Suzumo Machinery Co., Ltd. (6405) AI Stock Analysis

• Market Cap: ¥16.42B
• Dividend Yield: 2.29%
• Average Volume (3M): 31.64K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.88
• Revenue Growth: 2.25%
• EPS Growth: -17.39%
• Country: JP
• Employees: 485
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.77
• Shares Outstanding: 12,960,000
• 10 Day Avg. Volume: 28,440
• 30 Day Avg. Volume: 31,636
• PEG Ratio: 0.70
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 213.17
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥1,340.00 ▲(8.85% Upside)

The overall stock score is primarily influenced by strong financial performance, despite challenges in cash flow. Technical analysis indicates bearish momentum, which is a significant risk factor. Valuation is moderate, offering a reasonable P/E ratio and dividend yield but not enough to offset the technical weaknesses.

Suzumo Machinery Co., Ltd. Business Overview & Revenue Model

Company Description

Suzumo Machinery Company Limited manufactures and sells food machines for small kitchens and factories worldwide. The company provides rice washing machines, rice cookers, and cooked rice mixers; sushi roll machines and cutters, and rice sheet machines; nigiri sushi makers; sushi wrapping machines, sushi robots, rice weight measuring machines, rice serving machines, rice ball forming and wrapping machines, and rice ball makers; and other rice dish makers. It also offers rice cooking net, rice pack, Shari container cart, softon plus, easy-open sushi wrapping film, anti-fog wrap, Shari containers and trays, and polyethylene disposable gloves. The company was incorporated in 1961 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Suzumo Machinery generates revenue primarily through the sale of its machinery and equipment tailored for the food industry, with a significant focus on sushi production technology. Key revenue streams include direct sales of sushi robots, rice cookers, and other food processing machines, as well as after-sales services such as maintenance and support. The company may also engage in licensing technology or providing training services to clients. Partnerships with restaurants, food service providers, and distributors contribute to its earnings by expanding its market reach and ensuring a steady demand for its innovative products. Additionally, participation in international trade shows and exhibitions helps Suzumo to showcase its offerings and attract new customers.

Suzumo Machinery Co., Ltd. Financial Statement Overview

Summary

Suzumo Machinery Co., Ltd. exhibits strong financial health with a solid income statement and balance sheet, characterized by consistent growth and minimal leverage. The company’s ability to generate profits and maintain financial stability is commendable. However, cash flow performance presents some challenges, particularly in sustaining free cash flow growth.

Income Statement

Suzumo Machinery Co., Ltd. has demonstrated a strong growth trajectory with consistent revenue growth over the years. The gross profit margin for the latest year is robust at 50.5%, reflecting efficient cost management. Net profit margin improved to 9.4%, indicating increased profitability. EBIT and EBITDA margins are healthy at 12.1% and 15.6% respectively, showing operational efficiency. Overall, the income statement indicates a solid financial performance with positive growth trends.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.01, reflecting minimal leverage and financial stability. Return on equity is impressive at 9.2%, demonstrating effective use of shareholder funds. The equity ratio is high at 81.8%, indicating a solid equity position relative to total assets. The balance sheet reflects financial strength and an ability to withstand economic fluctuations.

Cash Flow

Cash flow analysis indicates a mixed performance. The operating cash flow to net income ratio is 0.9, suggesting a good conversion of net income into cash. However, the free cash flow growth rate is negative, reflecting a decline in free cash flow due to higher capital expenditures. The free cash flow to net income ratio is 0.09, indicating potential constraints in cash generation compared to net income. Overall, cash flow stability needs improvement despite healthy operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.31B	15.57B	14.51B	13.46B	11.57B	9.49B
Gross Profit	7.67B	7.86B	6.86B	6.37B	5.68B	4.39B
EBITDA	2.01B	2.42B	2.05B	1.59B	1.88B	1.29B
Net Income	1.12B	1.46B	1.14B	825.92M	1.07B	683.40M
Balance Sheet
Total Assets	19.08B	19.47B	18.20B	17.03B	16.42B	14.69B
Cash, Cash Equivalents and Short-Term Investments	4.44B	5.60B	6.02B	4.87B	8.28B	7.34B
Total Debt	0.00	153.86M	209.97M	270.51M	239.45M	90.34M
Total Liabilities	3.46B	3.50B	3.62B	3.32B	3.16B	2.50B
Stockholders Equity	15.58B	15.93B	14.55B	13.69B	13.24B	12.18B
Cash Flow
Free Cash Flow	0.00	136.30M	1.39B	-3.24B	1.15B	810.26M
Operating Cash Flow	0.00	1.37B	2.29B	-11.21M	1.34B	1.25B
Investing Cash Flow	0.00	-1.37B	-653.63M	-3.06B	-268.05M	-344.28M
Financing Cash Flow	0.00	-535.98M	-538.92M	-463.57M	-194.78M	-184.10M

Suzumo Machinery Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1231.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6405, the sentiment is Negative. The current price of 1231 is below the 20-day moving average (MA) of 1446.95, below the 50-day MA of 1508.59, and below the 200-day MA of 1846.44, indicating a bearish trend. The MACD of -48.32 indicates Positive momentum. The RSI at 21.28 is Positive, neither overbought nor oversold. The STOCH value of 7.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6405.

Suzumo Machinery Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6137	81 Outperform	¥34.76B	10.20	―	2.82%	5.98%	-0.49%
6272	79 Outperform	$38.65B	10.80	9.67%	3.12%	-1.43%	-6.49%
6144	79 Outperform	¥32.34B	13.03	―	3.92%	4.62%	39.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6405	61 Neutral	¥16.42B	14.61	―	2.29%	2.25%	-17.39%
6151	59 Neutral	¥32.36B	59.02	―	2.18%	1.69%	-67.19%
6279	51 Neutral	¥25.37B	109.14	―	1.14%	9.21%	-46.66%

Suzumo Machinery Co., Ltd. Corporate Events

Suzumo Machinery Reports Q1 2025 Financial Decline

Suzumo Machinery Co., Ltd. reported a significant decline in its financial performance for the first quarter ending June 30, 2025, with net sales decreasing by 7.1% and profits plummeting by over 90% compared to the previous year. Despite the downturn, the company maintains a strong equity ratio and has not altered its dividend forecast, indicating a steady approach to shareholder returns amidst challenging market conditions.