Sanyo Trading Co., Ltd. (3176) AI Stock Analysis

• Market Cap: ¥50.13B
• Dividend Yield: 3.87%
• Average Volume (3M): 38.40K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.87
• Revenue Growth: 2.66%
• EPS Growth: -11.41%
• Country: JP
• Employees: 713
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 1.59
• Shares Outstanding: 29,007,708
• 10 Day Avg. Volume: 33,250
• 30 Day Avg. Volume: 38,403
• PEG Ratio: -0.88
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 7.05
• 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: ¥1,992.00 ▲(33.42% Upside)

The score is driven primarily by strong financial performance (rapid revenue growth and a solid, low-leverage balance sheet) and an attractive valuation (low P/E and healthy dividend). Technicals are supportive of an uptrend, but the overbought RSI meaningfully tempers the overall score.

Positive Factors

Strong recent revenue growth

A 43.9% revenue increase signals durable demand expansion and scaling of core trading operations. Sustained top-line growth expands bargaining power with suppliers, supports fixed-cost absorption, and creates room to invest in logistics and service capabilities that underpin recurring trading margins.

Solid balance sheet with low leverage

Low leverage and a healthy equity ratio provide long-term financial resilience for a trading business with working capital swings. This supports stable supplier relationships, flexibility to fund inventory cycles, and capacity to pursue strategic investments or weather cyclical industrial demand downturns.

Improving cash generation and conversion

Improved free cash flow and strong operating-cash-to-income conversion indicate higher earnings quality and internal funding capacity. For a distributor, reliable cash conversion sustains dividends, funds working capital, and reduces dependence on external financing for growth initiatives over the medium term.

Negative Factors

Pressure on operating margins

A decline in EBIT and EBITDA margins points to narrowing operational efficiency in trading activities. Sustained margin compression would limit reinvestment capacity, reduce cushion against supplier or freight cost shocks, and could erode return on capital unless offset by scale or higher-margin services.

Volatility in free cash flow history

While FCF has improved recently, historical volatility undermines predictability of funding for dividends, capex, and working capital. For a company dependent on trading cycles, inconsistent cash generation can strain liquidity planning and raise the need for precautionary liquidity buffers.

Negative EPS growth trend

Negative EPS growth suggests profit per share has contracted despite revenue gains, indicating margin mix shifts, non-operating items, or dilution effects. If persistent, declining EPS can limit equity returns and signal underlying profitability issues that management must address to sustain shareholder value.

Sanyo Trading Co., Ltd. Business Overview & Revenue Model

Company Description

Sanyo Trading Co., Ltd., through its subsidiaries, engages in the rubber, chemicals, machinery and environmental, industrial products, and scientific instruments businesses in Japan and internationally. The company provides various rubbers, such as butyl rubbers, as well as nitrile butadiene rubbers (NBR) and hydrogenated NBR for industrial rubber goods; and specialty and general purpose rubbers, including polyisoprene, isoprene rubbers, EPDM, polychloroprene rubbers, epichlorohydrin rubbers, silicone rubbers, and fluoroelastomers. It is also involved in the import, export, and tripartite trade of chemicals, such as resins, additives, and other products for marketing to domestic manufacturers of paint, ink, floor polish, textiles, paper, adhesives, and leather. In addition, the company sells pelletizers; equipment for mixing and blending, drying and cooling, sifting, and particle size reduction for the manufacturers of woody biomass, feeds for livestock animals, and aquatic species; and wood gasifiers, which uses pellets as fuel source. Further, it develops and imports automotive parts and components; and imports and markets various analytical instruments and testing equipment to government institutes, universities, and research and quality control divisions of various industries, including chemical, petrochemical, pharmaceutical, food, machinery, automobile, and energy. Sanyo Trading Co., Ltd. was incorporated in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sanyo Trading Co., Ltd. generates revenue primarily through its trading activities, which include the sale of industrial materials and components to manufacturers and other businesses. The company's revenue model is based on markups on products purchased from suppliers and sold to clients, ensuring a profit margin on each transaction. Key revenue streams include bulk sales of electronic components, chemicals, and raw materials, which are essential for various industries. Additionally, Sanyo Trading may benefit from long-term partnerships with manufacturers and suppliers, providing steady income through consistent orders and favorable pricing arrangements. The company's extensive network enables it to capitalize on market demands, driving sales and enhancing profitability.

