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

• Market Cap: ¥25.50B
• Dividend Yield: 0.81%
• Average Volume (3M): 401.72K
• Price to Earnings (P/E): 31.6
• Beta (1Y): 1.45
• Revenue Growth: 17.04%
• EPS Growth: 25.79%
• Country: JP
• Employees: 213
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 40.80
• Shares Outstanding: 5,870,000
• 10 Day Avg. Volume: 712,140
• 30 Day Avg. Volume: 401,720
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: -33.79% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥2,949.00 ▼(-33.88% 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. manufactures and sells energy and industrial systems in Japan. It offers mineral insulated cables, including simple and multi-core coaxial, two and four-core double-sheathed, two and four-core twisted, and banded-type cables; temperature sensors comprising thermocouples, resistance bulbs, sheathed wires, and heat flux sensors; micro heaters for general type industrial plants and various apparatuses for facilities related with vacuum components; and sheathed heaters that are used as the heat source for various devices. The company also provides a range of vacuum components, such as steping motors, aluminum alloy ultra vacuum chambers, vacuum systems, vacuum furnaces with carbon heater, hot plate with cold systems, and vacuum heat treating furnaces; and molten metal systems comprising electromagnetic pumps, Pb-Bi test loops, liquid level indicators, and electromagnetic flowmeters and pump type sand mold casting systems, as well as induction type level meters and control panels. In addition, it offers various apparatuses, control system, fuel rods simulators, boiling water capsules, electromagnetic sensors, fuel cell gas heating units, fuel cell test facilities, and electromagnetic horns for use in the energy field. Sukegawa Electric Co., Ltd. was incorporated in 1949 and is headquartered in Takahagi, Japan.

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: 4460.00
• 50DMA: Positive
• 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 4460 is above the 20-day moving average (MA) of 3698.25, above the 50-day MA of 3081.74, and above the 200-day MA of 2181.40, indicating a bullish trend. The MACD of 406.16 indicates Negative momentum. The RSI at 68.49 is Neutral, neither overbought nor oversold. The STOCH value of 74.60 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	81 Outperform	19.63B	8.84	10.68%	3.19%	2.21%	-5.13%
6994	80 Outperform	16.96B	9.90	5.11%	2.72%	3.59%	249.94%
7711	73 Outperform	¥25.50B	31.55		0.81%	17.04%	25.79%
6668	69 Neutral	12.03B	7.21	10.03%	1.57%	20.12%	17.45%
6882	61 Neutral	12.53B	115.61	2.06%	4.48%	-17.49%	-96.33%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%