Sukegawa Electric Co., Ltd. (7711) AI Stock Analysis

• Market Cap: ¥37.05B
• Dividend Yield: 0.67%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 45.0
• Beta (1Y): 1.62
• Revenue Growth: 10.13%
• EPS Growth: 24.53%
• Country: JP
• Employees: 213
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 13.34
• Shares Outstanding: 5,870,000
• 10 Day Avg. Volume: 2,843,030
• 30 Day Avg. Volume: 1,563,420
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• 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: 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: 61 Neutral
• Price Target: ¥6,404.00 ▲(5.50% Upside)

Sukegawa Electric Co., Ltd. has a strong financial foundation, which is the most significant factor supporting the stock's score. However, technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation, which weigh down the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Profit Margins

Sustained profit margins reflect strong operational efficiency, allowing the company to reinvest in innovation and maintain competitive pricing.

Negative Factors

Debt Levels

While currently manageable, rising debt levels could limit financial flexibility and increase risk, potentially impacting long-term growth.

Technical Analysis

Bearish technical signals may indicate underlying issues affecting investor confidence, potentially impacting future capital raising efforts.

Valuation Concerns

High valuation metrics could limit stock price appreciation and make it challenging to attract value-focused investors, affecting market perception.

Sukegawa Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Sukegawa Electric Co., Ltd. (7711) is a Japanese company specializing in the design, manufacturing, and sales of high-precision electronic components and devices. The company operates primarily in the electronics sector, focusing on products such as sensors, semiconductors, and various other electronic devices. With a commitment to innovation and quality, Sukegawa Electric serves a diverse range of industries including automotive, telecommunications, and consumer electronics.

How the Company Makes Money

Sukegawa Electric generates revenue through multiple key streams, primarily from the sale of its electronic components and devices. The company earns money by supplying its products to manufacturers in various sectors, including automotive and telecommunications, which require high-quality electronic components for their products. Additionally, Sukegawa Electric engages in long-term partnerships with major companies in these sectors, providing them with tailored solutions that enhance their product offerings. The company's focus on research and development allows it to introduce innovative products that meet evolving market demands, further driving sales. Furthermore, Sukegawa Electric may also explore service contracts and maintenance agreements related to its products, contributing additional revenue.

Sukegawa Electric Co., Ltd. Financial Statement Overview

Summary

Sukegawa Electric Co., Ltd. demonstrates strong financial health with robust revenue and profit growth, efficient cost management, and a stable balance sheet. While cash flow has improved, further enhancements in cash conversion are possible. The company's financial statements reflect a solid foundation with opportunities for continued growth and profitability.

Income Statement

Sukegawa Electric Co., Ltd. has shown strong revenue growth with a 8.47% increase from the previous year. The gross profit margin stands at 35.49%, indicating efficient cost management. The net profit margin improved to 12.84%, reflecting enhanced profitability. EBIT and EBITDA margins of 18.45% and 21.76% respectively, underscore operational efficiency. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The company maintains a solid equity position with an equity ratio of 59.94%. The debt-to-equity ratio is 0.27, indicating a conservative leverage approach. Return on equity is 15.12%, showcasing effective use of equity to generate profits. The balance sheet is stable, with a strong equity base and manageable debt levels.

Cash Flow

Free cash flow has turned positive, showing a significant improvement from the previous year's negative position. The operating cash flow to net income ratio is 0.32, suggesting a moderate conversion of income to cash. The free cash flow to net income ratio is 0.18, indicating room for improvement in cash generation relative to net income. Overall, cash flow management is improving but still has potential for further enhancement.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.47B	4.96B	4.58B	4.33B	3.70B
Gross Profit	1.99B	1.76B	1.40B	1.15B	941.43M
EBITDA	1.27B	1.08B	728.59M	641.14M	445.37M
Net Income	794.46M	637.94M	397.83M	325.47M	199.43M
Balance Sheet
Total Assets	7.55B	7.04B	6.35B	6.67B	6.38B
Cash, Cash Equivalents and Short-Term Investments	513.47M	229.69M	453.66M	1.17B	998.84M
Total Debt	994.75M	1.13B	1.29B	1.43B	1.45B
Total Liabilities	2.66B	2.82B	2.83B	3.03B	2.88B
Stockholders Equity	4.89B	4.22B	3.52B	3.64B	3.50B
Cash Flow
Free Cash Flow	766.69M	116.43M	-29.73M	271.02M	524.95M
Operating Cash Flow	826.88M	202.55M	65.69M	451.04M	633.23M
Investing Cash Flow	-206.78M	-81.69M	-34.03M	-98.12M	-105.29M
Financing Cash Flow	-336.32M	-344.82M	-750.46M	-179.30M	-188.15M

Sukegawa Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6070.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7711, the sentiment is Positive. The current price of 6070 is below the 20-day moving average (MA) of 6155.00, below the 50-day MA of 6603.20, and above the 200-day MA of 4027.68, indicating a neutral trend. The MACD of -76.24 indicates Negative momentum. The RSI at 52.61 is Neutral, neither overbought nor oversold. The STOCH value of 74.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7711.

Sukegawa Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6643	78 Outperform	¥20.97B	9.36	―	3.12%	6.60%	0.27%
6994	77 Outperform	¥27.29B	11.51	―	2.35%	5.15%	480.70%
6668	71 Outperform	¥11.49B	6.59	―	1.66%	12.23%	65.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7711	61 Neutral	¥37.05B	44.98	―	0.67%	10.13%	24.53%
6882	61 Neutral	¥14.64B	39.95	―	4.42%	-11.74%	-84.61%