Sanno Co., Ltd. (3441) AI Stock Analysis

• Market Cap: ¥4.95B
• Dividend Yield: 1.86%
• Average Volume (3M): 13.25K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.62
• Revenue Growth: 23.04%
• EPS Growth: 158.73%
• Country: JP
• Employees: 371
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 31.66
• Shares Outstanding: 5,000,000
• 10 Day Avg. Volume: 18,470
• 30 Day Avg. Volume: 13,250
• 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: ¥1,130.00
• Price Target Upside: 4.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥1,130.00 ▲(4.82% Upside)

Sanno Co., Ltd.'s stock is rated positively due to strong technical analysis signals and solid financial performance, which are the most significant factors. The valuation also suggests potential for appreciation, given the low P/E ratio. While earnings call and corporate events data were not available for consideration, the existing data supports a favorable outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with balanced leverage and high equity ratio indicates financial stability, providing resilience against market fluctuations.

Improved Profitability

Enhanced profitability on equity suggests effective management and operational efficiency, which can support sustainable growth and shareholder returns.

Cash Flow Strength

Robust cash flow growth indicates strong cash generation ability, enhancing the company's capacity to invest in growth opportunities and manage debts.

Negative Factors

Revenue Decline

A decline in revenue suggests potential challenges in market demand or competitive pressures, which could impact long-term growth prospects if not addressed.

Decreased Gross Profit Margin

A reduction in gross profit margin indicates increased costs or pricing pressures, which may affect profitability and require strategic adjustments.

Capital Expenditure Impact

Low free cash flow relative to net income suggests high capital expenditures, which could limit financial flexibility and impact future cash reserves.

Sanno Co., Ltd. Business Overview & Revenue Model

Company Description

Sanno Co., Ltd. (3441) is a Japanese company that operates in the manufacturing sector, specializing in the production and distribution of metal products. The company is primarily engaged in the fabrication of sheet metals and precision components, serving a variety of industries including automotive, electronics, and industrial machinery. Sanno Co., Ltd. is known for its high-quality engineering and manufacturing capabilities, providing custom solutions tailored to meet specific client needs.

How the Company Makes Money

Sanno Co., Ltd. generates revenue through the sale of its manufactured metal products and precision components. The company's key revenue streams include contracts with automotive manufacturers, electronics companies, and other industrial clients who require custom metal fabrication and precision engineering services. By maintaining strong relationships with these clients and consistently delivering high-quality products, Sanno Co., Ltd. secures repeat business and long-term contracts, which are significant contributors to its earnings. Additionally, the company may engage in strategic partnerships or collaborations to enhance its product offerings and expand its market reach, further driving revenue growth.

Sanno Co., Ltd. Financial Statement Overview

Summary

Sanno Co., Ltd. demonstrates financial stability with a strong balance sheet and improved profitability metrics. The company has managed to enhance its net margins and maintain operational efficiency despite revenue fluctuations. Cash flow performance is robust, but attention to capital investments is advised due to its impact on free cash flow. Overall, the company is positioned reasonably well within its industry.

Income Statement

Sanno Co., Ltd. has shown fluctuating revenue over the past years, with a revenue decline of 8% in the most recent year. The gross profit margin has decreased from 17.5% to 16.4%, indicating reduced efficiency or increased costs. Net profit margin improved from 1.6% to 3.6%, showcasing better cost management or non-operating income. EBIT margin slightly increased, while EBITDA margin remained stable, highlighting operational stability but potential efficiency challenges.

Balance Sheet

The company maintains a solid equity base, with a debt-to-equity ratio of 0.66, indicating a balanced leverage position. Return on equity increased from 2.6% to 4.9%, reflecting improved profitability on equity. The equity ratio stands at 53.3%, showing a healthy proportion of assets funded by equity, which suggests financial stability.

Cash Flow

Free cash flow growth is strong, with a significant increase from -318 million to 798 million yen. Operating cash flow to net income ratio improved to 3.37, reflecting strong cash generation relative to accounting earnings. However, free cash flow to net income ratio remains low at 2.55, indicating potential capital expenditure needs impacting free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.58B	8.80B	9.56B	9.45B	8.05B	7.95B
Gross Profit	1.70B	1.44B	1.68B	1.88B	1.57B	1.54B
EBITDA	977.56M	860.44M	795.10M	885.95M	1.52B	624.25M
Net Income	385.94M	312.75M	154.06M	355.75M	966.13M	171.44M
Balance Sheet
Total Assets	11.80B	12.05B	11.61B	11.62B	10.71B	10.40B
Cash, Cash Equivalents and Short-Term Investments	3.56B	3.90B	3.39B	2.86B	3.05B	2.68B
Total Debt	3.97B	4.26B	4.55B	4.52B	4.38B	4.79B
Total Liabilities	5.05B	5.63B	5.66B	6.00B	5.68B	6.08B
Stockholders Equity	6.74B	6.42B	5.95B	5.62B	5.03B	4.32B
Cash Flow
Free Cash Flow	0.00	798.32M	227.10M	-318.34M	-5.94M	-1.26B
Operating Cash Flow	0.00	1.05B	1.19B	145.03M	573.24M	-339.14M
Investing Cash Flow	0.00	-283.15M	-2.05B	-372.87M	144.82M	-682.02M
Financing Cash Flow	0.00	-495.81M	196.24M	-146.71M	-262.39M	910.23M

Sanno Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1078.00
• 50DMA: Positive
• 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:3441, the sentiment is Neutral. The current price of 1078 is below the 20-day moving average (MA) of 1082.60, above the 50-day MA of 1028.01, and above the 200-day MA of 872.71, indicating a neutral trend. The MACD of 22.81 indicates Positive momentum. The RSI at 52.41 is Neutral, neither overbought nor oversold. The STOCH value of 31.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3441.

Sanno Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5603	80 Outperform	¥4.18B	4.34		4.72%	0.34%	131.10%
5922	76 Outperform	¥17.32B	9.56		3.08%	2.75%	-9.49%
3441	74 Outperform	¥4.95B	11.34		1.86%	23.04%	158.73%
6150	72 Outperform	¥2.75B	9.50		2.67%	-10.50%	-31.23%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
5994	63 Neutral	¥5.49B	31.36		1.60%	1.07%	―
5987	52 Neutral	¥2.98B	1,058.36		1.08%	1.73%	―