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Sanyo Engineering & Construction Inc. (JP:1960)
:1960
Japanese Market

Sanyo Engineering & Construction Inc. (1960) AI Stock Analysis

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JP

Sanyo Engineering & Construction Inc.

(1960)

Rating:76Outperform
Price Target:
¥949.00
▲(8.96%Upside)
The stock's overall score is driven by its strong valuation and positive technical indicators, which suggest potential for return and upward price movement. While financial performance shows growth and stability, cash flow issues need to be addressed to ensure long-term financial health.

Sanyo Engineering & Construction Inc. (1960) vs. iShares MSCI Japan ETF (EWJ)

Sanyo Engineering & Construction Inc. Business Overview & Revenue Model

Company DescriptionSanyo Engineering & Construction Inc., established in 1960, is a prominent player in the engineering and construction industry. The company specializes in providing comprehensive engineering services, construction management, and development solutions. It operates across various sectors, including infrastructure, industrial facilities, and environmental projects, offering innovative and sustainable solutions tailored to meet the needs of its clients.
How the Company Makes MoneySanyo Engineering & Construction Inc. generates revenue primarily through its engineering and construction services. The company undertakes large-scale projects in infrastructure, industrial, and environmental sectors, earning income via contracts awarded for these projects. Revenue is derived from a combination of project management fees, construction fees, and consulting services. The company may also engage in strategic partnerships and collaborations with other firms, which can contribute to its revenue streams by expanding its service offerings and market reach. Additionally, Sanyo Engineering & Construction Inc. may leverage its industry expertise to secure long-term maintenance contracts, providing a steady flow of income post-project completion.

Sanyo Engineering & Construction Inc. Financial Statement Overview

Summary
Sanyo Engineering & Construction Inc. has shown strong revenue growth and profitability improvement, supported by a stable balance sheet with low leverage. However, cash flow inconsistencies, such as periods of negative Free Cash Flow, pose a risk and need attention.
Income Statement
75
Positive
Sanyo Engineering & Construction Inc. has demonstrated strong revenue growth, with a noticeable increase in Total Revenue from previous periods, particularly in the TTM. The company has improved its Gross and Net Profit Margins, reflecting better cost management and profitability. However, there have been fluctuations in EBIT and EBITDA margins over the years, indicating potential volatility in operational efficiency.
Balance Sheet
80
Positive
The company's balance sheet is solid with a high Equity Ratio, indicating financial stability and low leverage. The Debt-to-Equity Ratio is low, suggesting prudent financial management. Return on Equity has improved, aligning with the increased net income, highlighting effective use of shareholders' equity to generate profit.
Cash Flow
60
Neutral
Cash flows have been inconsistent, with periods of negative Free Cash Flow and operating cash flows. Although there are improvements in the latest period, the company needs to focus on sustaining positive cash flow to support its growth and operational needs. The Operating Cash Flow to Net Income Ratio indicates a disconnect between reported profits and cash generation.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue63.61B50.73B38.75B39.87B41.66B46.80B
Gross Profit7.67B4.93B4.18B4.57B4.20B5.29B
EBITDA3.14B481.94M1.73B1.14B1.46B2.48B
Net Income1.61B-708.97M436.83M-31.51M318.18M1.01B
Balance Sheet
Total Assets53.33B48.97B45.70B45.46B44.86B45.91B
Cash, Cash Equivalents and Short-Term Investments8.87B9.87B11.02B8.90B6.64B7.54B
Total Debt3.35B1.54B419.35M622.24M533.56M380.00M
Total Liabilities23.24B19.87B15.52B14.82B14.06B340.40M
Stockholders Equity29.98B29.03B30.10B30.56B30.69B30.09B
Cash Flow
Free Cash Flow0.00-2.19B778.85M2.44B-2.35B-1.43B
Operating Cash Flow0.00-660.29M1.51B2.87B-1.32B-452.00M
Investing Cash Flow0.00-936.00M670.57M-353.02M1.30B-631.00M
Financing Cash Flow0.0065.86M-543.78M-423.67M-373.07M-912.00M

Sanyo Engineering & Construction Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price871.00
Price Trends
50DMA
838.68
Positive
100DMA
816.43
Positive
200DMA
761.78
Positive
Market Momentum
MACD
9.45
Negative
RSI
61.64
Neutral
STOCH
82.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1960, the sentiment is Positive. The current price of 871 is above the 20-day moving average (MA) of 854.50, above the 50-day MA of 838.68, and above the 200-day MA of 761.78, indicating a bullish trend. The MACD of 9.45 indicates Negative momentum. The RSI at 61.64 is Neutral, neither overbought nor oversold. The STOCH value of 82.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1960.

Sanyo Engineering & Construction Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥9.95B11.69
4.78%5.27%-26.42%
78
Outperform
¥14.10B8.16
4.55%1.16%12.22%
78
Outperform
¥13.20B6.76
3.95%-9.31%2.74%
76
Outperform
¥13.30B7.62
4.59%33.76%
70
Neutral
¥14.13B9.04
3.61%32.17%298.59%
60
Neutral
¥14.07B84.02
2.60%-2.45%-71.57%
58
Neutral
HK$14.03B4.45-3.01%7.32%3.67%-54.16%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1960
Sanyo Engineering & Construction Inc.
871.00
153.30
21.36%
JP:1770
Fujita Engineering Co., Ltd.
1,591.00
221.90
16.21%
JP:1776
Sumiken Mitsui Road Co., Ltd.
1,527.00
473.02
44.88%
JP:1807
Watanabe Sato Co., Ltd.
1,678.00
-52.74
-3.05%
JP:1867
UEKI CORPORATION
2,009.00
443.79
28.35%
JP:1914
Japan Foundation Engineering Co., Ltd.
665.00
48.34
7.84%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025