SANTO CORPORATION (1788) AI Stock Analysis

• Market Cap: ¥3.29B
• Dividend Yield: 2.11%
• Average Volume (3M): 966.00
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.30
• Revenue Growth: 21.66%
• EPS Growth: 385.30%
• Country: JP
• Employees: 117
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 686,000
• 10 Day Avg. Volume: 1,970
• 30 Day Avg. Volume: 966
• PEG Ratio: 0.14
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -51.61
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥6,182.00 ▲(27.86% Upside)
• Action: Reiterated Date: 11/14/25
• Date: Action: Reiterated 11/14/25

SANTO CORPORATION's stock is supported by strong technical indicators and a solid valuation, with a P/E ratio suggesting it is undervalued. Financial performance is robust, though improvements in profitability and cash flow management are needed. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Low Leverage

Extremely low leverage and a strong equity base reduce financial risk and provide durable funding flexibility. This balance sheet strength supports capex, bidding on large projects, and resilience through industry cycles without heavy interest burdens or urgent refinancing needs.

Strong Revenue Growth

High reported revenue growth indicates expanding market traction and scale potential. Sustained top-line expansion over months supports investment in operations, improves fixed-cost absorption, and enhances the company's ability to capture more profitable contracts over time.

Improving Operating Margins

Rising gross and operating margins signal better cost control and operational efficiency. If sustained, this structural improvement can convert revenue growth into durable earnings gains, strengthen cash generation over time, and provide scope to invest or raise returns for shareholders.

Negative Factors

Negative Free Cash Flow Growth

Persistent negative free cash flow growth suggests capital expenditure or working capital needs outpacing operating cash inflows. Over months this can limit reinvestment, pressure liquidity, and increase reliance on external financing, constraining strategic flexibility.

Low Net Profit Margin

A sub-3% net margin provides a thin buffer against cost increases or contract price pressure. Structurally low profitability limits retained earnings accumulation and makes returns sensitive to cyclical swings, reducing long-term capacity to fund growth internally.

Modest Return on Equity

ROE around the mid-single digits indicates modest capital efficiency. Over a multi-month horizon this constrains shareholder value creation unless management improves asset utilization, margin expansion, or pursues higher-return investments or restructuring.

SANTO CORPORATION Business Overview & Revenue Model

Company Description

Santo Co.,Ltd. engages in the construction contracting business in Japan. The company provides general civil engineering works, such as mountain and flood control works, dam/river construction works, road/bridge construction works, land preparation works, golf course construction works, agricultural civil engineering works, dredging works, ground improvement works, water and sewage works, land development works, port/airport related works, and road works; paving works for land, roads, etc.; special greening works; and underground engineering services. It also undertakes general construction works, including hotels, office/government buildings, factories, stores, warehouse/distribution facilities, apartments/residences, educational and cultural facilities, medical/welfare facilities, temples and shrines, schools/hospitals, amusement facilities, reforms, as well as rental/condominium construction works. In addition, the company provides environmental planning, research, design, supervision, construction, and operation, as well as real estate sales, rentals, brokerages, management, and appraisals. Further, it is involved in the development of land and condominiums/buildings. The company was founded in 1952 and is headquartered in Ritto, Japan.

How the Company Makes Money

SANTO CORPORATION generates revenue through multiple streams, primarily from the sale of its food and beverage products to retailers, wholesalers, and directly to consumers. The company leverages its strong brand reputation and extensive distribution network to maximize sales across different regions. Key revenue streams include wholesale distribution of packaged foods, direct-to-consumer sales through e-commerce platforms, and partnerships with major retailers for exclusive product placements. Additionally, SANTO CORPORATION benefits from strategic alliances with local producers and suppliers, ensuring a steady supply chain and cost-effective sourcing, which further enhances its profitability.

SANTO CORPORATION Financial Statement Overview

Summary

SANTO CORPORATION demonstrates strong revenue growth and operational efficiency, supported by a robust balance sheet with low leverage. However, profitability margins and cash flow management present areas for improvement.

Income Statement

SANTO CORPORATION has shown a consistent revenue growth trend with an 8.21% increase in the latest year. The gross profit margin improved to 12.31%, indicating better cost management. However, the net profit margin remains relatively low at 2.82%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have shown positive trends, reflecting operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.013, indicating low leverage and financial stability. The return on equity is moderate at 6.83%, showing effective use of equity to generate profits. The equity ratio stands at 66.56%, highlighting a solid equity base relative to total assets.

Cash Flow

Cash flow performance is mixed, with a negative free cash flow growth rate indicating challenges in generating free cash flow. The operating cash flow to net income ratio is positive, suggesting that operating activities are generating cash, but the free cash flow to net income ratio is negative, pointing to potential issues in capital expenditure management.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	8.20B	7.40B	6.92B	6.75B	7.45B
Gross Profit	1.01B	817.18M	868.23M	683.07M	599.74M
EBITDA	420.37M	264.27M	411.71M	341.48M	277.38M
Net Income	231.18M	132.31M	225.35M	186.40M	143.11M
Balance Sheet
Total Assets	5.09B	4.52B	4.87B	4.77B	4.87B
Cash, Cash Equivalents and Short-Term Investments	1.45B	1.59B	2.22B	2.52B	1.58B
Total Debt	44.16M	40.15M	17.13M	7.16M	11.64M
Total Liabilities	1.66B	1.31B	1.77B	1.94B	2.20B
Stockholders Equity	3.39B	3.17B	3.07B	2.83B	2.66B
Cash Flow
Free Cash Flow	-46.97M	-576.50M	-330.19M	956.18M	356.13M
Operating Cash Flow	79.86M	-499.38M	-296.41M	1.03B	369.63M
Investing Cash Flow	-157.93M	-65.01M	-54.02M	-59.37M	-9.78M
Financing Cash Flow	-75.75M	-70.57M	-47.40M	-41.15M	-29.58M

SANTO CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4835.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1788, the sentiment is Positive. The current price of 4835 is below the 20-day moving average (MA) of 5564.00, below the 50-day MA of 5255.20, and above the 200-day MA of 4452.05, indicating a neutral trend. The MACD of 4.50 indicates Positive momentum. The RSI at 50.16 is Neutral, neither overbought nor oversold. The STOCH value of 55.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1788.

SANTO CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1841	82 Outperform	¥5.69B	10.02	―	1.88%	-16.60%	-19.91%
1788	78 Outperform	¥3.29B	10.44	―	2.11%	21.66%	385.30%
4673	73 Outperform	¥3.90B	6.35	―	1.16%	29.12%	428.78%
7057	73 Outperform	¥3.50B	25.10	―	2.71%	5.85%	―
1795	72 Outperform	¥4.12B	9.92	―	3.63%	19.00%	46.05%
1764	66 Neutral	¥3.77B	6.95	―	4.09%	14.64%	48.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%