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Sankyo Co (JP:6417)
:6417

Sankyo Co (6417) AI Stock Analysis

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JP

Sankyo Co

(OTC:6417)

Rating:74Outperform
Price Target:
Sankyo Co's strong financial performance, characterized by solid profitability and a robust balance sheet, is the primary driver of the stock's overall score. The undervalued P/E ratio and attractive dividend yield enhance its appeal. However, the technical analysis suggests caution due to bearish short-term indicators and a recent decline in revenue and stagnant cash flow.

Sankyo Co (6417) vs. iShares MSCI Japan ETF (EWJ)

Sankyo Co Business Overview & Revenue Model

Company DescriptionSankyo Co., Ltd. manufactures and sells game machines and ball bearing supply systems in Japan. It operates through Pachinko Machines Business, Pachislot Machines Business, Ball Bearing Supply Systems Business, and Other Businesses segments. The Pachinko Machines Business segment produces and sells pachinko machines, machine gauges, as well as sells related parts. The Pachinko Machines Business segment produces and sells pachislot machines, and sells related parts. The Ball Bearing Supply Systems Business segment produces and sells pachinko and pachislot ball feeders, card system equipment, and parlor equipment and peripherals. The Other Businesses segment engages in real estate rental and sale of general molded parts. The company also offers mobile content services and operates a golf club. The company sells its products under the SANKYO and Bisty brands. Sankyo Co., Ltd. was incorporated in 1960 and is headquartered in Tokyo, Japan.
How the Company Makes MoneySankyo Co., Ltd. generates revenue primarily through the sale of its pachinko and pachislot machines. These machines are distributed to pachinko parlors across Japan, which are the main venues where such games are played by consumers. The company also engages in the development and licensing of gaming software and content for these machines, further enhancing their appeal and functionality. Additionally, Sankyo may earn revenue from maintenance and service agreements with parlors to ensure the optimal performance of its machines. Partnerships with other gaming and entertainment companies can also play a role in expanding its market reach and product offerings, contributing to its revenue.

Sankyo Co Financial Statement Overview

Summary
Sankyo Co exhibits strong financial health with a high net profit margin and robust profitability. The balance sheet is exceptionally solid with no debt and a high equity ratio, indicating financial stability. However, a recent decline in TTM revenue and stagnant operating cash flow are areas to watch.
Income Statement
85
Very Positive
Sankyo Co's income statement shows strong profitability with a high net profit margin of 28.02% in TTM (Trailing-Twelve-Months). The revenue growth has been impressive over the years, with significant growth from 2021 to 2024. The gross profit margin is robust at 58.85% in TTM, indicating efficient cost management. However, there is a slight decline in total revenue in the TTM compared to the previous annual report, which could be a point of concern.
Balance Sheet
90
Very Positive
The company maintains a very strong balance sheet with no total debt, resulting in a perfect debt-to-equity ratio of 0. The equity ratio is high at 82.89%, reflecting a solid financial structure with a high proportion of equity financing. Return on equity is commendable at 18.44% for TTM, showcasing effective utilization of shareholder funds. The company's excellent liquidity position further strengthens its financial stability.
Cash Flow
70
Positive
The cash flow analysis reveals stability with consistent positive free cash flow over the years. However, there is a lack of growth in operating cash flow from the previous period, as it is reported as zero in TTM. The free cash flow growth rate is not calculable due to missing data, which limits the analysis. The cash flow situation is stable but could benefit from more robust growth in operating cash flow.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
182.21B199.10B157.30B84.86B58.13B78.42B
Gross Profit
107.21B110.68B90.92B47.82B30.73B41.74B
EBIT
69.67B72.50B58.53B21.36B6.59B12.55B
EBITDA
72.11B75.41B60.37B23.47B8.99B16.07B
Net Income Common Stockholders
51.05B53.79B46.89B18.47B5.75B13.04B
Balance SheetCash, Cash Equivalents and Short-Term Investments
205.44B205.44B267.61B233.01B223.87B242.85B
Total Assets
293.56B292.12B365.95B309.21B292.10B325.23B
Total Debt
0.000.000.000.000.0020.01B
Net Debt
-205.44B-130.44B-92.61B-98.01B-88.87B-102.84B
Total Liabilities
41.98B40.54B55.69B39.09B23.22B55.71B
Stockholders Equity
251.58B251.58B310.26B270.12B268.89B269.52B
Cash FlowFree Cash Flow
0.0044.62B32.41B20.74B9.02B16.03B
Operating Cash Flow
0.0047.59B35.10B22.71B10.56B18.97B
Investing Cash Flow
0.0015.12B6.66B8.88B29.64B-21.75B
Financing Cash Flow
0.00-109.88B-7.16B-16.89B-29.18B-79.22B

Sankyo Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2442.50
Price Trends
50DMA
2181.19
Positive
100DMA
2131.47
Positive
200DMA
2043.66
Positive
Market Momentum
MACD
96.71
Negative
RSI
65.10
Neutral
STOCH
63.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6417, the sentiment is Positive. The current price of 2442.5 is above the 20-day moving average (MA) of 2287.60, above the 50-day MA of 2181.19, and above the 200-day MA of 2043.66, indicating a bullish trend. The MACD of 96.71 indicates Negative momentum. The RSI at 65.10 is Neutral, neither overbought nor oversold. The STOCH value of 63.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6417.

Sankyo Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥536.78B9.9519.86%4.79%-8.81%14.09%
62
Neutral
$6.84B11.233.09%3.95%2.66%-25.23%
$582.43M-7.04%2.57%
82
Outperform
¥48.26B6.00
6.83%29.41%10.66%
69
Neutral
¥61.29B13.87
2.93%12.39%-11.38%
68
Neutral
¥21.86B8.51
5.26%0.55%-24.89%
61
Neutral
¥219.26B23.83
3.23%0.93%-39.44%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6417
Sankyo Co
2,442.50
1,007.57
70.22%
UETMF
Universal Entertainment
7.48
-2.18
-22.57%
JP:6257
Fujishoji Co., Ltd.
1,044.00
-75.33
-6.73%
JP:6419
Mars Group Holdings Corporation
2,870.00
-383.92
-11.80%
JP:7606
UNITED ARROWS LTD.
2,127.00
432.76
25.54%
JP:8282
K'S Holdings Corporation
1,363.50
-6.33
-0.46%

Sankyo Co Corporate Events

Sankyo Co., Ltd. Announces Leadership Changes
Apr 22, 2025

Sankyo Co., Ltd. announced a significant change in its leadership, with Akihiko Ishihara retiring as Representative Director, President, CEO, and COO. Toshio Ogura will take over as the new Representative Director, President, CEO, and COO, while Hiroshi Takahashi will become the Senior Executive Vice President. These changes, effective June 27, 2025, are expected to impact the company’s strategic direction and operational focus, potentially influencing its market positioning and stakeholder relations.

SANKYO Forms Alliance with CommSeed for Online Pachinko Content
Apr 1, 2025

SANKYO Co., Ltd. has entered into a business alliance with CommSeed Corporation to develop an online content business focused on pachinko/pachislot machine simulator applications. This partnership aims to leverage both companies’ expertise to create new value and expand their businesses, with plans to release a new online virtual parlor game service by summer 2025.

Sankyo Co. Announces Change in Leadership to Enhance Growth
Mar 21, 2025

Sankyo Co., Ltd. has announced a change in its representative directors to strengthen its management foundation and promote sustainable growth. Toshio Ogura will be appointed as the new Representative Director, Senior Executive Vice President, and COO, effective June 27, 2025, following the approval at the upcoming General Meeting of Shareholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.