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

• Market Cap: ¥4.62B
• Dividend Yield: 2.69%
• Average Volume (3M): 9.55K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.60
• 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: 70 Outperform
• Price Target: ¥655.00 ▲(12.93% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by solid financial fundamentals and a very strong balance sheet, partially offset by weak recent free cash flow. Valuation is a clear positive (low P/E with a dividend), while technical signals are mixed with near-term softness but longer-term trend support.

Positive Factors

Low leverage and strong equity base

A very low debt-to-equity ratio (0.08) and a 73.04% equity ratio materially reduce financial risk and interest burden. This durable capital structure supports resilience in downturns, preserves strategic optionality for capex or M&A, and underpins long-term dividend and investment capacity.

Healthy operating and gross margins

Sustained gross margin (23.42%) and double-digit EBITDA margin (10.30%) indicate consistent cost control and pricing power in a specialty services business. These margins provide a structural buffer to absorb cyclical revenue swings and enable reinvestment in operations and service quality over the medium term.

Consistent revenue growth

Steady year-over-year revenue growth (2.56%) in a competitive industry signals continued demand for the company’s services and a stable business model. Durable top-line growth supports scale economies, helps sustain margins, and improves the company’s ability to fund strategic investments without increasing leverage.

Negative Factors

Negative recent free cash flow

A materially negative free cash flow in the latest year (-618,022,000) weakens the company’s internal funding ability for capex, dividends, or acquisitions. Persistently negative FCF would force reliance on external financing or asset sales, undermining long-term financial flexibility despite low leverage.

Poor cash conversion from earnings

Negative operating-cash-to-net-income indicates earnings are not translating into cash, suggesting working capital pressure or accrual accounting disconnects. This structural cash conversion weakness raises liquidity risk, constrains reinvestment, and makes the firm vulnerable if revenue or margins soften.

Modest return on equity

A 7.40% ROE is modest and may limit the company’s ability to generate high returns on shareholders’ capital over time. With only moderate profitability, there is less internal cash generation for growth initiatives, which could slow long-term value creation compared with higher-return peers.

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

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Sansei Co., Ltd. Financial Statement Overview

Summary

Profitability and growth are solid (Gross Margin 23.42%, Net Margin 5.98%, revenue growth 2.56%) and leverage is very low (Debt-to-Equity 0.08; Equity Ratio 73.04%). The main drag is cash generation, with latest Free Cash Flow negative (-618,022,000) and weak cash conversion versus net income.

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	6.85B	6.51B	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	377.03M	373.83M	398.31M	477.26M	423.90M
Total Liabilities	1.72B	1.72B	2.38B	2.27B	1.95B	2.30B
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: Negative
• Last Price: 580.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 580 is below the 20-day moving average (MA) of 680.75, below the 50-day MA of 659.48, and above the 200-day MA of 504.82, indicating a neutral trend. The MACD of -14.21 indicates Positive momentum. The RSI at 35.42 is Neutral, neither overbought nor oversold. The STOCH value of 30.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6307.

Sansei Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7912	75 Outperform	¥1.43T	11.76	7.04%	1.47%	3.37%	-31.10%
7911	74 Outperform	¥1.27T	11.67	6.28%	1.07%	3.01%	6.48%
6307	70 Outperform	¥4.62B	5.31	―	2.69%	9.44%	206.64%
7914	68 Neutral	¥41.21B	7.42	―	3.71%	-0.04%	93.95%
7919	66 Neutral	¥3.61B	6.84	―	3.69%	0.62%	-24.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.60B	-22.35	―	2.72%	-1.30%	―