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

• Market Cap: ¥32.86B
• Dividend Yield: 2.3%
• Average Volume (3M): 7.49K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.83
• Revenue Growth: 12.79%
• EPS Growth: -15.37%
• Country: JP
• Employees: 924
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 21.32
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥4,503.00 ▲(15.17% Upside)

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

Consistent revenue growth indicates strong demand for the company's products and effective market positioning, supporting long-term business stability.

Cash Generation

Strong cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and reduction of debt, bolstering long-term prospects.

Balance Sheet Health

A strong balance sheet with a high equity ratio provides financial stability and resilience against economic fluctuations, supporting sustainable growth.

Negative Factors

Net Profit Margin

While improving, the net profit margin remains relatively low, suggesting the need for further cost management and efficiency improvements to enhance profitability.

Leverage Management

Moderate leverage requires vigilant management to avoid financial strain, which could impact the company's ability to invest in growth and innovation.

Profit Margin Improvement

Improving profit margins is crucial for maintaining competitive advantage and ensuring long-term financial health, requiring strategic cost control measures.

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

Company Description

CK San-Etsu Co., Ltd. (5757) is a prominent player in the electronics and materials sector, specializing in the production and distribution of semiconductor materials, chemicals, and advanced electronic components. The company operates primarily in Japan but also has a global presence, catering to various industries such as automotive, consumer electronics, and industrial applications. Its core products include resin materials, photolithography products, and other specialized chemical solutions that enhance the performance and reliability of electronic devices.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 3910.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 3910 is above the 20-day moving average (MA) of 3886.50, below the 50-day MA of 3963.90, and above the 200-day MA of 3853.75, indicating a neutral trend. The MACD of -8.18 indicates Negative momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of 60.87 is Neutral, 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
5922	81 Outperform	¥18.85B	9.35	―	2.78%	2.63%	-3.96%
5644	72 Outperform	¥15.18B	7.83	―	2.87%	2.38%	-5.80%
5757	71 Outperform	¥32.86B	7.86	―	2.30%	12.79%	-15.37%
7637	69 Neutral	¥25.44B	15.16	―	3.03%	9.16%	-21.26%
7414	66 Neutral	¥34.96B	9.93	―	4.90%	-7.06%	-31.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥20.21B	10.50	―	4.26%	5.12%	―

CK San-Etsu Co., Ltd. Corporate Events

CK San-Etsu Reports Increased Sales but Declining Profits for H1 2025

CK San-Etsu Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a 12% increase in net sales compared to the previous year. However, the company experienced a decline in operating profit, ordinary profit, and profit attributable to owners, indicating challenges in maintaining profitability. The equity-to-asset ratio decreased slightly, reflecting changes in the company’s financial position. Despite these challenges, the company has maintained its dividend forecast, suggesting a commitment to shareholder returns.

CK San-Etsu Announces Share Acquisition for Compensation Plan

CK San-Etsu Co., Ltd. announced the acquisition of 30,000 of its common shares by the trustee of a Trust established for their share-based compensation plan. This acquisition, completed through closing price trading on the Tokyo Stock Exchange, involved a total cost of 127,259,632 yen, potentially impacting the company’s stock value and shareholder interests.

CK SAN-ETSU Co., Ltd. Announces ESOP Trust Share Acquisition

CK SAN-ETSU Co., Ltd. announced that its Employee Shareholding Association’s ESOP Trust has acquired 89,400 common shares of the company through a closing price transaction on the Tokyo Stock Exchange, amounting to a total acquisition cost of 378,884,000 yen. This acquisition is part of the company’s strategy to reintroduce the ESOP Trust, potentially strengthening employee investment in the company and aligning their interests with corporate performance.

CK San-Etsu Announces Share Acquisition for Stock Compensation Plan

CK San-Etsu Co., Ltd. announced the acquisition of 30,000 of its common shares by the trustee of a trust established for a stock compensation plan. The purchase, valued at approximately 127 million yen, will occur through a closing price transaction on the Tokyo Stock Exchange. This move is part of the company’s ongoing efforts to manage its stock compensation plan, potentially impacting its market operations and stakeholder interests.

CK San-Etsu Enhances Share-Based Compensation Plan

CK San-Etsu Co., Ltd. announced a resolution to make an additional trust contribution for its share-based compensation plan, which is designed for the company’s directors and subsidiaries. This plan, initially introduced in 2016, involves acquiring additional company shares through a trust, with a scheduled acquisition date of October 8, 2025. The move is aimed at strengthening the company’s compensation strategy, potentially impacting its financial operations and stakeholder interests.

CK San-Etsu Reintroduces ESOP Trust with Treasury Share Disposal

CK San-Etsu Co., Ltd. announced the disposal of 230,000 treasury shares through a third-party allotment to reintroduce an ESOP Trust via the Employee Shareholding Association. This move aims to promote stable wealth accumulation for employees and enhance corporate value by increasing employee participation in corporate management. The disposal is expected to have a minimal impact on the secondary market, with a dilution effect of 2.59% of the total outstanding shares.

CK San-Etsu Reintroduces Employee Stock Ownership Plan to Boost Corporate Value

CK San-Etsu Co., Ltd. has decided to reintroduce its Employee Stock Ownership Plan Trust-type ESOP to improve corporate value and enhance employee benefits. The plan aims to stabilize asset building for employees and increase their participation in corporate management, with the company indemnifying any potential financial shortfalls.