Sigma Koki Co., Ltd. (7713) AI Stock Analysis

• Market Cap: ¥11.21B
• Dividend Yield: 2.65%
• Average Volume (3M): 17.08K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.55
• Revenue Growth: 3.28%
• EPS Growth: 43.48%
• Country: JP
• Employees: 526
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 47.70
• Shares Outstanding: 7,552,628
• 10 Day Avg. Volume: 14,980
• 30 Day Avg. Volume: 17,083
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,698.00
• Price Target Upside: 7.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥1,698.00 ▲(7.26% Upside)

Sigma Koki Co., Ltd. scores well due to its strong financial performance, particularly in revenue growth and balance sheet strength. However, cash flow issues and technical indicators suggesting overbought conditions temper the overall score. The stock's reasonable valuation and dividend yield provide a solid investment case, but investors should be cautious of potential short-term volatility.

Sigma Koki Co., Ltd. Business Overview & Revenue Model

Company Description

Sigmakoki Co., Ltd., together with its subsidiaries, provides optical equipment products in Japan. The company offers opto-mechanics/manual stages and holders, which include stages, holders, bases, rods, poles, clamps, cage systems stages, etc.; and optics/coating products, including multi-element optics, mirrors, beam splitters, filters, lenses, prisms, polarizers, laser crystals, nonlinear crystals, substrates, windows, etc. It also provides motion control application systems that comprise automatic positioning devices, optical measurement devices, and software for positioning and measurement; and laser system products, including optical modules, lens units, laser processing systems, laser application system products, etc. In addition, the company offers bio-medical related products, such as micromanipulation systems, motorized stage systems for microscope, core units for microscopy, bio and medical devices, etc.; and optical application system products consisting optical fiber alignment systems, optical systems for observation, and contracted and custom-made products. Sigmakoki Co., Ltd. was incorporated in 1977 and is headquartered in Hidaka, Japan.

How the Company Makes Money

Sigma Koki generates revenue primarily through the sale of its precision measuring instruments and optical devices. The company has established key revenue streams through direct sales to manufacturers and industrial clients, as well as partnerships with distributors and resellers that expand its market reach. Additionally, Sigma Koki benefits from a recurring revenue model through maintenance services and upgrades for its products. Significant partnerships with industry leaders enhance its product offerings and market presence, contributing to stable earnings and growth.

Sigma Koki Co., Ltd. Financial Statement Overview

Summary

Sigma Koki Co., Ltd. exhibits strong revenue growth and a robust balance sheet with minimal leverage. However, cash flow challenges, as indicated by negative free cash flow growth and low operating cash flow to net income ratio, need addressing to ensure long-term financial health.

Income Statement

Sigma Koki Co., Ltd. demonstrates strong revenue growth with a 51% increase in the latest year, indicating robust demand for its products. The company maintains healthy profitability with a gross profit margin of 37.35% and a net profit margin of 8.51%. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, which may suggest rising operational costs or pricing pressures.

Balance Sheet

The balance sheet is exceptionally strong, with a very low debt-to-equity ratio of 0.011, indicating minimal leverage and financial risk. The equity ratio stands at 86.86%, showcasing a solid capital structure. Return on equity is moderate at 5.58%, reflecting stable but not aggressive returns on shareholder investments.

Cash Flow

The cash flow statement reveals challenges, with a negative free cash flow growth rate and a free cash flow to net income ratio of -0.19, indicating cash flow issues. The operating cash flow to net income ratio is 0.22, suggesting that cash generation from operations is not fully covering net income, which could be a concern if it persists.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.52B	11.58B	11.21B	11.37B	10.35B	8.77B
Gross Profit	4.34B	4.33B	4.28B	4.44B	4.08B	3.36B
EBITDA	1.45B	1.81B	1.38B	2.55B	1.96B	1.55B
Net Income	730.83M	986.02M	687.22M	1.49B	1.17B	822.65M
Balance Sheet
Total Assets	21.39B	20.34B	20.95B	20.63B	18.51B	17.24B
Cash, Cash Equivalents and Short-Term Investments	6.48B	5.88B	6.50B	6.92B	5.73B	5.34B
Total Debt	415.26M	204.14M	508.19M	818.25M	410.55M	659.73M
Total Liabilities	3.82B	2.57B	3.80B	4.30B	3.54B	3.37B
Stockholders Equity	17.46B	17.67B	17.05B	16.24B	14.88B	13.80B
Cash Flow
Free Cash Flow	0.00	-73.81M	129.14M	521.35M	786.58M	1.39B
Operating Cash Flow	0.00	379.92M	1.41B	983.00M	942.75M	1.58B
Investing Cash Flow	0.00	-418.34M	-1.46B	182.91M	-708.19M	-1.49B
Financing Cash Flow	0.00	-601.30M	-618.50M	-112.92M	-532.34M	-370.02M

Sigma Koki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1583.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7713, the sentiment is Positive. The current price of 1583 is above the 20-day moving average (MA) of 1527.90, above the 50-day MA of 1422.38, and above the 200-day MA of 1367.44, indicating a bullish trend. The MACD of 46.61 indicates Negative momentum. The RSI at 68.44 is Neutral, neither overbought nor oversold. The STOCH value of 55.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7713.

Sigma Koki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6859	80 Outperform	¥79.42B	14.48	10.59%	2.68%	3.74%	4.01%
7713	74 Outperform	¥11.21B	11.37	―	2.65%	3.28%	43.48%
6863	72 Outperform	¥13.24B	9.91	9.32%	4.86%	4.80%	32.85%
6853	69 Neutral	¥19.25B	18.17	5.88%	3.12%	2.10%	4.70%
6864	66 Neutral	¥9.71B	26.76	3.59%	2.31%	4.03%	-2.88%
6867	48 Neutral	¥2.31B	-649.50	-5.78%	2.93%	-4.70%	97.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%