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

• Market Cap: ¥3.90B
• Dividend Yield: 2.92%
• Average Volume (3M): 3.52K
• Price to Earnings (P/E): 32.7
• Beta (1Y): 0.30
• Revenue Growth: -9.27%
• EPS Growth: -76.13%
• Country: JP
• Employees: 597
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Machinery
• EPS (TTM): 32.92
• Shares Outstanding: 4,663,000
• 10 Day Avg. Volume: 3,350
• 30 Day Avg. Volume: 3,516
• PEG Ratio: 0.13
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥865.00
• Price Target Upside: 2.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥877.00 ▲(4.28%Upside)

The stock demonstrates strong financial stability, but challenges in maintaining profitability and managing cash flows are concerning. Technical indicators suggest potential upside in the short term. The high P/E ratio suggests overvaluation, mitigated somewhat by a decent dividend yield.

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

Company Description

Sanso Electric Co., Ltd. (6518) is a Japanese company engaged in the manufacturing and sale of electric motors, pumps, and related equipment. It operates within the industrial machinery sector, providing high-quality products that cater to a wide range of applications including HVAC systems, water supply systems, and various industrial processes. The company is recognized for its commitment to technological innovation and energy efficiency, ensuring that its products meet the evolving needs of its clients.

How the Company Makes Money

Sanso Electric Co., Ltd. generates revenue primarily through the sale of its electric motors, pumps, and associated equipment. The company targets both domestic and international markets, serving a diverse clientele that spans multiple industries. Key revenue streams include direct sales to manufacturers and suppliers who integrate Sanso's products into their systems, as well as aftermarket sales for replacement and maintenance purposes. Additionally, Sanso Electric may engage in partnerships with other technology firms or distributors to expand its market reach and enhance its product offerings. Factors contributing to its earnings include its reputation for high-quality, reliable products, and its ability to innovate and adapt to changing market demands, particularly in areas focused on energy efficiency and sustainability.

Sanso Electric Co., Ltd. Financial Statement Overview

Summary

Sanso Electric Co., Ltd. shows strong financial stability with a robust equity base and low leverage. However, declining revenue and profitability, along with cash flow management issues, are areas of concern. While the balance sheet is solid, the company needs to focus on revenue growth and cash generation to sustain financial 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	16.03B	17.67B	18.62B	17.10B	12.93B
Gross Profit	2.59B	3.24B	3.49B	3.18B	2.65B
EBITDA	1.16B	1.63B	1.88B	1.85B	1.36B
Net Income	118.44M	493.07M	815.65M	884.32M	402.35M
Balance Sheet
Total Assets	18.51B	19.53B	20.43B	17.68B	15.75B
Cash, Cash Equivalents and Short-Term Investments	2.71B	4.96B	4.25B	2.53B	2.92B
Total Debt	1.86B	2.49B	3.23B	1.55B	1.70B
Total Liabilities	6.61B	7.82B	9.31B	7.31B	6.39B
Stockholders Equity	11.90B	11.72B	11.12B	10.37B	9.36B
Cash Flow
Free Cash Flow	-1.70B	1.37B	562.23M	-23.27M	739.16M
Operating Cash Flow	302.10M	2.04B	1.16B	570.26M	1.24B
Investing Cash Flow	-1.87B	-339.08M	-715.85M	-619.11M	-244.33M
Financing Cash Flow	-939.59M	-1.06B	1.26B	-409.67M	-573.26M

Sanso Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 841.00
• 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 Neutral. The current price of 841 is below the 20-day moving average (MA) of 847.55, above the 50-day MA of 822.34, and above the 200-day MA of 820.81, indicating a neutral trend. The MACD of 15.06 indicates Positive momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 47.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	81 Outperform	¥4.28B	3.51		7.92%	-4.23%	9.28%
6396	73 Outperform	¥3.42B	8.28		1.62%	-10.20%	-6.44%
6408	72 Outperform	¥5.57B	4.79		1.34%	0.96%	―
6467	67 Neutral	¥3.27B	57.85		2.22%	2.46%	25.52%
Sector *	65 Neutral	$10.86B	15.57	5.28%	1.92%	3.13%	-27.76%
6518	64 Neutral	¥3.90B	32.71		2.92%	-9.27%	-76.13%
6334	58 Neutral	¥3.34B	26.82		1.36%	32.99%	-61.72%