Sun-Wa Technos Corporation (8137) AI Stock Analysis

• Market Cap: ¥49.79B
• Dividend Yield: 4.12%
• Average Volume (3M): 22.18K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.83
• Revenue Growth: -4.88%
• EPS Growth: -26.05%
• Country: JP
• Employees: 1,071
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 54.96
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥3,524.00 ▲(18.73% 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

Strong balance sheet

A healthy equity ratio and low leverage provide durable financial flexibility. This reduces refinancing risk, supports capital spending or opportunistic M&A, and helps the company sustain operations through cyclical downturns while preserving supplier and customer confidence.

Robust free cash flow generation

Consistent free cash flow and improved operating cash flow underpin long-term self-funding ability. Strong cash conversion lets management invest in service capabilities, support working capital, pay down debt, or return capital without relying on external financing.

Value‑added trading and services model

Mixing product distribution with engineering, integration and after‑sales services creates recurring, higher‑stickiness revenue. This diversifies cycles in equipment sales, strengthens customer relationships, and provides sustainable service margins over the medium term.

Negative Factors

Volatile and weakening revenue trends

Revenue volatility and recent declines reduce predictability of earnings and cash flow. Over months this can constrain reinvestment in distribution or engineering capabilities, weaken supplier negotiating leverage, and impair long‑term growth planning.

Declining margins and operational efficiency

Sustained margin compression points to pricing pressure or rising costs versus limited ability to pass them on. Lower operating margins reduce retained earnings and free cash flow, impairing the firm's capacity to fund service expansion or absorb industry shocks.

Earnings deterioration and falling ROE

Negative EPS growth and declining ROE signal weakening profitability relative to capital employed. Over the medium term this can limit shareholder return potential, reduce reinvestment capability, and indicate strategic or execution challenges needing remediation.

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: 2968.00
• 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:8137, the sentiment is Positive. The current price of 2968 is below the 20-day moving average (MA) of 3056.50, below the 50-day MA of 2971.20, and above the 200-day MA of 2579.41, indicating a bullish trend. The MACD of 38.60 indicates Negative momentum. The RSI at 65.93 is Neutral, neither overbought nor oversold. The STOCH value of 70.80 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	¥23.22B	6.15	―	3.83%	41.87%	167.99%
8137	74 Outperform	¥49.79B	18.02	―	4.12%	-4.88%	-26.05%
9880	73 Outperform	¥28.60B	21.80	―	3.25%	0.17%	21.01%
8023	72 Outperform	¥15.06B	8.99	―	4.62%	-2.98%	4.56%
7537	65 Neutral	¥33.17B	11.06	―	5.16%	1.71%	-29.37%
8141	64 Neutral	¥31.02B	99.62	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 Lifts Profit Outlook on Domestic Demand Recovery Despite Lower Sales Plan

For the third quarter of the fiscal year ending March 2026, Sun-Wa Technos reported net sales of ¥105.01 billion, up 2.6% year-on-year, with operating profit rising 6.7% to ¥2.34 billion, ordinary profit up 19.7% to ¥2.97 billion, and profit attributable to owners of parent increasing 12.3% to ¥2.05 billion. Despite higher SG&A expenses stemming from M&A-related costs, profitability in Japan improved in the third quarter and orders received climbed 12.5% to ¥109.46 billion on the back of a continued recovery in domestic demand, supporting growth in both sales and profit. For the full year, the company now forecasts net sales of ¥150 billion, lower than its initial sales plan despite signs of demand recovery, but it has revised profit forecasts upward across all levels due to ongoing efforts to bolster profitability and optimize expenses. Sun-Wa Technos also reaffirmed its shareholder return policy, targeting a consolidated DOE of at least 4% and forecasting an annual dividend of ¥120 per share for FY03/26, along with a digital gift program for shareholders, underscoring its commitment to stable, shareholder-friendly capital allocation.

The most recent analyst rating on (JP:8137) stock is a Buy with a Yen3375.00 price target. To see the full list of analyst forecasts on Sun-Wa Technos Corporation stock, see the JP:8137 Stock Forecast page.

Sun-Wa Technos Lifts Earnings and Forecasts as It Expands Global Footprint

Sun-Wa Technos reported a modest recovery for the nine months ended December 31, 2025, with consolidated net sales up 2.6% year on year to ¥105.0 billion and profit attributable to owners of parent rising 12.3% to ¥2.06 billion, reflecting improved profitability after a sharp downturn in the prior year. The company strengthened its financial base with total assets increasing to ¥96.9 billion and equity reaching ¥50.5 billion, while also enhancing shareholder returns via an interim dividend of ¥60 per share and maintaining a full-year dividend forecast of ¥120. Management revised full-year forecasts upward to project ¥150.0 billion in net sales and ¥3.0 billion in profit attributable to owners of parent, signaling confidence in continued earnings growth, and expanded its consolidated scope by adding three companies, including a UK unit, in a move that underscores its strategy to deepen engineering capabilities and overseas market reach.

The most recent analyst rating on (JP:8137) stock is a Buy with a Yen3375.00 price target. To see the full list of analyst forecasts on Sun-Wa Technos Corporation stock, see the JP:8137 Stock Forecast page.