Sanko Metal Industrial Co., Ltd. (1972) AI Stock Analysis

• Market Cap: ¥29.25B
• Dividend Yield: 7.56%
• Average Volume (3M): 136.95K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.75
• Revenue Growth: 8.01%
• EPS Growth: 13.19%
• Country: JP
• Employees: 476
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 30.78
• Shares Outstanding: 19,800,000
• 10 Day Avg. Volume: 69,230
• 30 Day Avg. Volume: 136,950
• PEG Ratio: 0.54
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 6.85
• 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: 74 Outperform
• Price Target: ¥1,694.00 ▲(15.24% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Sanko Metal Industrial Co., Ltd. scores well due to its robust financial performance and attractive valuation, with a low P/E ratio and high dividend yield. However, the technical analysis indicates bearish momentum, which could pose short-term risks. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Balance-sheet strength

Extremely low leverage and a high equity ratio give the company durable financial flexibility. With D/E at 0.003 and ROE near 11%, Sanko can fund operations, withstand cyclical construction demand, and invest without relying on costly external debt over the next several quarters.

Cash generation efficiency

Operating and free cash flow exceed reported net income, indicating reliable cash conversion from operations. This supports funding capex, dividends, and working capital needs sustainably and reduces reliance on financing, strengthening long-term capital allocation flexibility.

Profitability and revenue trend

Consistent revenue growth alongside healthy gross and operating margins shows the business retains pricing and cost control. Mid-single-digit top-line gains with double-digit gross margins support durable earnings capacity and operational resilience in construction cycles.

Negative Factors

Declining EPS

Negative EPS growth suggests per-share profitability has contracted recently, which can erode shareholder returns over time. If EPS trends persist, it may constrain dividend sustainability and signal margin or capital structure pressures that impair long-term earnings power.

Slight FCF deterioration

While FCF levels remain positive, a year-over-year decline in free cash flow indicates emerging pressure on cash available for reinvestment or payouts. Continued FCF contraction would limit strategic investments and could strain dividend or capex plans over several quarters.

Modest top-line growth

Low-to-mid single-digit revenue growth implies limited organic expansion in core markets. In a competitive construction materials environment, modest growth may constrain scalability and make it harder to leverage fixed costs to drive higher long-term margins and market share gains.

Sanko Metal Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Sanko Metal Industrial Co., Ltd. manufactures, processes, executes, and sells roofing products, construction materials, and paint products in Japan. It also designs and contracts ancillary construction works. The company was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sanko Metal Industrial Co., Ltd. generates revenue primarily through the sale of its manufactured metal products and custom fabrication services. The company's revenue model is built on a combination of direct sales to end-users and business-to-business transactions with manufacturers and contractors in key industries. Key revenue streams include bulk orders for precision components and structural steel, as well as contracts for specialized fabrication services tailored to client specifications. Additionally, Sanko Metal has established strategic partnerships with industry leaders, enhancing its market reach and enabling it to secure larger contracts. Factors contributing to its earnings include a strong reputation for quality, a focus on research and development to innovate new products, and an efficient supply chain that optimizes production costs.

Sanko Metal Industrial Co., Ltd. Financial Statement Overview

Summary

Sanko Metal Industrial Co., Ltd. presents a robust financial outlook with strong growth in revenue and profitability, supported by a healthy balance sheet with low leverage. The company's efficient cash flow management further reinforces its financial stability, making it well-positioned for future growth in the construction industry.

Income Statement

The company has shown a strong revenue growth rate of 5.69% from 2024 to 2025, indicating a positive growth trajectory. Gross profit margin stands at 21.62%, and the net profit margin is 6.48%, reflecting solid profitability. EBIT and EBITDA margins are 9.07% and 10.63% respectively, showcasing efficient operational management.

Balance Sheet

Sanko Metal Industrial Co., Ltd. maintains a robust balance sheet with a low debt-to-equity ratio of 0.003, indicating excellent financial stability. The equity ratio stands at 65.41%, which is a strong indicator of the company's reliance on equity financing. Return on equity is healthy at 10.85%, reflecting the company's ability to generate returns from its equity base.

