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

SK-Electronics Co., Ltd.

(TSE/TYO:6677)

Select Model

Rating:78Outperform

Price Target:JPY 3,362.00▲(15.14% Upside)

Action:reiterated

Date:08/06/26

SK-Electronics receives a score of 78, reflecting its strong balance sheet, consistent operating cash flow, and attractive valuation. The stock's technical uptrend adds support, though overbought signals and recent margin compression are minor concerns. Overall, the company is well-positioned for long-term investors.

Positive Factors

Debt-Free Balance SheetA zero-debt balance sheet materially reduces financial risk and interest burden while preserving flexibility to fund operations, investments, or shareholder returns. Continued equity growth also provides a stronger capital base, supporting resilience through changing business conditions over the next several quarters.

Negative Factors

Volatile Free Cash FlowFree cash flow has been uneven across recent years and remained only modestly positive in 2025 relative to net income. This weak conversion can constrain internally funded investment and shareholder distributions, making operating cash generation less dependable than accounting profitability suggests.

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

Market Cap: JPY 30.66B
Dividend Yield: 5.15%
Average Volume (3M): 90.01K
Price to Earnings (P/E): 9.5
Beta (1Y): 1.19
Revenue Growth: 0.92%
EPS Growth: 22.30%
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

The company shows solid revenue growth and improved profitability over the past five years, though recent softening in revenue growth and margins indicates some headwinds. The balance sheet is exceptionally strong with no debt and growing equity. Operating cash flow is healthy, but free cash flow is constrained by high capital expenditures. Overall financial health is good.

Income Statement

72Positive

Balance Sheet

88Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	29.27B	29.19B	25.73B	28.11B	24.88B	20.44B
Gross Profit	7.33B	6.92B	5.94B	7.51B	6.36B	3.87B
EBITDA	6.73B	7.16B	5.90B	7.84B	6.82B	4.73B
Net Income	2.91B	2.73B	2.29B	3.38B	3.32B	1.07B
Balance Sheet
Total Assets	43.27B	42.52B	40.00B	42.19B	39.45B	33.01B
Cash, Cash Equivalents and Short-Term Investments	9.59B	9.68B	12.48B	15.28B	13.93B	8.84B
Total Debt	624.08M	259.25M	1.02B	1.83B	2.65B	3.39B
Total Liabilities	7.67B	7.93B	7.83B	10.57B	10.85B	8.63B
Stockholders Equity	35.60B	34.59B	32.17B	31.62B	28.60B	24.38B
Cash Flow
Free Cash Flow	195.54M	217.27M	-90.37M	2.84B	5.83B	-609.17M
Operating Cash Flow	5.13B	5.13B	3.89B	5.34B	6.27B	3.66B
Investing Cash Flow	-6.14B	-6.14B	-4.15B	-2.51B	-529.68M	-4.30B
Financing Cash Flow	-1.97B	-1.97B	-2.51B	-1.49B	-1.28B	-1.22B

SK-Electronics Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2920.00

Price Trends

50DMA3062.20Negative

100DMA3170.30Negative

200DMA3156.10Negative

Market Momentum

MACD-37.78Positive

RSI42.32Neutral

STOCH70.95Neutral

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 2920.00 is below the 20-day moving average (MA) of 3030.65, below the 50-day MA of 3062.20, and below the 200-day MA of 3156.10, indicating a bearish trend. The MACD of -37.78 indicates Positive momentum. The RSI at 42.32 is Neutral, neither overbought nor oversold. The STOCH value of 70.95 is Neutral, 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:6653	82Outperform	JPY 23.57B	9.43	―	3.13%	16.37%	46.28%
JP:6677	78Outperform	JPY 30.93B	9.48	―	5.15%	0.92%	22.30%
JP:6844	72Outperform	JPY 28.70B	5.69	―	3.59%	7.29%	―
JP:6626	68Neutral	JPY 26.31B	7.91	―	2.03%	3.68%	-4.84%
JP:6817	57Neutral	JPY 36.49B	16.73	―	4.78%	9.71%	23.67%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6997	53Neutral	JPY 46.49B	11.54	5.80%	1.20%	15.81%	―

* 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.	2949.00	104.77	3.68%
JP:6997	Nippon Chemi-Con Corporation	1663.00	123.47	8.02%
JP:6626	Semitec Corporation	2314.00	-12.57	-0.54%
JP:6653	Seiko Electric Co., Ltd.	1756.00	-406.09	-18.78%
JP:6817	Sumida Corporation	1109.00	32.79	3.05%
JP:6844	Shindengen Electric Mfg Co Ltd	2784.00	-616.31	-18.13%

SK-Electronics Co., Ltd. Corporate Events

SK-Electronics Lifts Profit and Strengthens Balance Sheet Despite Lower Sales

Aug 10, 2026

SK-Electronics reported consolidated net sales of ¥21.23 billion for the quarter ended June 2026, down 3.6% year-on-year, but achieved operating profit growth of 6.8% to ¥3.39 billion as well as a 24.0% rise in profit attributable to owners...

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: Aug 06, 2026

SK-Electronics Co., Ltd. AI Stock Analysis