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

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JP:1960

Sanyo Engineering & Construction Inc.

(1960)

Rating:74Outperform
Price Target:
¥1,037.00
▲(12.72%Upside)
The primary driver of the stock's score is its strong technical analysis, showcasing robust bullish momentum. While financial performance is solid with strong revenue growth and a stable balance sheet, cash flow concerns linger. The stock's valuation is attractive, offering low P/E and high dividend yield, enhancing its appeal to value and income investors.

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
The company exhibits strong revenue growth and a solid balance sheet with low leverage. Profitability margins are improving, though cash flow challenges persist, indicating the need for enhanced operational efficiency and cash management.
Income Statement
72
Positive
The company has experienced strong revenue growth, with a significant increase from the previous year. Gross profit margin is healthy at approximately 11.5%, indicating efficient cost management. However, net profit margin is modest at around 2.6%, reflecting room for improvement in profitability. Notably, EBIT and EBITDA margins have improved from negative figures in previous years, showcasing operational recovery.
Balance Sheet
68
Positive
The balance sheet reflects a solid equity position with an equity ratio of approximately 51.6%, indicating financial stability. The debt-to-equity ratio is low at around 0.10, suggesting low leverage and reduced financial risk. Return on Equity (ROE) stands at about 5.7%, highlighting moderate profitability from shareholders' equity.
Cash Flow
60
Neutral
The cash flow statement shows challenges with negative operating cash flow and free cash flow, indicating potential liquidity issues. However, the company has maintained a strong cash position, which may help mitigate short-term cash flow concerns. The operating cash flow to net income ratio is negative, pointing to potential inefficiencies in cash generation.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue67.86B50.73B38.75B39.87B41.66B
Gross Profit7.78B4.93B4.18B4.57B4.20B
EBITDA3.43B481.94M1.73B1.14B1.46B
Net Income1.75B-708.97M436.83M-31.51M318.18M
Balance Sheet
Total Assets59.04B48.97B45.70B45.46B44.86B
Cash, Cash Equivalents and Short-Term Investments9.11B9.87B11.02B8.90B6.64B
Total Debt3.05B1.54B419.35M622.24M533.56M
Total Liabilities28.45B19.87B15.52B14.82B14.06B
Stockholders Equity30.47B29.03B30.10B30.56B30.69B
Cash Flow
Free Cash Flow-1.97B-2.19B778.85M2.44B-2.35B
Operating Cash Flow-1.55B-660.29M1.51B2.87B-1.32B
Investing Cash Flow-591.00M-936.00M670.57M-353.02M1.30B
Financing Cash Flow1.01B65.86M-543.78M-423.67M-373.07M

Sanyo Engineering & Construction Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price920.00
Price Trends
50DMA
854.92
Positive
100DMA
827.88
Positive
200DMA
771.68
Positive
Market Momentum
MACD
16.99
Negative
RSI
66.52
Neutral
STOCH
64.75
Neutral
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 920 is above the 20-day moving average (MA) of 880.00, above the 50-day MA of 854.92, and above the 200-day MA of 771.68, indicating a bullish trend. The MACD of 16.99 indicates Negative momentum. The RSI at 66.52 is Neutral, neither overbought nor oversold. The STOCH value of 64.75 is Neutral, 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥9.94B11.67
4.78%5.27%-26.42%
82
Outperform
¥13.66B7.06
3.81%-9.31%2.74%
75
Outperform
¥14.64B8.20
3.78%1.16%12.22%
74
Outperform
¥14.10B8.08
4.35%33.76%
70
Neutral
¥14.74B9.36
3.46%32.17%298.59%
65
Neutral
$11.18B15.795.49%1.92%3.14%-24.90%
60
Neutral
¥14.13B85.17
2.53%-2.45%-71.57%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1960
Sanyo Engineering & Construction Inc.
937.00
202.12
27.50%
JP:1770
Fujita Engineering Co., Ltd.
1,598.00
332.96
26.32%
JP:1776
Sumiken Mitsui Road Co., Ltd.
1,581.00
517.32
48.63%
JP:1807
Watanabe Sato Co., Ltd.
1,682.00
-60.18
-3.45%
JP:1867
UEKI CORPORATION
2,176.00
590.78
37.27%
JP:1914
Japan Foundation Engineering Co., Ltd.
698.00
111.18
18.95%
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: Jul 17, 2025