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

• Market Cap: ¥35.45B
• Dividend Yield: 0.65%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 43.0
• 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: 72 Outperform
• Price Target: ¥9,235.00 ▲(52.14% 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 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 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 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: Neutral
• Last Price: 6070.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7711, the sentiment is Neutral. The current price of 6070 is below the 20-day moving average (MA) of 6714.50, below the 50-day MA of 7255.20, and above the 200-day MA of 3673.98, indicating a neutral trend. The MACD of -165.48 indicates Positive momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 5.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥19.81B	8.84	―	3.10%	6.60%	0.27%
6994	77 Outperform	¥28.64B	12.08	―	2.42%	5.15%	480.70%
7711	72 Outperform	¥35.45B	43.04	―	0.65%	10.13%	24.53%
6668	71 Outperform	¥10.76B	5.35	―	1.66%	12.23%	65.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥12.52B	34.16	―	4.49%	-11.74%	-84.61%