Sansei Co., Ltd. (6307) AI Stock Analysis

• Market Cap: ¥5.74B
• Dividend Yield: 2.69%
• Average Volume (3M): 9.55K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.52
• Revenue Growth: 9.44%
• EPS Growth: 206.64%
• Country: JP
• Employees: 234
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 27.29
• Shares Outstanding: 8,987,700
• 10 Day Avg. Volume: 12,180
• 30 Day Avg. Volume: 9,546
• PEG Ratio: 1.38
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -4.73
• 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: 74 Outperform
• Price Target: ¥861.00 ▲(48.45% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by solid financial performance with a very strong balance sheet and steady margins/growth, plus an attractive valuation (low P/E with a moderate dividend yield). These positives are tempered by negative free cash flow and very overbought technical conditions (high RSI/Stoch), which raise near-term risk despite the strong uptrend.

Positive Factors

Balance sheet health

Very low leverage and a high equity ratio provide durable financial flexibility. This capital structure reduces refinancing and solvency risk, supports investment or M&A optionality, and allows the company to withstand economic stress without straining creditor covenants.

Margin sustainability

Healthy gross and operating margins indicate persistent operational efficiency and pricing power in its niche. Sustained margins support internal funding for growth, buffer cyclical revenue shocks, and underpin long-term profitability even if top-line growth moderates.

Consistent revenue growth

Positive and recurring revenue growth trends show steady demand for the company's services. Consistent top-line expansion, even if moderate, supports scale advantages and reinvestment capacity, helping sustain cash flow generation and competitive positioning over the medium term.

Negative Factors

Negative free cash flow

A material negative free cash flow in the latest year is a durable concern: it limits the firm's ability to self-fund growth, dividends, or capex without external financing. Persisting FCF deficits can raise funding costs and constrain strategic flexibility over months.

Weak cash conversion

Negative cash conversion signals earnings are not translating into cash, highlighting potential working capital stress or non-cash gains. This undermines free cash flow reliability and can pressure liquidity and investment plans if the conversion metric does not improve.

Moderate return on equity

An ROE around the mid-single digits suggests limited capital efficiency relative to high-return peers. Modest ROE can restrict shareholder value creation and indicates management has only moderate success extracting returns from equity, potentially limiting long-term total return.

Sansei Co., Ltd. Business Overview & Revenue Model

Company Description

Sansei Co.,Ltd. designs, manufactures, installs, rents, maintains, and sells washing gondola for cleaning windows in mid and high-rise buildings in Japan. The company also provides stage equipment, amusement machines, scaffold moving equipment, hanging curtain equipment, electric gates, other various transport equipment, and lifting equipment. In addition, it is involved in the construction, repair, and rental of ships. Further, the company engages in the production, sale, and repair of fishing reefs; design and consultation of transportation and transportation machine; handling of aluminum construction materials; metal construction; consulting on building maintenance and renewal; and earthwork businesses. Sansei Co.,Ltd. was founded in 1956 and is headquartered in Osaka, Japan.

How the Company Makes Money

Sansei Co., Ltd. generates revenue through the sale of its precision machinery and equipment across multiple sectors. Key revenue streams include the production and distribution of industrial machinery, which caters to manufacturing companies, as well as the development of medical equipment that serves hospitals and healthcare facilities. The company also benefits from partnerships with various firms in related industries, expanding its market reach and enhancing its product portfolio. Additionally, after-sales services and maintenance contracts contribute to recurring revenue, ensuring a steady income stream. Overall, Sansei's emphasis on innovation and quality positions it well within competitive markets, allowing for consistent financial growth.

Sansei Co., Ltd. Financial Statement Overview

Summary

Solid profitability and steady growth (Gross Margin 23.42%, Net Margin 5.98%, revenue growth 2.56%) supported by a very low leverage balance sheet (Debt-to-Equity 0.08, Equity Ratio 73.04%). The main offset is weak cash conversion, with the latest year showing negative free cash flow (-618,022,000) and a negative operating cash flow to net income relationship.

Income Statement

Sansei Co., Ltd. shows a solid performance with increasing revenue and improving margins. The Gross Profit Margin for the latest annual period stands at 23.42%, and the Net Profit Margin is 5.98%, reflecting efficient cost management. The EBIT and EBITDA margins are healthy at 7.87% and 10.30%, respectively. The company has demonstrated a positive Revenue Growth Rate of 2.56% year-over-year, indicating steady growth despite a competitive industry.

Balance Sheet

The company maintains a strong balance sheet with a low Debt-to-Equity Ratio of 0.08, showcasing financial stability and low leverage. The Return on Equity (ROE) is 7.40%, demonstrating reasonable profitability from shareholders' investments. The Equity Ratio is high at 73.04%, indicating a robust capital structure with a significant portion of assets financed by equity, reducing financial risk.

Cash Flow

While Sansei Co., Ltd. has experienced some volatility in cash flow, the company managed a positive Free Cash Flow in previous years. However, the latest year shows a negative Free Cash Flow of -618,022,000, stressing the need for improvement in operational efficiency. The Operating Cash Flow to Net Income Ratio is negative, reflecting current challenges in converting profits into cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.88B	5.78B	5.64B	5.35B	4.49B	5.34B
Gross Profit	1.43B	1.35B	1.30B	1.32B	1.15B	1.50B
EBITDA	663.94M	595.79M	497.57M	545.09M	431.02M	678.68M
Net Income	415.79M	346.00M	326.40M	350.49M	215.34M	349.25M
Balance Sheet
Total Assets	6.26B	6.40B	6.84B	6.50B	5.94B	6.18B
Cash, Cash Equivalents and Short-Term Investments	1.43B	1.08B	1.67B	1.76B	1.13B	1.39B
Total Debt	454.66M	355.16M	373.83M	398.31M	475.14M	418.65M
Total Liabilities	1.72B	1.72B	2.37B	2.27B	1.95B	2.29B
Stockholders Equity	4.54B	4.68B	4.47B	4.24B	3.99B	3.88B
Cash Flow
Free Cash Flow	0.00	-618.02M	38.37M	724.39M	-212.05M	655.31M
Operating Cash Flow	0.00	-465.98M	121.19M	771.79M	-177.15M	728.47M
Investing Cash Flow	0.00	16.14M	-82.79M	52.87M	-27.70M	-72.07M
Financing Cash Flow	0.00	-135.41M	-133.28M	-187.02M	-55.28M	-449.10M

Sansei Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 580.00
• 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:6307, the sentiment is Positive. The current price of 580 is below the 20-day moving average (MA) of 711.80, below the 50-day MA of 637.36, and above the 200-day MA of 486.45, indicating a bullish trend. The MACD of 33.57 indicates Positive momentum. The RSI at 61.36 is Neutral, neither overbought nor oversold. The STOCH value of 64.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6307.

Sansei Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	83 Outperform	¥17.84B	8.66	―	3.62%	7.07%	79.18%
7805	77 Outperform	¥3.57B	7.45	―	1.93%	-1.00%	105.56%
6307	74 Outperform	¥5.74B	8.47	―	2.69%	9.44%	206.64%
7914	68 Neutral	¥45.17B	13.14	―	3.71%	-0.04%	93.95%
7919	66 Neutral	¥3.64B	10.58	―	3.69%	0.62%	-24.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.77B	19.83	―	2.72%	-1.30%	―