Suncorporation (6736) AI Stock Analysis

• Market Cap: $255.52B
• Dividend Yield: 1.16%
• Average Volume (3M): 84.28K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.37
• Revenue Growth: 10.30%
• EPS Growth: N/A
• Country: JP
• Employees: 301
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 79.74
• Shares Outstanding: 24,007,729
• 10 Day Avg. Volume: 168,150
• 30 Day Avg. Volume: 84,276
• PEG Ratio: -0.02
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 14.85
• P/FCF Ratio: -83.96
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 10.70
• Enterprise Value/Gross Profit: 42.43
• Enterprise Value/Ebitda: 22.38
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥9,705.00 ▲(12.20% Upside)

Suncorporation's overall stock score is driven by a strong financial performance, particularly in profitability and balance sheet strength. However, cash flow challenges and operational inefficiencies present risks. The technical analysis shows mixed signals with positive momentum but potential oversold conditions. The valuation is attractive with a reasonable P/E ratio and a modest dividend yield.

Suncorporation Business Overview & Revenue Model

Company Description

Sun Corporation engages in the mobile data solutions, entertainment, information technology, and other businesses in Japan. It develops, manufactures, and sells mobile data transfer devices and mobile data solutions for law enforcement authorities, as well as sells Mobilogy brand products to mobile device stores. The company also offers IoT/M2M routers; Bacsoft IoT platform that enables remote monitoring and control of manufacturing and agricultural, and remote facilities; SunDMS, a device management service that enables centralized remote controls; and OKUDAKE-sensors. In addition, it provides AceReal, a high-precision, and high-definition see-through binocular smart glasses; and develops and distributes original gaming content, including puzzle games, as well as immersive games. Further, the company plans, develops, and manufactures amusement machines, including hardware to software in developing game machines. Sun Corporation was founded in 1971 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Suncorporation generates revenue through multiple streams, primarily by selling its semiconductor products and electronic components to manufacturers in various sectors. The company has established long-term contracts with key players in the electronics and automotive industries, which provide a steady income flow. Additionally, Suncorporation earns revenue from its energy solutions division, which focuses on providing energy management systems and services to both commercial and residential customers. Strategic partnerships with leading technology firms and participation in joint ventures further enhance its market presence and profitability. Furthermore, the company invests in research and development to innovate its product offerings, which helps in attracting new clients and retaining existing ones, thereby contributing to its overall earnings.

Suncorporation Financial Statement Overview

Summary

Suncorporation demonstrated a strong turnaround in profitability with significant improvements in net income. The balance sheet remains robust, characterized by low leverage and high equity. However, the company faces cash flow challenges that need addressing to sustain long-term growth. Operational efficiencies and cash management should be areas of focus to improve financial health.

Income Statement

Suncorporation showed a significant improvement in net income, moving from a loss in 2024 to a substantial profit in 2025. The revenue growth rate was solid at 7.9% year-over-year. However, the EBIT and EBITDA margins were low, indicating potential challenges in operational efficiency. The gross profit margin also declined slightly, suggesting increased cost pressures.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of 89.6%, indicating financial stability and low leverage risk. The debt-to-equity ratio is low at 0.05, reflecting prudent financial management. The return on equity improved significantly, showcasing effective utilization of shareholder funds.

Cash Flow

The free cash flow turned negative in 2025, indicating cash flow challenges. The operating cash flow to net income ratio was negative, highlighting inefficiencies in converting profits into cash. The free cash flow to net income ratio also indicated a concerning trend, as cash generation from operations was insufficient.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.07B	10.84B	10.05B	37.45B	37.21B	26.66B
Gross Profit	2.79B	2.77B	2.96B	25.54B	26.34B	18.83B
EBITDA	5.29B	18.30B	-3.81B	15.51B	10.84B	1.75B
Net Income	18.80B	17.23B	-3.78B	6.88B	2.82B	47.38M
Balance Sheet
Total Assets	53.87B	53.13B	46.84B	41.76B	82.09B	49.79B
Cash, Cash Equivalents and Short-Term Investments	9.59B	9.95B	1.73B	3.18B	32.78B	32.53B
Total Debt	2.73B	2.55B	1.39B	454.28M	3.79B	6.45B
Total Liabilities	6.62B	5.52B	9.58B	6.74B	55.05B	28.96B
Stockholders Equity	47.25B	47.61B	37.26B	35.01B	27.04B	16.44B
Cash Flow
Free Cash Flow	-1.31B	-1.92B	2.22B	-14.57B	2.49B	5.43B
Operating Cash Flow	-1.09B	-1.67B	2.51B	-13.52B	3.63B	6.11B
Investing Cash Flow	3.01B	2.95B	-3.56B	-25.13B	4.02B	-910.83M
Financing Cash Flow	-1.29B	-829.42M	-385.21M	25.57B	-3.04B	3.60B

Suncorporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8650.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6736, the sentiment is Neutral. The current price of 8650 is below the 20-day moving average (MA) of 9937.00, above the 50-day MA of 8304.40, and above the 200-day MA of 7351.97, indicating a neutral trend. The MACD of 162.43 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 4.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6736.

Suncorporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6794	76 Outperform	¥56.17B	13.15	―	2.80%	9.24%	23.83%
6632	71 Outperform	¥186.80B	11.00	13.53%	1.28%	0.48%	-1.86%
6952	66 Neutral	$282.88B	50.49	2.56%	3.72%	-4.66%	-61.05%
6810	66 Neutral	¥91.19B	26.27	―	2.24%	3.71%	-3.32%
6736	64 Neutral	$255.52B	13.61	44.02%	1.16%	10.30%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6753	59 Neutral	¥556.73B	8.62	―	―	-9.17%	―

Suncorporation Corporate Events

Suncorporation Introduces Stock Compensation Plans and Share Benefit Regulations

Suncorporation has announced the establishment of Share Benefit Regulations for Directors and Employees, alongside the introduction of stock compensation plans, including BBT and J-ESOP. This move involves the disposal of treasury shares through a third-party allotment to Custody Bank of Japan, Ltd., aimed at incentivizing directors and employees by granting them shares based on performance and other factors. The initiative is expected to enhance employee motivation and align their interests with the company’s stock performance, potentially impacting the company’s operational dynamics and market positioning.

Suncorporation to Acquire 1.2 Million Shares to Boost Shareholder Value

Suncorporation has announced its decision to acquire up to 1,200,000 of its own shares, representing 5.39% of its total issued shares, as part of a strategy to improve capital efficiency and enhance shareholder returns. This move, approved by the Board of Directors, involves a maximum expenditure of 7 billion yen and will be executed through market purchases on the Tokyo Stock Exchange between August 2025 and August 2026.

Suncorporation Reports Significant Profit Growth in Q1 2025

Suncorporation reported its consolidated financial results for the three months ended June 30, 2025, showing a significant increase in profit attributable to owners of the parent, which rose by 755.8% year-on-year. Despite a slight decline in net assets and equity ratio, the company forecasts a substantial growth in net sales and ordinary profit for the fiscal year ending March 31, 2026, indicating strong future performance expectations.