SANKI SERVICE CORP. (6044) AI Stock Analysis

• Market Cap: ¥12.67B
• Dividend Yield: 1.14%
• Average Volume (3M): 10.26K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.47
• Revenue Growth: 6.20%
• EPS Growth: 46.97%
• Country: JP
• Employees: 535
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 75.33
• Shares Outstanding: 6,583,485
• 10 Day Avg. Volume: 8,450
• 30 Day Avg. Volume: 10,263
• 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: ¥1,864.00
• Price Target Upside: -3.37% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,864.00 ▼(-3.37% Downside)

SANKI SERVICE CORP. demonstrates strong financial performance with robust revenue growth and profitability, which is the most significant factor in the overall score. The technical analysis indicates a balanced outlook with short-term bullish momentum. The valuation is fair, with a reasonable P/E ratio and moderate dividend yield. These factors collectively contribute to a solid overall stock score.

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 primarily through its logistics and supply chain management services, which include transportation, warehousing, and inventory management for businesses across different industries. The company has established key partnerships with manufacturers and distributors, enabling it to offer comprehensive service packages. Additionally, SANKI SERVICE CORP. earns income from facility management services, providing maintenance and operational support to various clients. By adopting a competitive pricing strategy and focusing on customer retention, the company effectively maximizes its revenue streams.

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 cash flow generation is improving, though there is room for enhancing 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	19.54B	20.64B	19.43B	14.73B	11.58B	11.53B
Gross Profit	4.19B	4.69B	4.14B	3.38B	2.45B	2.63B
EBITDA	676.94M	1.17B	860.96M	804.91M	376.29M	401.20M
Net Income	372.45M	689.07M	467.89M	452.93M	154.23M	175.79M
Balance Sheet
Total Assets	8.15B	9.95B	8.61B	8.35B	5.08B	5.09B
Cash, Cash Equivalents and Short-Term Investments	2.16B	2.50B	2.07B	1.52B	1.77B	1.94B
Total Debt	506.59M	475.30M	715.42M	833.30M	309.81M	414.02M
Total Liabilities	3.83B	5.14B	4.40B	4.52B	2.06B	2.13B
Stockholders Equity	4.32B	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: 1929.00
• 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:6044, the sentiment is Positive. The current price of 1929 is above the 20-day moving average (MA) of 1826.60, above the 50-day MA of 1678.18, and above the 200-day MA of 1202.10, indicating a bullish trend. The MACD of 56.20 indicates Positive momentum. The RSI at 66.57 is Neutral, neither overbought nor oversold. The STOCH value of 50.64 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
9322	78 Outperform	¥10.89B	14.39	3.50%	1.97%	3.59%	3.84%
9307	76 Outperform	¥15.89B	17.17	5.47%	1.23%	2.95%	6.31%
9313	73 Outperform	¥5.67B	6.58	7.44%	2.10%	0.16%	100.58%
6044	72 Outperform	¥12.67B	18.03	―	1.14%	6.20%	46.97%
9319	68 Neutral	¥27.78B	16.29	3.61%	2.46%	4.91%	1.63%
9791	66 Neutral	¥9.81B	8.84	4.52%	2.15%	-7.83%	-13.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

SANKI SERVICE CORP. Corporate Events

SANKI SERVICE CORP. Reports Mixed Financial Results with Optimistic Forecast

SANKI SERVICE CORP. reported a slight increase in net sales for the nine months ended February 28, 2025, but experienced a significant decline in profits compared to the previous year. The company forecasts a substantial increase in profits for the full fiscal year ending May 31, 2025, indicating a positive outlook despite recent challenges.