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

• Market Cap: ¥27.17B
• Dividend Yield: 4.54%
• Average Volume (3M): 39.83K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.96
• Revenue Growth: 5.49%
• EPS Growth: 17.69%
• Country: JP
• Employees: 793
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 76.89
• Shares Outstanding: 14,946,826
• 10 Day Avg. Volume: 31,630
• 30 Day Avg. Volume: 39,826
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,133.00
• Price Target Upside: 12.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥2,133.00 ▲(12.68% Upside)

Satori Electric Co., Ltd. benefits from strong technical momentum and attractive valuation metrics, making it appealing for growth and income investors. However, financial performance highlights the need for improved profitability and cash flow stability.

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 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

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	155.66B	156.24B	148.11B	146.34B	125.85B	105.84B
Gross Profit	15.71B	15.55B	15.75B	13.56B	11.69B	9.11B
EBITDA	4.03B	4.45B	4.56B	3.66B	2.79B	1.31B
Net Income	1.92B	2.52B	2.16B	2.26B	1.91B	520.00M
Balance Sheet
Total Assets	77.51B	79.15B	83.49B	81.56B	74.49B	63.22B
Cash, Cash Equivalents and Short-Term Investments	10.23B	9.13B	9.25B	10.05B	8.00B	9.40B
Total Debt	21.65B	19.72B	19.33B	18.50B	9.77B	9.29B
Total Liabilities	44.76B	45.84B	48.64B	46.61B	42.04B	32.84B
Stockholders Equity	31.93B	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: Positive
• Last Price: 1893.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1893 is above the 20-day moving average (MA) of 1889.25, above the 50-day MA of 1814.92, and above the 200-day MA of 1672.72, indicating a bullish trend. The MACD of 22.50 indicates Positive momentum. The RSI at 58.92 is Neutral, neither overbought nor oversold. The STOCH value of 29.08 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	47.27B	9.61	13.29%	3.13%	7.19%	45.73%
6855	78 Outperform	44.21B	12.35	12.37%	1.86%	32.53%	182.70%
7420	76 Outperform	¥27.17B	10.76		4.54%	5.49%	17.69%
7510	76 Outperform	33.08B	13.73	6.51%	2.99%	2.04%	-11.59%
2737	75 Outperform	45.64B	8.58	11.26%	4.47%	9.23%	13.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.