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

• Market Cap: ¥6.85B
• Dividend Yield: 3.14%
• Average Volume (3M): 913.00
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.25
• Revenue Growth: 2.66%
• EPS Growth: 53.66%
• Country: JP
• Employees: 623
• Sector: Industrials
• Sector Strength: 73
• Industry: Construction Materials
• EPS (TTM): -23.79
• Shares Outstanding: 5,374,000
• 10 Day Avg. Volume: 640
• 30 Day Avg. Volume: 913
• 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: ¥1,325.00
• Price Target Upside: 3.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥1,325.00 ▲(3.92% 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. is a Japanese company primarily engaged in the wholesale distribution of building materials and hardware products. It operates in sectors including construction, home improvement, and industrial supplies. The company offers a wide range of products, such as door handles, locks, construction hardware, and other related items essential for building and renovation projects.

How the Company Makes Money

Sugita Ace Co., Ltd. generates revenue primarily through the wholesale distribution of its building materials and hardware products to retailers, construction companies, and industrial clients. The company sources products from various manufacturers, ensuring a diverse inventory to meet the needs of its customers. By leveraging its extensive distribution network and strong relationships with suppliers, Sugita Ace Co., Ltd. is able to offer competitive pricing and reliable delivery services, which are key factors in its revenue generation. The company may also engage in strategic partnerships or collaborations to enhance its product offerings and expand its market reach, further contributing to its financial performance.

Sugita Ace Co., Ltd. Financial Statement Overview

Summary

Sugita Ace Co., Ltd. presents a strong financial position with consistent revenue growth, strong cash flow generation, and a robust balance sheet. The company's low debt-to-equity ratio and significant free cash flow growth indicate financial stability and effective capital management. However, fluctuations in profitability ratios and a 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.66B	75.66B	73.75B	71.40B	55.98B	56.07B
Gross Profit	10.31B	10.03B	10.35B	9.93B	7.91B	8.12B
EBITDA	1.39B	1.39B	1.63B	1.50B	734.00M	819.00M
Net Income	517.00M	517.00M	718.00M	600.00M	227.00M	323.00M
Balance Sheet
Total Assets	38.48B	38.48B	38.80B	39.14B	36.97B	30.89B
Cash, Cash Equivalents and Short-Term Investments	6.25B	6.25B	4.59B	4.69B	4.52B	3.83B
Total Debt	3.59B	3.59B	4.47B	4.92B	5.75B	2.09B
Total Liabilities	26.84B	26.84B	27.40B	28.28B	26.61B	20.55B
Stockholders Equity	11.64B	11.64B	11.40B	10.86B	10.36B	10.34B
Cash Flow
Free Cash Flow	0.00	2.80B	504.00M	1.24B	-264.00M	917.00M
Operating Cash Flow	0.00	2.91B	633.00M	1.41B	223.00M	1.18B
Investing Cash Flow	0.00	-94.00M	-80.00M	-22.00M	-2.63B	-221.00M
Financing Cash Flow	0.00	-1.15B	-659.00M	-1.16B	3.04B	-14.00M

Sugita Ace Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1275.00
• 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:7635, the sentiment is Positive. The current price of 1275 is above the 20-day moving average (MA) of 1267.30, above the 50-day MA of 1227.86, and above the 200-day MA of 1223.62, indicating a bullish trend. The MACD of 14.27 indicates Positive momentum. The RSI at 57.94 is Neutral, neither overbought nor oversold. The STOCH value of 38.14 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
7434	78 Outperform	¥7.17B	8.34		2.06%	5.57%	11.85%
3426	76 Outperform	¥5.65B	14.44		2.40%	1.32%	53.45%
5283	76 Outperform	¥5.64B	8.35		1.50%	3.08%	-11.20%
7635	73 Outperform	¥6.85B	10.54		3.14%	2.66%	53.66%
7461	69 Neutral	¥7.33B	6.19		3.27%	7.37%	27.54%
Sector *	63 Neutral	$10.73B	15.32	7.37%	2.01%	2.86%	-14.57%
5268	62 Neutral	¥15.53B	42.68		1.27%	-0.66%	-11.08%