CK San-Etsu Co., Ltd. (5757) AI Stock Analysis

• Market Cap: ¥39.75B
• Dividend Yield: 2.25%
• Average Volume (3M): 7.49K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.87
• Revenue Growth: 12.79%
• EPS Growth: -15.37%
• Country: JP
• Employees: 924
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -181.30
• Shares Outstanding: 8,867,000
• 10 Day Avg. Volume: 6,470
• 30 Day Avg. Volume: 7,490
• PEG Ratio: 0.18
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 10.68
• 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: 71 Outperform
• Price Target: ¥5,227.00 ▲(26.56% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

CK San-Etsu Co., Ltd. scores well due to its strong financial performance and attractive valuation, with a low P/E ratio and reasonable dividend yield. However, technical analysis indicates a bearish short-term trend, which slightly offsets the overall score.

Positive Factors

Revenue Growth Trend

Sustained revenue growth near 12-13% shows expanding sales and demand for its copper/alloy products across industrial end-markets. This pace supports predictable topline expansion, enabling steady capacity planning and investment over the next several quarters.

Balance Sheet Strength

A strong equity base and very low leverage provide financial flexibility to withstand metal-price cycles and fund capex or working capital. Improved ROE near 10% signals efficient capital use, helping sustain operations and support strategic investments.

Improving Cash Generation

Material free cash flow improvement and solid operating-cash-to-net-income indicate stronger cash conversion. Reliable cash generation supports reinvestment, dividend continuity and debt reduction, strengthening the firm's ability to fund higher-value product development.

Negative Factors

Low Net Profit Margin

Although improving, a net margin around 4% is thin for sustaining long-term competitiveness. Limited margin cushion reduces resilience to cost inflation or pricing pressure, constraining the company's ability to invest in higher-margin R&D or absorb commodity shocks.

EPS Volatility

A steep year-over-year EPS decline signals earnings volatility that can impair retained earnings and strategic consistency. Persistent EPS swings complicate long-range planning, capital allocation and investor confidence, requiring management to stabilise underlying profitability.

Commodity Price Exposure

Business depends on pass-through of copper and alloy cost swings; adverse metal cycles can compress spreads and margins. Structural commodity exposure makes profitability sensitive to procurement effectiveness and hedging, limiting predictable margin expansion.

CK San-Etsu Co., Ltd. Business Overview & Revenue Model

Company Description

CK SAN-ETSU Co., Ltd. manufactures and sells brass rod and wire products in Japan, China, and Taiwan. It also offers precision parts through forging and cutting activities; piping equipment under the CK brand; and hot-dip galvanized metal products. The company was formerly known as SAN-ETSU METALS Co., Ltd. and changed its name to CK SAN-ETSU Co., Ltd. in October 2011. CK SAN-ETSU Co., Ltd. was founded in 1919 and is based in Takaoka, Japan.

How the Company Makes Money

CK San-Etsu generates revenue through the sale of its semiconductor materials and chemical products to a diverse customer base, including major electronics manufacturers and automotive companies. The company's revenue model is primarily based on direct sales, where it supplies bulk quantities of its products to clients. Key revenue streams include the sale of specialty chemicals for semiconductor fabrication, which are essential for the production of integrated circuits and other electronic components. Additionally, CK San-Etsu benefits from long-term partnerships with leading technology firms, which provide a stable demand for its products. The company may also engage in research and development collaborations, enhancing its product offerings and driving innovation, which further contributes to its earnings.

CK San-Etsu Co., Ltd. Financial Statement Overview

Summary

CK San-Etsu Co., Ltd. exhibits a healthy financial profile with consistent revenue growth, stable profit margins, and a strong equity position. The income statement and cash flow metrics are commendable, though ongoing efforts to improve net profit margins and manage leverage are crucial for sustained financial health.

Income Statement

CK San-Etsu Co., Ltd. shows a solid income statement with consistent revenue growth, highlighted by a 12.3% increase in revenue from 2024 to 2025. Gross profit margins remain stable at around 12%, and the net profit margin improved to 4.16% in 2025 from 3.42% the previous year. EBIT and EBITDA margins have also shown improvement, indicating efficient cost management and operational effectiveness. However, the company must continue enhancing its net profit margin to remain competitive.

