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

• Market Cap: ¥11.02B
• Dividend Yield: 2.89%
• Average Volume (3M): 3.56K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.25
• Revenue Growth: 1.82%
• EPS Growth: -24.39%
• Country: JP
• Employees: 682
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 32.42
• 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: ¥1,535.00 ▲(23.79% Upside)
• Action: Reiterated Date: 10/10/25
• Date: Action: Reiterated 10/10/25

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

Balance-sheet strength

A very strong balance sheet with equity above 70% and low leverage provides durable financial flexibility. It supports capital spending, weathering demand cycles, and opportunistic investments without forcing distressed financing, reducing long-term solvency and refinancing risk.

Steady revenue and gross margins

Sustained revenue growth and a stable ~29% gross margin indicate resilient core products and pricing power in the manufacturing niche. This consistency supports predictable cash generation and underpins long-run operating scalability despite cyclical industry swings.

Operating cash generation

Positive operating cash flow and a strong conversion ratio versus net income show the business reliably converts earnings into cash. That durability supports dividends, working capital needs, and reinvestment without depending on external funding across multi-month cycles.

Negative Factors

Margin compression

Recent declines in EBIT/EBITDA and net margins point to structural pressure from higher costs or pricing competitiveness. If persistent, margin erosion can reduce free cash generation and returns on capital, forcing strategic shifts or efficiency drives that take time to restore.

Free cash flow volatility

Sharp swings in free cash flow driven by higher capex weaken predictable cash available for dividends, buybacks, or debt reduction. Sustained volatility limits management flexibility and raises the risk that future investments outpace internal funding, pressuring capital allocation choices.

Earnings per share contraction

A >25% decline in EPS growth signals meaningful near-term earnings weakness or one-off hits that materially reduce shareholder returns. Persistent EPS contraction can constrain retained earnings, slow equity growth, and undermine confidence in long-term profitability trends.

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

Company Description

Sanko Techno Co., Ltd. researches and develops, constructs, manufactures, and sells construction materials, composites, and waterproofing materials in Japan. Its construction materials include post-installation anchors, industrial fasteners, and drill bits. The company also provides earthquake resistant reinforcement systems to protect schools, hospitals, highways, railway bridges, and other structures from possible earthquake damage. Sanko Techno Co., Ltd. was founded in 1964 and is headquartered in Nagareyama, Japan.

How the Company Makes Money

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	21.13B	21.25B	21.14B	20.60B	18.74B	17.94B
Gross Profit	6.15B	5.96B	6.47B	6.06B	5.65B	5.24B
EBITDA	1.66B	1.70B	2.45B	2.31B	2.02B	1.81B
Net Income	1.08B	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	3.54B	2.61B	1.08B	698.59M	680.08M
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	-305.14M	135.56M	749.86M
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: Negative
• Last Price: 1240.00
• 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 Negative. The current price of 1240 is below the 20-day moving average (MA) of 1438.20, below the 50-day MA of 1408.20, and below the 200-day MA of 1304.22, indicating a neutral trend. The MACD of -3.74 indicates Positive momentum. The RSI at 45.63 is Neutral, neither overbought nor oversold. The STOCH value of 37.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
6497	80 Outperform	¥10.35B	8.32	―	2.92%	5.71%	169.04%
6998	78 Outperform	¥11.45B	7.66	―	3.48%	0.24%	20.23%
5644	72 Outperform	¥15.72B	4.33	―	2.87%	2.38%	-5.80%
3435	70 Neutral	¥11.02B	10.19	―	2.89%	1.82%	-24.39%
5994	69 Neutral	¥6.70B	-102.51	―	1.06%	6.41%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥21.07B	3.53	―	4.33%	5.12%	―