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

• Market Cap: ¥3.20B
• Dividend Yield: 3.66%
• Average Volume (3M): 15.77K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.43
• Revenue Growth: 5.98%
• EPS Growth: 65.44%
• Country: JP
• Employees: 234
• Sector: Industrials
• Sector Strength: 71
• Industry: Specialty Business Services
• EPS (TTM): -3.02
• Shares Outstanding: 8,987,700
• 10 Day Avg. Volume: 16,240
• 30 Day Avg. Volume: 15,773
• 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: ¥458.00
• Price Target Upside: 11.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ¥458.00 ▲(11.71% Upside)

Sansei Co., Ltd. scores highly due to strong technical indicators and attractive valuation, suggesting potential for growth and a good return on investment. While financial performance is solid, improvements in cash flow management could further enhance the company's financial health. The lack of new earnings call data or corporate events does not affect the overall positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Strength

A low leverage ratio enhances financial stability and reduces risk, providing a solid foundation for future growth and investment opportunities.

Profitability

Strong profit margins reflect efficient cost management and competitive pricing, contributing to sustained profitability and shareholder value.

Negative Factors

Cash Flow Management

Negative free cash flow indicates challenges in operational efficiency, potentially limiting the company's ability to invest in growth and manage financial obligations.

Operational Efficiency

Inefficient conversion of profits into cash flow can strain liquidity and hinder the company's ability to fund operations and strategic initiatives.

Earnings Call Data

Lack of recent earnings call data limits transparency and investor insight into management's strategic direction and operational performance.

Sansei Co., Ltd. Business Overview & Revenue Model

Company Description

Sansei Co., Ltd. (6307) is a Japanese company primarily engaged in the manufacture and sale of machinery and equipment. The company operates in various sectors, including amusement rides, stage machinery, and elevators. Sansei's core products and services include the design, production, and maintenance of amusement park rides, stage equipment for theaters and concert halls, and commercial and residential elevators.

How the Company Makes Money

Sansei Co., Ltd. generates revenue through several key streams. The company earns money by selling its machinery and equipment to various clients in the amusement, entertainment, and construction industries. Significant revenue is derived from the design and manufacturing of amusement rides and stage machinery, which are sold to amusement parks and entertainment venues both domestically and internationally. Additionally, Sansei provides maintenance services for its products, ensuring a steady stream of income from service contracts. The company's partnerships with global amusement parks and entertainment companies also enhance its revenue through long-term contracts and collaborations. Furthermore, Sansei's elevator business contributes to its earnings through the sale and installation of elevators in residential and commercial buildings.

Sansei Co., Ltd. Financial Statement Overview

Summary

Sansei Co., Ltd. exhibits strong financial performance with solid revenue growth and profitability. The balance sheet is robust, with low leverage and high equity financing, showcasing financial stability. However, the cash flow management is weak, with negative free cash flow indicating the need for improvement in 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	5.78B	5.78B	5.64B	5.35B	4.49B	5.34B
Gross Profit	1.35B	1.35B	1.30B	1.32B	1.15B	1.50B
EBITDA	595.79M	595.79M	497.57M	545.09M	431.02M	678.68M
Net Income	345.26M	346.00M	326.40M	350.49M	215.34M	349.25M
Balance Sheet
Total Assets	6.40B	6.40B	6.84B	6.50B	5.94B	6.18B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.08B	1.67B	1.76B	1.13B	1.39B
Total Debt	355.16M	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	4.68B	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: 410.00
• 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 410 is below the 20-day moving average (MA) of 413.15, above the 50-day MA of 407.40, and above the 200-day MA of 383.22, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 49.54 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 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	¥17.55B	8.63		3.34%	10.92%	170.02%
6307	80 Outperform	¥3.20B	7.69		3.66%	5.98%	65.44%
7914	76 Outperform	¥51.67B	11.17		4.74%	1.93%	202.39%
7919	68 Neutral	¥3.45B	6.88		3.75%	2.39%	-8.65%
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%
7916	60 Neutral	¥4.84B	30.02		3.14%	-0.55%	―
7805	60 Neutral	¥3.43B	8.73		1.88%	-5.37%	48.09%