Sunautas Co., Ltd. (7623) AI Stock Analysis

• Market Cap: $2.61B
• Dividend Yield: 2.28%
• Average Volume (3M): 3.89K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.22
• Revenue Growth: 8.67%
• EPS Growth: -11.05%
• Country: JP
• Employees: 220
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Auto - Dealerships
• EPS (TTM): -8.83
• Shares Outstanding: 3,230,500
• 10 Day Avg. Volume: 1,380
• 30 Day Avg. Volume: 3,890
• PEG Ratio: -1.06
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 3.03
• Enterprise Value/Market Cap: 2.95
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.81
• Enterprise Value/Ebitda: 9.51
• 1Y Price Target: $932.00
• Price Target Upside: 12.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $932.00 ▲(12.02% Upside)

Sunautas Co., Ltd. demonstrates a solid financial foundation with consistent revenue growth and strong cash flow generation. The technical indicators suggest stable market conditions, while the valuation indicates the stock is reasonably priced. The high leverage ratio on the balance sheet is a potential risk, but the company is well-positioned for future growth if profitability and leverage are managed effectively.

Sunautas Co., Ltd. Business Overview & Revenue Model

Company Description

Sunautas Co., Ltd. (7623) is a prominent player in the automotive industry, specializing in manufacturing and distributing automotive components and systems. The company operates primarily in sectors such as automotive electronics, powertrain systems, and vehicle safety technologies. Sunautas is recognized for its innovative solutions that enhance vehicle performance, efficiency, and safety, catering to a diverse clientele ranging from automotive manufacturers to aftermarket service providers.

How the Company Makes Money

Sunautas Co., Ltd. generates revenue through multiple streams, primarily from the sale of automotive components and systems to original equipment manufacturers (OEMs) and aftermarket suppliers. The company's revenue model is built on long-term contracts with major automotive manufacturers, ensuring a steady flow of income from product sales. Additionally, Sunautas earns revenue from research and development services, providing tailored solutions to improve vehicle functionality and safety. Strategic partnerships with leading automotive companies further bolster its market position, enabling the company to access new markets and technologies, thus enhancing its overall profitability.

Sunautas Co., Ltd. Financial Statement Overview

Summary

Sunautas Co., Ltd. exhibits consistent revenue growth and strong cash flow generation, indicating a solid financial position. However, the net profit margin and high leverage ratio suggest areas for improvement in profitability and risk management.

Income Statement

Sunautas Co., Ltd. has shown consistent revenue growth over the years, with a notable increase in the latest period. The gross profit margin remains stable, indicating effective cost management. However, the net profit margin is relatively low, suggesting room for improvement in profitability. The EBIT and EBITDA margins are modest, reflecting operational efficiency but also highlighting potential for enhanced profitability.

Balance Sheet

The company's debt-to-equity ratio has improved slightly, indicating better leverage management, but it remains relatively high, which could pose a risk in volatile markets. Return on equity has shown fluctuations but remains positive, suggesting effective use of equity. The equity ratio indicates a balanced asset structure, though there is room for strengthening equity further.

Cash Flow

Sunautas Co., Ltd. has demonstrated strong free cash flow growth, particularly in the latest period, which is a positive indicator of financial health. The operating cash flow to net income ratio suggests efficient cash generation relative to earnings. The free cash flow to net income ratio indicates a solid conversion of earnings into cash, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.85B	18.08B	16.63B	16.17B	16.14B	14.73B
Gross Profit	4.24B	4.26B	4.00B	3.88B	3.74B	3.58B
EBITDA	809.78M	959.57M	874.71M	796.98M	724.12M	727.59M
Net Income	371.94M	232.75M	261.33M	265.42M	195.88M	153.77M
Balance Sheet
Total Assets	11.51B	11.44B	11.75B	10.88B	10.15B	10.57B
Cash, Cash Equivalents and Short-Term Investments	816.00M	939.60M	806.33M	678.87M	826.10M	842.46M
Total Debt	6.09B	5.95B	6.25B	5.83B	5.42B	5.92B
Total Liabilities	7.95B	7.90B	8.39B	7.74B	7.27B	7.86B
Stockholders Equity	3.57B	3.54B	3.36B	3.14B	2.88B	2.71B
Cash Flow
Free Cash Flow	0.00	885.43M	451.49M	-361.98M	769.43M	684.34M
Operating Cash Flow	0.00	1.57B	1.31B	544.78M	1.12B	1.28B
Investing Cash Flow	0.00	-691.35M	-964.83M	-783.52M	-325.57M	-607.12M
Financing Cash Flow	0.00	-747.97M	-277.77M	91.50M	-792.57M	-552.77M

Sunautas Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 832.00
• 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:7623, the sentiment is Positive. The current price of 832 is above the 20-day moving average (MA) of 831.55, above the 50-day MA of 831.54, and above the 200-day MA of 703.47, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 57.03 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7623.

Sunautas Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3184	81 Outperform	¥8.82B	7.14		1.67%	9.36%	17.92%
3011	79 Outperform	¥2.51B	9.75		3.40%	9.42%	15.60%
7623	74 Outperform	$2.61B	11.54		2.28%	8.67%	-11.05%
2788	70 Outperform	¥4.81B	7.09		4.30%	3.67%	-30.07%
3377	70 Outperform	¥5.87B	11.33		2.62%	12.55%	―
Sector *	61 Neutral	$17.42B	12.39	-5.32%	3.12%	1.53%	-15.37%
7602	49 Neutral	¥2.73B	139.38		1.52%	0.91%	-517.75%