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

• Market Cap: ¥10.32B
• Dividend Yield: 2.9%
• Average Volume (3M): 3.56K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.24
• Revenue Growth: 1.82%
• EPS Growth: -24.39%
• Country: JP
• Employees: 682
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 47.31
• Shares Outstanding: 8,745,408
• 10 Day Avg. Volume: 4,230
• 30 Day Avg. Volume: 3,560
• PEG Ratio: -0.23
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 19.66
• 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: 70 Neutral
• Price Target: ¥1,396.00 ▲(12.58% Upside)

SANKO TECHNO CO., LTD. has a strong financial foundation and attractive valuation, which are significant positives. However, the current technical indicators suggest bearish momentum, which could pose short-term risks. The absence of recent earnings call insights or notable corporate events leaves the focus on financial and valuation metrics.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage and high equity provides financial stability and flexibility for strategic investments or downturns.

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market reach and maintain demand across diverse industries.

Competitive Advantage

Innovation and quality enhance SANKO TECHNO's competitive position, enabling it to capture market share and sustain profitability.

Negative Factors

Margin Pressure

Decreasing margins suggest rising costs or competitive pricing pressures, which could impact profitability if not addressed.

Free Cash Flow Volatility

Volatile free cash flow may limit the company's ability to invest in growth opportunities and affect dividend policies.

Earnings Decline

A significant decline in earnings per share growth indicates challenges in maintaining profitability, potentially affecting investor confidence.

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

Company Description

SANKO TECHNO CO., LTD. (3435) is a leading technology company based in Japan, specializing in the manufacturing and development of advanced electronic components and systems. The company operates primarily in the electronics sector, providing products such as semiconductors, sensors, and other high-tech solutions that cater to various industries, including automotive, telecommunications, and consumer electronics. With a commitment to innovation and quality, SANKO TECHNO aims to enhance the performance and efficiency of electronic devices globally.

How the Company Makes Money

SANKO TECHNO generates revenue through multiple streams, primarily by selling its core products, including semiconductors and sensors, to manufacturers in various industries. The company has established long-term contracts with key clients, ensuring a steady flow of income from bulk orders. Additionally, SANKO TECHNO offers specialized development services, providing custom solutions tailored to client specifications, which further contributes to its revenue. Strategic partnerships with other technology firms and participation in joint ventures enhance its market reach and capabilities, leading to increased sales opportunities. The company also invests in research and development to innovate and expand its product offerings, driving additional revenue from new technologies and applications.

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, challenges exist 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	21.13B	21.25B	21.14B	20.60B	18.74B	17.94B
Gross Profit	6.15B	5.96B	6.63B	6.21B	5.77B	5.36B
EBITDA	1.87B	2.01B	2.78B	2.30B	1.88B	1.85B
Net Income	1.09B	1.12B	1.74B	1.40B	1.07B	1.03B
Balance Sheet
Total Assets	26.45B	26.56B	24.63B	20.91B	19.28B	17.72B
Cash, Cash Equivalents and Short-Term Investments	4.54B	4.00B	3.28B	2.36B	2.43B	2.42B
Total Debt	3.69B	3.51B	2.59B	1.06B	675.63M	674.20M
Total Liabilities	7.98B	7.80B	7.06B	5.04B	4.77B	4.10B
Stockholders Equity	18.17B	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: 1240.00
• 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:3435, the sentiment is Positive. The current price of 1240 is below the 20-day moving average (MA) of 1288.90, below the 50-day MA of 1259.40, and above the 200-day MA of 1227.73, indicating a bullish trend. The MACD of 18.14 indicates Negative momentum. The RSI at 63.02 is Neutral, neither overbought nor oversold. The STOCH value of 61.84 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
3447	73 Outperform	¥12.25B	9.28	―	3.58%	29.20%	122.98%
5644	72 Outperform	¥15.18B	7.83	―	2.87%	2.38%	-5.80%
6497	72 Outperform	¥8.00B	8.84	―	2.91%	5.71%	169.04%
6998	71 Outperform	¥7.15B	11.14	―	3.48%	0.24%	20.23%
3435	70 Neutral	¥10.32B	9.66	―	2.90%	1.82%	-24.39%
3441	67 Neutral	¥5.15B	5.66	―	1.98%	26.69%	142.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%