Sanei Ltd. (6230) AI Stock Analysis

• Market Cap: ¥10.26B
• Dividend Yield: 2.86%
• Average Volume (3M): 2.97K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.40
• Revenue Growth: 3.46%
• EPS Growth: -7.96%
• Country: JP
• Employees: 866
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 62.69
• Shares Outstanding: 4,578,000
• 10 Day Avg. Volume: 1,220
• 30 Day Avg. Volume: 2,973
• PEG Ratio: -1.01
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 19.85
• 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: 78 Outperform
• Price Target: ¥2,355.00 ▲(5.13% Upside)

Sanei Ltd. demonstrates strong financial health and attractive valuation, making it a potentially undervalued investment. The technical analysis suggests a neutral to slightly positive outlook, with room for improvement in short-term momentum. The absence of recent earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Sanei's products, supporting long-term market position and business expansion.

Balance Sheet Health

Low leverage enhances financial stability, providing Sanei with the flexibility to invest in growth opportunities and withstand economic downturns.

Cash Flow Management

Improved cash flow management ensures Sanei can fund operations and growth initiatives internally, reducing reliance on external financing.

Negative Factors

Earnings Growth

Negative EPS growth suggests challenges in profitability, potentially impacting investor confidence and limiting reinvestment capabilities.

Operational Efficiency

Declining EBIT margin points to rising costs or inefficiencies, which could erode profitability if not addressed.

Free Cash Flow Generation

Limited free cash flow generation may constrain Sanei's ability to invest in growth or return capital to shareholders.

Sanei Ltd. Business Overview & Revenue Model

Company Description

Sanei Ltd. manufactures and sells plumbing fixtures in Japan. The company offers mixer taps, sensor/touch faucets, wash basins, single faucets, showers, branch valves, faucet parts, valves, piping systems and materials, bus and air conditioning peripherals, and tools; and interior, kitchen, washroom, washing machine accessories, toilet, and gardening accessories. Its faucets are used in hotels, hospitals, and long-term care health facilities. The company was founded in 1954 and is headquartered in Osaka, Japan.

How the Company Makes Money

Sanei Ltd. generates revenue through the sale of its electronic components and systems to automotive manufacturers and industrial clients. The company's revenue model primarily consists of direct sales of products, which include sensors and control systems that are integral to vehicle performance and safety. Additionally, Sanei Ltd. may engage in long-term contracts with major automotive firms, securing a steady income stream. The company also benefits from partnerships with technology firms for collaborative product development, which can lead to increased market reach and shared resources, enhancing overall profitability.

Sanei Ltd. Financial Statement Overview

Summary

Sanei Ltd. exhibits strong financial performance with consistent revenue growth and solid profitability. The balance sheet is robust with low leverage and high equity, providing financial stability. Cash flow management has improved, though there is room for enhanced free cash flow generation.

Income Statement

Sanei Ltd. has shown a consistent increase in revenue over the years, with a revenue growth rate of 3.39% in the latest period. The gross profit margin remains strong at 31.42%, and the net profit margin is healthy at 4.40%. However, there was a slight decline in EBIT margin to 6.62%, indicating some pressure on operational efficiency. Overall, the company demonstrates solid profitability with room for improvement in operational margins.

Balance Sheet

The balance sheet of Sanei Ltd. reflects a stable financial position with a debt-to-equity ratio of 0.20, indicating low leverage. The return on equity is commendable at 8.83%, showing effective use of equity capital to generate profits. The equity ratio of 58.30% suggests a strong equity base relative to total assets, underscoring financial stability and low financial risk.

Cash Flow

Sanei Ltd. has demonstrated significant improvement in cash flow management, with a positive free cash flow growth rate of 157.43%. The operating cash flow to net income ratio of 1.34 highlights efficient cash generation relative to earnings. However, the free cash flow to net income ratio, while positive at 0.35, indicates potential for further enhancement in free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.79B	28.47B	27.53B	26.56B	23.00B	22.18B
Gross Profit	8.87B	8.94B	8.63B	7.54B	7.04B	7.15B
EBITDA	2.35B	2.48B	2.62B	1.36B	1.90B	2.06B
Net Income	1.11B	1.25B	1.35B	630.36M	999.43M	1.00B
Balance Sheet
Total Assets	24.19B	24.37B	24.22B	23.46B	22.47B	19.46B
Cash, Cash Equivalents and Short-Term Investments	1.87B	2.16B	2.19B	2.94B	2.87B	2.24B
Total Debt	2.63B	2.80B	2.92B	2.66B	2.53B	1.36B
Total Liabilities	9.50B	9.68B	10.49B	10.96B	10.52B	8.96B
Stockholders Equity	14.18B	14.20B	13.13B	11.87B	11.31B	10.50B
Cash Flow
Free Cash Flow	0.00	443.43M	-772.25M	164.52M	609.07M	494.22M
Operating Cash Flow	0.00	1.68B	331.50M	990.38M	897.23M	991.60M
Investing Cash Flow	0.00	-1.36B	-1.13B	-834.55M	-395.79M	-570.94M
Financing Cash Flow	0.00	-363.89M	40.62M	-89.58M	-311.89M	390.97M

Sanei Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2240.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6230, the sentiment is Positive. The current price of 2240 is above the 20-day moving average (MA) of 2179.10, above the 50-day MA of 2111.28, and above the 200-day MA of 2016.12, indicating a bullish trend. The MACD of 41.59 indicates Negative momentum. The RSI at 72.55 is Negative, neither overbought nor oversold. The STOCH value of 73.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6230.

Sanei Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6230	78 Outperform	¥10.26B	8.37	―	2.86%	3.46%	-7.96%
5284	77 Outperform	¥15.42B	6.52	―	3.95%	11.85%	27.06%
5282	74 Outperform	¥13.17B	15.10	―	3.21%	5.83%	-16.54%
5268	69 Neutral	¥13.86B	64.92	―	1.24%	-2.82%	-44.93%
5356	68 Neutral	¥12.31B	9.69	―	3.42%	8.37%	8.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5269	49 Neutral	¥18.97B	-148.02	―	3.24%	-3.73%	-143.19%

Sanei Ltd. Corporate Events

Sanei Ltd. Reports Financial Results and Announces Dividend Schedule

Sanei Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a slight increase in net sales by 3.3% compared to the previous year. Despite the increase in sales, the profit attributable to owners of the parent decreased by 6.1%, indicating challenges in maintaining profitability. The company has announced a dividend payment schedule and conducted a stock split, which may affect shareholder returns. Sanei Ltd.’s financial forecast for the fiscal year ending March 31, 2026, projects growth in net sales and profits, reflecting an optimistic outlook for future performance.

The most recent analyst rating on (JP:6230) stock is a Buy with a Yen2238.00 price target. To see the full list of analyst forecasts on Sanei Ltd. stock, see the JP:6230 Stock Forecast page.