Sankyo Co Ltd (JP:6417)
:6417
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Sankyo Co
(6417)
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Rating:75Outperform
Price Target:
¥1,915.00
▼(-25.02% Downside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by strong financial quality (high margins, debt-free balance sheet, positive free cash flow) and very attractive valuation (low P/E and high dividend yield). This is partially offset by weak technicals indicating significant recent downside momentum and by recent revenue declines that suggest slowing business momentum.
Positive Factors
High margins & profitability
Sankyo’s sustained gross margins in the mid-to-high 50% range and operating/net margins near 35%/26% indicate durable product-level economics and pricing power in machine sales and after-sales. These margins support strong cash generation and resilient returns even if top-line growth softens.
Negative Factors
Declining revenue momentum
Top-line contraction in 2025–2026 signals cooled sales momentum after prior surge; because revenues depend on product release cycles, extended weakness reduces ability to sustain operating leverage and could erode margins or cash generation if new machine launches underperform.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & profitability
Sankyo’s sustained gross margins in the mid-to-high 50% range and operating/net margins near 35%/26% indicate durable product-level economics and pricing power in machine sales and after-sales. These margins support strong cash generation and resilient returns even if top-line growth softens.
Read all positive factors
Sankyo Co (6417) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥345.65B
Dividend Yield4.08%
Average Volume (3M)919.92K
Price to Earnings (P/E)8.5
Beta (1Y)0.55
Revenue Growth-6.57%
EPS Growth-7.43%
CountryJP
Employees878
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)269.28
Shares Outstanding230,000,000
10 Day Avg. Volume688,190
30 Day Avg. Volume919,923
Financial Highlights & Ratios
PEG Ratio-1.15
Price to Book (P/B)1.59
Price to Sales (P/S)2.22
P/FCF Ratio11.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)257
Revenue Forecast (FY)¥200.39B
Sankyo Co Business Overview & Revenue Model
Company Description
Sankyo 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 P...
How the Company Makes Money
Sankyo primarily makes money by selling pachinko and pachislot machines to pachinko hall operators and, depending on product arrangements, to distributors that supply those operators. Revenue is driven by (1) unit sales of new machines launched in...
Sankyo Co Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 204.80B | 179.21B | 191.82B | 199.10B | 157.30B | 84.86B |
| Gross Profit | 121.14B | 104.67B | 112.33B | 110.68B | 90.92B | 47.82B |
| EBITDA | 84.33B | 65.46B | 77.80B | 78.19B | 68.10B | 27.64B |
| Net Income | 58.94B | 46.75B | 53.99B | 53.79B | 46.89B | 18.47B |
Balance Sheet | ||||||
| Total Assets | 311.91B | 287.46B | 337.89B | 293.56B | 368.56B | 311.71B |
| Cash, Cash Equivalents and Short-Term Investments | 211.13B | 192.44B | 240.05B | 205.44B | 267.61B | 233.01B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 42.16B | 37.30B | 52.89B | 41.98B | 58.30B | 41.59B |
| Stockholders Equity | 269.75B | 250.16B | 285.00B | 251.58B | 310.26B | 270.12B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 34.94B | 53.79B | 44.62B | 32.41B | 20.74B |
| Operating Cash Flow | 0.00 | 51.83B | 58.04B | 47.59B | 35.10B | 22.71B |
| Investing Cash Flow | 0.00 | -17.09B | -3.58B | 15.12B | 6.66B | 8.88B |
| Financing Cash Flow | 0.00 | -82.35B | -19.85B | -109.88B | -7.16B | -16.89B |
Sankyo Co Technical Analysis
Negative
2554.00
Price Trends
1923.40
Negative
2131.32
Negative
2400.42
Negative
Market Momentum
-59.29
Positive
31.09
Neutral
39.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6417, the sentiment is Negative. The current price of 2554 is above the 20-day moving average (MA) of 1832.33, above the 50-day MA of 1923.40, and above the 200-day MA of 2400.42, indicating a bearish trend. The MACD of -59.29 indicates Positive momentum. The RSI at 31.09 is Neutral, neither overbought nor oversold. The STOCH value of 39.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6417.
Sankyo Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥137.67B | 17.24 | ― | 1.78% | 2.28% | 4.19% | |
76 Outperform | ¥49.65B | 8.35 | ― | 4.70% | -23.60% | -24.46% | |
75 Outperform | ¥345.65B | 8.52 | 21.12% | 4.08% | -6.57% | -7.43% | |
71 Outperform | ¥182.37B | 11.00 | ― | 3.40% | 6.49% | -11.12% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ¥254.46B | 12.92 | ― | 1.51% | ― | ― | |
53 Neutral | ¥191.64B | 15.79 | 3.83% | 4.02% | 76.95% | -10.67% |
* Consumer Cyclical Sector Average
JP:6417
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Sankyo Co Corporate Events
Sankyo Outlines FY 2026 Results and FY 2027 Outlook Under Medium-Term Plan
May 13, 2026
Sankyo Co., Ltd. released a presentation on its financial results for the fiscal year ended March 31, 2026, covering performance from April 1, 2025. The document outlines an overview of financial results, business conditions, and progress under it...
Sankyo Profit Falls but Dividend Raised as FY2027 Outlook Signals Further Softening
May 13, 2026
Sankyo Co. reported consolidated net sales of ¥179.2 billion for the fiscal year ended March 31, 2026, down 6.6% year on year, with operating income falling 15.1% to ¥53.3 billion and profit attributable to owners of parent declining 10....
Sankyo Revamps Audit Board With New Outside Directors
Mar 19, 2026
Sankyo Co., Ltd. has announced board-level changes, proposing two new outside directors, Kanako Fujii and Tetsuya Maeda, as Audit and Supervisory Committee members, with their election to be decided at the 61st Ordinary General Meeting of Sharehol...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.