Sanyo Denki Co., Ltd. (6516) AI Stock Analysis

• Market Cap: ¥157.35B
• Dividend Yield: 1.53%
• Average Volume (3M): 64.37K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.00
• Revenue Growth: 3.37%
• EPS Growth: 21.35%
• Country: JP
• Employees: 3,705
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 63.33
• Shares Outstanding: 38,916,560
• 10 Day Avg. Volume: 71,490
• 30 Day Avg. Volume: 64,370
• PEG Ratio: -0.43
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 8.49
• 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: 75 Outperform
• Price Target: ¥4,674.00 ▲(11.42% Upside)

The score is driven primarily by strong financial quality—especially the very conservative balance sheet and solid profitability—partly offset by weaker cash-flow momentum (TTM FCF decline) and uneven historical growth. Technicals indicate a longer-term uptrend but near-term softness, while valuation looks reasonable but not clearly cheap.

Positive Factors

Conservative balance sheet

Very low leverage and a strengthening equity base provide durable financial flexibility, lowering insolvency risk and enabling the company to fund capex, R&D, or working capital through cycles. This balance-sheet strength supports long-term stability and resilience.

Sustained profitability and margins

Consistently solid gross and operating margins generate recurring profitability that supports reinvestment in product development and quality. Margin sustainability in industrial components underpins pricing power and long-term ability to fund strategic initiatives.

Diversified product & end-market exposure

Multiple product families (fans, servos, UPS) sold into data centers, automation, telecom and medical create structural diversification. Repeat design‑ins drive sticky OEM relationships and recurring revenue streams tied to long equipment lifecycles, boosting durability.

Negative Factors

Uneven revenue growth

Choppy revenue trends reduce predictability of earnings and complicate long-term planning. Exposure to cyclic capex markets (automation, data centers, telecom) can produce volatile order patterns, making sustained top-line expansion and capacity planning harder.

Declining free cash flow momentum

A recent drop and volatility in free cash flow weakens internal funding for capex, dividends, or strategic investments. Even with strong absolute cash, inconsistent conversion raises reliance on balance-sheet flexibility and constrains steady capital deployment.

Moderate returns on equity

Mid-single-digit ROE signals only modest capital efficiency; declining ROE versus prior years suggests earnings haven't kept pace with a growing equity base. Over time this can limit shareholder return potential and signal slower profit recovery.

Sanyo Denki Co., Ltd. Business Overview & Revenue Model

Company Description

Sanyo Denki Co., Ltd. engages in cooling systems, power systems, servo systems, electrical equipment sales, and electrical works contracting businesses in Japan, North America, Europe, East Asia, and Southeast Asia. Its cooling systems include cooling fans and cooling fan units; power systems products comprise uninterruptible power supplies, inverters, engine generators, and power conditioners for photovoltaic generation systems; and servo systems products consist of servo motors, servo amplifiers, stepping motors and drivers, controllers, and encoders. The company also sells industrial electrical equipment, control equipment, and electrical materials for medical and other markets. In addition, it operates in the field of electrical contracting for steel mills, and maintenance and repair work of old electrical equipment. The company sells its products under the SANYO DENKI brand. The company was formerly known as Sanyo Shokai Co., Ltd. and changed its name to Sanyo Denki Co., Ltd. in April 1942. Sanyo Denki Co., Ltd. was founded in 1927 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sanyo Denki generates revenue through the sale of its diverse product lineup, which includes cooling fans, power supplies, and servo systems. The company has a multi-faceted revenue model that includes direct sales to manufacturers and OEMs, as well as distribution partnerships that extend its market reach globally. Key revenue streams come from the industrial automation sector, where demand for precision equipment continues to grow, as well as from data centers and telecommunications, where reliable cooling and power solutions are essential. Sanyo Denki also benefits from long-term contracts and partnerships with major corporations in various industries, ensuring a steady flow of income and contributing to its financial stability.

Sanyo Denki Co., Ltd. Financial Statement Overview

Summary

Overall financials are strong, led by a very conservative balance sheet (very low leverage, expanding equity) and solid TTM profitability. Offsetting this, revenue growth has been uneven across years and TTM free cash flow declined versus the prior period, indicating less consistent cash conversion.

Income Statement

Profitability remains solid in TTM (Trailing-Twelve-Months), with healthy gross and operating margins and a net margin in the mid-single digits. Compared with the prior annual period (2025-03-31), revenue and profit levels improved, indicating better operating performance. The main weakness is growth consistency: revenue growth has been choppy over recent years (including declines in some annual periods), and profitability is still below the peak levels seen in earlier years (e.g., 2023–2024 annual net margins).

Balance Sheet

The balance sheet is conservative and strengthening: leverage is very low (TTM debt-to-equity near 0.05) and equity has expanded versus prior years, which supports financial flexibility. Returns on equity are positive but moderate in TTM (mid-single digits), down from higher levels in 2022–2023, suggesting profitability has normalized even as the capital base has grown. Overall risk from leverage looks limited, with the main trade-off being only average current return generation.

