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

• Market Cap: ¥3.41B
• Dividend Yield: 2.73%
• Average Volume (3M): 9.55K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.48
• Revenue Growth: 9.44%
• EPS Growth: 206.64%
• Country: JP
• Employees: 234
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 25.71
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥602.00 ▲(9.65% Upside)

Sansei Co., Ltd. demonstrates a strong overall stock performance, driven by solid financial health and attractive valuation. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The lack of earnings call and corporate events data does not impact the score significantly.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and the ability to adapt to customer needs, supporting long-term business expansion.

Balance Sheet Strength

A low debt level enhances financial stability and flexibility, allowing the company to invest in growth opportunities without significant financial strain.

Profitability

Strong profit margins reflect efficient cost management and competitive pricing power, supporting sustainable profitability over the long term.

Negative Factors

Cash Flow Management

Negative cash flow indicates challenges in operational efficiency, which may hinder the company's ability to fund growth and manage financial obligations.

Cash Conversion Challenges

Difficulty in converting profits into cash flow could impact liquidity and limit the company's ability to reinvest in business operations.

Cash Flow Volatility

Volatile cash flow can create uncertainty in financial planning and may affect the company's ability to maintain consistent operations and growth.

Sansei Co., Ltd. Business Overview & Revenue Model

Company Description

Sansei Co., Ltd. (6307) is a Japanese company primarily engaged in the manufacturing and sales of precision machinery and equipment. The company operates in sectors such as industrial machinery, medical equipment, and various electronic components, specializing in high-quality, innovative products tailored for diverse applications. With a strong emphasis on research and development, Sansei Co., Ltd. continually strives to enhance its product offerings and meet the evolving needs of its customers.

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

Sansei Co., Ltd. exhibits strong financial health with consistent revenue growth and profitability, supported by a solid balance sheet with low leverage and high equity financing. However, cash flow management is a concern due to recent negative free cash flow, indicating a need for improved operational efficiency.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• Last Price: 549.00
• 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 Neutral. The current price of 549 is below the 20-day moving average (MA) of 552.40, above the 50-day MA of 468.56, and above the 200-day MA of 410.70, indicating a neutral trend. The MACD of 27.39 indicates Positive momentum. The RSI at 57.72 is Neutral, neither overbought nor oversold. The STOCH value of 34.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥16.19B	8.88	―	3.77%	7.07%	79.18%
6307	78 Outperform	¥3.41B	8.19	―	2.73%	9.44%	206.64%
7914	69 Neutral	¥49.24B	10.64	―	4.00%	-0.04%	93.95%
7919	68 Neutral	¥3.28B	7.11	―	3.89%	0.62%	-24.08%
7805	64 Neutral	¥3.30B	7.41	―	1.95%	-1.00%	105.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.21B	9.59	―	2.77%	-1.30%	―