year. The gross profit margin has improved slightly, indicating better cost management. However, the net profit margin remains relatively low, suggesting room for improvement in profitability. The EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, which could pose a risk if not managed carefully. However, the return on equity is healthy, suggesting effective use of equity to generate profits. The equity ratio is stable, showing a balanced capital structure.

Cash Flow

The cash flow situation shows volatility with a significant improvement in free cash flow growth, but operating cash flow has decreased. The free cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the operating cash flow to net income ratio suggests potential challenges in converting income into cash.

Breakdown	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	156.24B	148.11B	146.34B	125.85B	105.84B
Gross Profit	15.55B	15.75B	13.56B	11.69B	9.11B
EBITDA	4.45B	4.56B	3.66B	2.79B	1.31B
Net Income	2.52B	2.16B	2.26B	1.91B	520.00M
Balance Sheet
Total Assets	79.15B	83.49B	81.56B	74.49B	63.22B
Cash, Cash Equivalents and Short-Term Investments	9.13B	9.25B	10.05B	8.00B	9.40B
Total Debt	19.72B	19.33B	18.50B	9.77B	9.29B
Total Liabilities	45.84B	48.64B	46.61B	42.04B	32.84B
Stockholders Equity	32.32B	33.44B	33.77B	32.24B	30.22B
Cash Flow
Free Cash Flow	1.01B	4.77B	-5.29B	-1.64B	4.37B
Operating Cash Flow	1.30B	5.33B	-4.89B	-1.41B	4.55B
Investing Cash Flow	592.00M	-2.06B	-13.00M	502.00M	-158.00M
Financing Cash Flow	-1.91B	-4.52B	6.63B	-855.00M	-2.86B

Satori Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1878.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7420, the sentiment is Positive. The current price of 1878 is below the 20-day moving average (MA) of 1945.85, below the 50-day MA of 1904.44, and above the 200-day MA of 1782.19, indicating a bullish trend. The MACD of 28.43 indicates Negative momentum. The RSI at 67.72 is Neutral, neither overbought nor oversold. The STOCH value of 76.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7420.

Satori Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7609	80 Outperform	¥63.94B	12.98	―	2.87%	10.24%	61.61%
7510	75 Outperform	¥42.06B	14.91	―	3.02%	7.09%	13.13%
6855	71 Outperform	¥101.71B	20.87	―	1.72%	36.31%	101.77%
7420	66 Neutral	¥28.91B	9.89	―	4.88%	3.32%	31.11%
2737	66 Neutral	¥95.22B	11.65	―	2.41%	16.05%	3.58%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Satori Electric Co., Ltd. Corporate Events

Satori Electric Reshapes Executive Lineup Ahead of MIRAINI Holdings Launch

Satori Electric Co., Ltd. has approved a tentative new executive structure to take effect on April 1, 2026, in conjunction with the planned establishment of MIRAINI Holdings Co., Ltd., which will become its parent holding company. The board lineup will include Hiroyuki Satori as Representative Director and President, with Naruhiko Mizukoshi and Shunji Tsuchiya serving as Directors and Managing Executive Officers.

The company will appoint veteran insider Toyoshi Koizumi as Full-time Audit and Supervisory Board Member, leveraging his extensive experience in accounting, general affairs, and human resources to strengthen its audit and governance framework. Several current directors, including Independent Director and Chairman of the Board Akihiro Taguchi and multiple Audit and Supervisory Committee Members, will retire from their roles at Satori Electric and transition to outside director positions at the new holding company, signaling a broader reorganization of governance at the group level.

The most recent analyst rating on (JP:7420) stock is a Buy with a Yen2103.00 price target. To see the full list of analyst forecasts on Satori Electric Co., Ltd. stock, see the JP:7420 Stock Forecast page.

Satori Electric Confirms ¥46 Extraordinary Dividend for March 2026 Record Date

Satori Electric Co., Ltd. has approved an extraordinary dividend of ¥46 per share, with a record date of March 31, 2026, to be paid from retained earnings on June 8, 2026. The total payout is expected to be up to approximately ¥687 million, based on the number of common shares outstanding excluding treasury stock.

The extraordinary dividend is consistent with the company’s previously announced dividend forecast and forms part of a total planned annual dividend of ¥90 per share for the fiscal year ending May 31, 2026. This move underscores Satori Electric’s continued shareholder-return stance, following a total dividend of ¥86 per share in the prior fiscal year, and signals stable capital allocation without revising its existing guidance.

The most recent analyst rating on (JP:7420) stock is a Buy with a Yen2103.00 price target. To see the full list of analyst forecasts on Satori Electric Co., Ltd. stock, see the JP:7420 Stock Forecast page.

Satori Electric Appoints New Executive Officer to Lead Human Resources

Satori Electric Co., Ltd. has announced a change in its executive officer lineup, appointing Takahiro Suzuki as Executive Officer in charge of Human Resources, effective April 1, 2026. Suzuki, who currently serves as General Manager of the Internal Audit Department, will take on a key management role overseeing human resources, signaling the company’s focus on strengthening its internal governance and personnel strategy as it looks to support future organizational development.

