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

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

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JP:6516

Sanyo Denki Co., Ltd.

(6516)

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Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
¥5,203.00
▲(24.03% Upside)
Action:ReiteratedDate: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 reduces refinancing and solvency risk, enabling steady investment in product development, tooling and customer design-ins across capital cycles and supporting resilient operations over months.
Negative Factors
Declining free cash flow momentum
A drop in trailing free cash flow and variable cash conversion reduce predictability of internal funding for capex, dividends or buybacks. Over a multi-month horizon this can constrain strategic investments or increase sensitivity to weaker demand periods despite accounting profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and an expanding equity base give the company durable financial flexibility. This reduces refinancing and solvency risk, enabling steady investment in product development, tooling and customer design-ins across capital cycles and supporting resilient operations over months.
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
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
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
67
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue104.24B97.85B112.90B120.80B101.12B77.51B
Gross Profit28.71B24.81B28.74B31.09B25.93B17.36B
EBITDA15.73B13.32B16.83B19.34B16.51B10.05B
Net Income7.39B5.64B10.48B11.41B9.02B3.94B
Balance Sheet
Total Assets159.73B145.63B150.69B143.87B128.67B113.96B
Cash, Cash Equivalents and Short-Term Investments29.43B28.90B26.69B20.55B18.78B14.85B
Total Debt5.76B7.28B14.53B20.15B20.25B19.11B
Total Liabilities37.08B32.28B40.31B50.65B48.01B43.57B
Stockholders Equity122.65B113.35B110.36B93.21B80.65B70.38B
Cash Flow
Free Cash Flow11.70B13.12B15.72B5.08B4.96B1.95B
Operating Cash Flow13.40B15.79B21.45B8.26B8.23B4.96B
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-622.00M10.00M

Sanyo Denki Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4195.00
Price Trends
50DMA
4573.10
Negative
100DMA
4285.15
Negative
200DMA
3796.07
Positive
Market Momentum
MACD
-28.52
Positive
RSI
37.29
Neutral
STOCH
24.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6516, the sentiment is Negative. The current price of 4195 is below the 20-day moving average (MA) of 4771.25, below the 50-day MA of 4573.10, and above the 200-day MA of 3796.07, indicating a neutral trend. The MACD of -28.52 indicates Positive momentum. The RSI at 37.29 is Neutral, neither overbought nor oversold. The STOCH value of 24.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
75
Outperform
¥161.71B16.571.53%3.37%21.35%
72
Outperform
¥50.94B12.370.91%5.28%18.38%
72
Outperform
$1.15T35.768.39%1.49%-2.18%30.16%
71
Outperform
€10.81T21.589.29%1.19%4.62%40.65%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥1.55T19.9512.05%1.50%5.44%-5.19%
59
Neutral
¥48.95B-60.125.01%-32.74%-117.06%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6516
Sanyo Denki Co., Ltd.
4,390.00
1,394.55
46.56%
JP:6503
Mitsubishi Electric
5,275.00
2,499.15
90.03%
JP:6504
Fuji Electric Co
10,870.00
4,292.64
65.26%
JP:6506
Yaskawa Electric
4,387.00
403.97
10.14%
JP:6637
Terasaki Electric Co., Ltd.
3,910.00
1,541.36
65.07%
JP:6905
Cosel Co., Ltd.
1,190.00
163.87
15.97%

Sanyo Denki Co., Ltd. Corporate Events

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: Jan 31, 2026