Sugita Ace Co., Ltd. (7635) AI Stock Analysis

• Market Cap: ¥6.34B
• Dividend Yield: 3.39%
• Average Volume (3M): 526.00
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.23
• Revenue Growth: 2.60%
• EPS Growth: -27.99%
• Country: JP
• Employees: 623
• Sector: Industrials
• Sector Strength: 89
• Industry: Construction Materials
• EPS (TTM): 70.01
• Shares Outstanding: 5,374,000
• 10 Day Avg. Volume: 470
• 30 Day Avg. Volume: 526
• PEG Ratio: 0.87
• Price to Book (P/B): 0.55
• 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: ¥1,313.00
• Price Target Upside: 11.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥1,325.00 ▲(12.10%Upside)

Sugita Ace Co., Ltd. has a solid financial performance, supported by strong cash flow and a robust balance sheet, which are the most significant factors driving the score. Despite technical indicators showing some bearish trends, the company's valuation is attractive with a reasonable P/E ratio and a good dividend yield, further supporting the stock's appeal.

Sugita Ace Co., Ltd. Business Overview & Revenue Model

Company Description

Sugita Ace Co., Ltd. (7635) is a Japanese company primarily engaged in the wholesale and retail of building materials and housing equipment. The company offers a broad range of products, including architectural hardware, housing equipment, and DIY supplies, catering to both professional contractors and individual consumers across Japan. With a strong focus on innovation and quality, Sugita Ace serves as a key player in the construction and home improvement sectors, providing essential materials for various construction and renovation projects.

How the Company Makes Money

Sugita Ace Co., Ltd. generates revenue through its expansive distribution network that supplies building materials and housing equipment to a variety of customers, including construction companies, retail stores, and end consumers. The company capitalizes on its extensive product lineup, which includes architectural hardware, kitchen and bathroom fixtures, and other DIY products, to meet the diverse needs of the market. Sugita Ace also benefits from economies of scale and strategic partnerships with manufacturers, allowing it to offer competitive pricing while maintaining healthy profit margins. Additionally, the company's retail operations provide a direct sales channel that enhances revenue through direct consumer engagement.

Sugita Ace Co., Ltd. Financial Statement Overview

Summary

Sugita Ace Co., Ltd. presents a solid financial position with consistent revenue growth, strong cash flow generation, and a robust balance sheet. Healthy margins and financial stability are evident, though profitability ratios and moderate ROE suggest areas for potential improvement.

Income Statement

Sugita Ace Co., Ltd. has demonstrated consistent revenue growth with a solid gross profit margin of 13.26% and a net profit margin of 0.68% for 2025. Despite a decline in EBIT margin to 1.10%, the company maintains decent EBITDA margin at 1.84%. The revenue growth rate from 2024 to 2025 was 2.60%, indicating steady progress. However, profitability ratios have seen some fluctuations, suggesting potential challenges in cost management.

Balance Sheet

The company exhibits a strong balance sheet with a low debt-to-equity ratio of 0.31, reflecting prudent financial leverage. The equity ratio stands at 30.26%, indicating a stable financial structure. Return on equity (ROE) is 4.44%, showing moderate efficiency in using shareholders' equity to generate profits. Overall, the balance sheet reflects financial stability, though ROE suggests room for improvement in profitability.

Cash Flow

Sugita Ace Co., Ltd. has shown significant improvement in cash flow, with a remarkable free cash flow growth rate of 454.76% from 2024 to 2025. The operating cash flow to net income ratio of 5.63 indicates strong cash generation relative to net income, while the free cash flow to net income ratio at 5.41 showcases efficient cash use. The company's cash flows reflect robust operational performance and effective capital management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	75.66B	73.75B	71.40B	55.98B	56.07B
Gross Profit	10.03B	10.35B	9.93B	7.91B	8.12B
EBITDA	1.39B	1.63B	1.33B	734.00M	726.00M
Net Income	517.00M	718.00M	600.00M	227.00M	323.00M
Balance Sheet
Total Assets	38.48B	38.80B	39.14B	36.97B	30.89B
Cash, Cash Equivalents and Short-Term Investments	6.25B	4.59B	4.69B	4.52B	3.83B
Total Debt	3.59B	4.47B	4.92B	5.75B	2.09B
Total Liabilities	26.84B	27.40B	28.28B	26.61B	20.55B
Stockholders Equity	11.64B	11.40B	10.86B	10.36B	10.34B
Cash Flow
Free Cash Flow	2.80B	504.00M	1.24B	-264.00M	917.00M
Operating Cash Flow	2.91B	633.00M	1.41B	223.00M	1.18B
Investing Cash Flow	-94.00M	-80.00M	-22.00M	-2.63B	-221.00M
Financing Cash Flow	-1.15B	-659.00M	-1.16B	3.04B	-14.00M

Sugita Ace Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1182.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7635, the sentiment is Positive. The current price of 1182 is below the 20-day moving average (MA) of 1183.45, below the 50-day MA of 1184.08, and below the 200-day MA of 1216.34, indicating a neutral trend. The MACD of -0.90 indicates Positive momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7635.

Sugita Ace Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3426	76 Outperform	¥5.81B	16.44		2.06%	-0.67%	35.93%
7461	74 Outperform	¥7.18B	6.06		0.41%	6.64%	14.79%
7635	73 Outperform	¥6.34B	12.26		3.39%	2.60%	-27.99%
7434	70 Outperform	¥6.81B	8.52		2.16%	3.30%	-3.98%
5268	69 Neutral	¥8.22B	19.87		2.24%	2.12%	21.91%
Sector *	65 Neutral	$10.82B	15.59	5.20%	1.89%	3.09%	-26.84%
5283	64 Neutral	¥5.15B	7.65		1.63%	4.26%	-44.50%