Balance Sheet

The balance sheet of CK San-Etsu Co., Ltd. is relatively strong with a solid equity base, as seen in the equity ratio of 60.1% in 2025. The debt-to-equity ratio is manageable at 0.16, reflecting moderate leverage. Return on equity (ROE) has improved to approximately 9.97%, showcasing effective utilization of shareholder funds. While the company maintains a healthy financial position, careful monitoring of debt levels is advisable to prevent potential risks associated with increased leverage.

Cash Flow

The cash flow statement highlights a positive trajectory with a significant increase in free cash flow to ¥3,016 million in 2025, up from ¥970 million in 2024. The operating cash flow to net income ratio remains robust at 1.02, suggesting strong cash generation capabilities relative to net income. The free cash flow to net income ratio has improved, indicating better cash management. Continued focus on enhancing free cash flow will support future investments and debt reduction.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	130.19B	125.11B	111.43B	123.84B	115.34B	69.13B
Gross Profit	14.53B	15.42B	13.02B	13.24B	15.55B	9.50B
EBITDA	11.42B	10.37B	8.17B	10.92B	9.14B	2.64B
Net Income	6.93B	5.21B	3.81B	5.32B	4.31B	174.00M
Balance Sheet
Total Assets	98.82B	86.97B	77.14B	75.45B	71.10B	66.14B
Cash, Cash Equivalents and Short-Term Investments	2.42B	3.70B	981.00M	1.03B	679.00M	1.74B
Total Debt	19.47B	8.50B	8.22B	9.23B	9.72B	12.71B
Total Liabilities	37.90B	27.93B	23.53B	26.31B	27.21B	25.73B
Stockholders Equity	52.91B	52.27B	47.44B	43.38B	38.52B	35.22B
Cash Flow
Free Cash Flow	0.00	3.02B	970.00M	836.00M	4.10B	-9.62B
Operating Cash Flow	0.00	5.31B	3.70B	3.24B	6.28B	-5.40B
Investing Cash Flow	0.00	-2.32B	-2.68B	-2.54B	-2.63B	-7.37B
Financing Cash Flow	0.00	-279.00M	-1.07B	-553.00M	-4.71B	10.21B

CK San-Etsu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4130.00
• 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:5757, the sentiment is Positive. The current price of 4130 is below the 20-day moving average (MA) of 4441.50, below the 50-day MA of 4290.60, and above the 200-day MA of 3986.77, indicating a bullish trend. The MACD of 71.12 indicates Negative momentum. The RSI at 70.14 is Negative, neither overbought nor oversold. The STOCH value of 84.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5757.

CK San-Etsu Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7637	79 Outperform	¥30.44B	14.38	―	2.96%	9.16%	-21.26%
5922	76 Outperform	¥23.75B	10.47	―	2.78%	2.63%	-3.96%
5644	72 Outperform	¥16.90B	7.44	―	2.87%	2.38%	-5.80%
5757	71 Outperform	¥39.75B	25.98	―	2.25%	12.79%	-15.37%
7414	66 Neutral	¥37.15B	10.66	―	4.92%	-7.06%	-31.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥23.85B	10.25	―	4.33%	5.12%	―

CK San-Etsu Co., Ltd. Corporate Events

CK San-Etsu Books Heavy Derivative Losses After Copper Price Surge

CK San-Etsu has booked substantial non-operating expenses in the consolidated cumulative third quarter of the fiscal year ending March 2026, recording a 2.046 billion yen derivative loss and a 5.719 billion yen loss on valuation of derivatives. These losses stem from hedging activities tied to sharp copper price increases since October 2025, highlighting the company’s exposure to commodity market volatility and the material impact of its risk management strategy on quarterly earnings.

Management noted that gains or losses on derivative valuations will continue to fluctuate with raw material market trends, and directed stakeholders to its latest third-quarter financial summary and revised full-year earnings forecasts for further details. The announcement underscores both the importance and potential income-statement volatility of derivative-based hedging for manufacturers dependent on copper and zinc, with investors needing to monitor how future price movements may affect profitability and balance-sheet stability.

