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

• Market Cap: ¥26.90B
• Dividend Yield: 5.63%
• Average Volume (3M): 75.35K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.03
• Revenue Growth: 6.47%
• EPS Growth: -6.67%
• Country: JP
• Employees: 793
• Sector: Technology
• Sector Strength: 89
• Industry: Semiconductors
• EPS (TTM): 133.82
• Shares Outstanding: 17,946,827
• 10 Day Avg. Volume: 42,220
• 30 Day Avg. Volume: 75,350
• PEG Ratio: -2.29
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,781.00
• Price Target Upside: 8.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥1,781.00 ▲(8.93%Upside)

The most significant contributors to Satori Electric's stock score are its strong financial performance and attractive valuation, which highlight the company's growth potential and investor value. Technical analysis presents a neutral outlook, reflecting balanced market sentiment.

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. shows strong revenue growth and operational efficiency, particularly in gross profit. The balance sheet indicates financial stability but has increasing leverage risks, and cash flow improvements, while promising, require consistency for long-term health.

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	155.66B	148.11B	146.34B	125.85B	105.84B	107.13B
Gross Profit	15.71B	15.75B	13.56B	11.69B	9.11B	9.45B
EBITDA	4.03B	4.56B	4.40B	2.79B	1.40B	1.14B
Net Income	1.92B	2.16B	2.26B	1.91B	520.00M	52.00M
Balance Sheet
Total Assets	77.51B	83.49B	81.56B	74.49B	63.22B	60.32B
Cash, Cash Equivalents and Short-Term Investments	10.23B	9.25B	10.05B	8.00B	9.40B	7.73B
Total Debt	21.65B	19.33B	18.50B	9.77B	9.29B	11.49B
Total Liabilities	44.76B	48.64B	46.61B	42.04B	32.84B	30.91B
Stockholders Equity	31.93B	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: Positive
• Last Price: 1635.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 1635 is above the 20-day moving average (MA) of 1601.30, above the 50-day MA of 1611.30, and below the 200-day MA of 1672.18, indicating a neutral trend. The MACD of 10.12 indicates Negative momentum. The RSI at 63.99 is Neutral, neither overbought nor oversold. The STOCH value of 74.75 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	81 Outperform	¥38.33B	8.60		3.86%	7.88%	39.72%
2737	77 Outperform	¥39.79B	7.12		5.13%	13.76%	166.61%
6855	77 Outperform	¥29.28B	8.48		1.73%	36.47%	454.90%
7510	75 Outperform	¥28.93B	10.93		3.63%	-0.38%	6.16%
7420	73 Outperform	¥26.90B	12.22		5.63%	6.47%	-6.67%
Sector *	63 Neutral	£507.76M	24.89	-8.56%	178.98%	4.03%	-28.20%

Satori Electric Co., Ltd. Corporate Events

Satori Electric Announces Executive Personnel Changes

Satori Electric Co., Ltd. announced a series of executive personnel changes to be proposed at the upcoming Ordinary General Meeting of Shareholders. These changes, effective August 21, 2025, include the reassignment of directors and the introduction of new directors, reflecting the company’s strategic focus on strengthening its leadership team to enhance its market position and operational efficiency.

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.