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SONOCOM Co., Ltd. (7902) AI Stock Analysis

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JP:7902

SONOCOM Co., Ltd.

(TSE/TYO:7902)

Select Model
Rating:71Outperform
Price Target:JPY 1,208.00â–²(15.05% Upside)
Action:reiterated
Date:08/17/26

The score is driven primarily by strong financial safety (near-zero debt and solid equity) and improving operating performance, partially offset by inconsistent cash-flow conversion. Technical signals are mixed/neutral, while valuation looks reasonable (P/E ~12) with a modest dividend yield providing limited additional support.

Positive Factors
Conservative balance sheetNear-zero debt and a large equity base materially lower financial risk and give management flexibility to fund investment, weather downturns, or pursue strategic initiatives without relying on external financing. This durability supports long-term solvency and preserves optionality.
Negative Factors
Volatile cash generationLarge swings in operating and free cash flow indicate working-capital or investment-timing sensitivity that undermines predictability of internal funding. This volatility can constrain consistent capex, dividends, or strategic spending and raises refinancing or liquidity risks in adverse cycles.

SONOCOM Co., Ltd. (7902) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%60%JP:7902+19.88%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 3.82B
Dividend Yield
1.24%
Average Volume (3M)
1,616
Price to Earnings (P/E)
11.6
Beta (1Y)
0.51
Revenue Growth
10.27%
EPS Growth
59.08%
Country
Japan
Employees
113
Sector
General
Sector Strength
55
Industry
Hardware, Equipment & Parts

SONOCOM Co., Ltd. Business Overview & Revenue Model

Company Description

Founded in 1962 and headquartered in Tokyo, Japan, Sonocom Co.,Ltd. (which operated as Sowano Industrial Co., Ltd. until its rebranding in April 1990) specializes in manufacturing and distributing a comprehensive array of screen printing products for...

How the Company Makes Money

null

SONOCOM Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet with negligible debt and solid equity provides high financial stability. Income statement shows re-accelerating revenue and a notable step-up in operating profit in 2026, but margin/earnings quality has been volatile. Cash flow is the main weakness, with multiple years of negative operating and free cash flow despite positive earnings, though 2026 rebounded to positive OCF/FCF.

Income Statement

76Positive

Balance Sheet

92Very Positive

Cash Flow

58Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue2.76B2.71B2.42B2.13B2.24B2.29B
Gross Profit863.54M857.97M734.04M611.29M731.63M806.21M
EBITDA562.14M504.63M478.19M290.00M395.80M483.24M
Net Income328.50M304.45M210.72M240.90M167.82M290.17M
Balance Sheet
Total Assets10.41B10.14B9.56B9.65B9.13B9.49B
Cash, Cash Equivalents and Short-Term Investments4.87B4.51B4.06B4.55B4.63B4.40B
Total Debt0004.35M43.68M7.53M
Total Liabilities812.28M800.57M653.74M870.23M647.89M1.07B
Stockholders Equity9.59B9.34B8.91B8.78B8.48B8.42B
Cash Flow
Free Cash Flow0266.84M-222.12M221.83M-327.18M311.81M
Operating Cash Flow0524.67M-79.40M456.71M-111.39M415.90M
Investing Cash Flow0-256.87M-328.55M-279.84M-27.34M-25.08M
Financing Cash Flow0-43.50M-43.14M-35.84M-108.51M-36.55M

SONOCOM Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1050.00

Price Trends

50DMA1099.76Negative
100DMA1092.98Negative
200DMA1095.24Negative

Market Momentum

MACD-16.31Positive
RSI35.48Neutral
STOCH11.11Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7902, the sentiment is Negative. The current price of 1050.00 is below the 20-day moving average (MA) of 1082.60, below the 50-day MA of 1099.76, and below the 200-day MA of 1095.24, indicating a bearish trend. The MACD of -16.31 indicates Positive momentum. The RSI at 35.48 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7902.

SONOCOM Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7902 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6866JP:686678OutperformJPY 120.91B15.44―2.48%16.76%35.84%
JP:6850JP:685072OutperformJPY 30.96B14.32―2.86%1.92%9.05%
JP:7902JP:790271OutperformJPY 3.85B11.62―1.24%10.27%59.08%
JP:6853JP:685371OutperformJPY 18.86B19.14―2.91%2.51%0.17%
JP:6626JP:662668NeutralJPY 26.31B7.91―2.03%3.68%-4.84%
JP:6858JP:685866NeutralJPY 8.30B9.75―3.65%15.62%50.30%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%JP:7902JP:6626JP:6850JP:6853JP:6858JP:6866Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7902 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7902SONOCOM Co., Ltd.1050.00172.1219.61%
JP:6626Semitec Corporation2314.00-12.57-0.54%
JP:6850Chino Corporation1746.00404.1430.12%
JP:6853Kyowa Electronic Instruments Co., Ltd.739.0064.119.50%
JP:6858Ono Sokki Co., Ltd.740.00167.7229.31%
JP:6866Hioki E.E.Corporation8860.003080.7153.31%
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 17, 2026