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

• Market Cap: ¥193.52B
• Dividend Yield: 1.53%
• Average Volume (3M): 64.37K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.03
• 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): 239.28
• Revenue Forecast (FY): ¥107.65B

• Rating: 75 Outperform
• Price Target: ¥5,569.00 ▲(32.75% Upside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

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 an expanding equity base give the company durable financial flexibility. This supports investment in R&D, product development, and the ability to withstand downturns in end markets without forcing distress sales or heavy refinancing, preserving strategic optionality.

Solid profitability & margins

Sustained gross and operating margins indicate core product cost positions and pricing power across industrial and infrastructure applications. Mid-single-digit net margins still provide cash to fund capex and dividends, supporting long-term competitiveness and supplier/customer confidence.

Diversified B2B product portfolio

Multiple product families (fans, servos, UPS) sold to OEMs across data centers, factory automation, telecom and medical create diversified end-market exposure. Repeat design-ins and product differentiation (reliability, efficiency) support long-term revenue durability and customer stickiness.

Negative Factors

Uneven revenue growth

Choppy top-line growth reduces predictability for capacity planning and investment. Inconsistent revenue expansion constrains long-term scale benefits, can depress returns during slower cycles, and complicates multi-year targets for shareholders and management.

Volatile cash conversion

Declining TTM free cash flow and variable cash conversion weaken the link between reported profit and actual available capital. This may constrain capital allocation (capex, dividends, buybacks) and reduce resilience when funding needs rise or when sustaining long development cycles.

End-market cyclicality

Structural exposure to capex-driven end markets makes revenue sensitive to macro spending cycles. Extended downturns in factory automation or IT infrastructure investment can produce sustained order weakness and margin pressure, limiting steady long-term revenue growth.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 4195.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 4690.50, below the 50-day MA of 4394.50, and above the 200-day MA of 3685.79, indicating a bullish trend. The MACD of 209.05 indicates Negative momentum. The RSI at 71.57 is Negative, neither overbought nor oversold. The STOCH value of 78.93 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6516	75 Outperform	¥193.52B	24.60	―	1.53%	3.37%	21.35%
6674	73 Outperform	¥557.69B	16.36	8.89%	2.12%	3.05%	-16.11%
6506	72 Outperform	¥1.44T	38.61	13.26%	1.49%	-2.18%	30.16%
6503	71 Outperform	¥12.59T	33.01	10.23%	1.19%	4.62%	40.65%
6504	64 Neutral	¥1.99T	23.82	12.05%	1.50%	5.44%	-5.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5801	61 Neutral	¥1.98T	37.68	10.06%	1.21%	10.52%	60.75%

Sanyo Denki Co., Ltd. Corporate Events

Sanyo Denki Lifts FY2026 Profits on Strong Nine-Month Performance, Keeps Bullish Outlook

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 sharp rise in comprehensive income. Earnings per share also improved despite a three-for-one stock split, while equity attributable to owners rose to ¥122.6 billion, underscoring a solid balance sheet.

The company maintained its full-year forecast, targeting 9.5% revenue growth to ¥107.1 billion and a 50.8% jump in profit attributable to owners, signaling confidence in demand for its products. Dividend guidance reflects technical effects from the share split, with an interim payout of ¥100 per pre-split share and a post-split year-end forecast that cannot be aggregated, but the overall tone suggests continued shareholder returns backed by improving profitability and capital efficiency.

The most recent analyst rating on (JP:6516) stock is a Hold with a Yen5328.00 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 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.