Sun-Wa Technos Corporation (8137) AI Stock Analysis

• Market Cap: ¥46.16B
• Dividend Yield: 4.12%
• Average Volume (3M): 22.18K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.81
• Revenue Growth: -4.88%
• EPS Growth: -26.05%
• Country: JP
• Employees: 1,071
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 63.26
• Shares Outstanding: 16,044,000
• 10 Day Avg. Volume: 21,560
• 30 Day Avg. Volume: 22,183
• PEG Ratio: -0.26
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 3.56
• 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: 74 Outperform
• Price Target: ¥2,983.00 ▲(2.40% Upside)

Sun-Wa Technos Corporation shows strong financial stability with a solid balance sheet and positive cash flow, which are the most significant factors in its score. Technical indicators support a positive trend, while valuation metrics suggest moderate attractiveness. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Financial Stability

Sun-Wa Technos Corporation's strong balance sheet with low leverage ensures financial stability, providing a solid foundation for long-term growth and resilience against economic fluctuations.

Cash Flow Generation

Robust free cash flow generation supports operational needs and future growth investments, enhancing the company's ability to sustain operations and capitalize on strategic opportunities.

Partnerships with Leading Firms

Strategic partnerships with leading technology firms enhance Sun-Wa Technos' competitive edge, enabling access to advanced products and solutions, which supports long-term market positioning.

Negative Factors

Revenue Decline

The recent decline in revenue indicates challenges in maintaining growth momentum, which could impact future profitability and market share if not addressed effectively.

Declining Margins

Decreasing profit margins suggest difficulties in managing costs or maintaining pricing power, potentially affecting the company's profitability and competitive positioning over time.

Reduced Profitability

A decrease in return on equity highlights reduced profitability, which may hinder the company's ability to generate returns for shareholders and invest in future growth initiatives.

Sun-Wa Technos Corporation Business Overview & Revenue Model

Company Description

Sun-Wa Technos Corporation engages in the distribution of electrical machinery, electronics, and general machinery in Japan, rest of Asia, Europe, the United States, and internationally. The company offers AC servo, linear, and various other motors; clean room robots and vacuum chamber robots for semiconductor manufacturing devices; inverters, power substations, other facility works, etc.; and factory automation (FA) equipment and systems, such as machine controllers and vision systems, power conditioners and supply devices, and electrical engineering works. It also sells power supplies, connectors, semiconductors, sensors, miniature fans, liquid crystal displays, touch panels, industrial PCs, CPU boards, memory modules, etc.; assembled boards; and optical components, including light emitting diodes, electronics components, office automation (OA) related equipment, FA systems, and telecommunications and information equipment, as well as electric components and traffic control systems for railroad trains. In addition, the company offers general machinery products, such as industrial robots, clean room robots, semiconductor and liquid crystal related manufacturing equipment, conveying devices and facilities for logistics, substrate mounting devices, various inspection devices, environmental related equipment and devices, air conditioners and kitchen facilities, wind- and hydro-power equipment, and nursing care and medical equipment, as well as maintenance services. Its products are used in various fields, such as Internet of Things, food, and pharmaceutical industries. The company was formerly known as Yamada Kogyo Corporation and changed its name to Sun-Wa Technos Corporation in April 1993. Sun-Wa Technos Corporation was founded in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sun-Wa Technos Corporation generates revenue through the sale of electronic components and products to a wide range of industries, including telecommunications and consumer electronics. Its revenue model is primarily based on wholesale distribution, where it earns margins on the products it sells. Key revenue streams include direct sales of electronic components, system integration services, and long-term contracts with major manufacturers. The company benefits from partnerships with leading technology firms, allowing it to offer competitive products and solutions. Additionally, its expertise in technical support and service provision helps to establish recurring revenue from existing clients, enhancing overall profitability.

Sun-Wa Technos Corporation Financial Statement Overview

Summary

Sun-Wa Technos Corporation demonstrates strong financial health with a solid balance sheet and positive cash flow generation. However, challenges in revenue growth and declining margins are concerns that could impact future profitability.

Income Statement

Sun-Wa Technos Corporation experienced fluctuating revenue over the past years, with a significant drop in the latest period. The gross profit margin was relatively stable, but the net profit margin decreased, indicating challenges in cost management or pricing power. EBIT and EBITDA margins also declined, suggesting reduced operational efficiency. Overall, the income statement shows some profitability but highlights the need for better revenue growth management.

