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

• Market Cap: ¥45.12B
• Dividend Yield: 0.67%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 54.8
• Beta (1Y): 1.85
• 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: 1.31
• Price to Book (P/B): 5.21
• Price to Sales (P/S): 4.66
• P/FCF Ratio: 33.23
• 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: 73 Outperform
• Price Target: ¥8,552.00 ▲(40.89% Upside)

The score is driven primarily by strong financial performance (growth, profitability, and cash generation). Technicals are supportive but tempered by overbought signals (high RSI/Stoch). Valuation is the main drag due to a high P/E and low dividend yield.

Positive Factors

Sustained Revenue Growth

Mid-teens revenue growth indicates consistent demand and market penetration in core electronics segments. Sustained top-line expansion supports reinvestment in product development and capacity, enabling long-term competitiveness and scale economies across customer verticals.

Robust Profitability and Margins

High income-statement scores and strong EBIT/EBITDA margins suggest durable operational efficiency and pricing power in precision electronic components. This margin profile supports funding R&D, absorbing cyclical pressure, and maintaining return on invested capital over multiple business cycles.

Strong Cash Generation and FCF

Healthy operating cash flow and improving free cash flow conversion provide financial flexibility for capex, R&D, and strategic investment without heavy reliance on external funding. Consistent FCF strengthens balance sheet resilience and underpins sustainable long-term growth initiatives.

Negative Factors

Leverage Needs Monitoring

A moderate debt profile requires ongoing oversight to avoid constraining strategic options. If cyclical revenues weaken or interest rates rise, servicing debt could limit reinvestment capacity or force deleveraging actions that impede long-term R&D and expansion plans.

Cyclical End-Market Exposure

Heavy exposure to automotive and consumer electronics links revenue to macroeconomic and industry cycles. Structural downturns in vehicle production or consumer demand can cause multi-quarter order volatility, pressuring margins and capital deployment plans over an extended horizon.

Limited Scale / Small Workforce

A relatively small employee base may constrain R&D throughput, global sales expansion, and supply-chain resilience versus larger competitors. Limited scale can slow new product commercialization and reduce bargaining power, impacting long-run competitiveness in key markets.

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

Strong overall fundamentals: solid revenue and profit growth with robust EBIT/EBITDA margins (income statement score 85), stable capital structure with manageable leverage and strong ROE (balance sheet score 78), and healthy operating cash generation plus improved free cash flow (cash flow score 80).

Income Statement

Sukegawa Electric Co., Ltd. has demonstrated strong revenue growth over the years, with a notable increase from 2024 to 2025. The company maintains healthy gross and net profit margins, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also robust, reflecting strong operational performance. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The balance sheet of Sukegawa Electric Co., Ltd. shows a stable financial position with a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity is strong, showcasing effective utilization of shareholder funds. The equity ratio is healthy, suggesting a solid capital structure. However, the company should monitor its debt levels to maintain financial stability.

Cash Flow

The cash flow statement reveals a strong operating cash flow to net income ratio, indicating good cash generation from operations. Free cash flow has grown significantly, reflecting improved cash management. The free cash flow to net income ratio is healthy, suggesting efficient conversion of profits into cash. Overall, the cash flow position is strong, supporting the company's growth and investment needs.

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: 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 6070 is below the 20-day moving average (MA) of 7442.00, below the 50-day MA of 6867.00, and above the 200-day MA of 4485.02, indicating a bullish trend. The MACD of 305.89 indicates Positive momentum. The RSI at 57.83 is Neutral, neither overbought nor oversold. The STOCH value of 34.06 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	¥22.08B	9.85	―	3.12%	6.60%	0.27%
6994	77 Outperform	¥30.16B	12.72	―	2.35%	5.15%	480.70%
7711	73 Outperform	¥45.12B	54.77	―	0.67%	10.13%	24.53%
6668	70 Outperform	¥13.79B	7.91	―	1.66%	12.23%	65.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥14.24B	157.11	―	4.42%	-11.74%	-84.61%