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

• Market Cap: $10.57B
• Dividend Yield: 0.25%
• Average Volume (3M): 386.00
• Price to Earnings (P/E): 28.1
• Beta (1Y): 1.14
• Revenue Growth: 14.47%
• EPS Growth: 13.21%
• Country: US
• Employees: 33,884
• Sector: Technology
• Sector Strength: 54
• Industry: Hardware & Equipment
• EPS (TTM): 3.43
• Shares Outstanding: 109,480,480
• 10 Day Avg. Volume: 432
• 30 Day Avg. Volume: 386
• PEG Ratio: 0.20
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.44
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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

Sunny Optical Technology's stock score reflects a mix of financial challenges and strong technical momentum. The company struggles with declining revenue and cash flow, impacting its financial performance. However, the stock exhibits strong technical indicators, suggesting positive market sentiment. The high P/E ratio and low dividend yield indicate overvaluation, which weighs down the overall score. Improvements in profitability and cash flow generation are crucial for a more favorable outlook.

Sunny Optical Technology (Group) Business Overview & Revenue Model

Company Description

Sunny Optical Technology (Group) Company Limited is a leading Chinese manufacturer specializing in optical components and products. The company operates primarily in the sectors of optical and optoelectronic products, with a strong focus on producing optical lenses, camera modules, and optical instruments. Sunny Optical is recognized for its innovation in technology and its ability to supply high-quality products to various industries, including consumer electronics, automotive, and industrial applications.

How the Company Makes Money

Sunny Optical Technology makes money primarily through the manufacturing and sale of optical components and optoelectronic products. The company's key revenue streams include sales of optical lenses, which are used in smartphones, digital cameras, and other consumer electronics, as well as camera modules, which are crucial components in mobile devices and automotive applications. Additionally, Sunny Optical generates revenue from its optical instruments segment, which provides products for industrial and scientific applications. The company benefits from strategic partnerships with major global electronics manufacturers, which help secure a steady demand for its products. Its strong research and development capabilities also enable it to maintain a competitive edge in the rapidly evolving optical technology market.

Sunny Optical Technology (Group) Financial Statement Overview

Summary

Sunny Optical Technology is facing challenges with declining revenue and profitability margins, which have impacted its income statement. The balance sheet remains strong with low leverage and a solid equity position. However, the cash flow statement reflects a significant reduction in free cash flow, which may pose risks to future liquidity. Overall, while the company maintains a stable financial structure, improvements in revenue and cash flow generation are needed to enhance its financial performance.

Income Statement

Sunny Optical Technology's income statement shows a decline in total revenue from the previous year, resulting in a negative revenue growth rate of -4.57% for 2023. Gross profit margin stands at 14.49%, while net profit margin is 3.47%, indicating a decrease from the previous years. EBIT and EBITDA margins are also lower compared to historical figures, at 1.82% and 8.16% respectively, highlighting challenges in maintaining profitability.

Balance Sheet

The balance sheet of Sunny Optical Technology is relatively strong with a debt-to-equity ratio of 0.26, reflecting low financial leverage. The company has improved its equity ratio to 44.57%, indicating a solid capital structure. Return on equity is 4.90%, a decline from previous years, suggesting reduced efficiency in generating profits from shareholders' equity.

Cash Flow

The cash flow statement reveals a significant drop in free cash flow from the previous year, with a free cash flow growth rate of -95.85%. The operating cash flow to net income ratio is 2.42, suggesting strong cash generation relative to net income. However, the free cash flow to net income ratio has decreased sharply to 0.16, indicating potential challenges in sustaining free cash flow levels.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
31.68B	33.20B	37.50B	38.00B	37.85B
	Gross Profit
4.59B	6.60B	8.74B	8.70B	7.75B
	EBIT
882.12M	2.77B	5.50B	5.69B	4.70B
	EBITDA
3.87B	4.71B	7.26B	7.32B	5.98B
	Net Income Common Stockholders
1.10B	2.41B	4.99B	4.87B	3.99B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.51B	18.09B	15.01B	11.61B	7.65B
	Total Assets
50.30B	43.00B	38.77B	35.44B	30.69B
	Total Debt
5.78B	6.44B	6.21B	6.11B	5.44B
	Net Debt
-7.30B	-595.82M	603.61M	3.27B	3.52B
	Total Liabilities
27.42B	20.82B	17.88B	18.61B	17.97B
	Stockholders Equity
22.42B	21.84B	20.59B	16.60B	12.55B
Cash Flow		Free Cash Flow
176.69M	4.26B	4.39B	4.36B	1.49B
	Operating Cash Flow
2.66B	7.38B	6.98B	7.16B	4.66B
	Investing Cash Flow
-1.49B	-3.83B	-2.90B	-5.98B	-3.56B
	Financing Cash Flow
4.86B	-2.16B	-1.24B	-222.25M	-1.44B

Sunny Optical Technology (Group) Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 96.88
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 96.88 is below the 20-day moving average (MA) of 111.30, below the 50-day MA of 104.25, and above the 200-day MA of 76.66, indicating a neutral trend. The MACD of -0.97 indicates Positive momentum. The RSI at 34.57 is Neutral, neither overbought nor oversold. The STOCH value of 14.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SOTGY.

Sunny Optical Technology (Group) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOTGY	66 Neutral	$10.57B	28.10	11.45%	0.25%	14.47%	13.21%
MKSI	65 Neutral	$6.16B	32.54	7.93%	0.97%	-0.99%	―
VIAV	60 Neutral	$2.57B	―	-5.53%	―	-0.67%	-856.71%
Sector *	58 Neutral	$21.97B	10.63	-18.43%	2.40%	4.67%	-24.47%
COHR	53 Neutral	$11.72B	―	0.88%	―	14.61%	85.44%
LITE	50 Neutral	$4.92B	―	-48.63%	―	-1.72%	-94.98%