Sun-Wa Technos Corporation (8137) AI Stock Analysis

• Market Cap: ¥45.33B
• Dividend Yield: 4.15%
• Average Volume (3M): 22.18K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.86
• 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 ▲(3.08% 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 (8137) is a Japan-based company primarily engaged in the distribution of electronic components and IT-related products. The company operates in various sectors including telecommunications, industrial equipment, and consumer electronics, offering a wide range of products such as semiconductors, connectors, and other electronic devices. Additionally, Sun-Wa Technos provides system integration services and technical support, contributing to its diverse portfolio in the electronics supply chain.

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: 2894.00
• 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 2894 is above the 20-day moving average (MA) of 2853.75, above the 50-day MA of 2751.67, and above the 200-day MA of 2378.72, indicating a bullish trend. The MACD of 43.69 indicates Positive momentum. The RSI at 57.82 is Neutral, neither overbought nor oversold. The STOCH value of 71.52 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	¥21.34B	5.26	―	4.04%	41.87%	167.99%
8137	74 Outperform	¥45.33B	18.31	―	4.15%	-4.88%	-26.05%
9880	73 Outperform	¥26.07B	20.05	―	3.33%	0.17%	21.01%
8023	72 Outperform	¥15.05B	10.41	―	4.62%	-2.98%	4.56%
7537	71 Outperform	¥30.97B	9.96	―	5.52%	1.71%	-29.37%
8141	64 Neutral	¥30.04B	39.11	1.55%	1.38%	-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 Reports Decline in Q1 Profits Amid Market Recovery

Sun-Wa Technos Corporation reported a decline in both sales and profits for the first quarter of FY03/26, attributed to decreased sales, lower gross profit margins, increased SG&A expenses, and exchange rate impacts. Despite these challenges, the company observed a recovery trend in demand across various industries, with orders received increasing by 9.7% year-on-year. However, uncertainties such as U.S. tariff policies and U.S.-China trade tensions persist, potentially affecting future profitability. The company aims to maintain stable dividends and plans to enhance its shareholder benefit system by March 2026.

Sun-Wa Technos Reports Decline in Q1 2025 Results, Projects Recovery

Sun-Wa Technos Corporation reported a decline in its financial performance for the three months ended June 30, 2025, with net sales slightly decreasing by 1.7% and significant drops in operating and ordinary profits by 58.6% and 51.8% respectively. Despite these challenges, the company forecasts a positive outlook for the fiscal year ending March 31, 2026, with expected growth in net sales by 11.0% and a modest increase in profit attributable to owners of the parent by 6.8%, indicating potential recovery and strategic adjustments to improve its market position.