Balance Sheet

The balance sheet is strong, with a healthy equity ratio indicating financial stability and low leverage. The debt-to-equity ratio is manageable, suggesting prudent use of debt. Return on equity has decreased, reflecting reduced profitability. Despite this, the company maintains a solid foundation with consistent stockholders' equity growth.

Cash Flow

Cash flow analysis reveals robust free cash flow generation, especially in the latest period, which is critical for supporting operations and growth. Operating cash flow has improved significantly, covering net income, though fluctuations in previous years suggest some volatility in cash management. The positive free cash flow to net income ratio indicates good cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	139.06B	139.58B	166.14B	181.01B	154.41B	134.77B
Gross Profit	18.79B	19.15B	21.78B	23.04B	18.77B	14.22B
EBITDA	3.77B	4.44B	7.95B	8.24B	5.57B	2.89B
Net Income	2.08B	2.44B	5.01B	5.49B	3.58B	1.79B
Balance Sheet
Total Assets	90.58B	93.08B	98.71B	106.58B	93.08B	76.38B
Cash, Cash Equivalents and Short-Term Investments	21.84B	23.37B	19.08B	14.14B	14.05B	13.11B
Total Debt	8.80B	8.78B	12.31B	9.91B	8.05B	7.23B
Total Liabilities	43.36B	43.96B	50.74B	62.10B	55.06B	41.35B
Stockholders Equity	47.22B	49.11B	47.97B	44.48B	38.02B	35.03B
Cash Flow
Free Cash Flow	0.00	9.04B	4.11B	-619.00M	609.00M	1.54B
Operating Cash Flow	0.00	9.10B	4.23B	-545.00M	792.00M	1.59B
Investing Cash Flow	0.00	-389.00M	883.00M	-731.00M	244.00M	-141.00M
Financing Cash Flow	0.00	-5.22B	-608.00M	906.00M	-580.00M	-309.00M

Sun-Wa Technos Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2913.00
• 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:8137, the sentiment is Positive. The current price of 2913 is above the 20-day moving average (MA) of 2889.35, above the 50-day MA of 2825.10, and above the 200-day MA of 2440.90, indicating a bullish trend. The MACD of 21.20 indicates Positive momentum. The RSI at 58.33 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8137.

Sun-Wa Technos Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8093	76 Outperform	¥21.49B	5.74	―	3.83%	41.87%	167.99%
7537	75 Outperform	¥33.37B	10.73	―	5.16%	1.71%	-29.37%
8137	74 Outperform	¥46.16B	18.65	―	4.12%	-4.88%	-26.05%
9880	73 Outperform	¥27.61B	21.23	―	3.25%	0.17%	21.01%
8023	72 Outperform	¥14.51B	8.69	―	4.62%	-2.98%	4.56%
8141	64 Neutral	$31.16B	40.57	1.55%	1.34%	-34.13%	-31.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Sun-Wa Technos Corporation Corporate Events

Sun-Wa Technos Revamps Shareholder Benefits to Boost Investment Appeal

Sun-Wa Technos Corporation has announced changes to its shareholder benefit program, aiming to increase investment attractiveness and shareholder retention. The changes include the abolition of long-term holding benefits, reclassification of shareholding categories, and the replacement of QUO cards with digital gifts, aligning with the new NISA scheme to attract more individual investors and improve share liquidity.

Sun-Wa Technos Exceeds Profit Forecasts in Q2 FY2026

Sun-Wa Technos Corporation reported a discrepancy between its projected and actual earnings for the second quarter of the fiscal year ending March 2026. While net sales were consistent with initial forecasts, the company exceeded expectations in operating, ordinary, and interim profits due to improved gross profit margins and reduced SG&A expenses, indicating a strong operational performance.

Sun-Wa Technos Reports Stable Q2 Results Amid Market Fluctuations

Sun-Wa Technos Corporation reported its financial results for the second quarter of FY03/26, showing stable net sales compared to the previous year but a decline in operating profit due to exchange rate fluctuations and increased SG&A expenses. Despite a strong order intake driven by domestic demand recovery, the company maintains its full-year earnings forecast due to delayed overseas recovery. The company plans to offer digital gifts to shareholders and aims for stable dividends, with a forecasted dividend per share of 120 yen for FY03/26.

Sun-Wa Technos Corporation Reports Semi-Annual Financial Results and Expansion

Sun-Wa Technos Corporation reported its consolidated financial results for the six months ended September 30, 2025, showing a slight decline in net sales and operating profit compared to the previous year. Despite these decreases, the company has expanded its scope by including two new companies, Mtech Corporation and Alex Engineering Co., Ltd., which may strengthen its market position and operational capabilities.