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

• Market Cap: ¥29.58B
• Dividend Yield: 26.69%
• Average Volume (3M): 136.95K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.78
• Revenue Growth: 5.35%
• EPS Growth: 18.24%
• Country: JP
• Employees: 476
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 11.54
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,519.00 ▼(-2.06% Downside)

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.

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

Company Description

Sanko Metal Industrial Co., Ltd., established in 1972, is a leading manufacturer and supplier in the metal processing industry. The company specializes in producing high-quality metal products, including precision components, structural steel, and custom fabrication services. Operating across various sectors such as automotive, construction, and machinery, Sanko Metal aims to provide innovative solutions that meet the diverse needs of its clients while maintaining a commitment to excellence and sustainability.

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 revenue growth and profitability, supported by a healthy balance sheet with low leverage. Efficient cash flow management further reinforces its financial stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 1551.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1551 is above the 20-day moving average (MA) of 1505.45, above the 50-day MA of 1523.27, and above the 200-day MA of 1237.14, indicating a bullish trend. The MACD of 9.10 indicates Negative momentum. The RSI at 58.46 is Neutral, neither overbought nor oversold. The STOCH value of 70.21 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
5237	―	¥11.61B	12.46	―	3.93%	-2.90%	-24.21%
1972	―	¥29.58B	9.07	―	26.69%	5.35%	18.24%
5936	―	¥5.88B	7.42	―	4.06%	0.31%	-2.77%
5930	―	€141.87B	12.24	12.39%	3.39%	4.00%	8.80%
5940	―	¥9.89B	4.18	―	3.15%	3.90%	9.38%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5932	―	¥19.22B	―	―	4.15%	1.03%	-92.80%