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

• Market Cap: ¥6.55B
• Dividend Yield: 2.34%
• Average Volume (3M): 763.00
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.26
• Revenue Growth: 2.11%
• EPS Growth: 9.56%
• Country: JP
• Employees: 623
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 20.70
• Shares Outstanding: 5,374,000
• 10 Day Avg. Volume: 720
• 30 Day Avg. Volume: 763
• PEG Ratio: -0.46
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 2.37
• 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: 76 Outperform
• Price Target: ¥1,973.00 ▲(15.79% Upside)

Sugita Ace Co., Ltd. demonstrates a strong financial foundation with solid revenue growth and cash flow generation. The stock's technical indicators show bullish momentum, though caution is advised due to overbought conditions. Attractive valuation metrics further enhance its investment appeal, making it a compelling choice within the Construction Materials industry.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, ensuring long-term stability and expansion potential.

Cash Flow Generation

Significant improvement in cash flow reflects robust operational performance, providing financial flexibility and supporting future investments.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and reduces risk, supporting sustainable growth and resilience against economic fluctuations.

Negative Factors

Profitability Challenges

Fluctuating profitability ratios and declining EBIT margin suggest challenges in cost management, potentially impacting long-term profit sustainability.

Moderate ROE

Moderate ROE indicates limited efficiency in using equity to generate profits, suggesting room for improvement in operational effectiveness and shareholder returns.

Net Profit Margin

A low net profit margin may limit the company's ability to reinvest in growth opportunities and withstand competitive pressures, affecting long-term profitability.

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

Company Description

Sugita Ace Co., Ltd. (7635) is a prominent company based in Japan, specializing in the manufacturing and distribution of precision components and tools primarily for the automotive and industrial machinery sectors. The company is recognized for its commitment to quality and innovation, offering a wide range of products that include automotive parts, machining tools, and other precision instruments that cater to various industrial applications.

How the Company Makes Money

Sugita Ace Co., Ltd. generates revenue through multiple key streams, primarily by selling precision components and tools to automotive manufacturers and industrial clients. The company benefits from long-term contracts and partnerships with major players in the automotive sector, ensuring a steady demand for its products. Additionally, Sugita Ace may engage in after-sales services, providing maintenance and support for its products, which contributes to its recurring revenue. The company also invests in research and development to innovate and expand its product offerings, which can lead to new revenue opportunities. Factors such as market demand, technological advancements, and strategic alliances play significant roles in enhancing its earnings.

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. While the company maintains healthy margins, fluctuations in profitability ratios and a moderate ROE suggest areas for potential improvement. Overall, the financials depict stability and growth potential, positioning the company well within the Construction Materials industry.

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	75.75B	75.66B	73.75B	71.40B	55.98B	56.07B
Gross Profit	10.24B	10.03B	10.35B	9.93B	7.91B	8.12B
EBITDA	1.52B	1.39B	1.63B	1.50B	734.00M	819.00M
Net Income	650.00M	517.00M	718.00M	600.00M	227.00M	323.00M
Balance Sheet
Total Assets	35.67B	38.48B	38.80B	39.14B	36.97B	30.89B
Cash, Cash Equivalents and Short-Term Investments	5.36B	6.25B	4.59B	4.69B	4.52B	3.83B
Total Debt	3.38B	3.59B	4.47B	4.92B	5.75B	2.09B
Total Liabilities	24.37B	26.84B	27.40B	28.28B	26.61B	20.55B
Stockholders Equity	11.29B	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: 1704.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 1704 is above the 20-day moving average (MA) of 1480.00, above the 50-day MA of 1333.90, and above the 200-day MA of 1246.30, indicating a bullish trend. The MACD of 128.59 indicates Negative momentum. The RSI at 86.22 is Negative, neither overbought nor oversold. The STOCH value of 26.92 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
5283	79 Outperform	¥5.70B	10.70	―	1.44%	3.10%	-31.38%
7434	79 Outperform	¥7.33B	8.15	―	2.03%	9.13%	20.84%
3426	76 Outperform	¥5.58B	14.12	―	2.54%	2.31%	44.49%
7635	76 Outperform	¥6.55B	10.07	―	2.34%	2.11%	9.56%
7461	73 Outperform	¥7.36B	5.84	―	3.19%	9.49%	37.09%
5268	69 Neutral	¥10.94B	30.06	―	1.30%	-2.82%	-44.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%