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Sukegawa Electric Co., Ltd. (JP:7711)
:7711
Japanese Market
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Sukegawa Electric Co., Ltd. (7711) AI Stock Analysis

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JP:7711

Sukegawa Electric Co., Ltd.

(7711)

Rating:73Outperform
Price Target:
¥2,949.00
▲(23.39%Upside)
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. (7711) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSukegawa 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 MoneySukegawa 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
85
Very Positive
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
78
Positive
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
72
Positive
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue4.96B4.58B4.33B3.70B3.12B
Gross Profit1.76B1.40B1.15B941.43M618.40M
EBITDA1.08B728.59M641.14M445.37M171.40M
Net Income637.94M397.83M325.47M199.43M-13.02M
Balance Sheet
Total Assets7.04B6.35B6.67B6.38B6.01B
Cash, Cash Equivalents and Short-Term Investments229.69M453.66M1.17B998.84M689.20M
Total Debt1.13B1.29B1.43B1.45B1.48B
Total Liabilities2.82B2.83B3.03B2.88B2.64B
Stockholders Equity4.22B3.52B3.64B3.50B3.37B
Cash Flow
Free Cash Flow116.43M-29.73M271.02M524.95M202.62M
Operating Cash Flow202.55M65.69M451.04M633.23M416.12M
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 Price2390.00
Price Trends
50DMA
2159.44
Positive
100DMA
1938.96
Positive
200DMA
1967.33
Positive
Market Momentum
MACD
115.67
Negative
RSI
72.77
Negative
STOCH
72.45
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 2390 is above the 20-day moving average (MA) of 2270.55, above the 50-day MA of 2159.44, and above the 200-day MA of 1967.33, indicating a bullish trend. The MACD of 115.67 indicates Negative momentum. The RSI at 72.77 is Negative, neither overbought nor oversold. The STOCH value of 72.45 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥17.70B7.47
2.18%3.43%16.71%
79
Outperform
¥13.86B8.88
3.33%3.96%482.92%
73
Outperform
¥15.14B20.80
1.36%7.83%15.48%
71
Outperform
¥12.54B23.66
4.48%-17.95%-83.01%
71
Outperform
¥11.30B6.70
1.59%20.12%17.45%
65
Neutral
$11.18B15.795.49%1.92%3.14%-24.90%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7711
Sukegawa Electric Co., Ltd.
2,648.00
1,101.34
71.21%
JP:6643
Togami Electric Mfg.Co., Ltd.
3,670.00
1,022.45
38.62%
JP:6668
Adtec Plasma Technology Co., Ltd.
1,317.00
-588.26
-30.88%
JP:6882
Sansha Electric Manufacturing Co., Ltd.
893.00
-70.64
-7.33%
JP:6994
Shizuki Electric Company Inc.
420.00
6.90
1.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 28, 2025