The most recent analyst rating on (JP:5757) stock is a Buy with a Yen5118.00 price target. To see the full list of analyst forecasts on CK San-Etsu Co., Ltd. stock, see the JP:5757 Stock Forecast page.

Nippon Shindo Raises Sales Outlook but Cuts Profit Forecast on Copper Derivative Losses

CK San-Etsu Co., Ltd. announced that its subsidiary Nippon Shindo Co., Ltd. has revised its earnings forecast for the fiscal year ending March 2026 in response to recent business performance trends. The parent company indicated that its own consolidated earnings outlook has also been updated in light of the subsidiary’s changes.

Nippon Shindo now expects full-year net sales and operating profit to significantly exceed prior guidance, driven mainly by higher-than-planned copper prices boosting revenues. However, the sharp rise in copper prices since October 2025 has generated derivative valuation losses booked as non-operating expenses, leading the company to cut its forecasts for ordinary profit and net profit despite stronger top-line performance.

The revision underscores the dual impact of commodity volatility on metals processors, as elevated raw material prices support sales but increase financial risk through hedging activities. For investors and other stakeholders, the new outlook highlights both improved operating momentum and heightened earnings sensitivity to swings in copper markets, which could shape future risk management and pricing strategies.

The most recent analyst rating on (JP:5757) stock is a Buy with a Yen5118.00 price target. To see the full list of analyst forecasts on CK San-Etsu Co., Ltd. stock, see the JP:5757 Stock Forecast page.

CK San-Etsu Raises Sales Outlook but Cuts Profit Forecast on Copper Derivative Losses

CK San-Etsu has revised its full-year consolidated earnings forecast for the fiscal year ending March 2026, projecting higher net sales and operating profit than previously expected, driven by increased sales volumes in its copper and brass business after acquiring MITANI SHINDO and by higher-than-planned copper prices. However, a sharp rise in copper prices since October 2025 has led to derivative-related non-operating losses aimed at hedging commodity price risks, resulting in downward revisions to ordinary profit and profit attributable to owners of the parent, underscoring both the growth in its core operations and the earnings volatility tied to raw material price movements.

The most recent analyst rating on (JP:5757) stock is a Buy with a Yen5118.00 price target. To see the full list of analyst forecasts on CK San-Etsu Co., Ltd. stock, see the JP:5757 Stock Forecast page.

CK San-Etsu Posts Higher Sales but Profit Slump and Weakens Outlook Quality

CK San-Etsu reported consolidated net sales of ¥105.3 billion for the nine months to December 31, 2025, up 12.6% year on year, while operating profit was flat at ¥8.18 billion. Ordinary profit and profit attributable to owners of parent plunged about 87% to ¥845 million and ¥499 million respectively, dragging basic earnings per share down to ¥60 as comprehensive income fell sharply.

The company’s balance sheet showed total assets rising to ¥104.1 billion but the equity ratio declining to 49.3%, reflecting a weaker capital structure compared with March 2025. Despite profit pressure, CK San-Etsu kept its dividend policy intact, paying ¥45 per share at the second quarter and forecasting a full-year total of ¥90, while revising its full-year outlook to higher sales and operating profit but much lower ordinary profit and net income, signaling ongoing earnings headwinds for shareholders.

The most recent analyst rating on (JP:5757) stock is a Buy with a Yen5118.00 price target. To see the full list of analyst forecasts on CK San-Etsu Co., Ltd. stock, see the JP:5757 Stock Forecast page.

CK San-Etsu Books ¥7.8 Billion in Derivative Losses on Copper Price Surge

CK San-Etsu has booked substantial non-operating expenses in the consolidated cumulative third quarter of the fiscal year ending March 2026, driven by losses linked to its commodity hedging activities. The company recorded a derivative loss of ¥2.046 billion and a loss on valuation of derivatives of ¥5.719 billion, reflecting the sharp rise in copper prices since October 2025 and highlighting the financial impact of its risk management strategy.