Sanyo Trading Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: revenue grew 43.9% and the balance sheet is solid with low leverage and healthy equity/ROE. Offsetting this, EBIT/EBITDA margins show slight pressure and free cash flow has been improving but remains historically volatile.

Income Statement

Sanyo Trading Co., Ltd. has demonstrated strong revenue growth with a 43.9% increase in the latest year, indicating robust demand and market expansion. The gross profit margin and net profit margin have remained stable, reflecting effective cost management. However, there is a slight decline in EBIT and EBITDA margins, suggesting potential pressure on operational efficiency.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio, indicating prudent leverage management. The equity ratio is healthy, and return on equity remains strong, showcasing effective utilization of shareholder funds. The consistent increase in stockholders' equity suggests a stable growth trajectory.

Cash Flow

Sanyo Trading Co., Ltd. has shown significant improvement in free cash flow growth, reflecting enhanced cash generation capabilities. The operating cash flow to net income ratio is favorable, indicating efficient conversion of earnings into cash. However, historical fluctuations in free cash flow growth highlight potential volatility in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	132.12B	132.70B	129.26B	120.53B	111.25B	89.79B
Gross Profit	22.38B	21.79B	22.23B	19.19B	17.14B	15.51B
EBITDA	9.15B	8.81B	8.93B	8.43B	7.23B	6.74B
Net Income	5.05B	4.62B	5.21B	4.79B	4.30B	4.26B
Balance Sheet
Total Assets	78.00B	81.50B	75.39B	68.54B	62.86B	50.83B
Cash, Cash Equivalents and Short-Term Investments	11.09B	11.90B	8.01B	7.03B	5.88B	8.66B
Total Debt	4.63B	3.06B	4.51B	5.72B	6.07B	2.43B
Total Liabilities	27.49B	30.17B	27.58B	24.65B	23.65B	16.11B
Stockholders Equity	50.51B	51.32B	47.81B	43.54B	38.88B	34.40B
Cash Flow
Free Cash Flow	4.18B	6.56B	4.74B	5.57B	-3.64B	1.37B
Operating Cash Flow	4.33B	7.16B	5.45B	5.73B	-3.40B	2.25B
Investing Cash Flow	1.16B	267.15M	-2.04B	-2.91B	-1.81B	-1.01B
Financing Cash Flow	-2.24B	-3.21B	-2.79B	-1.77B	1.86B	-3.30B

Sanyo Trading Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1493.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3176, the sentiment is Positive. The current price of 1493 is below the 20-day moving average (MA) of 1570.75, below the 50-day MA of 1522.82, and below the 200-day MA of 1494.01, indicating a bullish trend. The MACD of 39.53 indicates Negative momentum. The RSI at 79.68 is Negative, neither overbought nor oversold. The STOCH value of 51.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3176.

Sanyo Trading Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8061	79 Outperform	¥81.81B	13.86	―	3.38%	10.74%	-26.50%
3176	78 Outperform	¥50.13B	10.90	―	3.87%	2.66%	-11.41%
8103	76 Outperform	¥36.49B	11.71	―	4.05%	-3.82%	18.03%
8052	73 Outperform	¥54.59B	10.92	―	3.00%	16.06%	31.78%
9932	71 Outperform	¥30.22B	15.17	―	3.84%	2.74%	4.90%
7128	68 Neutral	¥52.75B	26.57	―	3.24%	-2.85%	-56.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sanyo Trading Co., Ltd. Corporate Events

Sanyo Trading to Grant 14,500 Restricted Shares to Directors and Executives

Sanyo Trading Co., Ltd. has approved the disposal of 14,500 treasury shares as restricted stock compensation for four internal directors and eight executive officers, at a price of 1,560 yen per share for a total value of 22.62 million yen. This disposal is part of a previously approved restricted stock compensation plan designed to incentivize sustained improvement in corporate value and strengthen alignment between management and shareholders; the shares are granted in exchange for monetary compensation claims, subject to transfer restrictions that last until the recipients leave their roles, with the company able to acquire the stock without consideration under certain conditions, reinforcing long-term commitment from key management personnel.

