Sun-Wa Technos Corporation (8137) AI Stock Analysis

• Market Cap: ¥41.71B
• Dividend Yield: 4.39%
• Average Volume (3M): 22.18K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.86
• Revenue Growth: -10.70%
• EPS Growth: -50.96%
• Country: JP
• Employees: 1,071
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 16.16
• Shares Outstanding: 16,044,000
• 10 Day Avg. Volume: 21,560
• 30 Day Avg. Volume: 22,183
• PEG Ratio: -0.26
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 3.56
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥2,983.00 ▲(9.55% Upside)

Sun-Wa Technos Corporation shows strong financial stability with a solid balance sheet and positive cash flow, which are the most significant factors in its score. Technical indicators support a positive trend, while valuation metrics suggest moderate attractiveness. The absence of earnings call and corporate events data did not impact the score.

Sun-Wa Technos Corporation Business Overview & Revenue Model

Company Description

Sun-Wa Technos Corporation engages in the distribution of electrical machinery, electronics, and general machinery in Japan, rest of Asia, Europe, the United States, and internationally. The company offers AC servo, linear, and various other motors; clean room robots and vacuum chamber robots for semiconductor manufacturing devices; inverters, power substations, other facility works, etc.; and factory automation (FA) equipment and systems, such as machine controllers and vision systems, power conditioners and supply devices, and electrical engineering works. It also sells power supplies, connectors, semiconductors, sensors, miniature fans, liquid crystal displays, touch panels, industrial PCs, CPU boards, memory modules, etc.; assembled boards; and optical components, including light emitting diodes, electronics components, office automation (OA) related equipment, FA systems, and telecommunications and information equipment, as well as electric components and traffic control systems for railroad trains. In addition, the company offers general machinery products, such as industrial robots, clean room robots, semiconductor and liquid crystal related manufacturing equipment, conveying devices and facilities for logistics, substrate mounting devices, various inspection devices, environmental related equipment and devices, air conditioners and kitchen facilities, wind- and hydro-power equipment, and nursing care and medical equipment, as well as maintenance services. Its products are used in various fields, such as Internet of Things, food, and pharmaceutical industries. The company was formerly known as Yamada Kogyo Corporation and changed its name to Sun-Wa Technos Corporation in April 1993. Sun-Wa Technos Corporation was founded in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sun-Wa Technos Corporation generates revenue through the sale of electronic components and products to a wide range of industries, including telecommunications and consumer electronics. Its revenue model is primarily based on wholesale distribution, where it earns margins on the products it sells. Key revenue streams include direct sales of electronic components, system integration services, and long-term contracts with major manufacturers. The company benefits from partnerships with leading technology firms, allowing it to offer competitive products and solutions. Additionally, its expertise in technical support and service provision helps to establish recurring revenue from existing clients, enhancing overall profitability.

Sun-Wa Technos Corporation Financial Statement Overview

Summary

Sun-Wa Technos Corporation exhibits strong financial health with a solid balance sheet and positive cash flow generation. However, challenges in revenue growth and declining margins impact future profitability. The company needs to focus on improving operational efficiency and revenue growth to sustain financial performance.

Income Statement

Sun-Wa Technos Corporation experienced fluctuating revenue over the past years, with a significant drop in the latest period. The gross profit margin was relatively stable, but the net profit margin decreased, indicating challenges in cost management or pricing power. EBIT and EBITDA margins also declined, suggesting reduced operational efficiency. Overall, the income statement shows some profitability but highlights the need for better revenue growth management.

Balance Sheet

The balance sheet is strong, with a healthy equity ratio indicating financial stability and low leverage. The debt-to-equity ratio is manageable, suggesting prudent use of debt. Return on equity has decreased, reflecting reduced profitability. Despite this, the company maintains a solid foundation with consistent stockholders' equity growth.

Cash Flow

Cash flow analysis reveals robust free cash flow generation, especially in the latest period, which is critical for supporting operations and growth. Operating cash flow has improved significantly, covering net income, though fluctuations in previous years suggest some volatility in cash management. The positive free cash flow to net income ratio indicates good cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	139.06B	139.58B	166.14B	181.01B	154.41B	134.77B
Gross Profit	18.79B	19.15B	21.78B	23.04B	18.77B	14.22B
EBITDA	3.77B	4.44B	7.95B	8.24B	5.57B	2.89B
Net Income	2.08B	2.44B	5.01B	5.49B	3.58B	1.79B
Balance Sheet
Total Assets	90.58B	93.08B	98.71B	106.58B	93.08B	76.38B
Cash, Cash Equivalents and Short-Term Investments	21.84B	23.37B	19.08B	14.14B	14.05B	13.11B
Total Debt	8.80B	8.78B	12.31B	9.91B	8.05B	7.23B
Total Liabilities	43.36B	43.96B	50.74B	62.10B	55.06B	41.35B
Stockholders Equity	47.22B	49.11B	47.97B	44.48B	38.02B	35.03B
Cash Flow
Free Cash Flow	0.00	9.04B	4.11B	-619.00M	609.00M	1.54B
Operating Cash Flow	0.00	9.10B	4.23B	-545.00M	792.00M	1.59B
Investing Cash Flow	0.00	-389.00M	883.00M	-731.00M	244.00M	-141.00M
Financing Cash Flow	0.00	-5.22B	-608.00M	906.00M	-580.00M	-309.00M

Sun-Wa Technos Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2723.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8137, the sentiment is Positive. The current price of 2723 is above the 20-day moving average (MA) of 2667.90, above the 50-day MA of 2609.70, and above the 200-day MA of 2290.44, indicating a bullish trend. The MACD of 35.11 indicates Negative momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 86.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8137.

Sun-Wa Technos Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8093	―	¥21.79B	5.24	―	3.74%	32.77%	280.02%
8137	―	¥41.71B	19.23	―	4.39%	-10.70%	-50.96%
8023	―	¥14.60B	9.93	―	4.46%	-5.42%	-29.21%
9880	―	¥22.99B	24.56	―	3.99%	-3.90%	-44.26%
7537	―	¥28.54B	6.40	―	5.53%	-7.46%	7.37%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8141	―	$30.57B	58.59	1.11%	1.39%	-35.50%	-76.47%

Sun-Wa Technos Corporation Corporate Events

Sun-Wa Technos Reports Decline in Q1 Profits Amid Market Recovery

Sun-Wa Technos Corporation reported a decline in both sales and profits for the first quarter of FY03/26, attributed to decreased sales, lower gross profit margins, increased SG&A expenses, and exchange rate impacts. Despite these challenges, the company observed a recovery trend in demand across various industries, with orders received increasing by 9.7% year-on-year. However, uncertainties such as U.S. tariff policies and U.S.-China trade tensions persist, potentially affecting future profitability. The company aims to maintain stable dividends and plans to enhance its shareholder benefit system by March 2026.

Sun-Wa Technos Reports Decline in Q1 2025 Results, Projects Recovery

Sun-Wa Technos Corporation reported a decline in its financial performance for the three months ended June 30, 2025, with net sales slightly decreasing by 1.7% and significant drops in operating and ordinary profits by 58.6% and 51.8% respectively. Despite these challenges, the company forecasts a positive outlook for the fiscal year ending March 31, 2026, with expected growth in net sales by 11.0% and a modest increase in profit attributable to owners of the parent by 6.8%, indicating potential recovery and strategic adjustments to improve its market position.