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Sanso Electric Co., Ltd. (JP:6518)
:6518
Japanese Market
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Sanso Electric Co., Ltd. (6518) AI Stock Analysis

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JP:6518

Sanso Electric Co., Ltd.

(6518)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
¥1,068.00
▲(2.30% 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.

Sanso Electric Co., Ltd. (6518) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSanso 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 MoneySanso 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. exhibits strong financial stability with a solid equity base and low leverage. However, recent periods show declining revenue and profitability, alongside issues in cash flow management. While the balance sheet remains strong, the company faces challenges in maintaining profitability and managing cash flows effectively.
Income Statement
62
Positive
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
75
Positive
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
55
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.39B16.03B17.67B18.62B17.10B12.93B
Gross Profit2.82B2.59B3.24B3.49B3.18B2.65B
EBITDA1.43B1.16B1.63B1.88B1.85B1.36B
Net Income332.87M118.44M493.07M815.65M884.32M402.35M
Balance Sheet
Total Assets18.71B18.51B19.53B20.43B17.68B15.75B
Cash, Cash Equivalents and Short-Term Investments2.85B2.71B4.96B4.25B2.53B2.92B
Total Debt1.69B1.86B2.49B3.23B1.55B1.70B
Total Liabilities6.80B6.61B7.82B9.31B7.31B6.39B
Stockholders Equity11.90B11.90B11.72B11.12B10.37B9.36B
Cash Flow
Free Cash Flow0.00-1.70B1.37B562.23M-23.27M739.16M
Operating Cash Flow0.00302.10M2.04B1.16B570.26M1.24B
Investing Cash Flow0.00-1.87B-339.08M-715.85M-619.11M-244.33M
Financing Cash Flow0.00-939.59M-1.06B1.26B-409.67M-573.26M

Sanso Electric Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1044.00
Price Trends
50DMA
983.34
Positive
100DMA
918.50
Positive
200DMA
856.12
Positive
Market Momentum
MACD
23.17
Negative
RSI
60.34
Neutral
STOCH
85.14
Negative
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 1044 is above the 20-day moving average (MA) of 989.70, above the 50-day MA of 983.34, and above the 200-day MA of 856.12, indicating a bullish trend. The MACD of 23.17 indicates Negative momentum. The RSI at 60.34 is Neutral, neither overbought nor oversold. The STOCH value of 85.14 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
¥4.77B6.537.04%-30.65%-46.85%
¥3.81B7.721.42%-4.62%21.46%
¥4.35B13.162.36%9.07%
¥4.15B16.451.10%30.06%-11.98%
$10.79B15.437.44%2.01%2.89%-14.66%
¥5.39B8.501.39%0.40%
¥3.34B1.64%-3.20%-226.19%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6518
Sanso Electric Co., Ltd.
1,044.00
204.86
24.41%
JP:6334
Meiji Machine Co., Ltd.
364.00
41.39
12.83%
JP:6360
Tokyo Automatic Machinery Works, Ltd.
3,410.00
695.10
25.60%
JP:6396
Unozawa-Gumi Iron Works, Limited
3,530.00
774.80
28.12%
JP:6408
Ogura Clutch Co., Ltd.
3,600.00
350.77
10.80%
JP:6467
Nichidai Corporation
369.00
-49.16
-11.76%
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: Oct 31, 2025