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

• Market Cap: ¥25.83B
• Dividend Yield: 5.86%
• Average Volume (3M): 100.34K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.02
• Revenue Growth: 6.47%
• EPS Growth: -6.67%
• Country: JP
• Employees: 793
• Sector: Technology
• Sector Strength: 78
• Industry: Semiconductors
• EPS (TTM): 133.82
• Shares Outstanding: 17,946,827
• 10 Day Avg. Volume: 75,690
• 30 Day Avg. Volume: 100,336
• PEG Ratio: -3.31
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.69
• 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

• Rating: 73 Outperform
• Price Target: ¥1,781.00 ▲(13.44%Upside)

Satori Electric Co., Ltd. scores well due to its strong valuation, driven by a low P/E ratio and high dividend yield. Financial performance is solid, with room for improvement in profitability and cash flow stability. Technical analysis suggests a neutral trend, with potential for positive momentum.

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

Company Description

Satori Electric Co., Ltd. (7420) is a Japanese company that specializes in the distribution of electrical equipment and components. The company operates in sectors such as industrial automation, home electronics, and energy solutions. Satori Electric offers a wide range of products including semiconductors, electronic components, and equipment for various industrial and consumer applications.

How the Company Makes Money

Satori Electric Co., Ltd. generates revenue primarily through the sale and distribution of electrical components and equipment. The company's key revenue streams include supplying industrial automation solutions, consumer electronics components, and energy-efficient products to various industries. Satori Electric partners with leading manufacturers to ensure a broad and up-to-date product portfolio, catering to both domestic and international markets. The company's earnings are bolstered by its expansive distribution network and focus on emerging technologies in energy and electronics.

Satori Electric Co., Ltd. Financial Statement Overview

Summary

Satori Electric Co., Ltd. demonstrates robust revenue growth and operational efficiency, with a strong equity base. However, profitability margins are lower than expected, and cash flow consistency needs improvement.

Income Statement

Satori Electric Co., Ltd. has demonstrated a robust revenue growth rate over recent years, particularly from 2021 to 2024. The gross profit margin is healthy, reflecting efficient cost management. However, the net profit margin has been relatively lower than expected, indicating room for improvement in profitability. The EBIT and EBITDA margins are satisfactory, suggesting operational efficiency.

Balance Sheet

The company maintains a strong equity base with a stable equity ratio, indicating solid financial stability. However, the debt-to-equity ratio has been increasing, which could pose potential leverage risks. The return on equity (ROE) is commendable, showcasing effective use of shareholder funds.

Cash Flow

Satori Electric's cash flow from operations has been volatile, with a significant improvement in the latest period. The free cash flow has rebounded from previous losses, showing positive growth. However, the consistency in cash flow generation needs enhancement to support long-term financial health.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
151.76B	148.11B	146.34B	125.85B	105.84B	107.13B
	Gross Profit
15.63B	15.75B	13.56B	11.69B	9.11B	9.45B
	EBIT
4.17B	4.76B	3.79B	2.60B	899.00M	512.00M
	EBITDA
4.12B	4.56B	4.40B	3.18B	1.40B	982.00M
	Net Income Common Stockholders
2.02B	2.16B	2.26B	1.91B	520.00M	52.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.45B	9.25B	10.05B	8.00B	9.40B	7.73B
	Total Assets
82.56B	83.49B	81.56B	74.49B	63.22B	60.32B
	Total Debt
18.88B	19.33B	18.50B	9.77B	9.29B	11.49B
	Net Debt
9.43B	10.08B	8.45B	1.77B	-110.00M	3.76B
	Total Liabilities
47.75B	48.64B	46.61B	42.04B	32.84B	30.91B
	Stockholders Equity
33.56B	33.44B	33.77B	32.24B	30.22B	29.26B
Cash Flow		Free Cash Flow
0.00	4.77B	-5.29B	-1.64B	4.37B	2.13B
	Operating Cash Flow
0.00	5.33B	-4.89B	-1.41B	4.55B	2.53B
	Investing Cash Flow
0.00	-2.06B	-13.00M	502.00M	-158.00M	-73.00M
	Financing Cash Flow
0.00	-4.52B	6.63B	-855.00M	-2.86B	-2.26B

Satori Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1570.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 1570 is below the 20-day moving average (MA) of 1602.82, below the 50-day MA of 1573.45, and below the 200-day MA of 1696.79, indicating a bearish trend. The MACD of -5.61 indicates Positive momentum. The RSI at 41.34 is Neutral, neither overbought nor oversold. The STOCH value of 21.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥39.55B	8.87		3.74%	7.88%	39.72%
2737	77 Outperform	¥38.90B	6.96		5.24%	13.76%	166.61%
6855	74 Outperform	¥26.00B	7.53		1.94%	36.47%	454.91%
7420	73 Outperform	¥25.83B	11.73		5.86%	6.47%	-6.67%
7510	72 Outperform	¥28.63B	10.82		3.67%	-0.38%	6.15%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%

Satori Electric Co., Ltd. Corporate Events

Satori Electric Announces Strategic Executive and Organizational Changes

Satori Electric Co., Ltd. announced significant organizational changes, including the reassignment of executive officers and personnel transfers, effective June 1, 2025. These changes aim to streamline operations and enhance the company’s focus on sales and system promotion, potentially impacting its market positioning and operational efficiency.

Satori Electric Reports Increased Sales but Declining Profits for Nine-Month Period

Satori Electric Co., Ltd. reported its consolidated financial results for the nine months ending February 28, 2025, showing a 7% increase in net sales compared to the previous period. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating challenges in maintaining profitability despite increased sales. The equity ratio improved slightly, reflecting a stable financial position. The company also announced its dividend forecast, maintaining a steady payout to shareholders, which may impact investor confidence positively.