SANKI SERVICE CORP. (6044) AI Stock Analysis

• Market Cap: ¥13.36B
• Dividend Yield: 1.08%
• Average Volume (3M): 12.45K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.60
• Revenue Growth: 18.17%
• EPS Growth: 191.50%
• Country: JP
• Employees: 535
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 20.05
• Shares Outstanding: 6,583,485
• 10 Day Avg. Volume: 15,990
• 30 Day Avg. Volume: 12,446
• PEG Ratio: 0.23
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 8.95
• 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: ¥2,333.00 ▲(16.13% Upside)

SANKI SERVICE CORP. demonstrates strong financial performance with robust revenue growth and profitability, which is the most significant factor in its overall score. The technical analysis indicates mixed momentum, while the valuation suggests the stock is reasonably priced with a modest dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and successful business strategies, supporting long-term financial stability.

Profitability

Improving profit margins reflect operational efficiency and effective cost control, enhancing the company's ability to generate sustainable profits.

Balance Sheet Health

A strong balance sheet with prudent leverage enhances financial stability, providing flexibility for future investments and growth opportunities.

Negative Factors

Cash Conversion Efficiency

Inefficient cash conversion may limit the company's ability to reinvest in growth initiatives and manage liquidity effectively over the long term.

Debt Monitoring

While current debt levels are manageable, ongoing vigilance is necessary to prevent potential financial strain and ensure long-term stability.

Cash Flow Improvement

Improving cash flow conversion is crucial for sustaining operations and funding future growth, highlighting a need for enhanced financial management.

SANKI SERVICE CORP. Business Overview & Revenue Model

Company Description

Sanki Service Corporation provides maintenance services in Japan and internationally. It offers preventive maintenance services for building facilities, such as air conditioners, electricity systems, kitchen and firefighting equipment, water supply and drainage, sanitation equipment, etc., as well as equipment maintenance and inspection services. The company also provides facility construction and building management services; and services for environmental improvement projects, including pump inverters conversion, heat source replacement, energy saving product sales, energy conservation consulting, energy monitoring equipment, LED lighting, and solar power generation. It serves commercial facilities/chain stores, hotels, hospitals/elderly facilities, and offices/buildings/condominiums. The company was incorporated in 1977 and is headquartered in Himeji, Japan.

How the Company Makes Money

SANKI SERVICE CORP. generates revenue through multiple streams, primarily by charging clients for its logistics and supply chain services. This includes transportation fees for moving goods, storage fees for warehousing solutions, and additional charges for value-added services such as inventory management and order fulfillment. The company may also benefit from long-term contracts with key clients, providing a stable revenue base. Strategic partnerships with other logistics providers and technology firms enhance operational capabilities and expand service offerings, further contributing to earnings.

SANKI SERVICE CORP. Financial Statement Overview

Summary

SANKI SERVICE CORP. exhibits strong financial performance with impressive revenue growth and profitability. The balance sheet is robust with prudent leverage and effective equity utilization. Cash flow generation is improving, though there is potential to enhance cash conversion.

Income Statement

SANKI SERVICE CORP. has demonstrated strong revenue growth with a 6.62% increase in the latest year, supported by improving margins. The gross profit margin and net profit margin have shown positive trends, indicating efficient cost management and profitability. The EBIT and EBITDA margins have also improved, reflecting operational efficiency. Overall, the income statement reflects a healthy financial performance with robust growth and profitability.

Balance Sheet

The company's balance sheet is solid, with a manageable debt-to-equity ratio that has decreased over the years, indicating prudent financial leverage. The return on equity is healthy, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a strong capital structure. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

SANKI SERVICE CORP. has shown significant improvement in free cash flow, with a remarkable growth rate. The operating cash flow to net income ratio indicates strong cash generation relative to net income. However, the free cash flow to net income ratio suggests room for improvement in converting earnings into free cash flow. Overall, the cash flow statement reflects a positive trajectory, but attention to cash conversion efficiency is advisable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.64B	20.64B	19.43B	14.73B	11.58B	11.53B
Gross Profit	4.69B	4.69B	4.14B	3.38B	2.45B	2.63B
EBITDA	1.17B	1.17B	860.96M	804.91M	376.29M	401.20M
Net Income	688.61M	689.07M	467.89M	452.93M	154.23M	175.79M
Balance Sheet
Total Assets	9.95B	9.95B	8.61B	8.35B	5.08B	5.09B
Cash, Cash Equivalents and Short-Term Investments	2.50B	2.50B	2.07B	1.52B	1.77B	1.94B
Total Debt	475.30M	475.30M	715.42M	833.30M	321.53M	428.82M
Total Liabilities	5.14B	5.14B	4.40B	4.52B	2.06B	2.13B
Stockholders Equity	4.81B	4.81B	4.21B	3.83B	3.02B	2.96B
Cash Flow
Free Cash Flow	0.00	839.08M	945.09M	-1.08B	30.43M	576.87M
Operating Cash Flow	0.00	864.58M	1.04B	-1.07B	59.56M	666.11M
Investing Cash Flow	0.00	-30.21M	-220.48M	-40.06M	38.74M	-110.27M
Financing Cash Flow	0.00	-368.65M	-342.02M	310.04M	-225.11M	183.74M

SANKI SERVICE CORP. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2009.00
• 50DMA: Negative
• 100DMA: Positive
• 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:6044, the sentiment is Positive. The current price of 2009 is below the 20-day moving average (MA) of 2022.55, below the 50-day MA of 2119.58, and above the 200-day MA of 1534.29, indicating a neutral trend. The MACD of -33.37 indicates Negative momentum. The RSI at 45.98 is Neutral, neither overbought nor oversold. The STOCH value of 72.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6044.

SANKI SERVICE CORP. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9313	77 Outperform	¥6.26B	7.16	―	2.29%	0.08%	105.25%
9319	75 Outperform	¥27.11B	14.34	―	2.59%	4.02%	18.12%
9791	74 Outperform	¥10.37B	8.33	―	2.33%	-6.09%	24.42%
6044	71 Outperform	¥13.36B	14.49	―	1.08%	18.17%	191.50%
9307	65 Neutral	¥16.43B	18.09	―	1.49%	1.23%	0.12%
9322	65 Neutral	¥19.67B	26.68	―	1.13%	3.37%	9.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

SANKI SERVICE CORP. Corporate Events

SANKI SERVICE CORP. Reports Strong Financial Growth and Positive Outlook

SANKI SERVICE CORPORATION reported a significant increase in its financial performance for the three months ended August 31, 2025, with net sales rising by 44.5% compared to the same period last year. The company also forecasts continued growth for the fiscal year ending May 31, 2026, with expected increases in net sales and profits, indicating a positive outlook for stakeholders.