SANKO TECHNO CO., LTD. (3435) AI Stock Analysis

• Market Cap: ¥10.02B
• Dividend Yield: 2.99%
• Average Volume (3M): 4.41K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.28
• Revenue Growth: -0.77%
• EPS Growth: -23.54%
• Country: JP
• Employees: 682
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 23.63
• Shares Outstanding: 8,745,408
• 10 Day Avg. Volume: 5,680
• 30 Day Avg. Volume: 4,406
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,427.00
• Price Target Upside: 11.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥1,427.00 ▲(11.92% Upside)

SANKO TECHNO CO., LTD. scores well due to its strong financial health and attractive valuation, which suggest resilience and potential for growth. However, technical indicators show short-term weakness, and operational efficiency improvements are necessary to fully capitalize on its valuation potential.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage and high equity provides financial stability and flexibility, supporting long-term strategic initiatives.

Revenue Growth

Consistent revenue growth indicates a robust business model and demand for products, supporting sustained market presence and potential expansion.

Diverse Industry Exposure

Diverse industry exposure reduces dependency on a single sector, providing resilience against sector-specific downturns and supporting stable revenue streams.

Negative Factors

Operational Efficiency Challenges

Operational inefficiencies can erode profitability and limit the ability to reinvest in growth, potentially impacting long-term competitiveness.

Declining Profit Margins

Decreasing profit margins suggest rising costs or competitive pressures, which could hinder profitability and strategic investment capacity.

Volatile Free Cash Flow

Volatile free cash flow can constrain financial flexibility, affecting the ability to fund new projects or return capital to shareholders.

SANKO TECHNO CO., LTD. Business Overview & Revenue Model

Company Description

SANKO TECHNO CO., LTD. (3435) is a Japan-based company primarily engaged in the production and distribution of industrial machinery and equipment. The company's core products include piping materials, valves, and related components used in a variety of sectors, including construction, energy, and manufacturing. SANKO TECHNO is known for its technical expertise and quality products that serve to enhance operational efficiency and safety in industrial applications.

How the Company Makes Money

SANKO TECHNO CO., LTD. generates revenue through the sale of its industrial machinery and equipment, which include piping materials and valves. The company serves a diverse range of industries, ensuring a steady demand for its products. SANKO TECHNO also benefits from strategic partnerships and long-term contracts with major players in construction and energy sectors, which provide a stable income stream. Additionally, the company's focus on innovation and quality helps it maintain a competitive edge, allowing it to capture a significant market share and sustain profitability.

SANKO TECHNO CO., LTD. Financial Statement Overview

Summary

SANKO TECHNO CO., LTD. demonstrates solid financial health with steady revenue growth and a strong balance sheet, featuring low leverage and high equity. However, the company faces challenges in maintaining operational margins and managing free cash flow effectively.

Income Statement

SANKO TECHNO CO., LTD. has shown consistent revenue growth, with a CAGR of approximately 2.7% over the past five years. The gross profit margin has been stable, averaging around 29%. However, the decline in EBIT and EBITDA margins in the most recent year indicates pressure on operational efficiency, likely due to increased costs or competitive pricing. The net profit margin has also decreased, reflecting the same challenges. Despite these headwinds, the company has maintained profitability, indicating resilience in its core operations.

Balance Sheet

The balance sheet of SANKO TECHNO CO., LTD. is strong, with a healthy equity ratio consistently above 70%. The company has low leverage, evidenced by a debt-to-equity ratio below 0.2, which reduces financial risk. Stockholders' equity has grown steadily, indicating strong shareholder value creation. The company's cash position is robust, supported by substantial cash equivalents and short-term investments, allowing flexibility for strategic investments or downturns.

Cash Flow

The cash flow statements show mixed results. While operating cash flow remains positive, free cash flow has been volatile, declining sharply in the most recent year due to increased capital expenditures. The operating cash flow to net income ratio has been strong, but the free cash flow to net income ratio indicates potential challenges in translating profits into free cash. This volatility could impact investment capacity and dividend policies if not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.25B	21.25B	21.14B	20.60B	18.74B	17.94B
Gross Profit	6.12B	5.96B	6.63B	6.21B	5.77B	5.36B
EBITDA	1.90B	2.01B	2.78B	2.30B	1.88B	1.85B
Net Income	1.12B	1.12B	1.74B	1.40B	1.07B	1.03B
Balance Sheet
Total Assets	26.56B	26.56B	24.63B	20.91B	19.28B	17.72B
Cash, Cash Equivalents and Short-Term Investments	4.00B	4.00B	3.28B	2.36B	2.43B	2.42B
Total Debt	3.51B	3.51B	2.59B	1.06B	675.63M	674.20M
Total Liabilities	7.80B	7.80B	7.06B	5.04B	4.77B	4.10B
Stockholders Equity	18.44B	18.44B	17.28B	15.62B	14.28B	13.39B
Cash Flow
Free Cash Flow	0.00	476.07M	1.06B	-310.16M	89.47M	687.39M
Operating Cash Flow	0.00	1.47B	1.43B	308.73M	1.32B	924.59M
Investing Cash Flow	0.00	-1.44B	-1.62B	-520.00M	-833.87M	-172.28M
Financing Cash Flow	0.00	642.50M	1.07B	117.00M	-523.35M	-644.87M

SANKO TECHNO CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1275.00
• 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:3435, the sentiment is Positive. The current price of 1275 is below the 20-day moving average (MA) of 1281.50, below the 50-day MA of 1295.22, and above the 200-day MA of 1177.58, indicating a neutral trend. The MACD of -3.91 indicates Positive momentum. The RSI at 49.25 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3435.

SANKO TECHNO CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5644	80 Outperform	¥11.75B	5.81		3.47%	0.52%	-3.96%
6998	78 Outperform	¥6.82B	9.91		3.62%	4.95%	24.62%
3441	74 Outperform	¥4.95B	11.34		1.79%	22.69%	82.04%
3435	73 Outperform	¥10.02B	9.28		2.99%	-0.77%	-23.54%
6497	66 Neutral	¥8.11B	10.11		2.88%	9.38%	95.55%
3447	65 Neutral	¥12.23B	10.73		3.62%	30.25%	104.29%
Sector *	63 Neutral	$10.84B	15.52	7.40%	2.00%	2.86%	-14.57%