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

• Market Cap: ¥117.23B
• Dividend Yield: 1.53%
• Average Volume (3M): 25.77K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.87
• Revenue Growth: -13.34%
• EPS Growth: -45.53%
• Country: JP
• Employees: 3,705
• Sector: Industrials
• Sector Strength: 94
• Industry: Electrical Equipment & Parts
• EPS (TTM): 137.15
• Shares Outstanding: 12,972,187
• 10 Day Avg. Volume: 23,460
• 30 Day Avg. Volume: 25,770
• PEG Ratio: -1.38
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.88
• 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

• Rating: 64 Neutral
• Price Target: ¥10,122.00 ▲(2.97%Upside)

Sanyo Denki Co., Ltd.'s stock score is primarily driven by its strong financial stability and profitability, albeit with concerns over declining revenue and cash flow growth. The technical analysis indicates a bearish trend, while valuation is moderate, contributing to the overall score.

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

Company Description

Sanyo Denki Co., Ltd. (6516) is a Japanese company specializing in the design, manufacture, and sale of electronic equipment and components. Established in 1927, the company operates primarily in three sectors: Cooling Systems, Power Systems, and Servo Systems. Its core products include cooling fans, power supply units, and servo motors, which are utilized in various industries such as IT, telecommunications, and industrial automation.

How the Company Makes Money

Sanyo Denki Co., Ltd. generates revenue through the sale of its electronic products and components across its three main sectors. The Cooling Systems division contributes significantly to its earnings through the sale of cooling fans, which are essential for thermal management in electronic devices and data centers. The Power Systems division earns revenue by providing power supply units, which are crucial for ensuring reliable and efficient energy management in various applications. The Servo Systems division generates income through the sale of servo motors and related products, which are used for precise motor control in industrial machinery and robotics. The company also benefits from ongoing partnerships and collaborations with other technology firms, enhancing its product offerings and market reach.

Sanyo Denki Co., Ltd. Financial Statement Overview

Summary

Sanyo Denki Co., Ltd. demonstrates strong financial stability with a robust balance sheet, low leverage, and high profitability margins. However, declining revenue and negative free cash flow growth rate pose challenges for future growth.

Income Statement

Sanyo Denki Co., Ltd. has experienced declining revenue in the most recent year, with a revenue decrease of 13.3%. Despite this, the company maintains a healthy gross profit margin of 25.7% and a net profit margin of 5.8%. The EBIT and EBITDA margins are also solid at 7.5% and 14.9% respectively, indicating reasonable operational efficiency. However, the decline in revenue raises concerns about future growth prospects.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.06, suggesting conservative leverage. The return on equity remains strong at 5.0%, indicating efficient use of shareholder capital. The equity ratio is high at 77.9%, reflecting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Sanyo Denki has demonstrated solid cash flow management with a free cash flow to net income ratio of 2.33, indicating effective conversion of profits into cash. However, the free cash flow growth rate is negative at -10.7%, reflecting a decline in free cash flow. The operating cash flow to net income ratio of 2.80 shows strong cash generation capabilities.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	97.85B	112.90B	120.80B	101.12B	77.51B
Gross Profit	25.13B	28.90B	31.22B	25.60B	17.04B
EBITDA	14.54B	19.36B	20.43B	17.54B	10.53B
Net Income	5.64B	10.48B	11.41B	9.02B	3.94B
Balance Sheet
Total Assets	145.63B	150.69B	143.87B	128.67B	113.96B
Cash, Cash Equivalents and Short-Term Investments	28.90B	27.38B	21.43B	19.05B	15.23B
Total Debt	7.28B	14.53B	20.15B	20.25B	19.11B
Total Liabilities	32.28B	40.32B	50.66B	48.01B	43.58B
Stockholders Equity	113.35B	110.36B	93.20B	80.64B	70.38B
Cash Flow
Free Cash Flow	13.12B	14.69B	4.23B	3.54B	799.00M
Operating Cash Flow	15.79B	21.45B	8.26B	8.23B	4.96B
Investing Cash Flow	-3.73B	-6.47B	-4.42B	-4.83B	-4.29B
Financing Cash Flow	-9.69B	-10.67B	-2.67B	-622.00M	10.00M

Sanyo Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9830.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 9830 is above the 20-day moving average (MA) of 9653.50, below the 50-day MA of 9865.20, and above the 200-day MA of 9089.59, indicating a neutral trend. The MACD of 34.87 indicates Negative momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 83.13 is Negative, 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
6503	76 Outperform	€6.95T	21.25	8.40%	1.51%	5.02%	14.73%
6504	75 Outperform	$1.04T	11.33	14.10%	2.20%	1.83%	21.82%
6674	73 Outperform	¥275.38B	9.05	8.87%	2.55%	3.10%	-14.40%
5801	72 Outperform	$566.66B	17.00	9.85%	1.49%	13.75%	412.78%
Sector *	71 Outperform	¥266.83B	14.00	8.47%	2.88%	6.35%	13.13%
6506	70 Outperform	¥870.77B	15.85	13.09%	2.04%	-6.12%	13.95%
6516	64 Neutral	¥117.23B	20.79		1.53%	-13.34%	-45.53%

Sanyo Denki Co., Ltd. Corporate Events

Sanyo Denki Announces Disposal of Treasury Shares for Stock Compensation

Sanyo Denki Co., Ltd. has announced the disposal of 8,144 treasury shares as stock compensation with transfer restrictions, aimed at incentivizing directors and operating officers to enhance corporate value. This move is part of a broader strategy to align management interests with long-term company performance, with transfer restrictions in place until retirement or resignation, ensuring sustained commitment from key personnel.

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 Considers Reducing Investment Unit Size to Enhance Stock Liquidity

Sanyo Denki Co., Ltd. announced its consideration of reducing the size of its investment unit to broaden its investor base and improve stock liquidity. The company will evaluate the necessity and timing of this change by considering various factors such as stock price, market trends, and trading volume.

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 Proposes Increased Surplus Dividend for Shareholders

Sanyo Denki Co., Ltd. announced a resolution by its Board of Directors to propose a surplus dividend with a record date of March 31, 2025, to be discussed at the Annual General Meeting of Shareholders on June 19, 2025. The proposed dividend per share is 90.00 yen, reflecting an increase from the previous year’s 75.00 yen, indicating a positive financial performance and potential shareholder value enhancement.

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 Completes Treasury Stock Acquisition

Sanyo Denki Co., Ltd. announced the completion of its treasury stock acquisition, purchasing 101,000 common shares for approximately ¥973,640,000 through the Tokyo Stock Exchange off-hours trading system. This move is part of the company’s strategy to implement flexible capital policies in response to evolving business conditions.

Sanyo Denki Announces Treasury Stock Acquisition Strategy

Sanyo Denki Co., Ltd. has resolved to acquire up to 110,000 of its own shares through the Tokyo Stock Exchange’s off-hours trading system, ToSTNeT-3, as part of its strategy to implement flexible capital policies in response to the evolving business environment. This move, involving a maximum expenditure of ¥1,060,400,000, is intended to strengthen the company’s financial position and potentially enhance shareholder value, although market conditions may affect the final acquisition outcome.