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

• Market Cap: ¥25.82B
• Dividend Yield: 4.97%
• Average Volume (3M): 34.07K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.00
• Revenue Growth: 3.32%
• EPS Growth: 31.11%
• Country: JP
• Employees: 793
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 49.88
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥2,007.00 ▲(10.34% 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.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, which can enhance long-term business sustainability and expansion opportunities.

Operational Efficiency

Improved gross profit margins suggest enhanced cost management and operational efficiency, supporting better profitability and competitive positioning over time.

Cash Generation

Strong cash generation relative to net income enhances financial flexibility, allowing for reinvestment in growth opportunities and providing a buffer against economic uncertainties.

Negative Factors

Profitability Challenges

Low net profit margins indicate challenges in converting revenue into profit, which could impact long-term financial health and shareholder returns if not addressed.

Cash Flow Volatility

Decreased operating cash flow can strain liquidity and limit the company's ability to fund operations and growth initiatives, posing risks to financial stability.

Increased Leverage

Increased leverage can heighten financial risk, particularly if earnings do not grow proportionately, potentially affecting the company's ability to meet debt obligations.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	156.24B	156.24B	148.11B	146.34B	125.85B	105.84B
Gross Profit	15.55B	15.55B	15.75B	13.56B	11.69B	9.11B
EBITDA	4.43B	4.45B	4.56B	3.66B	2.79B	1.31B
Net Income	2.52B	2.52B	2.16B	2.26B	1.91B	520.00M
Balance Sheet
Total Assets	79.15B	79.15B	83.49B	81.56B	74.49B	63.22B
Cash, Cash Equivalents and Short-Term Investments	9.13B	9.13B	9.25B	10.05B	8.00B	9.40B
Total Debt	19.72B	19.72B	19.33B	18.50B	9.77B	9.29B
Total Liabilities	45.84B	45.84B	48.64B	46.61B	42.04B	32.84B
Stockholders Equity	32.32B	32.32B	33.44B	33.77B	32.24B	30.22B
Cash Flow
Free Cash Flow	0.00	1.01B	4.77B	-5.29B	-1.64B	4.37B
Operating Cash Flow	0.00	1.30B	5.33B	-4.89B	-1.41B	4.55B
Investing Cash Flow	0.00	592.00M	-2.06B	-13.00M	502.00M	-158.00M
Financing Cash Flow	0.00	-1.91B	-4.52B	6.63B	-855.00M	-2.86B

Satori Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1819.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7420, the sentiment is Neutral. The current price of 1819 is below the 20-day moving average (MA) of 1819.57, below the 50-day MA of 1826.98, and above the 200-day MA of 1695.46, indicating a neutral trend. The MACD of -1.86 indicates Positive momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 16.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	81 Outperform	¥50.76B	9.77	―	2.92%	10.24%	61.61%
2737	81 Outperform	¥83.18B	13.11	―	2.63%	16.05%	3.58%
6855	72 Outperform	¥45.67B	11.99	―	1.82%	36.31%	101.77%
7420	66 Neutral	¥25.82B	9.10	―	4.97%	3.32%	31.11%
7510	66 Neutral	¥33.91B	12.21	―	3.10%	7.09%	13.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Satori Electric Co., Ltd. Corporate Events

Satori Electric Reports Q3 2025 Results and Announces Business Integration

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.

Satori Electric Announces Extraordinary Shareholders Meeting for Strategic Business Integration

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.

Hagiwara and Satori Electric Announce Joint Holding Company Formation

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.