Sunny Optical Technology (Group) (SOTGY) AI Stock Analysis

• Market Cap: $8.49B
• Dividend Yield: 0.31%
• Average Volume (3M): 231.00
• Price to Earnings (P/E): 22.6
• Beta (1Y): 1.31
• Revenue Growth: 19.19%
• EPS Growth: 143.79%
• Country: US
• Employees: 33,884
• Sector: Technology
• Sector Strength: 80
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.08
• Shares Outstanding: 109,480,480
• 10 Day Avg. Volume: 161
• 30 Day Avg. Volume: 231
• PEG Ratio: -0.93
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 54.26
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $86.00 ▲(9.26%Upside)

Sunny Optical Technology exhibits strong financial performance with robust revenue growth and profitability. However, technical indicators suggest weak momentum, and the stock appears overvalued based on its P/E ratio. The low dividend yield further limits its attractiveness. Overall, while the company's fundamentals are strong, market conditions and valuation metrics pose challenges.

Sunny Optical Technology (Group) Business Overview & Revenue Model

Company Description

Sunny Optical Technology (Group) Co., Ltd. (SOTGY) is a leading manufacturer and supplier in the optical and optical-related industries, focusing on the design, research, development, manufacturing, and sales of optical and optical-related products. The company operates in several sectors including optical components, optoelectronic products, and optical instruments. Its core products include lens sets for cameras and smartphones, automotive lenses, microscopes, and other precision optical instruments. Sunny Optical is renowned for its cutting-edge technology and innovative solutions that serve a wide range of industries including consumer electronics, automotive, and industrial sectors.

How the Company Makes Money

Sunny Optical makes money primarily through the manufacturing and sale of optical components and products. The company's revenue streams are largely driven by its extensive product portfolio, which includes camera modules, lenses for smartphones, automotive lenses, and optical instruments. A significant portion of its revenue comes from supplying these products to major smartphone manufacturers and automotive companies, leveraging long-term partnerships and contracts. Sunny Optical's focus on innovation and quality allows it to maintain competitive pricing and high demand for its products. Additionally, its ongoing investment in research and development ensures a steady pipeline of new and improved offerings, further contributing to its revenue growth.

Sunny Optical Technology (Group) Financial Statement Overview

Summary

Sunny Optical Technology demonstrates strong financial health with impressive revenue growth and profitability. The balance sheet is robust with low leverage and solid equity utilization. Cash flow management shows improvement, though some volatility in non-operational cash flows should be monitored. Overall, the company is on a positive financial trajectory.

Income Statement

Sunny Optical has shown robust revenue growth, with a 20.86% increase from 2023 to 2024. The gross profit margin stands at 18.29%, and the net profit margin is 7.05%, reflecting solid profitability. Additionally, the EBIT margin is 6.56% and the EBITDA margin is 15.33%, indicating efficient operational performance. Overall, the income statement reflects strong growth and profitability.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.25, indicating low financial leverage. The return on equity is 10.90%, showcasing efficient utilization of equity. The equity ratio is 46.03%, reflecting a stable financial position. While the balance sheet is strong, the slight increase in total liabilities is a point to monitor.

Cash Flow

Sunny Optical's free cash flow grew significantly by 576.48% from 2023 to 2024, highlighting improved cash efficiency. The operating cash flow to net income ratio is 1.28, and the free cash flow to net income ratio is 0.44, indicating good cash conversion. Despite these positives, fluctuations in investing and financing cash flows suggest caution.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
31.68B	38.29B	31.68B	33.20B	37.50B	38.00B
	Gross Profit
4.59B	7.01B	4.59B	6.60B	8.74B	8.70B
	EBIT
576.65M	2.51B	882.12M	2.51B	5.06B	5.18B
	EBITDA
2.59B	5.87B	3.87B	4.38B	6.76B	6.75B
	Net Income Common Stockholders
1.10B	2.70B	1.10B	2.41B	4.99B	4.87B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.67B	21.36B	21.51B	18.12B	15.04B	11.63B
	Total Assets
11.64B	53.81B	50.30B	43.00B	38.77B	35.44B
	Total Debt
904.35M	6.14B	5.78B	6.44B	6.21B	6.11B
	Net Debt
437.42M	1.63B	-7.30B	-595.82M	603.61M	3.27B
	Total Liabilities
6.72B	28.51B	27.42B	20.82B	17.88B	18.61B
	Stockholders Equity
4.90B	24.76B	22.42B	21.84B	20.59B	16.60B
Cash Flow		Free Cash Flow
419.72M	1.19B	176.69M	4.33B	4.45B	4.48B
	Operating Cash Flow
2.66B	3.46B	2.66B	7.38B	6.98B	7.16B
	Investing Cash Flow
-1.49B	-10.44B	-1.49B	-3.83B	-2.90B	-5.98B
	Financing Cash Flow
4.86B	-1.57B	4.86B	-2.16B	-1.24B	-222.25M

Sunny Optical Technology (Group) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOTGY, the sentiment is Negative. The current price of 78.71 is below the 20-day moving average (MA) of 83.63, below the 50-day MA of 86.89, and below the 200-day MA of 81.77, indicating a bearish trend. The MACD of -2.55 indicates Positive momentum. The RSI at 38.69 is Neutral, neither overbought nor oversold. The STOCH value of 14.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOTGY.

Sunny Optical Technology (Group) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSLR	77 Outperform	$16.70B	13.24	16.77%	―	19.42%	23.19%
COHR	73 Outperform	$12.62B	―	1.25%	―	21.68%	92.07%
SWKS	71 Outperform	$10.72B	27.88	6.70%	3.89%	-12.90%	-51.90%
MTSI	69 Neutral	$9.20B	138.48	-7.70%	―	32.63%	-233.25%
ENTG	66 Neutral	$11.34B	36.67	8.65%	0.53%	-3.83%	-1.93%
Sector *	61 Neutral	$11.51B	10.19	-6.93%	2.94%	7.57%	-9.20%
SOTGY	61 Neutral	$8.49B	22.61	11.45%	0.31%	19.19%	143.79%