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Satori Electric Co., Ltd. (JP:7420)
:7420
Japanese Market
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Satori Electric Co., Ltd. (7420) AI Stock Analysis

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JP:7420

Satori Electric Co., Ltd.

(7420)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
¥2,007.00
▲(4.48% Upside)
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.

Satori Electric Co., Ltd. (7420) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSatori Electric Co., Ltd. (7420) is a leading company in the electrical equipment and energy solutions sector, specializing in the production and distribution of high-quality electrical components and systems. The company operates in various segments including power generation, industrial automation, and renewable energy technologies. Satori Electric is known for its innovative products, which include circuit breakers, relays, and energy management systems, aimed at enhancing efficiency and safety in electrical applications.
How the Company Makes MoneySatori Electric Co., Ltd. generates revenue through multiple key streams, primarily by selling its electrical components and systems to various industries, including manufacturing, construction, and renewable energy. The company earns income from direct sales of its products, as well as through long-term contracts with industrial clients for the provision of customized solutions and maintenance services. Additionally, Satori Electric may benefit from partnerships with other technology firms and energy providers, enabling it to expand its market reach and integrate its products into larger energy systems. The company also explores emerging markets and invests in R&D to develop innovative technologies, which can enhance its competitive edge and drive further revenue growth.

Satori Electric Co., Ltd. Financial Statement Overview

Summary
Satori Electric Co., Ltd. shows strong revenue growth and operational efficiency. However, it faces challenges with profitability and cash flow stability. The balance sheet reflects increased leverage, requiring careful management.
Income Statement
75
Positive
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
68
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue155.66B156.24B148.11B146.34B125.85B105.84B
Gross Profit15.71B15.55B15.75B13.56B11.69B9.11B
EBITDA4.03B4.45B4.56B3.66B2.79B1.31B
Net Income1.92B2.52B2.16B2.26B1.91B520.00M
Balance Sheet
Total Assets77.51B79.15B83.49B81.56B74.49B63.22B
Cash, Cash Equivalents and Short-Term Investments10.23B9.13B9.25B10.05B8.00B9.40B
Total Debt21.65B19.72B19.33B18.50B9.77B9.29B
Total Liabilities44.76B45.84B48.64B46.61B42.04B32.84B
Stockholders Equity31.93B32.32B33.44B33.77B32.24B30.22B
Cash Flow
Free Cash Flow0.001.01B4.77B-5.29B-1.64B4.37B
Operating Cash Flow0.001.30B5.33B-4.89B-1.41B4.55B
Investing Cash Flow0.00592.00M-2.06B-13.00M502.00M-158.00M
Financing Cash Flow0.00-1.91B-4.52B6.63B-855.00M-2.86B

Satori Electric Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1921.00
Price Trends
50DMA
1887.00
Positive
100DMA
1787.37
Positive
200DMA
1696.52
Positive
Market Momentum
MACD
7.49
Negative
RSI
56.70
Neutral
STOCH
59.19
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 1921 is above the 20-day moving average (MA) of 1883.35, above the 50-day MA of 1887.00, and above the 200-day MA of 1696.52, indicating a bullish trend. The MACD of 7.49 indicates Negative momentum. The RSI at 56.70 is Neutral, neither overbought nor oversold. The STOCH value of 59.19 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
¥48.27B9.723.10%7.19%45.73%
¥54.90B14.581.45%32.53%182.70%
¥49.92B9.183.19%16.05%3.58%
¥27.06B9.404.54%3.32%31.11%
¥32.62B13.543.13%2.04%-11.59%
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7420
Satori Electric Co., Ltd.
1,921.00
101.15
5.56%
JP:2737
Tomen Devices Corp.
9,440.00
3,531.46
59.77%
JP:6855
Japan Electronic Materials Corporation
4,390.00
2,082.04
90.21%
JP:7510
Takebishi Corporation
2,046.00
147.69
7.78%
JP:7609
Daitron Co., Ltd.
4,635.00
1,989.88
75.23%

Satori Electric Co., Ltd. Corporate Events

Satori Electric Reports Q3 2025 Results and Announces Business Integration
Oct 14, 2025

Satori Electric Co., Ltd. reported its consolidated financial results for the three months ended August 31, 2025, showing a slight decline in net sales by 0.4% compared to the previous year. Despite this, the company experienced a significant increase in profit attributable to owners of the parent by 79.4%, indicating improved profitability. Additionally, Satori Electric announced a business integration with Hagiwara Electric Holdings Co., Ltd., set to be effective from April 1, 2026, which is expected to enhance their market positioning and operational synergies.

The most recent analyst rating on (JP:7420) stock is a Buy with a Yen2133.00 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 Announces Extraordinary Shareholders Meeting for Strategic Business Integration
Oct 14, 2025

Satori Electric Co., Ltd. has announced the details of an upcoming Extraordinary Shareholders Meeting, which will be held virtually on December 11, 2025. The main agenda item is the approval of a Share Transfer Plan with Hagiwara Electric Holdings Co., Ltd., as part of a business integration to establish a joint holding company. This move signifies a strategic collaboration aimed at enhancing the company’s market position and operational synergies.

The most recent analyst rating on (JP:7420) stock is a Buy with a Yen2133.00 price target. To see the full list of analyst forecasts on Satori Electric Co., Ltd. stock, see the JP:7420 Stock Forecast page.

Hagiwara and Satori Electric Announce Joint Holding Company Formation
Oct 14, 2025

Hagiwara Electric Holdings Co., Ltd. and Satori Electric Co., Ltd. have announced a business integration through the establishment of a joint holding company named MIRAINI HOLDINGS CO., LTD., set to be completed by April 1, 2026. This strategic move aims to create a global solution partner focused on future-oriented initiatives, enhancing value creation and market positioning for both companies.

The most recent analyst rating on (JP:7420) stock is a Buy with a Yen2133.00 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 Sets Record Date for Key Shareholders Meeting on Business Integration
Aug 29, 2025

Satori Electric Co., Ltd. has announced the establishment of a record date for an extraordinary shareholders meeting on December 11, 2025, to discuss a significant business integration with Hagiwara Electric Holdings Co., Ltd. This move is part of a strategic plan to approve a share transfer plan, which could have substantial implications for the company’s future operations and stakeholder interests.

The most recent analyst rating on (JP:7420) stock is a Buy with a Yen1781.00 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 Revises Dividend Forecast Amid Business Integration Plans
Jul 28, 2025

Satori Electric Co., Ltd. announced a revision of its dividend forecast due to a planned business integration with Hagiwara Electric Holdings Co., Ltd. The company will not pay a year-end dividend for the fiscal year ending May 31, 2026, but will instead issue an extraordinary dividend of 46 yen per share on March 31, 2026, contingent on shareholder approval of the Share Transfer Plan in December 2025.

Hagiwara Electric and Satori Electric Announce Business Integration
Jul 28, 2025

Hagiwara Electric Holdings Co., Ltd. and Satori Electric Co., Ltd. have announced a business integration through the establishment of a joint holding company, aiming to leverage their combined strengths to meet the growing demand for advanced technology solutions in the electronics market. This integration is expected to enhance their global market presence and address the evolving needs of customers, particularly in light of geopolitical tensions and the increasing importance of sophisticated supply chains.

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: Oct 17, 2025