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

• Market Cap: ¥40.65B
• Dividend Yield: 0.67%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 37.7
• Beta (1Y): 1.68
• Revenue Growth: 10.13%
• EPS Growth: 24.53%
• Country: JP
• Employees: 213
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 40.36
• 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: 72 Outperform
• Price Target: ¥7,892.00 ▲(30.02% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is driven primarily by strong financial performance (growth, profitability, and cash flow strength) and supportive technical uptrend signals. These positives are meaningfully offset by weak valuation support due to a high P/E and low dividend yield, with elevated beta implying higher volatility risk.

Positive Factors

Revenue growth & margins

Sukegawa's multi-year revenue growth and robust gross/net margins indicate durable demand and efficient cost control. That profile supports repeatable earnings, funds R&D and customer programs, and underpins medium-term reinvestment and profitability even through industry cycles.

Strong cash generation

Improved operating cash conversion and rising free cash flow give Sukegawa flexibility to fund capex, R&D, dividends or debt reduction without relying on external financing. Persistent FCF strength supports sustainable investments and buffers against cyclical revenue swings.

Healthy balance sheet & ROE

A solid capital structure and strong ROE reflect effective use of shareholder capital and financial discipline. Moderate leverage with a healthy equity base preserves strategic optionality for M&A or capacity expansion while maintaining resilience to shocks over the next several quarters.

Negative Factors

Debt requires monitoring

Although leverage is moderate today, the explicit caution to monitor debt signals potential sensitivity to rising borrowings. Increasing debt could raise interest burden and limit flexibility for capex or R&D, undermining long-term growth if not proactively managed.

Elevated volatility (beta)

A materially above‑one beta indicates Sukegawa's earnings and cash flows are more sensitive to market and cycle swings than a low‑volatility peer. That structural volatility can raise funding costs and complicate planning for multi‑quarter investments and long‑lead product programs.

Cyclical end‑market exposure

Heavy reliance on automotive, telecom and consumer electronics exposes revenue to industry capex and demand cycles. Structural cyclicality can produce multi‑quarter topline and margin swings, requiring conservative inventory and customer diversification strategies to stabilize long‑term cash flows.

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: income statement strength (Score 85) driven by revenue growth and healthy profitability; solid balance sheet (Score 78) with a healthy capital structure though debt should be monitored; strong cash generation (Score 80) with improved free cash flow and good profit-to-cash conversion.

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	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 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	7.74B	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	2.84B	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: Negative
• Last Price: 6070.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 6070 is below the 20-day moving average (MA) of 7268.50, below the 50-day MA of 7628.60, and above the 200-day MA of 5467.11, indicating a neutral trend. The MACD of -106.10 indicates Negative momentum. The RSI at 46.90 is Neutral, neither overbought nor oversold. The STOCH value of 60.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
5819	75 Outperform	¥12.70B	10.63	―	3.02%	3.43%	3.75%
6637	72 Outperform	¥53.74B	12.37	―	0.91%	5.28%	18.38%
7711	72 Outperform	¥40.65B	37.66	―	0.67%	10.13%	24.53%
6804	72 Outperform	¥139.49B	3.86	8.07%	2.64%	79.29%	35.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥49.52B	195.39	―	5.01%	-32.74%	-117.06%
6943	51 Neutral	¥4.04B	7.18	―	1.79%	-10.43%	-368.47%