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

• Market Cap: ¥12.19B
• Dividend Yield: 1.97%
• Average Volume (3M): 22.71K
• Price to Earnings (P/E): 2.4
• Beta (1Y): 0.63
• Revenue Growth: 26.69%
• EPS Growth: 142.65%
• Country: JP
• Employees: 371
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 121.66
• 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: -37.60
• 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: ¥2,270.00 ▲(105.06% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is driven primarily by solid profitability and balance-sheet stability, but it is tempered by meaningful cash flow weakness (negative free cash flow and low operating cash conversion). Technicals remain strong due to the clear uptrend, though the overbought RSI increases near-term risk. Valuation is a key positive, with a very low P/E and a modest dividend yield.

Positive Factors

Stable leverage & strong equity base

A debt-to-equity of 0.66 and a 52.56% equity ratio indicate conservative leverage and a solid capital structure. This durable balance-sheet strength supports access to financing, cushions downturns, and enables steady reinvestment or dividend policy without requiring aggressive deleveraging.

Improving profitability margins

Sustained gross margin (~20.3%) and an improving net margin (7.06%) reflect either pricing power or improved cost control in core metal fabrication operations. These margin trends are structural drivers of long-term earnings power and support reinvestment and shareholder returns if maintained.

Multi-period revenue growth

A multi-period revenue growth metric near 31% signals expanding top-line momentum and demand for the company's products. Durable revenue growth supports scale economies, better fixed-cost absorption in manufacturing, and provides a base for sustainable margin and profit expansion over months to years.

Negative Factors

Negative free cash flow

Negative free cash flow is a structural concern: it limits the firm's ability to self-fund capex, buybacks, or higher dividends and raises reliance on external financing. Over months this can constrain strategic investments and increase financing costs if not corrected.

Weak operating cash conversion

A 0.09 operating-cash-to-net-income ratio shows earnings are not being converted into cash efficiently. This structural weakness can create working-capital strain, reduce financial flexibility, and make the company more vulnerable to profit shocks even if reported earnings remain positive.

Room for operational efficiency gains

The company’s EBIT/EBITDA margins are improved but still indicate scope for efficiency. Persistent gap versus best-in-class peers could mean vulnerability to input-cost inflation and thinner buffers for profit downturns, requiring ongoing process or product-cost improvements to secure margins.

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

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Sanno Co., Ltd. Financial Statement Overview

Summary

Income statement strength (revenue up 5.63% and net margin improved to 7.06%) and a solid balance sheet (debt-to-equity 0.66; equity ratio 52.56%; ROE 11.33%) are offset by weak cash generation, with negative free cash flow and a low operating cash flow to net income ratio (0.09).

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	2.15B	1.40B	1.63B	1.84B	1.54B
EBITDA	1.25B	695.18M	716.31M	978.39M	753.82M
Net Income	765.69M	312.75M	154.06M	355.75M	966.13M
Balance Sheet
Total Assets	12.89B	12.11B	11.65B	11.64B	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	6.13B	5.69B	5.71B	6.02B	5.68B
Stockholders Equity	6.76B	6.42B	5.95B	5.62B	5.03B
Cash Flow
Free Cash Flow	-118.29M	815.55M	231.33M	-291.01M	24.78M
Operating Cash Flow	461.75M	1.05B	1.19B	145.03M	573.24M
Investing Cash Flow	28.70M	-283.15M	-2.05B	-372.87M	144.82M
Financing Cash Flow	-35.66M	-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 1540.45, below the 50-day MA of 1330.42, and above the 200-day MA of 1098.99, indicating a bullish trend. The MACD of 229.85 indicates Negative momentum. The RSI at 77.38 is Negative, neither overbought nor oversold. The STOCH value of 90.39 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	¥12.19B	2.40	―	1.97%	26.69%	142.65%
3447	73 Outperform	¥14.78B	3.92	―	3.58%	29.20%	122.98%
3449	73 Outperform	¥51.43B	13.09	―	2.40%	14.37%	93.86%
3435	70 Neutral	¥11.02B	10.19	―	2.89%	1.82%	-24.39%
3440	65 Neutral	¥5.76B	10.73	―	4.35%	30.19%	-15.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2962	53 Neutral	¥9.36B	-73.23	―	―	-19.32%	-171.53%