Sakae Electronics Corporation (7567) AI Stock Analysis

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Sakae Electronics Corporation

(TSE/TYO:7567)

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Rating:44Neutral

Price Target:JPY 610.00▼(-3.02% Downside)

Action:reiterated

Date:11/07/26

The overall score is low, driven primarily by weak financial performance and bearish technicals. The company's thin margins and volatile cash flow are significant risks, while the stock's position below key moving averages and negative momentum suggest further downside. A strong, low-debt balance sheet and a reasonable valuation provide some support, but are not enough to offset the operational and market headwinds.

Positive Factors

Conservative leverageConservative and stable leverage gives Sakae financial resilience and reduces the burden of interest and refinancing obligations. A relatively strong equity base should preserve flexibility to fund operations or pursue opportunities through normal business fluctuations.

Negative Factors

Volatile revenue and marginsRepeated swings in revenue and profitability make earnings less predictable and weaken confidence in the durability of the recent recovery. Volatile operating performance can constrain planning, reduce reinvestment consistency, and make future profit growth harder to sustain.

Sakae Electronics Corporation (7567) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.19B
Dividend Yield: 1.75%
Average Volume (3M): 26.43K
Price to Earnings (P/E): 16.4
Beta (1Y): 0.94
Revenue Growth: 28.28%
EPS Growth: 696.07%
Country: Japan
Employees: 85
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Sakae Electronics Corporation Business Overview & Revenue Model

Company Description

Established in Tokyo, Japan, in 1967, Sakae Electronics Corporation operates as a leading Japanese distributor of electronic components. Their extensive product catalog addresses a wide array of industrial and technological requirements. This include...

Sakae Electronics Corporation Financial Statement Overview

Summary

Financial performance is mixed. Revenue growth of 12.5% is a positive signal, but profitability is weak with thin operating and net margins (1.9% and 1.6%). Cash flow is volatile and the operating cash flow coverage ratio is very low (0.011), indicating poor ability to service debt from operations. The balance sheet is a relative strength with low leverage (D/E 0.10), but return on equity is low at 2.4%.

Income Statement

40Negative

Balance Sheet

55Neutral

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	7.33B	7.33B	6.43B	8.37B	10.84B	9.01B
Gross Profit	1.17B	1.17B	1.03B	1.23B	1.75B	1.49B
EBITDA	178.13M	181.45M	80.22M	373.00M	934.95M	734.98M
Net Income	113.84M	113.84M	37.27M	230.74M	651.42M	531.66M
Balance Sheet
Total Assets	7.36B	7.36B	6.69B	7.55B	7.44B	6.56B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.09B	1.16B	1.60B	1.49B	1.15B
Total Debt	500.00M	500.00M	500.00M	500.00M	500.00M	515.89M
Total Liabilities	2.54B	2.54B	2.22B	2.99B	3.30B	3.03B
Stockholders Equity	4.82B	4.82B	4.47B	4.56B	4.14B	3.53B
Cash Flow
Free Cash Flow	0	25.06M	-327.61M	167.85M	398.75M	225.41M
Operating Cash Flow	0	25.06M	-325.96M	192.82M	473.18M	243.25M
Investing Cash Flow	0	-32.27M	-67.12M	-25.93M	-75.57M	181.22M
Financing Cash Flow	0	-50.79M	-50.79M	-60.94M	-51.45M	-256.88M

Sakae Electronics Corporation Technical Analysis

Technical Analysis SentimentPositive

Last Price629.00

Price Trends

50DMA622.98Positive

100DMA590.49Positive

200DMA550.22Positive

Market Momentum

MACD-4.28Negative

RSI52.21Neutral

STOCH64.54Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7567, the sentiment is Positive. The current price of 629.00 is above the 20-day moving average (MA) of 619.65, above the 50-day MA of 622.98, and above the 200-day MA of 550.22, indicating a bullish trend. The MACD of -4.28 indicates Negative momentum. The RSI at 52.21 is Neutral, neither overbought nor oversold. The STOCH value of 64.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7567.

Sakae Electronics Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7567 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6637	79Outperform	JPY 45.02B	10.19	―	1.77%	15.89%	2.08%
JP:5819	76Outperform	JPY 11.29B	9.63	―	4.24%	-0.88%	-1.47%
JP:6643	74Outperform	JPY 21.82B	7.09	―	3.19%	12.19%	39.80%
JP:6943	73Outperform	JPY 5.75B	5.70	―	3.29%	33.15%	―
JP:6905	61Neutral	JPY 50.84B	-18.99	―	4.45%	17.15%	-463.16%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7567	44Neutral	JPY 3.19B	16.45	―	1.75%	28.28%	696.07%

* General Sector Average

Performance Comparison

JP:7567 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7567	Sakae Electronics Corporation	629.00	166.11	35.89%
JP:5819	Canare Electric Co., Ltd.	1673.00	-109.23	-6.13%
JP:6637	Terasaki Electric Co., Ltd.	3455.00	-1353.83	-28.15%
JP:6643	Togami Electric Mfg.Co., Ltd.	4705.00	950.84	25.33%
JP:6905	Cosel Co., Ltd.	1236.00	102.77	9.07%
JP:6943	NKK SWITCHES CO., LTD.	6990.00	2597.56	59.14%

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 07, 2026

Sakae Electronics Corporation AI Stock Analysis