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

• Market Cap: ¥45.00B
• Dividend Yield: 0.53%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 53.9
• Beta (1Y): 1.46
• 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: 0.26
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 2.07
• P/FCF Ratio: 88.11
• 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: 72 Outperform
• Price Target: ¥9,235.00 ▲(23.30% Upside)

Sukegawa Electric Co., Ltd. shows strong financial performance and technical indicators, suggesting a solid foundation and positive market momentum. However, the high P/E ratio indicates potential overvaluation, which tempers the overall score. The lack of earnings call data and corporate events does not impact the score due to their exclusion.

Positive Factors

Revenue Growth

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

Profitability

Improved profitability suggests efficient operations and cost management, contributing to sustainable financial health.

Balance Sheet Health

A strong equity position and low leverage enhance financial stability and provide flexibility for future investments.

Negative Factors

Cash Flow Conversion

Moderate cash flow conversion indicates potential challenges in turning profits into cash, which could impact liquidity and investment capacity.

Free Cash Flow

Low free cash flow relative to net income suggests limited cash availability for reinvestment, potentially hindering growth initiatives.

Valuation Concerns

High valuation may limit upside potential and increase risk if growth expectations are not met, affecting long-term investor sentiment.

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

Company Description

Sukegawa Electric Co., Ltd. (7711) is a leading Japanese company specializing in the manufacturing and distribution of electronic components and systems. The company operates primarily in the sectors of telecommunications, automotive electronics, and industrial automation. Its core products include a range of high-quality semiconductors, circuit boards, and electric devices that cater to various industries, supporting the growing demand for advanced electronic solutions.

How the Company Makes Money

Sukegawa Electric generates revenue through multiple streams, primarily by selling its electronic components to manufacturers in the telecommunications and automotive sectors. The company has established long-term contracts with major clients, which provide a steady flow of income. Additionally, Sukegawa Electric invests in research and development to innovate and improve its product offerings, thereby attracting new customers. Significant partnerships with leading technology firms enhance its market presence and create opportunities for joint ventures, contributing to revenue growth. The company also benefits from economies of scale in production, allowing it to maintain competitive pricing while maximizing profitability.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.96B	4.58B	4.33B	3.70B	3.12B
Gross Profit	1.76B	1.40B	1.15B	941.43M	618.40M
EBITDA	1.08B	728.59M	641.14M	445.37M	171.40M
Net Income	637.94M	397.83M	325.47M	199.43M	-13.02M
Balance Sheet
Total Assets	7.04B	6.35B	6.67B	6.38B	6.01B
Cash, Cash Equivalents and Short-Term Investments	229.69M	453.66M	1.17B	998.84M	689.20M
Total Debt	1.13B	1.29B	1.43B	1.45B	1.48B
Total Liabilities	2.82B	2.83B	3.03B	2.88B	2.64B
Stockholders Equity	4.22B	3.52B	3.64B	3.50B	3.37B
Cash Flow
Free Cash Flow	116.43M	-29.73M	271.02M	524.95M	202.62M
Operating Cash Flow	202.55M	65.69M	451.04M	633.23M	416.12M
Investing Cash Flow	-81.69M	-34.03M	-98.12M	-105.29M	-215.29M
Financing Cash Flow	-344.82M	-750.46M	-179.30M	-188.15M	-219.89M

Sukegawa Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7490.00
• 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:7711, the sentiment is Positive. The current price of 7490 is above the 20-day moving average (MA) of 6859.00, above the 50-day MA of 6682.81, and above the 200-day MA of 3321.00, indicating a bullish trend. The MACD of -96.42 indicates Positive momentum. The RSI at 54.94 is Neutral, neither overbought nor oversold. The STOCH value of 49.36 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
6994	79 Outperform	¥20.09B	11.36	―	2.46%	5.15%	480.70%
6643	78 Outperform	¥18.67B	8.16	―	3.07%	6.60%	0.27%
7711	72 Outperform	¥45.00B	53.87	―	0.53%	10.13%	24.53%
6668	69 Neutral	¥10.52B	5.23	―	2.15%	12.23%	65.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥12.29B	33.54	―	4.56%	-11.74%	-84.61%