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Santec Corporation (6777) AI Stock Analysis

JP:6777

Santec Corporation

(TSE/TYO:6777)

Select Model
Rating:75Outperform
Price Target:JPY 19,710.00â–²(14.39% Upside)
Action:reiterated
Date:10/31/26

The overall score is heavily supported by Santec Corporation's exceptional fundamental health, characterized by explosive earnings growth, expanding margins, and a pristine balance sheet. Its valuation is also reasonable relative to its robust growth profile. However, the score is weighed down significantly by very weak technical indicators, as the stock is currently in a strong downtrend and trading well below all major moving averages.

Positive Factors
Revenue GrowthStrong multi-year revenue expansion indicates growing demand for Santec’s optical measurement and photonics products. The latest annual increase of about 31.8% supports continued market traction, broader customer adoption, and a larger base from which future earnings can develop.
Negative Factors
Cyclical DemandUneven annual growth suggests that demand for optical hardware may be sensitive to customer investment cycles. This variability can make revenue and earnings progression less predictable, complicating capacity planning and increasing the risk that strong recent performance does not continue evenly.

Santec Corporation (6777) vs. iShares MSCI Japan ETF (EWJ)

-50%0%50%100%150%200%250%300%JP:6777+101.74%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 206.04B
Dividend Yield
1.45%
Average Volume (3M)
148.03K
Price to Earnings (P/E)
22.5
Beta (1Y)
1.81
Revenue Growth
45.04%
EPS Growth
85.49%
Country
Japan
Employees
427
Sector
Technology
Sector Strength
61
Industry
Hardware, Equipment & Parts

Santec Corporation Business Overview & Revenue Model

Company Description

santec Holdings Corporation, originally founded in Komaki, Japan, in 1979 as Santec Corporation and rebranded in April 2023, is a global leader in the development, manufacturing, and distribution of advanced optical components and systems. The compan...

How the Company Makes Money

Santec makes money primarily by selling optical measurement and test equipment and related photonics products to corporate customers in the optical communications and photonics supply chain. Revenue is generated from (1) product sales of optical test...

Santec Corporation Financial Statement Overview

Summary

Scores exceptionally high due to rapid revenue and net income growth, expanding profit margins, a fortress-like balance sheet with virtually no debt, and robust free cash flow generation.

Income Statement

95Very Positive

Balance Sheet

92Very Positive

Cash Flow

93Very Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue34.68B31.51B24.03B18.87B15.25B8.89B
Gross Profit19.72B18.05B13.78B10.20B8.03B4.30B
EBITDA12.79B11.53B8.14B6.57B4.88B2.30B
Net Income8.99B7.67B5.07B3.85B3.00B1.65B
Balance Sheet
Total Assets39.53B39.12B29.53B25.83B19.61B16.35B
Cash, Cash Equivalents and Short-Term Investments15.30B16.32B12.65B9.45B6.64B4.72B
Total Debt2.66B2.82B2.91B2.13B1.16B1.28B
Total Liabilities10.69B11.28B8.10B8.09B5.27B4.48B
Stockholders Equity28.84B27.84B21.43B17.74B14.33B11.87B
Cash Flow
Free Cash Flow06.56B4.27B2.90B2.62B1.01B
Operating Cash Flow08.10B6.00B3.28B3.11B1.41B
Investing Cash Flow0-3.94B-1.88B-194.81M-788.10M-2.10B
Financing Cash Flow0-2.48B-700.47M-213.34M-773.99M832.59M

Santec Corporation Technical Analysis

Technical Analysis SentimentNegative
Last Price17230.00

Price Trends

50DMA20126.05Negative
100DMA21037.63Negative
200DMA20797.87Negative

Market Momentum

MACD-938.01Positive
RSI36.13Neutral
STOCH30.96Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6777, the sentiment is Negative. The current price of 17230.00 is below the 20-day moving average (MA) of 20638.00, below the 50-day MA of 20126.05, and below the 200-day MA of 20797.87, indicating a bearish trend. The MACD of -938.01 indicates Positive momentum. The RSI at 36.13 is Neutral, neither overbought nor oversold. The STOCH value of 30.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6777.

Santec Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:6777 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7701JP:770180OutperformJPY 1.32T19.2312.06%1.57%6.01%28.51%
JP:6777JP:677775OutperformJPY 206.04B22.5334.43%1.45%45.04%85.49%
JP:6856JP:685669NeutralJPY 923.22B21.1312.45%2.40%12.48%18.44%
JP:6754JP:675466NeutralJPY 366.60B23.7910.91%2.05%21.30%35.43%
JP:6951JP:695163NeutralJPY 354.57B22.39―2.11%-18.36%-19.56%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:6965JP:696551NeutralJPY 664.91B36.245.39%1.79%9.93%23.82%

* Technology Sector Average

Performance Comparison

0%100%200%JP:6777JP:6754JP:6965JP:6856JP:7701JP:6951Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6777 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6777Santec Corporation17230.008393.0694.98%
JP:6754Anritsu Corporation2680.00373.5916.20%
JP:6965Hamamatsu Photonics KK2117.00358.6520.40%
JP:6856Horiba 21655.007948.2557.99%
JP:7701Shimadzu Corporation4386.00274.476.68%
JP:6951JEOL Ltd.6856.001735.6333.90%
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: Oct 30, 2026