Sankyo Tateyama, Inc. (5932) AI Stock Analysis

• Market Cap: ¥20.16B
• Dividend Yield: 4.03%
• Average Volume (3M): 109.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 1.03%
• EPS Growth: -92.80%
• Country: JP
• Employees: 10,289
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): N/A
• Shares Outstanding: 31,554,628
• 10 Day Avg. Volume: 194,680
• 30 Day Avg. Volume: 109,680
• PEG Ratio: -0.06
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -1.92
• 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: 52 Neutral
• Price Target: ¥688.00 ▲(8.18% Upside)

The overall stock score reflects significant challenges in financial performance, particularly in profitability and cash flow management. Technical analysis shows mixed signals with some support levels but limited momentum. Valuation is impacted by negative earnings, though the dividend yield offers some compensation.

Positive Factors

Diversified revenue streams (sales, services, leasing)

A mix of new-equipment sales, aftermarket service and leasing builds recurring and stable revenue components, smoothing demand cyclicality in construction. Services and leasing improve lifetime customer value and support cash flow predictability over multiple quarters.

Moderate leverage and stable equity base

A balanced debt position and stable equity ratio reduce solvency risk and provide capacity to fund capital expenditure or absorb cyclical downturns without immediate refinancing. This structural balance supports multimonth operational continuity and strategic investment flexibility.

Scale of operations and service capability

A sizable workforce underpins manufacturing scale, aftermarket service networks and leasing operations. Operational scale supports production flexibility, faster service response and potential cost efficiencies, strengthening competitive position across construction and industrial customers over time.

Negative Factors

Negative net income and shrinking margins

Sustained negative net income and falling EBIT margins erode retained earnings and limit internal funding for R&D, capex and service expansion. Persistently weak profitability undermines reinvestment capacity and heightens reliance on external financing, a structural risk to growth.

Volatile and recently negative free cash flow

Volatile or negative free cash flow constrains the company’s ability to service debt, sustain dividend policy or fund working capital and capex from operations. Ongoing cash conversion inefficiency raises refinancing and liquidity risk over the medium term.

Inconsistent revenue growth with weak ROE

Irregular top-line growth paired with negative/very low ROE signals difficulty converting scale into shareholder returns. This structural issue suggests problems in pricing, cost control or capital allocation that could impede sustainable earnings recovery.

Sankyo Tateyama, Inc. Business Overview & Revenue Model

Company Description

Sankyo Tateyama, Inc. develops, manufactures, and sells building, housing, and exterior construction materials in Japan. It also manufactures and sells fabricated products made of rolled aluminum and other metals. In addition, the company engages in the casting, extrusion, fabrication, and sale of aluminum and magnesium; sale of commercial and general-purpose display fixtures; manufacture and sale of standard signs and other signage products; and maintenance of stores related equipment. Sankyo Tateyama, Inc. was founded in 1960 and is headquartered in Takaoka, Japan.

How the Company Makes Money

Sankyo Tateyama generates revenue primarily through the sale of its construction machinery and equipment. The company has a diversified revenue model that includes the direct sale of new machinery, as well as the provision of aftermarket services such as maintenance, repair, and spare parts. Key revenue streams also include leasing options for their equipment, which allows customers to utilize machinery without a significant upfront investment. Additionally, strategic partnerships with construction firms and industrial companies enhance their market reach and sales opportunities, while ongoing investments in research and development help to drive innovation and expand their product offerings, contributing to overall profitability.

Sankyo Tateyama, Inc. Financial Statement Overview

Summary

Sankyo Tateyama, Inc. faces challenges in profitability and cash flow management, with inconsistent revenue growth and negative net income. The balance sheet is stable, but cash flow volatility and low return on equity are concerning.

Income Statement

Sankyo Tateyama, Inc. has shown inconsistent revenue growth with a slight increase in the latest year. However, the company is struggling with profitability, as evidenced by negative net income and declining EBIT margins. The gross profit margin has also decreased over time, indicating potential cost management issues.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, which suggests a balanced approach to leveraging. However, the return on equity has been negative or very low in recent years, reflecting challenges in generating returns for shareholders. The equity ratio is stable, indicating a solid asset base.

Cash Flow

Sankyo Tateyama, Inc. has experienced significant volatility in free cash flow, with recent negative figures indicating cash management challenges. The operating cash flow to net income ratio is low, suggesting inefficiencies in converting income into cash. The free cash flow to net income ratio is also concerning, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	356.74B	359.42B	353.03B	370.38B	340.55B	301.18B
Gross Profit	67.92B	69.76B	70.14B	67.27B	69.28B	69.01B
EBITDA	8.33B	10.04B	11.39B	12.92B	12.14B	13.27B
Net Income	-3.06B	-2.34B	-1.02B	1.63B	395.00M	1.68B
Balance Sheet
Total Assets	298.87B	300.45B	289.98B	282.93B	268.47B	252.94B
Cash, Cash Equivalents and Short-Term Investments	21.35B	21.53B	24.66B	22.39B	19.91B	25.36B
Total Debt	93.40B	89.37B	80.37B	84.41B	71.55B	70.29B
Total Liabilities	203.48B	205.65B	190.49B	190.27B	182.87B	168.85B
Stockholders Equity	91.84B	91.24B	96.14B	89.49B	82.56B	81.30B
Cash Flow
Free Cash Flow	0.00	-10.06B	8.45B	-7.78B	-5.16B	806.00M
Operating Cash Flow	0.00	3.22B	17.20B	-171.00M	2.40B	7.85B
Investing Cash Flow	0.00	-14.33B	-8.62B	-7.27B	-7.59B	-9.10B
Financing Cash Flow	0.00	7.47B	-6.77B	10.55B	274.00M	-663.00M

