Sankyo Co (6417) AI Stock Analysis

• Market Cap: ¥528.45B
• Dividend Yield: 4.08%
• Average Volume (3M): 919.92K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.59
• Revenue Growth: 16.05%
• EPS Growth: 27.25%
• Country: JP
• Employees: 878
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): N/A
• Shares Outstanding: 260,000,000
• 10 Day Avg. Volume: 688,190
• 30 Day Avg. Volume: 919,923
• PEG Ratio: 0.43
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 8.87
• 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: 79 Outperform
• Price Target: ¥2,922.00 ▲(14.41% Upside)

The score is driven primarily by strong financial performance (high profitability, strong free cash flow, and a debt-free balance sheet) and an attractive valuation (low P/E and high dividend yield). These positives are partially offset by mixed technicals, with price below key short-to-mid moving averages and a negative MACD indicating weaker near-term momentum.

Positive Factors

Strong Balance Sheet

A debt-free balance sheet provides significant financial flexibility and lowers solvency risk, supporting long-term stability and growth potential.

Cash Generation Ability

Strong cash generation ensures that the company can fund operations, invest in growth opportunities, and return capital to shareholders sustainably.

Revenue Growth Trends

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term profitability and competitive advantage.

Negative Factors

Revenue Variability

Revenue variability can impact predictability and planning, potentially affecting investment decisions and long-term strategic initiatives.

Cash Flow Variability

Variability in cash flow conversion can challenge liquidity management and limit the ability to consistently fund growth and shareholder returns.

Earnings Variability

Earnings variability can affect investor confidence and valuation, making it harder to maintain a stable growth trajectory and financial performance.

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 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 Money

Sankyo 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

Strong, high-quality fundamentals: very healthy profitability and robust free cash flow, supported by an exceptionally conservative, debt-free balance sheet. Key risk is some variability in revenue and cash conversion across years.

Income Statement

Profitability is a standout: the latest annual period shows strong gross and operating profitability, with net margins remaining very healthy. Revenue expanded sharply from 2021–2023 and continued to grow in 2025, although 2024 showed a modest revenue decline versus 2023, pointing to some near-term variability. Overall, the earnings profile looks high-quality and resilient, but the top-line trajectory is not perfectly smooth year-to-year.

Balance Sheet

The balance sheet is exceptionally conservative with zero reported debt in recent years, providing significant financial flexibility and lowering solvency risk. Equity is sizable relative to the asset base, and returns on equity have been strong in the last few years (peaking above 20% and remaining solid most recently). The main watch-out is that returns were much weaker earlier in the period (notably around 2020–2021), indicating profitability can swing with operating conditions.

Cash Flow

Cash generation is strong: operating cash flow and free cash flow are both large and free cash flow tracks net income closely, suggesting earnings convert well into cash. Cash flow has improved meaningfully versus earlier years, though operating cash flow coverage dipped below 1x in 2020–2022 before strengthening above 1x in the most recent annual period, implying past periods had weaker cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	204.80B	191.82B	199.10B	157.30B	84.86B	58.13B
Gross Profit	121.14B	112.33B	110.68B	90.92B	47.82B	30.73B
EBITDA	84.05B	77.81B	75.41B	60.37B	23.47B	8.99B
Net Income	58.94B	53.99B	53.79B	46.89B	18.47B	5.75B
Balance Sheet
Total Assets	311.91B	336.71B	292.12B	365.95B	309.21B	292.10B
Cash, Cash Equivalents and Short-Term Investments	211.13B	240.05B	205.44B	267.61B	233.01B	223.87B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	42.16B	51.70B	40.54B	55.69B	39.09B	23.22B
Stockholders Equity	269.75B	285.00B	251.58B	310.26B	270.12B	268.89B
Cash Flow
Free Cash Flow	0.00	53.79B	44.62B	32.41B	20.74B	9.02B
Operating Cash Flow	0.00	58.04B	47.59B	35.10B	22.71B	10.56B
Investing Cash Flow	0.00	-3.58B	15.12B	6.66B	8.88B	29.64B
Financing Cash Flow	0.00	-19.85B	-109.88B	-7.16B	-16.89B	-29.18B

Sankyo Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2554.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2486.90, above the 50-day MA of 2540.27, and below the 200-day MA of 2587.74, indicating a bearish trend. The MACD of -41.47 indicates Positive momentum. The RSI at 36.01 is Neutral, neither overbought nor oversold. The STOCH value of 27.60 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6419	81 Outperform	¥54.13B	8.36	―	4.70%	-25.28%	-24.84%
6417	79 Outperform	¥528.45B	9.19	21.12%	4.08%	16.05%	27.25%
6257	76 Outperform	¥22.67B	-5.36	―	5.22%	-58.15%	-183.95%
7606	74 Outperform	¥68.73B	18.97	―	2.73%	10.48%	-34.38%
8282	67 Neutral	¥251.21B	23.04	―	2.72%	2.23%	57.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6425	47 Neutral	¥59.90B	-8.89	-1.85%	―	-14.08%	54.85%

Sankyo Co Corporate Events

Sankyo Co. Completes Share Repurchase to Boost Shareholder Value

Sankyo Co., Ltd. has completed the repurchase of its own shares, acquiring 163,300 shares at a total cost of 444,710,500 yen through open-market purchases on the Tokyo Stock Exchange. This move is part of a larger plan authorized by the Board of Directors to repurchase up to 30 million shares, aiming to enhance shareholder value by canceling the acquired treasury shares.

Sankyo Co. Updates on Share Repurchase Program

Sankyo Co., Ltd. announced the status of its share repurchase program, where it repurchased 2,700,600 shares at a cost of 7,160,584,200 yen between November 1 and November 30, 2025. This initiative is part of a broader plan approved by the Board of Directors to repurchase up to 30 million shares by March 31, 2026, aiming to enhance shareholder value and optimize capital structure.

Sankyo Co. Announces Significant Share Repurchase

Sankyo Co., Ltd. has announced the repurchase of 2,682,900 of its own shares, amounting to approximately 7.15 billion yen, conducted through open-market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 30 million shares by March 2026, indicating a significant commitment to enhancing shareholder value and potentially impacting the company’s stock performance positively.