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

• Market Cap: ¥6.38B
• Dividend Yield: 1.97%
• Average Volume (3M): 22.71K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.61
• Revenue Growth: 26.69%
• EPS Growth: 142.65%
• Country: JP
• Employees: 371
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 86.09
• Shares Outstanding: 5,000,000
• 10 Day Avg. Volume: 6,730
• 30 Day Avg. Volume: 22,710
• PEG Ratio: 0.04
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -37.70
• 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: 74 Outperform
• Price Target: ¥1,452.00 ▲(31.17% Upside)
• Action: Upgraded Date: 02/20/26
• Date: Action: Upgraded 02/20/26

The score is primarily supported by solid profitability and balance sheet stability, plus an attractive low P/E valuation. It is held back by negative free cash flow and weak cash conversion, and technically the stock is in a strong uptrend but appears overextended based on RSI/Stoch readings.

Positive Factors

Improving profitability

Sanno's revenue and margins have improved, showing productive demand and pricing/ cost control. Sustained mid‑single digit revenue growth with a 20% gross margin and rising net margin supports durable earnings power and reinvestment capacity over the next several quarters.

Stable leverage and equity base

A debt-to-equity of 0.66 and a >50% equity ratio indicate conservative leverage and strong capital structure. This durable balance-sheet strength improves access to financing, cushions cyclical downturns, and supports capital allocation or investment without highly dilutive financing.

Improved return on equity

An ROE above 11% signals better utilization of shareholder capital relative to peers. Sustained mid‑teens-ish returns are not required for quality; a consistent double-digit ROE suggests management is generating acceptable returns from core metal fabrication operations over time.

Negative Factors

Negative free cash flow

Despite reported profits, negative free cash flow is a structural concern: it limits the company’s ability to self‑fund capex, pay dividends or reduce debt. If persistent, this undermines financial flexibility and makes the firm more dependent on external financing or asset sales.

Poor cash conversion

An OCF/Net Income of 0.09 shows earnings are not translating into cash. Weak cash conversion can mask the quality of reported profits and raises risk around working capital cycles, supplier payments and the sustainability of dividends or capex programs over months ahead.

Room for margin efficiency gains

While profitability improved, management still has visible operational upside: EBIT/EBITDA margins are not yet best‑in‑class. Structural inefficiencies or cost bases that limit higher operating margins could restrain long‑term free cash flow generation absent targeted productivity or pricing actions.

Sanno Co., Ltd. Business Overview & Revenue Model

Company Description

SANNO Co., Ltd., together with its subsidiaries, engages in mold manufacturing and precious metal surface treatment activities in Japan and the Philippines. It is also involved in the precision press processing of electronic components, such as connectors and switches. The company's services have applications in PC related products, mobile handsets, digital appliances, electronic cards, semiconductor facilities, gaming devices, automobile devices, and other devices. It primarily serves connector manufacturers. The company was founded in 1958 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Sanno Co., Ltd. generates revenue through the sale of its industrial machinery and equipment, with key revenue streams coming from both domestic and international markets. The company's business model is centered around manufacturing high-quality products that meet the stringent demands of construction and engineering projects. Additionally, Sanno Co., Ltd. benefits from service contracts and maintenance agreements, which provide a steady income stream beyond initial equipment sales. Strategic partnerships with construction firms and suppliers further enhance its market reach and contribute to its earnings, allowing the company to leverage collaborative opportunities in large-scale projects.

Sanno Co., Ltd. Financial Statement Overview

Summary

Strong income statement performance (revenue up 5.63%, gross margin 20.26%, net margin improved to 7.06%) and a stable balance sheet (debt-to-equity 0.66, equity ratio 52.56%, ROE 11.33%) are offset by weak cash generation (negative free cash flow; operating cash flow to net income only 0.09), which raises liquidity and sustainability risk.

Income Statement

Sanno Co., Ltd. has demonstrated strong revenue growth with a 5.63% increase in the latest year, supported by a solid gross profit margin of 20.26%. The net profit margin has improved to 7.06%, indicating enhanced profitability. However, the EBIT and EBITDA margins, while improved, suggest room for further operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.66, reflecting a stable leverage position. Return on equity has increased to 11.33%, showcasing better utilization of shareholder funds. The equity ratio remains robust at 52.56%, indicating a strong equity base relative to total assets.

Cash Flow

The cash flow position is mixed, with a negative free cash flow indicating potential liquidity challenges. The operating cash flow to net income ratio is low at 0.09, suggesting limited cash generation from operations relative to net income. The free cash flow to net income ratio is negative, highlighting the need for improved cash management.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	10.83B	8.80B	9.56B	9.45B	8.05B
Gross Profit	2.19B	1.44B	1.68B	1.88B	1.57B
EBITDA	1.25B	860.44M	795.10M	885.95M	1.52B
Net Income	765.00M	312.75M	154.06M	355.75M	966.13M
Balance Sheet
Total Assets	12.85B	12.05B	11.61B	11.62B	10.71B
Cash, Cash Equivalents and Short-Term Investments	3.61B	3.90B	3.39B	2.86B	3.05B
Total Debt	4.48B	4.26B	4.55B	4.52B	4.38B
Total Liabilities	6.10B	5.63B	5.66B	6.00B	5.68B
Stockholders Equity	6.75B	6.42B	5.95B	5.62B	5.03B
Cash Flow
Free Cash Flow	-118.00M	798.32M	227.10M	-318.34M	-5.94M
Operating Cash Flow	461.00M	1.05B	1.19B	145.03M	573.24M
Investing Cash Flow	28.70M	-283.15M	-2.05B	-372.87M	144.82M
Financing Cash Flow	-35.00M	-495.81M	196.24M	-146.71M	-262.39M

Sanno Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1107.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3441, the sentiment is Positive. The current price of 1107 is below the 20-day moving average (MA) of 1260.00, below the 50-day MA of 1179.92, and above the 200-day MA of 1045.51, indicating a bullish trend. The MACD of 55.71 indicates Negative momentum. The RSI at 78.97 is Negative, neither overbought nor oversold. The STOCH value of 82.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3441.

Sanno Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3441	74 Outperform	¥6.38B	7.03	―	1.97%	26.69%	142.65%
3447	73 Outperform	¥14.35B	7.99	―	3.58%	29.20%	122.98%
3449	73 Outperform	¥44.64B	14.36	―	2.40%	14.37%	93.86%
3435	70 Neutral	¥11.48B	11.62	―	2.89%	1.82%	-24.39%
3440	65 Neutral	¥6.09B	8.20	―	4.35%	30.19%	-15.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2962	51 Neutral	¥7.97B	-3.49	―	―	-19.32%	-171.53%