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

• Market Cap: ¥152.05B
• Dividend Yield: 1.59%
• Average Volume (3M): 64.37K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.99
• Revenue Growth: 3.37%
• EPS Growth: 21.35%
• Country: JP
• Employees: 3,705
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 69.19
• 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: ¥3,400.00
• Price Target Upside: -13.92% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥4,595.00 ▲(16.33% Upside)

Sanyo Denki Co., Ltd. scores well due to its strong financial performance and positive technical indicators. The company's stable profitability, low leverage, and robust cash flow generation are significant strengths. The technical analysis supports a bullish outlook with the stock trading above key moving averages. Valuation metrics suggest the stock is fairly valued, offering a reasonable P/E ratio and a modest dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

The positive revenue growth trend indicates a recovery and potential for continued expansion, reflecting strong demand in core markets.

Cash Generation

Strong cash generation supports operational needs and growth potential, providing financial flexibility and resilience against market fluctuations.

Financial Stability

Low leverage enhances financial stability, reducing risk and ensuring the company can withstand economic downturns while pursuing strategic opportunities.

Negative Factors

Profit Margin Pressure

Decreasing profit margins may indicate rising costs or pricing pressures, potentially impacting long-term profitability and competitive positioning.

Return on Equity Decline

A decline in return on equity suggests reduced efficiency in generating profits from shareholders' investments, which could affect investor confidence.

Cash Flow Management Challenges

Challenges in cash flow management could strain liquidity, affecting the company's ability to fund operations and invest in growth initiatives.

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

Sanyo Denki Co., Ltd. demonstrates solid financial health with stable profitability and a strong balance sheet. While the company maintains efficient operations and low leverage, the recent slowdown in revenue and free cash flow growth could pose challenges. Overall, the company is well-positioned financially, but monitoring growth trends will be crucial.

Income Statement

Sanyo Denki Co., Ltd. shows a stable gross profit margin around 25.7% and a net profit margin of 5.8% in the TTM period, indicating consistent profitability. However, the revenue growth rate is modest at 1.5% TTM, following a decline in the previous annual period. EBIT and EBITDA margins are healthy, reflecting efficient operations, but the recent revenue growth slowdown could be a concern.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.064 TTM, indicating low leverage and financial stability. Return on equity is moderate at 5.0% TTM, showing decent profitability relative to shareholder equity. The equity ratio is robust, suggesting a solid capital structure.

Cash Flow

Operating cash flow is strong, but free cash flow has declined by 1.6% TTM, which could impact future investments. The operating cash flow to net income ratio is healthy, but the decline in free cash flow growth is a potential risk. The free cash flow to net income ratio remains solid, indicating good cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.11B	97.85B	112.90B	120.80B	101.12B	77.51B
Gross Profit	27.31B	25.13B	28.90B	31.22B	25.60B	17.04B
EBITDA	16.00B	14.54B	19.36B	20.43B	17.54B	10.53B
Net Income	7.55B	5.64B	10.48B	11.41B	9.02B	3.94B
Balance Sheet
Total Assets	152.21B	145.63B	150.69B	143.87B	128.67B	113.96B
Cash, Cash Equivalents and Short-Term Investments	33.81B	28.90B	27.38B	21.43B	19.05B	15.23B
Total Debt	5.92B	7.28B	14.53B	20.15B	20.25B	19.11B
Total Liabilities	34.47B	32.28B	40.32B	50.66B	48.01B	43.58B
Stockholders Equity	117.75B	113.35B	110.36B	93.20B	80.64B	70.38B
Cash Flow
Free Cash Flow	13.39B	13.12B	14.69B	4.23B	3.54B	799.00M
Operating Cash Flow	15.03B	15.79B	21.45B	8.26B	8.23B	4.96B
Investing Cash Flow	-4.33B	-3.73B	-6.47B	-4.42B	-4.83B	-4.29B
Financing Cash Flow	-9.78B	-9.69B	-10.67B	-2.67B	-622.00M	10.00M

Sanyo Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3950.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3950 is below the 20-day moving average (MA) of 4012.25, above the 50-day MA of 3809.70, and above the 200-day MA of 3324.68, indicating a neutral trend. The MACD of 68.99 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 15.68 is Positive, 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	¥377.54B	12.00	8.89%	2.16%	3.05%	-16.11%
6504	76 Outperform	¥1.60T	19.50	12.05%	1.58%	5.44%	-5.19%
6516	76 Outperform	¥152.05B	18.98	―	1.59%	3.37%	21.35%
5801	73 Outperform	¥647.75B	18.46	10.06%	1.32%	10.52%	60.75%
6503	72 Outperform	¥9.66T	24.11	10.23%	1.21%	4.62%	40.65%
6506	70 Outperform	¥1.19T	20.56	13.26%	1.50%	-2.18%	30.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sanyo Denki Co., Ltd. Corporate Events

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.

Sanyo Denki Reports Strong Q2 FY2026 Results and Announces Stock Split

Sanyo Denki Co., Ltd. reported a significant improvement in its financial performance for the second quarter of FY2026, with a 9.2% increase in revenue and a substantial rise in profit attributable to owners of the parent by 119.3% compared to the previous year. The company also conducted a three-for-one stock split, which affected the calculation of earnings per share and dividends, indicating a strategic move to enhance stock liquidity and shareholder value.

Sanyo Denki to Establish New Manufacturing Plant in Vietnam

Sanyo Denki Co., Ltd. has announced plans to establish a new manufacturing plant in Vietnam as part of its strategy to expand its global production network. This new facility, which will be the company’s third large-scale production base, aims to strengthen supply stability and enhance service capabilities worldwide, in response to growing demand in the AI, telecommunications, and precision machinery markets.