SPK Corporation (7466) AI Stock Analysis

• Market Cap: ¥23.03B
• Dividend Yield: 2.68%
• Average Volume (3M): 11.27K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.53
• Revenue Growth: 8.92%
• EPS Growth: 15.98%
• Country: JP
• Employees: 566
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 74.09
• Shares Outstanding: 10,453,800
• 10 Day Avg. Volume: 10,580
• 30 Day Avg. Volume: 11,273
• PEG Ratio: 2.05
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 42.24
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥2,594.00 ▲(11.09% Upside)

SPK Corporation's strong financial performance and attractive valuation are the primary drivers of its overall score. While technical indicators suggest some caution, the company's solid financial foundation and undervaluation provide a compelling investment case.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and profitability.

Market Position

Being a leader in high-performance materials for electronics and automotive sectors positions SPK well for sustained competitive advantage and market share.

Balance Sheet Health

A strong balance sheet with manageable debt enhances financial stability, providing resilience against economic fluctuations and enabling strategic investments.

Negative Factors

Cash Flow Volatility

Volatile cash flow can challenge the company's ability to maintain consistent cash reserves, impacting its capacity to fund operations and growth initiatives.

Debt Increase

Increased debt levels may strain financial flexibility and require careful management to avoid potential risks to long-term financial health.

Cash Generation Challenges

Decreasing free cash flow suggests potential challenges in cash generation, which could limit the company's ability to invest in growth opportunities.

SPK Corporation Business Overview & Revenue Model

Company Description

SPK Corporation (7466) is a leading Japanese company specializing in the development and manufacturing of high-performance materials and components primarily for the electronics and automotive industries. The company operates in various sectors, including semiconductor materials, advanced coatings, and precision parts, catering to both domestic and international markets. With a strong emphasis on innovation, SPK Corporation aims to enhance the performance and reliability of electronic devices and automotive systems through its cutting-edge technologies and comprehensive product offerings.

How the Company Makes Money

SPK Corporation generates revenue through multiple key streams, primarily from the sale of specialty materials and components used in electronics and automotive applications. The company’s revenue model is driven by the demand for advanced materials in the semiconductor industry, where it provides essential products that improve the efficiency and functionality of electronic devices. Additionally, SPK collaborates with major manufacturers in the automotive sector to supply precision components that meet the stringent performance standards required for modern vehicles. Strategic partnerships with technology firms and research institutions further enhance its product development capabilities, allowing SPK to stay competitive and expand its market reach. The company also benefits from long-term contracts with key clients, providing a stable source of recurring revenue.

SPK Corporation Financial Statement Overview

Summary

SPK Corporation demonstrates strong financial health with impressive revenue and profit growth. The balance sheet is robust with a solid equity base and manageable debt levels. However, cash flow management shows some volatility, which could be an area for improvement.

Income Statement

SPK Corporation has shown a strong performance in the income statement with consistent revenue growth, rising from ¥41.9 billion in 2021 to ¥68.7 billion in 2025. The gross profit margin remains solid, and net profit margin has improved over the years, indicating efficient cost management. EBIT and EBITDA margins are healthy, underscoring operational efficiency. The revenue growth rate from 2024 to 2025 is approximately 8.6%, showcasing a positive growth trajectory.

Balance Sheet

The balance sheet of SPK Corporation is robust, featuring a solid equity base with stockholders' equity growing steadily from ¥17.9 billion in 2020 to ¥26.9 billion in 2025. The debt-to-equity ratio remains manageable, reflecting prudent leverage practices. The equity ratio is strong, indicating financial stability. However, there is a significant increase in total debt in 2025, which may need monitoring to avoid potential risks.

Cash Flow

Cash flow analysis reveals a mixed picture. Operating cash flow has fluctuated, with a dip in 2025 compared to 2024. Free cash flow is positive but has decreased from 2024 to 2025. The operating cash flow to net income ratio is stable, suggesting decent cash generation from operations. However, the free cash flow to net income ratio has been volatile, which could indicate challenges in maintaining consistent cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	70.00B	68.72B	63.30B	54.70B	47.69B	41.90B
Gross Profit	13.25B	12.87B	11.66B	9.69B	7.90B	7.18B
EBITDA	4.56B	4.42B	3.94B	3.43B	2.68B	2.30B
Net Income	2.44B	2.50B	2.39B	2.06B	1.63B	1.38B
Balance Sheet
Total Assets	45.29B	44.17B	38.64B	34.35B	30.01B	27.93B
Cash, Cash Equivalents and Short-Term Investments	9.70B	7.87B	6.97B	6.61B	6.15B	7.35B
Total Debt	9.51B	7.59B	4.33B	3.36B	2.29B	2.40B
Total Liabilities	18.20B	17.11B	14.05B	12.18B	9.79B	9.03B
Stockholders Equity	26.97B	26.93B	24.48B	22.18B	20.22B	18.90B
Cash Flow
Free Cash Flow	0.00	495.24M	669.40M	160.36M	10.84M	1.97B
Operating Cash Flow	0.00	1.19B	1.84B	838.38M	536.48M	2.35B
Investing Cash Flow	0.00	-2.89B	-1.80B	-879.51M	-592.53M	-821.74M
Financing Cash Flow	0.00	2.49B	167.46M	426.39M	-1.19B	362.41M

SPK Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2335.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7466, the sentiment is Positive. The current price of 2335 is above the 20-day moving average (MA) of 2296.10, above the 50-day MA of 2306.01, and above the 200-day MA of 2192.78, indicating a bullish trend. The MACD of 10.66 indicates Negative momentum. The RSI at 55.54 is Neutral, neither overbought nor oversold. The STOCH value of 82.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7466.

SPK Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7466	75 Outperform	¥23.03B	8.80	―	2.68%	8.92%	15.98%
7236	74 Outperform	¥37.64B	5.85	―	3.77%	0.14%	882.91%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6584	57 Neutral	¥33.64B	79.37	―	3.16%	-3.91%	-36.53%
7294	57 Neutral	¥22.19B	-1.79	―	3.14%	-8.99%	-62.26%
6470	51 Neutral	¥20.22B	575.18	―	2.91%	4.93%	―
7266	51 Neutral	¥16.66B	-64.43	―	3.11%	-8.63%	-55.68%