Cash Flow

The company exhibits strong cash flow management with an operating cash flow to net income ratio of 1.21 and a free cash flow to net income ratio of 1.06, indicating efficient cash generation and utilization. However, the free cash flow growth rate has been slightly negative at -0.8%, indicating a slight decrease in free cash flow year over year.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	41.97B	45.36B	42.91B	39.80B	34.77B	32.24B
Gross Profit	9.02B	9.80B	9.35B	8.56B	7.31B	7.17B
EBITDA	4.11B	4.82B	4.19B	3.82B	2.80B	3.04B
Net Income	2.46B	2.94B	2.59B	2.37B	1.65B	1.69B
Balance Sheet
Total Assets	39.77B	41.43B	40.16B	36.71B	33.48B	30.42B
Cash, Cash Equivalents and Short-Term Investments	11.50B	14.60B	12.62B	10.18B	10.36B	9.30B
Total Debt	1.12B	85.00M	104.00M	125.00M	150.00M	188.00M
Total Liabilities	15.67B	14.32B	15.20B	13.72B	12.37B	10.45B
Stockholders Equity	24.10B	27.10B	24.96B	22.99B	21.12B	19.97B
Cash Flow
Free Cash Flow	1.31B	3.11B	3.13B	354.00M	1.60B	1.24B
Operating Cash Flow	1.31B	3.56B	4.11B	817.00M	1.90B	1.56B
Investing Cash Flow	0.00	-788.00M	-934.00M	-471.00M	-304.00M	-306.00M
Financing Cash Flow	0.00	-785.00M	-732.00M	-527.00M	-539.00M	-424.00M

Sanko Metal Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1470.00
• 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:1972, the sentiment is Positive. The current price of 1470 is above the 20-day moving average (MA) of 1469.90, below the 50-day MA of 1479.48, and above the 200-day MA of 1404.95, indicating a neutral trend. The MACD of -1.17 indicates Positive momentum. The RSI at 49.55 is Neutral, neither overbought nor oversold. The STOCH value of 31.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1972.

Sanko Metal Industrial Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6458	79 Outperform	¥102.50B	15.03	―	3.65%	8.96%	-0.82%
7949	77 Outperform	¥52.32B	17.62	―	3.74%	3.70%	12.26%
5273	75 Outperform	¥103.69B	9.99	―	1.92%	12.72%	28.48%
1972	74 Outperform	¥29.25B	10.63	―	7.56%	8.01%	13.19%
5930	66 Neutral	¥140.33B	11.06	12.89%	3.40%	2.98%	41.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5936	63 Neutral	¥6.11B	7.99	―	4.13%	2.76%	-10.23%

Sanko Metal Industrial Co., Ltd. Corporate Events

Sanko Metal Sees Profit Decline Despite Higher Sales, Maintains Strong Balance Sheet

Sanko Metal Industrial Co., Ltd. reported a 3.9% year-on-year increase in net sales to ¥34,401 million for the quarter ended December 2025, but profits declined across the board, with operating profit down 14.1% to ¥2,459 million, ordinary profit down 13.1% to ¥2,508 million, and net profit down 12.6% to ¥1,729 million, leading to a drop in basic earnings per share from ¥102.64 to ¥89.72. Despite this profit contraction, the company’s financial position remained solid, with total assets at ¥40,391 million, a slightly lower but still robust net asset base of ¥26,712 million, and an improved capital adequacy ratio of 66.1%, suggesting that while margins are under pressure, Sanko Metal maintains a strong balance sheet that may support stability for shareholders amid a more challenging earnings environment.

The most recent analyst rating on (JP:1972) stock is a Buy with a Yen1690.00 price target. To see the full list of analyst forecasts on Sanko Metal Industrial Co., Ltd. stock, see the JP:1972 Stock Forecast page.