Sanso Electric Co., Ltd. (6518) AI Stock Analysis

• Market Cap: ¥4.62B
• Dividend Yield: 2.36%
• Average Volume (3M): 1.97K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.37
• Revenue Growth: 9.07%
• EPS Growth: N/A
• Country: JP
• Employees: 597
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 32.25
• Shares Outstanding: 4,678,500
• 10 Day Avg. Volume: 1,790
• 30 Day Avg. Volume: 1,973
• PEG Ratio: -0.40
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -2.12
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,068.00 ▲(5.74% Upside)

The overall stock score of 69 reflects strong technical momentum and a solid balance sheet, offset by declining profitability and cash flow issues. The fair valuation supports the score, but the lack of earnings call data limits insights into future guidance.

Positive Factors

Strong Financial Stability

A lower debt-to-equity ratio indicates improved financial stability, reducing risk and enhancing the company's ability to invest in growth opportunities.

Commitment to Innovation

Investment in R&D supports long-term competitiveness by enabling the development of advanced products that meet evolving market demands, fostering sustainable growth.

Strategic Collaborations

Partnerships in key sectors enhance market reach and resource sharing, strengthening the company's position in the industry and supporting revenue growth.

Negative Factors

Declining Revenue

A significant decline in revenue indicates potential challenges in market demand or competitive positioning, which could impact long-term growth prospects.

Weakening Profit Margins

Decreasing profit margins suggest rising costs or pricing pressures, which can erode profitability and limit the company's ability to reinvest in its business.

Negative Cash Flow

Negative cash flow indicates liquidity challenges, potentially restricting the company's ability to fund operations and growth initiatives without external financing.

Sanso Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Sanso Electric Co., Ltd. (6518) is a leading Japanese manufacturer specializing in high-quality electric components and systems, primarily serving sectors such as industrial automation, automotive, and renewable energy. The company focuses on the design and production of power supplies, control devices, and other essential electrical equipment that enhance efficiency and reliability in various applications. With a commitment to innovation and sustainability, Sanso Electric aims to address the growing demands for advanced technological solutions in the global market.

How the Company Makes Money

Sanso Electric Co., Ltd. generates revenue through the sale of its core products, including power supplies and control systems, which are essential for industrial automation and energy management. The company benefits from multiple revenue streams, including direct sales to manufacturers, partnerships with OEMs (Original Equipment Manufacturers), and long-term contracts with large industrial clients. Additionally, Sanso Electric invests in research and development to create innovative products that meet evolving customer needs, thereby enhancing market competitiveness. Strategic collaborations with other companies in the tech and renewable energy sectors further bolster its revenue, allowing for shared resources and expanded market reach.

Sanso Electric Co., Ltd. Financial Statement Overview

Summary

Sanso Electric Co., Ltd. shows strong financial stability with a solid equity base and low leverage. However, declining revenue and profitability, alongside cash flow management issues, pose challenges. The balance sheet remains robust, but attention to revenue growth and cash generation is crucial for long-term health.

Income Statement

The company shows fluctuating revenue with recent declines, as seen in a 9.26% decrease in revenue from 2024 to 2025. Gross profit margin has decreased to 16.15% in 2025 from 18.34% in 2024. Net profit margin has also dropped to 0.74% in 2025 from 2.79% in 2024. The EBIT margin slightly decreased to 0.43% in 2025 from 3.84% in 2024, while EBITDA margin saw a decline to 7.24% in 2025 from 9.23% in 2024, indicating weakened profitability over the period.

Balance Sheet

The company's debt-to-equity ratio improved to 0.16 in 2025 from 0.21 in 2024, reflecting a strong equity position. Return on equity decreased to 0.99% in 2025 from 4.21% in 2024, but the equity ratio remains robust at 64.26% in 2025, slightly up from 59.98% in 2024, indicating strong solvency and financial stability.

Cash Flow

There is a significant decline in free cash flow from 2024 to 2025, turning negative at -$1.70 billion. The operating cash flow to net income ratio dropped to 2.55 in 2025 from 4.14 in 2024, and the free cash flow to net income ratio turned negative, indicating potential liquidity issues and the need for improved cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.39B	16.03B	17.67B	18.62B	17.10B	12.93B
Gross Profit	2.82B	2.59B	3.24B	3.49B	3.18B	2.65B
EBITDA	1.43B	1.16B	1.63B	1.88B	1.85B	1.36B
Net Income	332.87M	118.44M	493.07M	815.65M	884.32M	402.35M
Balance Sheet
Total Assets	18.71B	18.51B	19.53B	20.43B	17.68B	15.75B
Cash, Cash Equivalents and Short-Term Investments	2.85B	2.71B	4.96B	4.25B	2.53B	2.92B
Total Debt	1.69B	1.86B	2.49B	3.23B	1.55B	1.70B
Total Liabilities	6.80B	6.61B	7.82B	9.31B	7.31B	6.39B
Stockholders Equity	11.90B	11.90B	11.72B	11.12B	10.37B	9.36B
Cash Flow
Free Cash Flow	0.00	-1.70B	1.37B	562.23M	-23.27M	739.16M
Operating Cash Flow	0.00	302.10M	2.04B	1.16B	570.26M	1.24B
Investing Cash Flow	0.00	-1.87B	-339.08M	-715.85M	-619.11M	-244.33M
Financing Cash Flow	0.00	-939.59M	-1.06B	1.26B	-409.67M	-573.26M

Sanso Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1010.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6518, the sentiment is Positive. The current price of 1010 is below the 20-day moving average (MA) of 1011.65, above the 50-day MA of 994.40, and above the 200-day MA of 873.08, indicating a neutral trend. The MACD of 1.95 indicates Positive momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 49.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6518.

Sanso Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6360	79 Outperform	¥5.12B	6.99	―	6.63%	-30.65%	-46.85%
6396	72 Outperform	¥3.87B	7.83	―	1.46%	-6.39%	-3.86%
6518	69 Neutral	¥4.62B	8.45	―	2.36%	9.07%	―
6334	68 Neutral	¥4.17B	12.90	―	1.18%	12.31%	138.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6408	61 Neutral	¥5.37B	4.86	―	1.39%	-3.05%	―
6467	56 Neutral	¥3.13B	―	―	1.64%	-3.20%	-226.19%