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Sanyo Denki Co., Ltd. (JP:6516)
:6516
Japanese Market
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Sanyo Denki Co., Ltd. (6516) AI Stock Analysis

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JP:6516

Sanyo Denki Co., Ltd.

(6516)

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Outperform 77 (OpenAI - 5.2)
Rating:77Outperform
Price Target:
¥7,536.00
▲(79.64% Upside)
Action:ReiteratedDate:04/28/26
The score is driven mainly by strong underlying financial quality—especially a very conservative balance sheet—and improving profitability, supported by a strong technical uptrend. These positives are tempered by weakening recent free-cash-flow momentum and stretched momentum indicators, while valuation appears broadly fair with a modest dividend yield.
Positive Factors
Very conservative balance sheet
Very low leverage (~4.7% debt/equity) and expanding equity/assets provide durable financial flexibility. This strengthens the company's ability to fund R&D, support customers through cycles, prioritize capex or buybacks, and lowers default risk, underpinning long-term resilience.
Negative Factors
Declining free cash flow and uneven cash conversion
A ~20% drop in free cash flow and uneven cash conversion reduce predictability of internal funding for growth, dividends or debt reduction. Persistent volatility in cash generation constrains strategic flexibility and raises execution risk over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Very conservative balance sheet
Very low leverage (~4.7% debt/equity) and expanding equity/assets provide durable financial flexibility. This strengthens the company's ability to fund R&D, support customers through cycles, prioritize capex or buybacks, and lowers default risk, underpinning long-term resilience.
Read all positive factors

Sanyo Denki Co., Ltd. (6516) vs. iShares MSCI Japan ETF (EWJ)

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 coo...
How the Company Makes Money
Sanyo Denki makes money primarily by manufacturing and selling three main product families: (1) cooling systems (fans and related cooling products), (2) servo systems (servo motors, servo amplifiers/drives, and motion control-related components), ...

Sanyo Denki Co., Ltd. Financial Statement Overview

Summary
Financials are solid overall: revenue returned to growth (~3%) and margins improved (gross ~27.5%, operating ~9.8%). The balance sheet is a major strength with very low leverage (~4.7% debt/equity). Offsetting this, net margin (~7.1%) remains below prior peak levels and free cash flow declined about -20% year over year, indicating the recovery is not yet fully consistent in cash generation.
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
62
Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue107.35B97.85B112.90B120.80B101.12B
Gross Profit29.95B24.81B28.74B31.09B25.93B
EBITDA16.05B13.32B16.83B19.34B16.51B
Net Income8.66B5.64B10.48B11.41B9.02B
Balance Sheet
Total Assets166.37B145.63B150.69B143.87B128.67B
Cash, Cash Equivalents and Short-Term Investments28.72B28.90B26.69B20.55B18.78B
Total Debt5.99B7.28B14.53B20.15B20.25B
Total Liabilities38.51B32.28B40.31B50.65B48.01B
Stockholders Equity127.86B113.35B110.36B93.21B80.65B
Cash Flow
Free Cash Flow9.36B13.12B15.72B5.08B4.96B
Operating Cash Flow10.83B15.79B21.45B8.26B8.23B
Investing Cash Flow-7.66B-3.73B-6.47B-4.42B-4.83B
Financing Cash Flow-4.92B-9.69B-10.67B-2.67B-622.00M

Sanyo Denki Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4195.00
Price Trends
50DMA
4707.47
Positive
100DMA
4393.53
Positive
200DMA
3869.89
Positive
Market Momentum
MACD
154.59
Negative
RSI
60.97
Neutral
STOCH
69.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6516, the sentiment is Positive. The current price of 4195 is below the 20-day moving average (MA) of 4707.19, below the 50-day MA of 4707.47, and above the 200-day MA of 3869.89, indicating a bullish trend. The MACD of 154.59 indicates Negative momentum. The RSI at 60.97 is Neutral, neither overbought nor oversold. The STOCH value of 69.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6516.

Sanyo Denki Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥256.38B13.321.53%9.71%54.82%
76
Outperform
¥1.88T7.8712.05%1.50%9.27%3.50%
75
Outperform
¥12.76T22.929.29%1.19%6.76%27.25%
72
Outperform
¥52.12B12.370.91%8.50%14.99%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
¥52.52B-60.125.01%-25.54%-166.77%
58
Neutral
¥1.44T36.888.39%1.49%0.83%-37.84%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6516
Sanyo Denki Co., Ltd.
6,770.00
3,577.66
112.07%
JP:6503
Mitsubishi Electric
6,071.00
3,294.62
118.67%
JP:6504
Fuji Electric Co
13,180.00
6,922.89
110.64%
JP:6506
Yaskawa Electric
5,521.00
2,497.87
82.63%
JP:6637
Terasaki Electric Co., Ltd.
4,000.00
1,918.41
92.16%
JP:6905
Cosel Co., Ltd.
1,277.00
253.73
24.80%

Sanyo Denki Co., Ltd. Corporate Events

Sanyo Denki Sharply Raises Dividend Forecast on Strong Performance
Apr 27, 2026
Sanyo Denki has revised upward its dividend forecast for the fiscal year ending March 2026, reflecting stronger-than-expected business performance and a reinforced commitment to shareholder returns. The company now plans a year-end dividend of &#1...
Sanyo Denki Profit Surges in FY2026 as It Raises Payout and Guides for Strong Growth
Apr 27, 2026
Sanyo Denki reported a solid rebound in FY2026, with revenue up 9.7% to ¥107.3 billion and operating profit jumping 37.2%, driving a 53.6% surge in profit attributable to owners of the parent and lifting ROE to 7.2%. The company strengthened ...
Sanyo Denki Faces Governance and Capital Policy Proposals Ahead of 2026 Shareholders’ Meeting
Apr 21, 2026
Sanyo Denki has disclosed that it received a shareholder proposal ahead of its 124th Ordinary General Meeting of Shareholders scheduled for June 2026, submitted by Intertrust Trustees (Cayman) Limited in its capacity as trustee of JAPAN‑UP a...
Sanyo Denki Sets Up Nomination Committee to Strengthen Governance
Apr 15, 2026
Sanyo Denki has established a voluntary Nomination Committee under its Board of Directors to strengthen corporate governance and improve transparency in decisions on director and operating officer appointments. The committee will review and report...
Sanyo Denki Lifts Shareholder Returns With 50% Payout Target and Flexible Buybacks
Mar 19, 2026
Sanyo Denki has updated its management initiatives to sharpen its focus on cost of capital and stock performance, building on measures first outlined in May 2025. The board has reviewed these policies and is refining its capital strategy to better...
Sanyo Denki Lifts FY2026 Profits on Strong Nine-Month Performance, Keeps Bullish Outlook
Feb 27, 2026
Sanyo Denki reported strong results for the first nine months of FY2026, with revenue up 8.9% year-on-year to ¥78.1 billion and operating profit surging 53.8%, driving a 43.9% increase in profit attributable to owners of the parent and a shar...
Sanyo Denki Posts Sharp Profit Rebound and Confirms Strong FY2026 Outlook
Jan 29, 2026
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 de...
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.Date of analysis: Apr 28, 2026