Sanyo Industries, Ltd. (5958) AI Stock Analysis

• Market Cap: ¥16.76B
• Dividend Yield: 3.58%
• Average Volume (3M): 2.65K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.50
• Revenue Growth: -3.74%
• EPS Growth: 3.99%
• Country: JP
• Employees: 367
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 203.25
• Shares Outstanding: 3,520,000
• 10 Day Avg. Volume: 3,040
• 30 Day Avg. Volume: 2,653
• PEG Ratio: -0.57
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 11.26
• 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: 80 Outperform
• Price Target: ¥5,905.00 ▲(39.76% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Sanyo Industries, Ltd. scores well due to its strong financial performance and technical indicators. The company's low P/E ratio and solid dividend yield enhance its valuation appeal. While revenue growth has been inconsistent, the company's financial stability and upward market momentum position it favorably within the construction industry.

Positive Factors

Balance Sheet Strength

A low debt-to-equity ratio and robust equity ratio give the company durable financial flexibility to fund operations, invest in capex, and withstand construction-cycle downturns. Improved ROE implies capital is being deployed efficiently, supporting longer-term resilience and strategic optionality.

Improving Operating Margins

Sustained gross margins and rising EBIT/EBITDA margins point to structural operational improvements or pricing power, enhancing earnings quality. Higher operating efficiency translates into stronger cash generation potential and greater ability to reinvest in projects or maintain dividends through industry cycles.

Positive Operating Cash Flow

Consistent positive operating cash flow underpins self-funding capacity for working capital and maintenance capex, reducing reliance on external financing. Even with some recent decline, positive OCF supports dividend policy and provides a buffer for strategic investments and cyclical downturns.

Negative Factors

Revenue Volatility

Significant top-line variability and a large recent revenue decline undermine predictability of future cash flows and make capacity planning harder. For a construction-sector firm, inconsistent revenue can signal project pipeline weakness or competitive pressure, constraining long-term scalability and investment plans.

Declining Free Cash Flow Trend

A downward trend in free cash flow, even from stable operating cash, reduces the company's ability to fund growth, pay down debt, or increase shareholder distributions. Sustained FCF decline limits strategic flexibility, increases vulnerability to shocks, and may force trade-offs between capex and returning capital.

Net Margin Compression

A slipping net profit margin erodes the conversion of operating performance into shareholder returns. Over time, margin compression can reduce retained earnings and ROE, constrain investment capacity and weaken the company's ability to absorb rising input or labor costs in the construction cycle.

Sanyo Industries, Ltd. Business Overview & Revenue Model

Company Description

Sanyo Industries, Ltd. manufactures and sells metallic building materials in Japan. The company engages in the manufacture, sale, and contract work of metallic building materials, and internal and external materials; design and manufacture of air-conditioning and ventilation systems, and associated equipment; sale and contract work of solar energy equipment; and export and import of other related products and materials. It also offers aluminum products, including handrails, copings, louvers, and spandrels; system floors, such as multipurpose, magic, deck, and condominium floors; forced and natural ventilation products; and metal flame, natural lighting, system ceiling, filler, and wire and metal products. The company was founded in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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Sanyo Industries, Ltd. Financial Statement Overview

Summary

Sanyo Industries, Ltd. presents a stable financial profile with solid profitability and a strong balance sheet. While revenue growth has been inconsistent, the company's margins remain healthy. The balance sheet shows low leverage, providing a cushion against financial volatility. Cash flow management is adequate but requires attention to support long-term expansion.

Income Statement

Sanyo Industries, Ltd. has demonstrated stable profitability with a consistent gross profit margin and improving EBIT and EBITDA margins over the years. However, the net profit margin has slightly declined recently. Revenue growth has seen fluctuations, with a notable decrease in the most recent year, indicating variability in top-line performance.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating prudent financial leverage. Return on Equity (ROE) is healthy and has shown improvement, reflecting efficient use of equity capital. The equity ratio is robust, showcasing financial stability and a strong asset base.

Cash Flow

Operating cash flows have been positive, supporting net income effectively, though they have decreased recently. Free cash flow generation is stable but has shown a declining trend, impacting free cash flow to net income ratio. The company should focus on enhancing cash flow generation to support future growth plans.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	29.03B	29.52B	30.48B	28.28B	24.53B	25.69B
Gross Profit	8.42B	8.42B	8.65B	7.43B	6.29B	6.85B
EBITDA	2.33B	2.52B	2.87B	2.17B	1.32B	1.87B
Net Income	1.54B	1.59B	1.86B	1.62B	735.00M	1.03B
Balance Sheet
Total Assets	28.32B	29.89B	30.92B	28.85B	26.24B	25.23B
Cash, Cash Equivalents and Short-Term Investments	9.24B	9.65B	9.58B	7.48B	6.50B	5.80B
Total Debt	1.19B	854.00M	837.00M	792.00M	999.00M	995.00M
Total Liabilities	7.91B	8.92B	10.73B	10.41B	9.10B	8.70B
Stockholders Equity	20.41B	20.97B	20.19B	18.44B	17.14B	16.53B
Cash Flow
Free Cash Flow	0.00	858.00M	2.40B	1.07B	1.08B	1.25B
Operating Cash Flow	0.00	1.82B	2.66B	1.17B	1.29B	1.47B
Investing Cash Flow	0.00	-950.00M	-49.00M	327.00M	-315.00M	-231.00M
Financing Cash Flow	0.00	-802.00M	-513.00M	-511.00M	-278.00M	-243.00M

Sanyo Industries, Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4225.00
• 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:5958, the sentiment is Neutral. The current price of 4225 is below the 20-day moving average (MA) of 5026.75, below the 50-day MA of 4784.70, and below the 200-day MA of 4267.55, indicating a neutral trend. The MACD of 78.98 indicates Positive momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 25.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5958.

Sanyo Industries, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5958	80 Outperform	¥16.76B	5.32	―	3.58%	-3.74%	3.99%
5332	67 Neutral	¥944.01B	9.02	0.85%	2.36%	-0.03%	-89.02%
5943	67 Neutral	¥105.54B	8.48	2.57%	3.57%	2.69%	1.74%
5930	66 Neutral	¥133.27B	10.42	12.89%	3.40%	2.98%	41.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5936	63 Neutral	¥6.23B	4.98	―	4.13%	2.76%	-10.23%
5938	50 Neutral	¥494.44B	16.11	1.44%	4.80%	0.68%	―