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SONOCOM Co., Ltd. (JP:7902)
:7902
Japanese Market

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

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JP:7902

SONOCOM Co., Ltd.

(7902)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
¥1,118.00
▲(20.60% Upside)
Action:ReiteratedDate:02/10/26
The score is driven primarily by strong balance-sheet safety but offset by weak and volatile cash generation (including negative operating/free cash flow despite profits). Technicals add support due to a clear uptrend and positive momentum, while valuation is neutral with a mid-range P/E and modest dividend yield.
Positive Factors
Conservative balance sheet
Essentially zero leverage and a large equity base give the company durable financial flexibility and downside protection. This conservative capital structure supports investment, working-capital swings and potential M&A, reducing solvency risk across economic cycles and strengthening long-term resilience.
Negative Factors
Volatile cash generation
Negative operating cash flow despite reported profits highlights earnings-quality issues and inconsistent cash conversion. Volatile free cash flow reduces the firm's ability to self-fund capex, dividends or strategic investments, increasing reliance on external financing when needs arise.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Essentially zero leverage and a large equity base give the company durable financial flexibility and downside protection. This conservative capital structure supports investment, working-capital swings and potential M&A, reducing solvency risk across economic cycles and strengthening long-term resilience.
Read all positive factors

SONOCOM Co., Ltd. (7902) vs. iShares MSCI Japan ETF (EWJ)

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 communicat...
How the Company Makes Money
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SONOCOM Co., Ltd. Financial Statement Overview

Summary
Strong balance-sheet position with essentially no leverage and substantial equity provides financial flexibility (high balance-sheet score). However, cash flow is a clear weakness: recent negative operating and free cash flow despite positive earnings raises near-term earnings-quality and predictability concerns, and revenue has been inconsistent despite improved 2025 operating results.
Income Statement
66
Positive
Balance Sheet
88
Very Positive
Cash Flow
41
Neutral
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue2.50B2.42B2.13B2.24B2.29B1.98B
Gross Profit761.23M734.04M611.29M731.63M806.21M628.79M
EBITDA470.60M478.19M290.00M382.72M472.83M334.77M
Net Income204.87M210.72M240.90M167.82M290.17M111.35M
Balance Sheet
Total Assets9.48B9.56B9.65B9.13B9.49B8.99B
Cash, Cash Equivalents and Short-Term Investments4.13B4.06B4.55B4.63B4.40B4.34B
Total Debt0.000.004.35M43.68M7.53M0.00
Total Liabilities577.88M653.74M870.23M647.89M1.07B884.38M
Stockholders Equity8.90B8.91B8.78B8.48B8.42B8.11B
Cash Flow
Free Cash Flow0.00-222.12M221.83M-327.18M311.81M90.75M
Operating Cash Flow0.00-79.40M456.71M-111.39M415.90M348.68M
Investing Cash Flow0.00-328.55M-279.84M-27.34M-25.08M-412.06M
Financing Cash Flow0.00-43.14M-35.84M-108.51M-36.55M-36.69M

SONOCOM Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price927.00
Price Trends
50DMA
1087.48
Positive
100DMA
997.43
Positive
200DMA
940.36
Positive
Market Momentum
MACD
-1.31
Positive
RSI
52.65
Neutral
STOCH
36.97
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 below the 20-day moving average (MA) of 1080.88, below the 50-day MA of 1087.48, and below the 200-day MA of 940.36, indicating a bullish trend. The MACD of -1.31 indicates Positive momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 36.97 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥28.56B13.322.89%6.15%2.98%
79
Outperform
¥106.45B15.133.23%7.28%4.16%
73
Outperform
¥27.58B7.341.78%4.47%12.28%
73
Outperform
¥19.02B18.812.93%-1.58%12.24%
68
Neutral
¥4.03B9.751.32%18.14%60.87%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
¥9.16B16.722.45%15.66%-69.17%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7902
SONOCOM Co., Ltd.
1,100.00
302.20
37.88%
JP:6626
Semitec Corporation
2,425.00
964.52
66.04%
JP:6850
Chino Corporation
1,611.00
734.52
83.80%
JP:6853
Kyowa Electronic Instruments Co., Ltd.
745.00
300.58
67.63%
JP:6858
Ono Sokki Co., Ltd.
817.00
349.40
74.72%
JP:6866
Hioki E.E.Corporation
7,800.00
1,661.10
27.06%
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: Feb 10, 2026