These losses underline the sensitivity of CK San-Etsu’s earnings to fluctuations in global copper and zinc markets, as the firm uses derivatives to hedge inventory price risks. Investors are directed to the firm’s third-quarter financial summary and its revised earnings forecast for more detail, signaling that the derivative valuation swings could continue to influence results depending on future raw material price trends.

The most recent analyst rating on (JP:5757) stock is a Buy with a Yen5118.00 price target. To see the full list of analyst forecasts on CK San-Etsu Co., Ltd. stock, see the JP:5757 Stock Forecast page.

Nippon Shindo Lifts Sales Outlook but Cuts Profit Forecast on Copper-Linked Derivative Losses

CK San-Etsu said its subsidiary Nippon Shindo has revised its full-year earnings outlook for the fiscal year ending March 2026, prompting investors to look to CK San-Etsu’s own updated consolidated forecasts released the same day. The disclosure underscores the parent’s reliance on the performance of Nippon Shindo, whose results are shaped by swings in copper prices and related financial instruments.

Nippon Shindo raised its net sales and operating profit forecasts, citing higher-than-expected copper prices that lifted revenue and core earnings. However, sharp copper price increases since October 2025 triggered derivative valuation losses booked as non-operating expenses, leading the company to cut its projections for ordinary profit and bottom-line profit despite stronger sales.

The new guidance calls for net sales of ¥29.8 billion, up 14.6% from the prior forecast, and operating profit of ¥2.63 billion, more than doubling the earlier estimate. By contrast, ordinary profit is now seen falling about 27% versus the previous outlook to ¥850 million, while profit is expected to drop roughly 24% to ¥620 million, driving forecast earnings per share down to ¥290.13 from ¥383.72.

Compared with the year ended March 2025, Nippon Shindo now expects higher net sales and operating profit but significantly weaker ordinary profit and net profit. The revisions highlight how commodity hedging and derivative positions can offset gains from favorable price movements in the underlying metal, a dynamic that may concern shareholders focused on earnings stability and risk management.

The most recent analyst rating on (JP:5757) stock is a Buy with a Yen5118.00 price target. To see the full list of analyst forecasts on CK San-Etsu Co., Ltd. stock, see the JP:5757 Stock Forecast page.

CK San-Etsu Lifts Sales Outlook but Cuts Profit Forecast on Copper Derivative Losses

CK San-Etsu Co., Ltd. has revised its full-year consolidated earnings forecasts for the fiscal year ending March 2026, reflecting stronger-than-expected performance in its copper and brass operations. Net sales are now projected to rise to 145 billion yen and operating profit to 13 billion yen, driven by increased sales volume following the consolidation of MITANI SHINDO Co., Ltd. and higher copper prices than initially assumed.

Despite this operational strength, the company expects ordinary profit and profit attributable to owners of the parent to fall sharply versus previous forecasts, as recent rapid increases in copper prices have triggered significant derivative losses and valuation losses on hedging transactions. These non-operating expenses, recorded on derivatives used to manage commodity price risk on inventories, are set to weigh heavily on bottom-line results, underscoring the earnings volatility tied to raw material price swings for stakeholders.

The most recent analyst rating on (JP:5757) stock is a Buy with a Yen5118.00 price target. To see the full list of analyst forecasts on CK San-Etsu Co., Ltd. stock, see the JP:5757 Stock Forecast page.

CK San-Etsu Grows Sales but Profit Slumps on Lower Non-Operating Income

CK San-Etsu reported consolidated net sales of ¥105.3 billion for the nine months to December 31, 2025, up 12.6% year on year, while operating profit was flat at ¥8.18 billion and ordinary profit and profit attributable to owners plunged about 87%, reflecting a sharp drop in non-operating income. Basic earnings per share fell to ¥60 from ¥489.77, equity ratio declined to 49.3% as total assets expanded, but the company kept its dividend plan unchanged at ¥90 per share for the full year and revised its full-year forecast to higher sales and operating profit but markedly lower ordinary profit and net earnings, signaling margin and income pressure despite top-line growth.

The most recent analyst rating on (JP:5757) stock is a Buy with a Yen5118.00 price target. To see the full list of analyst forecasts on CK San-Etsu Co., Ltd. stock, see the JP:5757 Stock Forecast page.