The most recent analyst rating on (JP:7420) stock is a Buy with a Yen2103.00 price target. To see the full list of analyst forecasts on Satori Electric Co., Ltd. stock, see the JP:7420 Stock Forecast page.

Satori Electric and Hagiwara Electric Detail Governance and Structure for New MIRAINI Holdings

Satori Electric Co., Ltd. and Hagiwara Electric Holdings Co., Ltd. have announced the planned organizational structure and management lineup for MIRAINI Holdings Co., Ltd., the joint holding company scheduled for establishment on April 1, 2026, as part of their group integration. MIRAINI Holdings will feature core corporate divisions for planning, general affairs and legal, human resources planning, finance and accounting, and IT systems, alongside an Internal Audit Department, and will be led by a board centered on Representative Director and President Moritaka Kimura and Representative Director and Executive Vice President Hiroyuki Satori, supported by a mix of internal executives and multiple outside directors and audit committee members, signaling a governance-focused structure and clearer responsibilities as the companies transition to the new holding company framework.

The most recent analyst rating on (JP:7420) stock is a Buy with a Yen2103.00 price target. To see the full list of analyst forecasts on Satori Electric Co., Ltd. stock, see the JP:7420 Stock Forecast page.

Satori Electric to Absorb Subsidiary Satori Pinics in Streamlining Merger

Satori Electric Co., Ltd. has approved an absorption-type merger of its wholly owned subsidiary Satori Pinics Co., Ltd., with Satori Electric as the surviving entity and the merger scheduled to take effect on June 1, 2026, following shareholder approval in April. By integrating Satori Pinics, which mainly sells Panasonic Group products, into the parent company, Satori aims to centralize customer contact points, offer one-stop services, and enhance demand creation by bundling Panasonic products with other manufacturers’ offerings; the transaction will not involve new share issuance or capital increases and is expected to have only a minimal impact on the company’s consolidated financial results while streamlining operations and strengthening its market positioning in electronic components distribution.

The most recent analyst rating on (JP:7420) stock is a Buy with a Yen2103.00 price target. To see the full list of analyst forecasts on Satori Electric Co., Ltd. stock, see the JP:7420 Stock Forecast page.

Satori Electric Beats Interim Forecasts but Cuts Full-Year Operating Profit Outlook

Satori Electric reported that its results for the six months ended November 30, 2025 exceeded earlier forecasts, with net sales, operating profit, ordinary profit and profit attributable to owners of the parent all coming in above projections, driven by strong demand in the India market and a rebound in control components for semiconductor manufacturing equipment, as well as favorable foreign exchange effects from yen depreciation. Despite this interim outperformance, the company revised down its full-year operating profit forecast for the fiscal year ending May 31, 2026 to ¥3.6 billion due to integration costs and IT investments related to a management integration, while keeping net sales, ordinary profit and profit attributable to owners of the parent unchanged and maintaining its plan for an annual dividend of ¥90 per share, including a previously announced special interim dividend, signaling continued shareholder returns amid restructuring-related expenses.

The most recent analyst rating on (JP:7420) stock is a Buy with a Yen2103.00 price target. To see the full list of analyst forecasts on Satori Electric Co., Ltd. stock, see the JP:7420 Stock Forecast page.

Satori Electric Posts Strong Profit Growth and Moves Ahead With Hagiwara Integration

Satori Electric reported consolidated net sales of ¥78.3 billion for the six months ended November 30, 2025, up 0.7% year-on-year, with operating profit essentially flat at ¥2.1 billion but ordinary profit and profit attributable to owners of parent jumping 37.9% and 35.9%, respectively, reflecting improved profitability and sharply higher comprehensive income. Total assets rose to ¥86.9 billion and equity expanded, while the company maintained a strong equity ratio around 40%, and forecast full-year fiscal 2026 sales of ¥160 billion and modest earnings growth despite a projected decline in operating profit. The board kept its previously announced dividend forecast, raising the interim dividend to ¥44 per share and indicating a total of ¥90 per share for the year, and also advanced its planned business integration with Hagiwara Electric Holdings, approved in December and effective April 1, 2026, which is expected to reshape its capital policy, including an extraordinary dividend in lieu of a year-end payment and potentially strengthen its competitive positioning in Japan’s electronics distribution industry.

The most recent analyst rating on (JP:7420) stock is a Buy with a Yen2103.00 price target. To see the full list of analyst forecasts on Satori Electric Co., Ltd. stock, see the JP:7420 Stock Forecast page.

Satori Electric Increases Interim Dividend and Confirms Full-Year Payout Plan

Satori Electric Co., Ltd. has approved an interim dividend of 44 yen per share, with a record date of November 30, 2025, and an expected total payout of 653 million yen funded from retained earnings. The interim dividend, unchanged from the company’s earlier forecast and higher than the 40 yen per share paid in the previous year’s interim period, underscores management’s continued commitment to shareholder returns, with the full-year dividend forecast for the fiscal year ending May 31, 2026 maintained at 90 yen per share, signaling confidence in earnings stability and cash flow for investors.

The most recent analyst rating on (JP:7420) stock is a Hold with a Yen2007.00 price target. To see the full list of analyst forecasts on Satori Electric Co., Ltd. stock, see the JP:7420 Stock Forecast page.