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

• Market Cap: ¥131.03B
• Dividend Yield: 1.11%
• Average Volume (3M): 64.37K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.88
• Revenue Growth: -5.87%
• EPS Growth: -35.84%
• 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: -7.86% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥4,219.00 ▲(14.34% Upside)

Sanyo Denki Co., Ltd. scores well due to its solid financial performance and strong technical indicators, suggesting a stable and potentially growing investment. However, the high valuation and potential for short-term technical pullback are risks to consider. The absence of earnings call data and corporate events does not impact the score.

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

Company Description

Sanyo Denki Co., Ltd. (6516) is a leading Japanese manufacturer specializing in cooling systems, power supplies, and industrial automation equipment. Established in 1927, the company operates primarily in the sectors of cooling and thermal management, power supply systems, and servo systems. Its core products include fans, cooling units, uninterruptible power supplies (UPS), and servo motors, catering to a wide range of industries such as telecommunications, data centers, and factory automation.

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. The company maintains efficient operations and low leverage. However, the recent slowdown in revenue and free cash flow growth could pose challenges.

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	98.84B	97.85B	112.90B	120.80B	101.12B	77.51B
Gross Profit	25.53B	25.13B	28.90B	31.22B	25.60B	17.04B
EBITDA	14.29B	14.54B	19.36B	20.43B	17.54B	10.53B
Net Income	5.33B	5.64B	10.48B	11.41B	9.02B	3.94B
Balance Sheet
Total Assets	146.04B	145.63B	150.69B	143.87B	128.67B	113.96B
Cash, Cash Equivalents and Short-Term Investments	29.53B	28.90B	27.38B	21.43B	19.05B	15.23B
Total Debt	6.74B	7.28B	14.53B	20.15B	20.25B	19.11B
Total Liabilities	33.39B	32.28B	40.32B	50.66B	48.01B	43.58B
Stockholders Equity	112.65B	113.35B	110.36B	93.20B	80.64B	70.38B
Cash Flow
Free Cash Flow	12.91B	13.12B	14.69B	4.23B	3.54B	799.00M
Operating Cash Flow	14.74B	15.79B	21.45B	8.26B	8.23B	4.96B
Investing Cash Flow	-2.23B	-3.73B	-6.47B	-4.42B	-4.83B	-4.29B
Financing Cash Flow	-10.11B	-9.69B	-10.67B	-2.67B	-622.00M	10.00M

Sanyo Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3690.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 3690 is above the 20-day moving average (MA) of 3525.75, above the 50-day MA of 3407.21, and above the 200-day MA of 3160.44, indicating a bullish trend. The MACD of 103.09 indicates Negative momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 56.56 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
6674	―	$386.87B	11.90	9.59%	1.89%	2.58%	-15.95%
6504	―	$1.54T	16.18	14.11%	1.45%	2.67%	21.99%
6516	―	¥131.03B	23.22	―	1.11%	-5.87%	-35.84%
6503	―	€8.31T	21.80	9.91%	1.31%	4.21%	33.53%
5801	―	$664.01B	18.93	10.54%	1.15%	12.76%	162.49%
6506	―	$1.09T	18.91	13.26%	1.63%	-2.18%	30.16%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sanyo Denki Co., Ltd. Corporate Events

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.

The most recent analyst rating on (JP:6516) stock is a Hold with a Yen10622.00 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 Q1 FY2026 Financial Results with Revenue Growth Amid Profit Challenges

Sanyo Denki Co., Ltd. reported its consolidated financial results for the first quarter of FY2026, showing a 4.3% increase in revenue compared to the previous year. Despite the revenue growth, the company experienced a significant decline in profit before tax and total comprehensive income, highlighting challenges in maintaining profitability. The company forecasts a positive outlook for FY2026, with expected increases in revenue and profit, indicating a strategic focus on improving financial performance.

The most recent analyst rating on (JP:6516) stock is a Hold with a Yen10456.00 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 Announces Stock Split and Dividend Revision

Sanyo Denki Co., Ltd. announced a stock split to increase share liquidity and broaden its investor base, effective October 1, 2025. The company will amend its Articles of Incorporation to reflect an increase in authorized shares and has revised its dividend projections accordingly, aiming to maintain shareholder value.

The most recent analyst rating on (JP:6516) stock is a Hold with a Yen10456.00 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 Completes Treasury Shares Disposal for Stock Compensation

Sanyo Denki Co., Ltd. has completed the payment procedures for the disposal of treasury shares as stock compensation with transfer restrictions. This move involves the disposal of 8,144 common shares at a value of 9,770 yen per share, totaling 79,566,880 yen, allocated to company directors and operating officers, which may impact the company’s financial structuring and stakeholder interests.

The most recent analyst rating on (JP:6516) stock is a Hold with a Yen9800.00 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 Q1 FY2026 Financial Results with Revenue Growth Amid Profit Decline

Sanyo Denki Co., Ltd. reported its first quarter financial results for FY2026, showing a 4.3% increase in revenue compared to the previous year. Despite the revenue growth, the company experienced a decline in profit before tax and profit attributable to owners, with a notable decrease in total comprehensive income. The company forecasts a positive outlook for the first half and full year of FY2026, with expected increases in revenue and profit, suggesting a strategic focus on improving financial performance.

The most recent analyst rating on (JP:6516) stock is a Hold with a Yen9800.00 price target. To see the full list of analyst forecasts on Sanyo Denki Co., Ltd. stock, see the JP:6516 Stock Forecast page.