SANTO CORPORATION (1788) AI Stock Analysis

• Market Cap: ¥3.22B
• Dividend Yield: 2.11%
• Average Volume (3M): 966.00
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.25
• 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: ¥6,124.00 ▲(26.66% 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 / strong balance sheet

Debt-to-equity of 0.013 and a 66.56% equity ratio provide durable financial flexibility. Low leverage reduces solvency and refinancing risk across cycles, enabling the company to fund capex or pursue strategic moves without immediate pressure from creditors.

Sustained revenue growth trend

A multi-year revenue growth trend, including an 8.21% recent increase, indicates expanding market traction and demand stability. That sustained top-line growth supports scale benefits, long-term contract wins, and the ability to invest in core capabilities.

Improving gross and operating margins

Improving gross profit and rising EBIT/EBITDA margins point to better cost management and operational leverage. Sustained margin improvement enhances cash generation potential and competitiveness, supporting reinvestment or buffer against cost shocks.

Negative Factors

Negative free cash flow growth

Negative free cash flow growth implies the business may be consuming cash to fund capex or working capital, reducing internal funding for dividends, debt reduction, or acquisitions. This structural cash strain can pressure financing needs over months.

Low net profit margin

A 2.82% net margin leaves limited buffer for cost inflation or revenue volatility. Persistently thin net profitability constrains retained earnings and the capacity to fund growth from internal cash, making the firm more sensitive to downturns.

Moderate return on equity

ROE of 6.83% is modest given a strong equity base, indicating capital is not generating high returns. Over the medium term this can limit shareholder value creation unless asset efficiency or margin expansion accelerates.

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

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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: Negative
• Last Price: 4835.00
• 50DMA: Negative
• 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 Negative. The current price of 4835 is below the 20-day moving average (MA) of 5451.00, below the 50-day MA of 5361.40, and above the 200-day MA of 4515.00, indicating a neutral trend. The MACD of 10.59 indicates Positive momentum. The RSI at 45.24 is Neutral, neither overbought nor oversold. The STOCH value of 33.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥5.68B	10.43	―	1.88%	-16.60%	-19.91%
1788	78 Outperform	¥3.22B	10.99	―	2.11%	21.66%	385.30%
4673	73 Outperform	¥3.70B	6.39	―	1.16%	29.12%	428.78%
7057	73 Outperform	¥3.26B	14.75	―	2.71%	5.85%	―
1795	72 Outperform	¥4.00B	-11.92	―	3.63%	19.00%	46.05%
1764	66 Neutral	¥3.68B	5.72	―	4.09%	14.64%	48.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%