SONOCOM Co., Ltd. (7902) AI Stock Analysis

• Market Cap: ¥3.45B
• Dividend Yield: 1.32%
• Average Volume (3M): 1.69K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.42
• Revenue Growth: 18.14%
• EPS Growth: 60.87%
• Country: JP
• Employees: 109
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 21.52
• Shares Outstanding: 5,000,000
• 10 Day Avg. Volume: 1,430
• 30 Day Avg. Volume: 1,693
• PEG Ratio: -1.14
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 1.28
• P/FCF Ratio: -13.94
• 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: 69 Neutral
• Price Target: ¥1,003.00 ▲(8.20% Upside)

The score is primarily supported by a very conservative, debt-free balance sheet and improved operating profitability, but it is held back by the recent deterioration in operating and free cash flow. Technical indicators add a mild tailwind with modestly positive momentum, while valuation is reasonable but not compelling given the modest dividend yield.

Positive Factors

Balance Sheet Strength

A debt-free balance sheet provides strong financial flexibility, enabling the company to invest in growth opportunities without the burden of interest payments or refinancing risks.

Revenue Growth

Recent revenue growth indicates potential recovery and market demand, which can lead to sustainable business expansion if maintained.

Operating Profitability

Improved operating profitability suggests effective cost management and operational efficiency, enhancing long-term earnings potential.

Negative Factors

Cash Flow Volatility

Volatile cash flow raises concerns about liquidity management and the ability to fund operations and growth without external financing.

Net Margin Pressure

Declining net margins indicate increased cost pressures or inefficiencies, which could impact overall profitability if not addressed.

Free Cash Flow Deterioration

Negative free cash flow suggests challenges in converting earnings into cash, potentially limiting reinvestment and shareholder returns.

SONOCOM Co., Ltd. Business Overview & Revenue Model

Company Description

SONOCOM Co., Ltd. (7902) is a Japanese company specializing in the manufacturing and distribution of electronic components and devices. The company operates in various sectors, including consumer electronics, industrial electronics, and communication equipment. SONOCOM is known for its innovative solutions and high-quality products that cater to a wide range of industries, providing essential components that enhance the performance and functionality of electronic devices.

How the Company Makes Money

SONOCOM Co., Ltd. generates revenue primarily through the sale of its electronic components and devices to manufacturers and industries in need of high-performance and reliable solutions. The company's key revenue streams include direct sales to consumer electronics companies, partnerships with industrial equipment manufacturers, and contracts with communication technology providers. SONOCOM's earnings are significantly influenced by its ability to innovate and maintain strong relationships with major players in the electronics and technology sectors. Additionally, the company may engage in strategic collaborations and joint ventures to expand its market reach and enhance its product offerings.

SONOCOM Co., Ltd. Financial Statement Overview

Summary

SONOCOM Co., Ltd. presents a financially stable picture with strong equity and no debt, indicating low leverage. While profitability margins are healthy, the recent dip in net income and free cash flow may pose risks if not addressed. The company appears well-positioned for future growth if it can enhance cash flow generation and profitability.

Income Statement

SONOCOM Co., Ltd. demonstrated a solid income performance with a gross profit margin of 29.1% and a net profit margin of 8.5% for the TTM. However, there was a decline in net income compared to the previous annual report. Revenue growth from the last annual report to TTM was 9.2%, indicating moderate growth. The EBIT margin stood at 6.7%, and the EBITDA margin was 16.8%, showing reasonable profitability levels.

Balance Sheet

The company showcases a strong balance sheet with no total debt, resulting in a debt-to-equity ratio of 0. The equity ratio is an impressive 93.9%, reflecting financial stability and a low-risk profile. Return on equity for the TTM was 2.2%, indicating room for improvement in generating returns for shareholders.

Cash Flow

The cash flow statement shows a challenging period with zero reported free cash flow in the TTM. This contrasts with the positive free cash flow in the previous year, indicating potential liquidity concerns. However, historically, the company has demonstrated the ability to generate positive operating cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.50B	2.42B	2.13B	2.24B	2.29B	1.98B
Gross Profit	761.23M	734.04M	611.29M	731.63M	806.21M	628.79M
EBITDA	470.60M	478.19M	290.00M	382.72M	472.83M	334.77M
Net Income	204.87M	210.72M	240.90M	167.82M	290.17M	111.35M
Balance Sheet
Total Assets	9.48B	9.53B	9.62B	9.13B	9.45B	8.97B
Cash, Cash Equivalents and Short-Term Investments	4.13B	4.06B	4.55B	4.63B	4.40B	4.34B
Total Debt	0.00	0.00	4.35M	43.68M	7.53M	6.87M
Total Liabilities	577.88M	614.99M	841.19M	647.90M	1.03B	865.67M
Stockholders Equity	8.90B	8.91B	8.78B	8.48B	8.42B	8.11B
Cash Flow
Free Cash Flow	0.00	-222.12M	221.83M	-327.18M	311.81M	90.75M
Operating Cash Flow	0.00	-79.40M	456.71M	-111.39M	415.90M	348.68M
Investing Cash Flow	0.00	-328.55M	-279.84M	-27.34M	-25.08M	-412.06M
Financing Cash Flow	0.00	-43.14M	-35.84M	-108.51M	-36.55M	-36.69M

SONOCOM Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 927.00
• 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:7902, the sentiment is Positive. The current price of 927 is above the 20-day moving average (MA) of 921.10, above the 50-day MA of 902.26, and above the 200-day MA of 878.33, indicating a bullish trend. The MACD of 10.14 indicates Negative momentum. The RSI at 65.87 is Neutral, neither overbought nor oversold. The STOCH value of 57.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7902.

SONOCOM Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7902	69 Neutral	¥3.45B	14.38	―	1.32%	18.14%	60.87%
6969	68 Neutral	¥2.75B	4.58	―	―	16.21%	3915.63%
7836	68 Neutral	¥3.16B	15.71	―	―	25.45%	83.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6867	52 Neutral	¥2.28B	28.45	―	3.02%	-0.26%	―
6666	46 Neutral	¥3.87B	-17.33	―	2.33%	7.71%	-215.42%
6926	46 Neutral	¥4.38B	-2.33	―	―	-6.31%	-64.22%