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

• Market Cap: ¥17.55B
• Dividend Yield: 1.17%
• Average Volume (3M): 268.36K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.40
• Revenue Growth: 17.04%
• EPS Growth: 25.79%
• Country: JP
• Employees: 213
• Sector: Industrials
• Sector Strength: 79
• Industry: Electrical Equipment & Parts
• EPS (TTM): 40.80
• Shares Outstanding: 5,870,000
• 10 Day Avg. Volume: 164,780
• 30 Day Avg. Volume: 268,363
• PEG Ratio: N/A
• 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: ¥2,953.00
• Price Target Upside: -3.02% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥2,949.00 ▼(-3.15% Downside)

Sukegawa Electric Co., Ltd. scores well due to its strong financial performance, characterized by robust revenue and profit growth and efficient cost management. Technical analysis shows strong momentum, although the stock may be overbought. The valuation is less favorable, with a high P/E ratio and modest dividend yield, indicating potential overvaluation. The absence of earnings call and corporate events data did not impact the score.

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 performance with notable revenue and profit growth. The company has a solid balance sheet with low leverage and an impressive equity base. Cash flow management shows improvement, although there is room for enhancing cash generation efficiency.

Income Statement

Sukegawa Electric Co., Ltd. shows strong growth in revenue and profitability. The Gross Profit Margin improved to 35.48%, while the Net Profit Margin increased to 12.84% in 2024, highlighting efficient cost management. Revenue Growth Rate was substantial at 8.47%, and EBIT Margin expanded to 18.46%, showcasing robust operational performance. However, there is room for improvement in EBITDA Margin, which stands at 21.77%.

Balance Sheet

The company's balance sheet is stable with a healthy Debt-to-Equity Ratio of 0.27, indicating low leverage. Return on Equity improved to 15.12%, reflecting effective use of equity capital. The Equity Ratio is solid at 59.92%, providing a strong equity base. However, the decrease in cash reserves could be a concern for liquidity management.

Cash Flow

Cash flow performance shows improvement, with Free Cash Flow turning positive in 2024 and a significant Free Cash Flow Growth Rate of 491.86%. Operating Cash Flow to Net Income Ratio is 0.32, suggesting room for enhancing operational cash generation. The Free Cash Flow to Net Income Ratio of 0.18 also suggests potential for better cash conversion efficiency.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 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: 3045.00
• 50DMA: Positive
• 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 Positive. The current price of 3045 is below the 20-day moving average (MA) of 3064.35, above the 50-day MA of 2586.80, and above the 200-day MA of 2078.32, indicating a neutral trend. The MACD of 178.00 indicates Positive momentum. The RSI at 55.17 is Neutral, neither overbought nor oversold. The STOCH value of 14.62 is Positive, 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	81 Outperform	¥19.44B	8.49		3.23%	2.21%	-5.13%
6994	80 Outperform	¥16.66B	9.12		2.77%	3.59%	249.94%
7711	73 Outperform	¥17.55B	21.80		1.17%	17.04%	25.79%
6668	72 Outperform	¥11.12B	6.53		1.71%	20.12%	17.45%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
6748	―	¥8.94B	5.76		2.65%	―	―
6882	58 Neutral	¥12.18B	110.88		4.60%	-17.49%	-96.33%