The most recent analyst rating on (JP:3176) stock is a Hold with a Yen1629.00 price target. To see the full list of analyst forecasts on Sanyo Trading Co., Ltd. stock, see the JP:3176 Stock Forecast page.

Sanyo Trading Proposes Amendments to Articles of Incorporation

Sanyo Trading Co., Ltd. has announced a proposal to amend its Articles of Incorporation, which will be presented at the upcoming General Meeting of Shareholders. The proposed changes include expanding the company’s business purpose to include geothermal and ocean exploration, alongside oil exploration, and introducing a new provision allowing the acquisition of treasury shares. These amendments aim to clarify the company’s business focus and enable more flexible capital policies, potentially impacting its operational strategy and market positioning.

The most recent analyst rating on (JP:3176) stock is a Buy with a Yen1804.00 price target. To see the full list of analyst forecasts on Sanyo Trading Co., Ltd. stock, see the JP:3176 Stock Forecast page.

Sanyo Trading Co., Ltd. Reports Record Sales Amid Strategic Expansion

Sanyo Trading Co., Ltd. reported record-high sales and gross profit for the fiscal year ended September 30, 2025, despite a decrease in operating profit due to increased personnel and IT investments. The company faced challenges in its Life Science segment but saw positive performance driven by its Sustainability initiatives. A strategic acquisition of EMAS Supplies & Services Pte Ltd is expected to expand its value chain. Although a temporary lull in business performance is anticipated due to upfront investments, new projects are expected to contribute to profits by 2027, aligning with the company’s long-term management plan, SV2028.

The most recent analyst rating on (JP:3176) stock is a Buy with a Yen1804.00 price target. To see the full list of analyst forecasts on Sanyo Trading Co., Ltd. stock, see the JP:3176 Stock Forecast page.

Sanyo Trading Co., Ltd. Reports Fiscal Year 2025 Financial Results

Sanyo Trading Co., Ltd. reported its consolidated financial results for the fiscal year ending September 30, 2025, showing a slight increase in net sales by 2.7% to 132,703 million yen. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 9.1%, 13.0%, and 11.4% respectively. Despite these declines, the company increased its annual dividends per share to 57 yen, reflecting a higher payout ratio. The financial position showed an increase in total assets and net assets, indicating a stable financial base. The forecast for the next fiscal year anticipates a decrease in net sales and profits, suggesting potential challenges ahead.

The most recent analyst rating on (JP:3176) stock is a Buy with a Yen1804.00 price target. To see the full list of analyst forecasts on Sanyo Trading Co., Ltd. stock, see the JP:3176 Stock Forecast page.

Sanyo Trading Co., Ltd. Announces Organizational Restructuring to Achieve SANYO VISION 2028

Sanyo Trading Co., Ltd. announced an organizational restructuring to align with its long-term management plan, SANYO VISION 2028, which aims to deliver tangible solutions to social issues. The restructuring involves appointing promotion managers for key targets, enhancing strategic focus through new executive officer roles, and renaming the Committee of Executive Officers to the SV2028 Execution Committee to ensure agile business execution and organizational strengthening.

The most recent analyst rating on (JP:3176) stock is a Buy with a Yen1804.00 price target. To see the full list of analyst forecasts on Sanyo Trading Co., Ltd. stock, see the JP:3176 Stock Forecast page.

Sanyo Trading Co., Ltd. Announces Board of Directors Changes

Sanyo Trading Co., Ltd. announced a series of personnel changes in its board of directors, which will be finalized at the upcoming General Meeting of Shareholders in December 2025. These changes include reappointments of existing directors and the appointment of a new outside director and audit committee member. The announcement reflects the company’s ongoing commitment to strengthening its leadership structure, potentially impacting its strategic direction and stakeholder engagement.

The most recent analyst rating on (JP:3176) stock is a Buy with a Yen1804.00 price target. To see the full list of analyst forecasts on Sanyo Trading Co., Ltd. stock, see the JP:3176 Stock Forecast page.