Sigma Koki Co., Ltd. (7713) AI Stock Analysis

• Market Cap: ¥10.69B
• Dividend Yield: 2.77%
• Average Volume (3M): 23.84K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.55
• Revenue Growth: 3.32%
• EPS Growth: 63.26%
• Country: JP
• Employees: 526
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 15.31
• Shares Outstanding: 7,552,628
• 10 Day Avg. Volume: 32,810
• 30 Day Avg. Volume: 23,840
• PEG Ratio: 0.23
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.83
• P/FCF Ratio: -130.78
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,660.00 ▲(9.35% Upside)

Sigma Koki Co., Ltd. benefits from strong financial performance, particularly in revenue growth and balance sheet strength. However, cash flow issues and bearish technical indicators weigh on the stock. The valuation is reasonable, offering a fair P/E ratio and a decent dividend yield.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong demand for Sigma Koki's products, enhancing its market position and potential for future expansion.

Balance Sheet Strength

A strong balance sheet with minimal leverage reduces financial risk and provides flexibility for strategic investments and growth initiatives.

Profitability Margins

Robust profitability margins reflect efficient operations and pricing power, supporting sustainable earnings and competitive advantage.

Negative Factors

Cash Flow Challenges

Persistent cash flow issues could hinder Sigma Koki's ability to fund operations and growth, posing a risk to financial stability.

Operational Cost Pressures

Rising operational costs or pricing pressures may impact profitability, requiring strategic cost management to maintain margins.

Cash Generation from Operations

Insufficient cash generation from operations relative to net income could limit Sigma Koki's ability to reinvest in business growth.

Sigma Koki Co., Ltd. Business Overview & Revenue Model

Company Description

Sigmakoki Co., Ltd., together with its subsidiaries, provides optical equipment products in Japan. The company offers opto-mechanics/manual stages and holders, which include stages, holders, bases, rods, poles, clamps, cage systems stages, etc.; and optics/coating products, including multi-element optics, mirrors, beam splitters, filters, lenses, prisms, polarizers, laser crystals, nonlinear crystals, substrates, windows, etc. It also provides motion control application systems that comprise automatic positioning devices, optical measurement devices, and software for positioning and measurement; and laser system products, including optical modules, lens units, laser processing systems, laser application system products, etc. In addition, the company offers bio-medical related products, such as micromanipulation systems, motorized stage systems for microscope, core units for microscopy, bio and medical devices, etc.; and optical application system products consisting optical fiber alignment systems, optical systems for observation, and contracted and custom-made products. Sigmakoki Co., Ltd. was incorporated in 1977 and is headquartered in Hidaka, Japan.

How the Company Makes Money

Sigma Koki generates revenue primarily through the sale of its precision measurement instruments and optical equipment. The company’s revenue model is built on direct sales to businesses in industrial sectors, as well as through partnerships with distributors and resellers globally. Key revenue streams include the sale of laser measurement systems, optical sensors, and custom measurement solutions tailored to specific client needs. Additionally, Sigma Koki benefits from providing after-sales services, maintenance, and support, which contribute to recurring revenue. Strategic partnerships with technology firms and participation in industry-specific trade shows also enhance its market reach and drive sales.

Sigma Koki Co., Ltd. Financial Statement Overview

Summary

Sigma Koki Co., Ltd. shows strong revenue growth and a solid balance sheet with low leverage. However, cash flow challenges, such as negative free cash flow growth and insufficient cash generation from operations, need attention.

Income Statement

Sigma Koki Co., Ltd. demonstrates strong revenue growth with a 51% increase in the latest year, indicating robust demand for its products. The company maintains healthy profitability with a gross profit margin of 37.35% and a net profit margin of 8.51%. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, which may suggest rising operational costs or pricing pressures.

Balance Sheet

The balance sheet is exceptionally strong, with a very low debt-to-equity ratio of 0.011, indicating minimal leverage and financial risk. The equity ratio stands at 86.86%, showcasing a solid capital structure. Return on equity is moderate at 5.58%, reflecting stable but not aggressive returns on shareholder investments.

Cash Flow

The cash flow statement reveals challenges, with a negative free cash flow growth rate and a free cash flow to net income ratio of -0.19, indicating cash flow issues. The operating cash flow to net income ratio is 0.22, suggesting that cash generation from operations is not fully covering net income, which could be a concern if it persists.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.43B	11.58B	11.21B	11.37B	10.35B	8.77B
Gross Profit	4.28B	4.33B	4.28B	4.44B	4.08B	3.36B
EBITDA	1.54B	1.81B	1.38B	2.55B	1.96B	1.55B
Net Income	948.95M	986.02M	687.22M	1.49B	1.17B	822.65M
Balance Sheet
Total Assets	19.95B	20.34B	20.95B	20.63B	18.51B	17.24B
Cash, Cash Equivalents and Short-Term Investments	4.90B	5.88B	6.50B	6.92B	5.73B	5.34B
Total Debt	155.00M	204.14M	508.19M	818.25M	410.55M	659.73M
Total Liabilities	2.26B	2.57B	3.80B	4.30B	3.54B	3.37B
Stockholders Equity	17.59B	17.67B	17.05B	16.24B	14.88B	13.80B
Cash Flow
Free Cash Flow	0.00	-73.81M	129.14M	521.35M	786.58M	1.39B
Operating Cash Flow	0.00	379.92M	1.41B	983.00M	942.75M	1.58B
Investing Cash Flow	0.00	-418.34M	-1.46B	182.91M	-708.19M	-1.49B
Financing Cash Flow	0.00	-601.30M	-618.50M	-112.92M	-532.34M	-370.02M

Sigma Koki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1518.00
• 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:7713, the sentiment is Positive. The current price of 1518 is above the 20-day moving average (MA) of 1511.20, above the 50-day MA of 1492.92, and above the 200-day MA of 1390.60, indicating a bullish trend. The MACD of 4.79 indicates Positive momentum. The RSI at 56.80 is Neutral, neither overbought nor oversold. The STOCH value of 53.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7713.

Sigma Koki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6859	75 Outperform	¥75.28B	13.43	―	3.12%	2.78%	-5.32%
6863	75 Outperform	¥13.16B	9.63	―	5.39%	6.45%	26.58%
6853	72 Outperform	¥18.63B	18.63	―	2.93%	-1.58%	12.24%
7713	71 Outperform	¥10.69B	11.33	―	2.77%	3.32%	63.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6867	52 Neutral	¥2.23B	27.89	―	3.02%	-0.26%	―
6864	51 Neutral	¥7.83B	-388.72	―	2.85%	10.27%	-106.32%