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

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SK-Electronics Co., Ltd.

(TSE/TYO:6677)

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Rating:64.6Neutral

Price Target:JPY 2,564.00▲(6.83% Upside)

Action:downgraded

Date:11/11/26

The overall score of 64.6 reflects a company with strong fundamentals and attractive valuation that is currently under severe technical pressure. The primary strengths are a fortress-like, debt-free balance sheet and a very high dividend yield of 5.82% coupled with a low P/E of 7.99. However, the stock is in a deep technical downtrend, trading significantly below all key moving averages with oversold momentum indicators, which heavily weighs on the score. The persistent decline in revenue is a fundamental concern that prevents a higher score, despite excellent capital discipline and cash flow generation.

Positive Factors

Near-zero leverageThe near-debt-free balance sheet materially reduces financial risk and interest burden, giving the company greater resilience if operating conditions weaken. A rising equity base also supports long-term flexibility to fund operations and investments without relying heavily on external financing.

Negative Factors

Revenue contractionThe revenue decline signals that demand has not yet developed into a consistent growth trend. Continued top-line weakness could limit operating leverage, reduce the ability to spread costs across sales, and make future earnings more dependent on maintaining margins.

SK-Electronics Co., Ltd. (6677) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 25.33B
Dividend Yield: 6.33%
Average Volume (3M): 93.61K
Price to Earnings (P/E): 8.1
Beta (1Y): 1.23
Revenue Growth: -4.54%
EPS Growth: 12.31%
Country: Japan
Employees: 437
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

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

Company Description

Headquartered in Kyoto, Japan, SK-Electronics CO.,LTD. has been a global player since its incorporation in 2001, specializing in the production and distribution of large-format photomasks. These critical components are supplied for various display te...

SK-Electronics Co., Ltd. Financial Statement Overview

Summary

Financial performance is solid, driven by a pristine, debt-free balance sheet (Score: 88) and strong free cash flow recovery (Score: 72). Profit margins have improved significantly despite a two-year revenue decline, which is captured by the lower Income Statement Score (58). Overall, the company is financially de-risked and generating healthy cash, but top-line contraction remains a key concern.

Income Statement

58Neutral

Balance Sheet

88Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Sep 2026	Sep 2025	Sep 2024	Sep 2023	Sep 2022
Income Statement
Total Revenue	29.27B	27.86B	29.19B	25.73B	28.11B	24.88B
Gross Profit	7.33B	7.28B	6.92B	5.94B	7.51B	6.36B
EBITDA	6.73B	5.80B	7.16B	5.90B	7.84B	6.82B
Net Income	2.91B	3.07B	2.73B	2.29B	3.38B	3.32B
Balance Sheet
Total Assets	43.27B	45.59B	42.52B	40.00B	42.19B	39.45B
Cash, Cash Equivalents and Short-Term Investments	9.59B	10.06B	9.68B	12.48B	15.28B	13.93B
Total Debt	624.08M	0	259.25M	1.02B	1.83B	2.65B
Total Liabilities	7.67B	8.23B	7.93B	7.83B	10.57B	10.85B
Stockholders Equity	35.60B	37.36B	34.59B	32.17B	31.62B	28.60B
Cash Flow
Free Cash Flow	195.54M	1.71B	217.27M	-90.37M	2.84B	5.83B
Operating Cash Flow	5.13B	5.00B	5.13B	3.89B	5.34B	6.27B
Investing Cash Flow	-6.14B	-4.00B	-6.14B	-4.15B	-2.51B	-529.68M
Financing Cash Flow	-1.97B	-1.40B	-1.97B	-2.51B	-1.49B	-1.28B

SK-Electronics Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2400.00

Price Trends

50DMA2989.80Negative

100DMA3130.33Negative

200DMA3137.48Negative

Market Momentum

MACD-161.79Positive

RSI19.50Positive

STOCH8.95Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6677, the sentiment is Negative. The current price of 2400.00 is below the 20-day moving average (MA) of 2828.80, below the 50-day MA of 2989.80, and below the 200-day MA of 3137.48, indicating a bearish trend. The MACD of -161.79 indicates Positive momentum. The RSI at 19.50 is Positive, neither overbought nor oversold. The STOCH value of 8.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6677.

SK-Electronics Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6677 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6626	70Outperform	JPY 26.47B	7.82	―	2.06%	7.62%	5.20%
JP:6653	66Neutral	JPY 24.03B	9.44	―	3.11%	18.22%	36.62%
JP:6677	65Neutral	JPY 25.07B	8.13	―	6.33%	-4.54%	12.31%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6817	55Neutral	JPY 34.65B	15.80	―	4.99%	14.18%	9.84%
JP:6997	55Neutral	JPY 44.28B	16.96	3.56%	1.29%	18.67%	752.67%
JP:6844	47Neutral	JPY 27.10B	6.91	―	3.85%	9.76%	257.74%

* General Sector Average

Performance Comparison

JP:6677 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6677	SK-Electronics Co., Ltd.	2400.00	-542.47	-18.44%
JP:6997	Nippon Chemi-Con Corporation	1546.00	280.65	22.18%
JP:6626	Semitec Corporation	2287.00	121.29	5.60%
JP:6653	Seiko Electric Co., Ltd.	1767.00	-486.07	-21.57%
JP:6817	Sumida Corporation	1063.00	-53.50	-4.79%
JP:6844	Shindengen Electric Mfg Co Ltd	2600.00	-345.00	-11.71%

SK-Electronics Co., Ltd. Corporate Events

SK-Electronics Posts Higher Profits Despite Lower Sales

Nov 9, 2026

SK-Electronics reported fiscal 2026 net sales of ¥27.862 billion, down 4.5% year over year, while operating profit rose 4.7% to ¥4.033 billion, ordinary profit increased 14.3% to ¥4.397 billion and net profit grew 12.4% to ¥3.069 billion. Total asset...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 11, 2026

SK-Electronics Co., Ltd. AI Stock Analysis