Sankyo Tateyama, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 636.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5932, the sentiment is Positive. The current price of 636 is below the 20-day moving average (MA) of 652.65, above the 50-day MA of 627.58, and above the 200-day MA of 614.24, indicating a neutral trend. The MACD of 4.59 indicates Positive momentum. The RSI at 49.51 is Neutral, neither overbought nor oversold. The STOCH value of 18.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5932.

Sankyo Tateyama, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5958	80 Outperform	¥14.86B	9.07	―	3.58%	-3.74%	3.99%
5940	74 Outperform	¥11.67B	4.23	―	2.89%	2.56%	17.52%
7943	66 Neutral	¥115.01B	32.52	―	3.53%	-0.58%	-46.15%
5930	66 Neutral	¥135.76B	10.49	12.89%	3.40%	2.98%	41.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5932	52 Neutral	¥20.16B	-4.49	―	4.03%	1.03%	-92.80%
5938	50 Neutral	¥509.53B	53.50	1.44%	4.80%	0.68%	―

Sankyo Tateyama, Inc. Corporate Events

Sankyo Tateyama Launches Voluntary Retirement Program as Part of Structural Reform

Sankyo Tateyama has decided to introduce a voluntary retirement program as part of a broader structural reform aimed at overhauling its revenue structure and accelerating performance recovery under its revised medium-term management plan. The program targets up to 150 employees aged 50 to under 65, with applications accepted in March 2026 and retirements effective at the end of May 2026, offering special additional retirement payments and reemployment support, while the associated costs will be booked as extraordinary losses in the fiscal year ending May 31, 2026, potentially impacting near-term earnings but intended to streamline operations and improve long-term efficiency.

The most recent analyst rating on (JP:5932) stock is a Hold with a Yen636.00 price target. To see the full list of analyst forecasts on Sankyo Tateyama, Inc. stock, see the JP:5932 Stock Forecast page.

Sankyo Tateyama Books Restructuring Losses as German Overhaul Advances, Bonn Land Sale to Deliver Gain

Sankyo Tateyama has substantially advanced its restructuring of European operations, confirming that personnel reductions at its German subsidiaries ST Extruded Products Germany and ST Deutschland exceeded initial plans, with 123 employees ultimately cut versus the roughly 100 originally targeted. As a result, the company recorded approximately ¥1.18 billion in business restructuring expenses as extraordinary losses in the first half of the fiscal year ending May 31, 2026, highlighting the near-term financial cost of its cost-cutting drive. In parallel, the company completed the transfer of about 17,000 square meters out of roughly 53,000 square meters of land and buildings slated for sale at its Bonn plant in October 2025, with the remaining transfers scheduled by the end of March 2026, and it expects to book around ¥1.9 billion in gains from the partial sale in the current fiscal year. These moves form part of broader structural reforms aimed at improving profitability in Europe, and management is considering further measures in response to the economic environment in Germany, with potential implications for the scale and configuration of its European footprint and for stakeholders connected to its German operations.

The most recent analyst rating on (JP:5932) stock is a Hold with a Yen636.00 price target. To see the full list of analyst forecasts on Sankyo Tateyama, Inc. stock, see the JP:5932 Stock Forecast page.

Sankyo Tateyama Swings to Loss but Keeps Dividend and Full-Year Outlook Intact

Sankyo Tateyama reported consolidated net sales of ¥178.8 billion for the six months ended November 30, 2025, down 1.9% year on year, with operating profit plunging 81.9% to ¥321 million and ordinary profit dropping 95.3% to ¥72 million, resulting in a net loss attributable to owners of parent of ¥2.1 billion compared with a small profit a year earlier. Despite this earnings deterioration, total assets edged up to ¥306.3 billion and equity increased slightly, the equity ratio remained around 30%, the semiannual dividend of ¥12.50 per share was maintained with a full-year payout of ¥25.00 per share planned, and the company left its full-year forecast unchanged, targeting modest sales growth and a rebound to profit while integrating a new consolidated subsidiary and applying special semiannual accounting treatments.

The most recent analyst rating on (JP:5932) stock is a Hold with a Yen636.00 price target. To see the full list of analyst forecasts on Sankyo Tateyama, Inc. stock, see the JP:5932 Stock Forecast page.