Sakae Electronics Corporation (7567) AI Stock Analysis

• Market Cap: ¥2.38B
• Dividend Yield: 2.13%
• Average Volume (3M): 7.25K
• Price to Earnings (P/E): 41.2
• Beta (1Y): 0.63
• Revenue Growth: -5.35%
• EPS Growth: -36.71%
• Country: JP
• Employees: 80
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 4.73
• Shares Outstanding: 5,090,000
• 10 Day Avg. Volume: 7,230
• 30 Day Avg. Volume: 7,253
• PEG Ratio: -0.73
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.36
• P/FCF Ratio: -6.99
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥499.00 ▲(12.13% Upside)

The overall stock score of 60 reflects a mixed outlook for Sakae Electronics Corporation. The most significant factor is the company's financial performance, which shows stability in the balance sheet but challenges in income and cash flow. Technical analysis suggests a neutral trend with no strong momentum. Valuation concerns arise from a high P/E ratio, although the dividend yield offers some compensation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to weather economic fluctuations and invest in growth opportunities.

Conservative Leverage

Low leverage reduces financial risk and interest obligations, enhancing the company's ability to sustain operations and invest in strategic initiatives without over-reliance on debt.

Diverse Revenue Streams

Diverse revenue streams across multiple sectors provide resilience against sector-specific downturns and enable the company to capitalize on growth opportunities in various markets.

Negative Factors

Declining Revenue Growth

A decline in revenue growth indicates potential challenges in market demand or competitive positioning, which could impact long-term profitability and market share.

Profitability Challenges

Low profitability margins suggest operational inefficiencies or pricing pressures, which can hinder the company's ability to generate sustainable profits and reinvest in growth.

Cash Flow Issues

Negative free cash flow indicates liquidity challenges, limiting the company's ability to fund operations, invest in new projects, and return value to shareholders.

Sakae Electronics Corporation Business Overview & Revenue Model

Company Description

Sakae Electronics Corporation (7567) is a prominent player in the electronics manufacturing sector, specializing in the production of high-quality electronic components and devices. The company operates primarily in the fields of consumer electronics, telecommunications, and industrial automation. Sakae Electronics is known for its innovative solutions in hardware design and development, catering to a diverse range of clients including major technology firms and OEMs. Its core products include printed circuit boards, electronic assemblies, and custom electronic solutions tailored to meet specific industry demands.

How the Company Makes Money

Sakae Electronics Corporation generates revenue through a multi-faceted business model primarily centered around the manufacturing and sale of electronic components. The key revenue streams include direct sales of its core products such as printed circuit boards and electronic assemblies to various industries, including consumer electronics and telecommunications. Additionally, the company benefits from long-term contracts with OEMs, which provide stable income and foster ongoing partnerships. Sakae Electronics also engages in research and development to create bespoke solutions for clients, charging for both the development services and the final products. Strategic alliances with technological firms enhance its market reach and allow for collaborative projects that can lead to new revenue opportunities. Overall, the company's financial health is bolstered by its diverse client base and commitment to innovation in the electronics sector.

Sakae Electronics Corporation Financial Statement Overview

Summary

Sakae Electronics Corporation shows a mixed financial performance with strengths in balance sheet stability but weaknesses in income and cash flow statements. The company faces challenges in revenue growth and profitability, with declining free cash flow and operational inefficiencies. Despite low leverage, the company needs to address cash flow and profitability issues to improve its financial health.

Income Statement

Sakae Electronics Corporation has experienced fluctuating revenue trends, with a notable decline in the most recent year. The gross profit margin for the latest period is approximately 15.98%, and the net profit margin is around 0.58%, indicating challenges in maintaining profitability. The EBIT and EBITDA margins are relatively low, suggesting potential inefficiencies in operations.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 66.87%. The debt-to-equity ratio is low at 0.11, indicating conservative leverage. However, the return on equity has decreased over the years, reflecting challenges in generating returns for shareholders.

Cash Flow

The cash flow statement reveals a concerning decline in free cash flow, with a negative free cash flow in the latest year. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is also negative, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.52B	6.43B	8.37B	10.84B	9.01B	5.62B
Gross Profit	1.04B	1.03B	1.23B	1.75B	1.49B	845.07M
EBITDA	81.24M	80.22M	373.00M	934.95M	734.98M	168.55M
Net Income	24.28M	37.27M	230.74M	651.42M	531.66M	116.67M
Balance Sheet
Total Assets	6.85B	6.69B	7.55B	7.44B	6.56B	5.28B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.16B	1.60B	1.49B	1.15B	1.18B
Total Debt	500.00M	500.00M	500.00M	500.00M	515.89M	737.22M
Total Liabilities	2.35B	2.22B	2.99B	3.30B	3.03B	2.27B
Stockholders Equity	4.50B	4.47B	4.56B	4.14B	3.53B	3.00B
Cash Flow
Free Cash Flow	0.00	-327.61M	167.85M	398.75M	225.41M	199.06M
Operating Cash Flow	0.00	-325.96M	192.82M	473.18M	243.25M	207.82M
Investing Cash Flow	0.00	-67.12M	-25.93M	-75.57M	181.22M	-8.04M
Financing Cash Flow	0.00	-50.79M	-60.94M	-51.45M	-256.88M	-57.04M

Sakae Electronics Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 445.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7567, the sentiment is Negative. The current price of 445 is below the 20-day moving average (MA) of 480.10, below the 50-day MA of 480.40, and below the 200-day MA of 466.68, indicating a bearish trend. The MACD of -2.62 indicates Positive momentum. The RSI at 42.51 is Neutral, neither overbought nor oversold. The STOCH value of 5.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7567.

Sakae Electronics Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6647	80 Outperform	¥3.09B	4.76	―	2.23%	14.26%	280.42%
6894	76 Outperform	¥2.77B	8.17	―	3.84%	-1.32%	45.44%
6668	69 Neutral	¥10.52B	5.23	―	2.15%	12.23%	65.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7567	60 Neutral	¥2.38B	41.23	―	2.13%	-5.35%	-36.71%
6943	51 Neutral	¥3.79B	-8.54	―	1.53%	-10.43%	-368.47%