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

• Market Cap: ¥34.42B
• Dividend Yield: 2.2%
• Average Volume (3M): 6.63K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.86
• Revenue Growth: 15.50%
• EPS Growth: 146.67%
• Country: JP
• Employees: 924
• Sector: Industrials
• Sector Strength: 70
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 219.98
• Shares Outstanding: 8,867,000
• 10 Day Avg. Volume: 6,600
• 30 Day Avg. Volume: 6,633
• 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: ¥3,892.00
• Price Target Upside: -4.96% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥3,892.00 ▼(-4.96% Downside)

CK San-Etsu Co., Ltd. receives a solid overall stock score driven by its strong financial performance and attractive valuation. The company's consistent revenue growth and stable margins contribute positively, while its low P/E ratio suggests undervaluation. Technical indicators show neutral to slightly positive momentum. Continued efforts to enhance net profit margins and manage leverage will be key to future performance.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong demand for CK San-Etsu's products, reflecting its solid market position and ability to capture market opportunities.

Cash Flow Generation

The substantial increase in free cash flow enhances the company's ability to invest in growth opportunities, reduce debt, and return capital to shareholders, supporting long-term financial health.

Balance Sheet Health

A strong balance sheet with a solid equity base and manageable leverage provides financial stability and flexibility, enabling CK San-Etsu to withstand economic fluctuations and invest in strategic initiatives.

Negative Factors

Net Profit Margin

Despite improvements, the net profit margin remains relatively low, which may limit the company's ability to reinvest in its business and compete effectively in the long term.

Leverage Management

While leverage is currently manageable, any increase could strain financial resources, impacting the company's ability to fund operations and growth initiatives sustainably.

Margin Sustainability

Stable but modest gross profit margins suggest limited pricing power and cost control challenges, which may affect profitability if input costs rise or competitive pressures increase.

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

Company Description

CK San-Etsu Co., Ltd. is a Japanese company primarily engaged in the manufacture and sale of non-ferrous metal products. The company operates in sectors such as metal processing and material manufacturing, providing a wide range of products including brass bars, copper pipes, and other specialty metal components. CK San-Etsu Co., Ltd. serves various industries including automotive, electrical, and construction, offering materials that are critical for manufacturing and industrial applications.

How the Company Makes Money

CK San-Etsu Co., Ltd. generates revenue through the production and sale of non-ferrous metal products, with brass bars and copper pipes being among its main offerings. The company earns money by supplying these materials to industries such as automotive and construction, where they are used in the manufacturing of vehicles, building components, and electrical equipment. Revenue streams are primarily driven by the demand in these sectors, with fluctuations in metal prices and industrial activity impacting earnings. Additionally, CK San-Etsu Co., Ltd. may engage in strategic partnerships or collaborations to enhance its market reach and product offerings, further contributing to its revenue generation.

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

Summary

CK San-Etsu Co., Ltd. demonstrates a robust financial profile with consistent revenue growth, stable gross profit margins, and improved net profit margins. The balance sheet is strong with a solid equity base and manageable leverage. Cash flow is on a positive trajectory with significant increases in free cash flow. However, improvements in net profit margin and careful leverage management are necessary for sustained growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	125.11B	125.11B	111.43B	123.84B	115.34B	69.13B
Gross Profit	15.42B	15.42B	13.02B	13.24B	15.55B	9.50B
EBITDA	11.65B	10.37B	8.17B	10.92B	9.14B	2.64B
Net Income	5.21B	5.21B	3.81B	5.32B	4.31B	174.00M
Balance Sheet
Total Assets	86.97B	86.97B	77.14B	75.45B	71.10B	66.14B
Cash, Cash Equivalents and Short-Term Investments	3.70B	3.70B	981.00M	1.03B	679.00M	1.74B
Total Debt	8.50B	8.50B	8.22B	9.23B	9.72B	12.71B
Total Liabilities	27.93B	27.93B	23.53B	26.31B	27.21B	25.73B
Stockholders Equity	52.27B	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: Neutral
• Last Price: 4095.00
• 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:5757, the sentiment is Neutral. The current price of 4095 is below the 20-day moving average (MA) of 4103.25, above the 50-day MA of 3981.40, and above the 200-day MA of 3799.41, indicating a neutral trend. The MACD of 34.00 indicates Positive momentum. The RSI at 53.26 is Neutral, neither overbought nor oversold. The STOCH value of 22.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
5644	80 Outperform	¥11.75B	5.84		3.45%	0.52%	-3.96%
5922	76 Outperform	¥17.32B	9.56		3.08%	2.75%	-9.49%
5757	72 Outperform	¥34.42B	4.99		2.20%	15.50%	146.67%
7414	72 Outperform	¥35.78B	8.69		4.79%	-7.43%	-27.31%
7637	72 Outperform	¥26.20B	14.25		3.85%	16.20%	-13.47%
5852	64 Neutral	¥23.20B	―		3.06%	5.53%	68.16%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%

CK San-Etsu Co., Ltd. Corporate Events

CK San-Etsu Reports Mixed Financial Results Amid Expansion

CK San-Etsu Co., Ltd. reported its consolidated financial results for the three months ending June 30, 2025, showing a significant increase in net sales by 16.7% year-on-year to ¥35,427 million. Despite this growth, the company experienced a decline in operating profit by 37.7%, while ordinary profit surged by 836.3%. The company has also expanded its scope of consolidation by including two new companies, MITANI SHINDO Co., Ltd. and SHIN KITAMI Co., Ltd., which may impact its future financial performance and market strategy.

CK San-Etsu Co., Ltd. Updates Management Strategy to Boost Capital Efficiency

CK San-Etsu Co., Ltd. has updated its management strategy to improve capital efficiency and shareholder value. The company plans to increase transparency for foreign investors, strengthen its copper and brass business through a new subsidiary, and enhance capital efficiency by acquiring treasury shares. These initiatives are expected to address challenges such as low foreign investment and sluggish domestic demand.

CK San-Etsu Announces Increased Annual Dividend for 2025

CK San-Etsu Co., Ltd. has announced a resolution to pay dividends of surplus, with a record date of March 31, 2025. The dividend per share is set at 45 yen, consistent with the previously announced forecast, resulting in an annual dividend of 90 yen per share. This decision reflects the company’s basic dividend policy, which emphasizes stable profit distribution in line with business performance. The increase from the previous fiscal year’s dividend indicates a positive business outlook and commitment to shareholder returns.