Sanyu Co., Ltd. (5697) AI Stock Analysis

• Market Cap: ¥4.26B
• Dividend Yield: 3.06%
• Average Volume (3M): 24.48K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.63
• Revenue Growth: 3.93%
• EPS Growth: 103.42%
• Country: JP
• Employees: 306
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Steel
• EPS (TTM): 23.72
• Shares Outstanding: 6,091,000
• 10 Day Avg. Volume: 33,930
• 30 Day Avg. Volume: 24,483
• 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: ¥589.00
• Price Target Upside: -16.45% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥589.00 ▼(-16.45% Downside)

Sanyu Co., Ltd. has a strong overall score driven by robust financial performance and positive technical indicators. The stock appears undervalued with a low P/E ratio and offers a solid dividend yield. These factors position the company well within the steel industry, despite the absence of recent earnings call insights or notable corporate events.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Sanyu's products and successful market expansion, enhancing long-term business stability.

Operational Efficiency

Improved operational efficiency through better margin management supports sustainable profitability and competitive positioning.

Financial Stability

A strong equity ratio reflects financial resilience, providing a solid foundation for future growth and investment opportunities.

Negative Factors

Net Profit Margin Volatility

Fluctuating net profit margins can signal inconsistent profitability, which may affect investor confidence and long-term financial planning.

Cash Flow Conversion

Improving cash conversion efficiency is crucial for liquidity and funding future growth, and current levels indicate room for improvement.

Return on Equity Variability

Variable return on equity can reflect changing profitability, which may impact the company's ability to consistently generate shareholder value.

Sanyu Co., Ltd. Business Overview & Revenue Model

Company Description

Sanyu Co., Ltd. (5697) is a comprehensive manufacturing company based in Japan, primarily engaged in the production and sale of various industrial and consumer goods. The company operates across multiple sectors, including automotive components, electronic parts, and precision machinery. Sanyu Co., Ltd. is recognized for its innovative technologies and commitment to quality, providing products that cater to both domestic and international markets.

How the Company Makes Money

Sanyu Co., Ltd. generates revenue through multiple streams, primarily by selling its manufactured products to various industries such as automotive, electronics, and machinery. The company has established long-term contracts with major clients, ensuring a steady flow of orders and income. Additionally, Sanyu Co., Ltd. invests in research and development to innovate new products, which helps to expand its market reach and attract new customers. Partnerships with other businesses and suppliers also enhance its supply chain efficiency, contributing to cost savings and profitability. Furthermore, the company may also engage in exports, tapping into international markets, which can provide additional revenue opportunities.

Sanyu Co., Ltd. Financial Statement Overview

Summary

Sanyu Co., Ltd. demonstrates strong financial health with consistent revenue growth and improving operational efficiency. The balance sheet reflects stability with manageable leverage, and cash flow generation is robust, though there is room for improvement in converting net income into free cash flow.

Income Statement

Sanyu Co., Ltd. has demonstrated consistent revenue growth with a notable increase from 2021 to 2025. The gross profit margin has been stable, reflecting efficient cost management. However, the net profit margin has fluctuated, indicating potential volatility in net earnings. The EBIT and EBITDA margins have shown improvement, suggesting enhanced operational efficiency.

Balance Sheet

The company maintains a healthy equity ratio, indicating strong financial stability. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. Return on equity has been positive, though it shows some variability, which could indicate changing profitability levels over time.

Cash Flow

Operating cash flow has shown growth, supporting the company's ability to generate cash from operations. Free cash flow has also increased, indicating improved cash management. However, the free cash flow to net income ratio suggests that cash generation relative to net income could be enhanced further.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.44B	24.44B	24.01B	23.94B	21.07B	17.14B
Gross Profit	3.19B	3.14B	3.05B	3.54B	3.35B	2.25B
EBITDA	1.16B	1.18B	1.13B	1.54B	1.68B	848.03M
Net Income	450.52M	450.91M	386.82M	645.90M	669.70M	112.75M
Balance Sheet
Total Assets	19.30B	19.30B	19.53B	19.50B	18.43B	17.26B
Cash, Cash Equivalents and Short-Term Investments	3.13B	3.13B	2.92B	2.62B	2.97B	3.57B
Total Debt	1.90B	1.90B	2.41B	2.56B	2.41B	3.00B
Total Liabilities	8.75B	8.75B	9.33B	9.51B	8.95B	8.51B
Stockholders Equity	9.86B	9.86B	9.42B	9.23B	8.78B	8.15B
Cash Flow
Free Cash Flow	0.00	927.91M	729.50M	215.81M	45.84M	1.77B
Operating Cash Flow	0.00	1.42B	1.03B	651.32M	259.45M	2.02B
Investing Cash Flow	0.00	-522.01M	-335.18M	-880.32M	-200.19M	-249.63M
Financing Cash Flow	0.00	-684.71M	-399.19M	-121.66M	-661.11M	231.63M

Sanyu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 705.00
• 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:5697, the sentiment is Positive. The current price of 705 is above the 20-day moving average (MA) of 596.55, above the 50-day MA of 547.10, and above the 200-day MA of 494.28, indicating a bullish trend. The MACD of 40.20 indicates Negative momentum. The RSI at 73.83 is Negative, neither overbought nor oversold. The STOCH value of 86.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5697.

Sanyu Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5697	81 Outperform	¥4.26B	7.92		3.06%	3.93%	103.42%
5458	74 Outperform	¥2.90B	10.24		4.15%	-0.27%	7.20%
5491	72 Outperform	¥5.27B	6.23		―	-2.76%	-44.71%
5609	69 Neutral	¥4.25B	16.29		3.40%	-8.45%	-42.89%
5986	65 Neutral	¥4.62B	14.25		1.94%	-0.82%	-9.80%
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
5973	56 Neutral	¥3.35B	118.91		2.99%	7.70%	-80.52%