Cash Flow

Cash generation is healthy in absolute terms in TTM (Trailing-Twelve-Months), with strong free cash flow and free cash flow close to net income. However, free cash flow declined versus the prior period (negative TTM free cash flow growth), and cash conversion has shown volatility across years. Operating cash flow coverage is moderate in TTM, indicating cash generation is good but not consistently matching accounting earnings at the strongest levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	104.24B	97.85B	112.90B	120.80B	101.12B	77.51B
Gross Profit	28.71B	25.13B	28.90B	31.22B	25.60B	17.04B
EBITDA	17.19B	14.54B	19.36B	20.43B	17.54B	10.53B
Net Income	7.39B	5.64B	10.48B	11.41B	9.02B	3.94B
Balance Sheet
Total Assets	159.73B	145.63B	150.69B	143.87B	128.67B	113.96B
Cash, Cash Equivalents and Short-Term Investments	29.43B	28.90B	27.38B	21.43B	19.05B	15.23B
Total Debt	7.03B	7.28B	14.53B	20.15B	20.25B	19.11B
Total Liabilities	37.08B	32.28B	40.32B	50.66B	48.01B	43.58B
Stockholders Equity	122.65B	113.35B	110.36B	93.20B	80.64B	70.38B
Cash Flow
Free Cash Flow	11.70B	13.12B	14.69B	4.23B	3.54B	799.00M
Operating Cash Flow	13.40B	15.79B	21.45B	8.26B	8.23B	4.96B
Investing Cash Flow	-5.31B	-3.73B	-6.47B	-4.42B	-4.83B	-4.29B
Financing Cash Flow	-8.39B	-9.69B	-10.67B	-2.67B	-622.00M	10.00M

Sanyo Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4195.00
• 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:6516, the sentiment is Neutral. The current price of 4195 is below the 20-day moving average (MA) of 4234.00, above the 50-day MA of 4123.20, and above the 200-day MA of 3521.78, indicating a neutral trend. The MACD of 28.97 indicates Positive momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 27.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6516.

Sanyo Denki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6674	79 Outperform	¥359.79B	11.43	8.89%	2.12%	3.05%	-16.11%
6516	75 Outperform	¥157.35B	20.00	―	1.53%	3.37%	21.35%
6503	72 Outperform	¥10.15T	25.32	10.23%	1.19%	4.62%	40.65%
6506	72 Outperform	¥1.28T	34.41	13.26%	1.49%	-2.18%	30.16%
5801	67 Neutral	$952.30B	27.14	10.06%	1.21%	10.52%	60.75%
6504	64 Neutral	¥1.57T	18.82	12.05%	1.50%	5.44%	-5.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sanyo Denki Co., Ltd. Corporate Events

Sanyo Denki Posts Sharp Profit Rebound and Confirms Strong FY2026 Outlook

Sanyo Denki reported a solid rebound for the nine months ended December 31, 2025, with consolidated revenue rising 8.9% year on year to ¥78.1 billion and operating profit jumping 53.8%, underscoring a recovery from the prior period’s demand slowdown. Profit attributable to owners of the parent climbed 43.9% to ¥5.76 billion, while total comprehensive income more than doubled, and equity attributable to owners of the parent increased to ¥122.6 billion, reflecting a stronger balance sheet; earnings per share figures have been restated to reflect a three‑for‑one stock split effective October 1, 2025. The company maintained its full‑year FY2026 forecast, targeting 9.5% revenue growth and a roughly 50% rise in profit attributable to owners of the parent, and set an interim dividend of ¥100 per pre‑split share with a planned year‑end dividend of ¥36.67 per post‑split share, signaling management’s confidence in earnings momentum and shareholder returns despite the absence of changes in accounting policies or consolidation scope.

The most recent analyst rating on (JP:6516) stock is a Buy with a Yen4891.00 price target. To see the full list of analyst forecasts on Sanyo Denki Co., Ltd. stock, see the JP:6516 Stock Forecast page.

Sanyo Denki Establishes New Subsidiary in Vietnam to Boost Global Operations

Sanyo Denki Co., Ltd. has announced the establishment of a wholly owned subsidiary in Vietnam, named SANYO DENKI VIETNAM CO., LTD., as part of its 9th Medium-Term Management Plan. This move is intended to enhance business agility, create synergies among group sites, and strengthen the company’s competitiveness by enabling swift decision-making and flexible management in the local market. The impact on the company’s consolidated results for the fiscal year ending March 2026 is expected to be minor.

The most recent analyst rating on (JP:6516) stock is a Buy with a Yen4595.00 price target. To see the full list of analyst forecasts on Sanyo Denki Co., Ltd. stock, see the JP:6516 Stock Forecast page.

Sanyo Denki Reports Strong Q2 FY2026 Financial Performance

Sanyo Denki Co., Ltd. reported a significant increase in its financial performance for the second quarter of FY2026, with a 9.2% rise in revenue and a remarkable 119.2% increase in profit attributable to owners of the parent compared to the previous year. The company also executed a three-for-one stock split effective October 1, 2025, which impacted earnings per share calculations. This financial growth positions Sanyo Denki favorably in the market, reflecting strong operational performance and strategic financial management, potentially benefiting stakeholders through enhanced shareholder value.

The most recent analyst rating on (JP:6516) stock is a Buy with a Yen4385.00 price target. To see the full list of analyst forecasts on Sanyo Denki Co., Ltd. stock, see the JP:6516 Stock Forecast page.