SK-Electronics Co., Ltd. (6677) AI Stock Analysis

• Market Cap: ¥32.62B
• Dividend Yield: 3.5%
• Average Volume (3M): 88.83K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.90
• Revenue Growth: 5.20%
• EPS Growth: -3.07%
• Country: JP
• Employees: 387
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 41.65
• Shares Outstanding: 11,368,400
• 10 Day Avg. Volume: 88,480
• 30 Day Avg. Volume: 88,826
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,373.00
• Price Target Upside: 8.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 82 Outperform
• Price Target: ¥3,246.00 ▲(4.37% Upside)

SK-Electronics is well-positioned with strong technical momentum and attractive valuation metrics. The company's financial performance is robust, albeit with some challenges in revenue growth and cash flow stability. The absence of recent earnings call and corporate events information does not affect the current assessment.

SK-Electronics Co., Ltd. Business Overview & Revenue Model

Company Description

SK-Electronics Co., Ltd. (6677) is a Japanese company specializing in the design and manufacturing of photomasks, which are essential components in the semiconductor production process. The company provides high-precision photomasks used in the fabrication of integrated circuits, TFT-LCDs, and OLED displays. Operating primarily in the semiconductor industry, SK-Electronics serves a global clientele, including leading electronics manufacturers, by delivering advanced and reliable photomask solutions critical for producing high-tech devices.

How the Company Makes Money

SK-Electronics Co., Ltd. generates revenue primarily through the sale of photomasks to semiconductor and display manufacturers. The company's revenue model is largely based on long-term contracts and partnerships with major electronics companies that require photomasks for their production processes. By leveraging its technological expertise and state-of-the-art production facilities, SK-Electronics maintains a competitive edge in the high-precision photomask market. Additionally, the company may engage in research and development collaborations, enhancing its offerings and staying at the forefront of technological advancements, which can also contribute to its income streams.

SK-Electronics Co., Ltd. Financial Statement Overview

Summary

SK-Electronics exhibits strong profitability and financial stability, with an impressive balance sheet featuring low debt and strong equity. However, challenges in revenue growth and free cash flow volatility slightly temper the overall financial strength.

Income Statement

SK-Electronics demonstrates strong profitability with a consistent improvement in net profit margin over time, indicating effective cost management and growing net income. The gross profit margin and EBIT margin are healthy, reflecting good operational efficiency. However, revenue growth has shown some fluctuations, with a recent decline compared to the previous period, which could indicate a potential challenge in maintaining growth momentum.

Balance Sheet

The company maintains a robust financial position with a very low debt-to-equity ratio, suggesting low financial leverage and a strong equity base. The significant equity ratio further supports the stability of the company. Return on Equity is impressive, indicating effective use of equity capital to generate profits. Overall, the balance sheet reflects strength and stability.

Cash Flow

Cash flow shows mixed performance, with notable fluctuations in free cash flow. Despite a strong operating cash flow, the free cash flow has been volatile, mainly due to high capital expenditures. The operating cash flow to net income ratio is favorable, indicating good conversion of net income into cash. However, the inconsistency in free cash flow suggests potential challenges in managing cash outflows effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.85B	25.73B	28.11B	24.88B	20.44B	19.10B
Gross Profit	7.22B	5.94B	7.51B	6.36B	3.87B	1.56B
EBITDA	7.42B	5.90B	8.09B	7.32B	4.46B	4.08B
Net Income	3.32B	2.29B	3.38B	3.32B	1.07B	-971.84M
Balance Sheet
Total Assets	41.44B	39.67B	41.81B	39.45B	32.88B	31.78B
Cash, Cash Equivalents and Short-Term Investments	10.62B	12.48B	15.28B	13.93B	8.84B	10.33B
Total Debt	690.29M	800.00M	1.60B	2.40B	3.35B	4.45B
Total Liabilities	8.86B	7.51B	10.19B	10.85B	8.51B	9.39B
Stockholders Equity	32.59B	32.17B	31.62B	28.60B	24.38B	22.39B
Cash Flow
Free Cash Flow	0.00	-258.52M	2.83B	5.76B	-636.59M	-1.41B
Operating Cash Flow	0.00	3.89B	5.34B	6.27B	3.66B	1.99B
Investing Cash Flow	0.00	-4.15B	-2.51B	-529.68M	-4.30B	-3.39B
Financing Cash Flow	0.00	-2.51B	-1.49B	-1.28B	-1.22B	3.31B

SK-Electronics Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3110.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6677, the sentiment is Positive. The current price of 3110 is above the 20-day moving average (MA) of 2960.30, above the 50-day MA of 2863.88, and above the 200-day MA of 2399.27, indicating a bullish trend. The MACD of 58.55 indicates Negative momentum. The RSI at 72.15 is Negative, neither overbought nor oversold. The STOCH value of 87.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6677.

SK-Electronics Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6915	83 Outperform	34.55B	13.31	7.78%	4.85%	-4.88%	-8.72%
6677	82 Outperform	¥32.62B	12.22		3.50%	5.20%	-3.07%
6266	74 Outperform	33.41B	8.75	17.57%	1.44%	7.20%	-10.52%
6958	67 Neutral	23.67B	10.25	4.79%	5.70%	3.34%	-57.23%
6800	66 Neutral	35.08B	42.84	4.29%	3.19%	4.30%	-66.03%
6999	54 Neutral	40.62B	143.41	0.33%	3.34%	1.06%	-85.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%