Sanken Electric Co., Ltd. (6707) AI Stock Analysis

• Market Cap: ¥185.57B
• Dividend Yield: 0.38%
• Average Volume (3M): 161.22K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.98
• Revenue Growth: -58.24%
• EPS Growth: N/A
• Country: JP
• Employees: 8,534
• Sector: Technology
• Sector Strength: 82
• Industry: Semiconductors
• EPS (TTM): -39.01
• Shares Outstanding: 25,098,060
• 10 Day Avg. Volume: 197,280
• 30 Day Avg. Volume: 161,220
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥7,895.00
• Price Target Upside: 2.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥7,895.00 ▲(2.69% Upside)

The overall stock score is primarily influenced by financial performance challenges and bearish technical indicators. However, the low P/E ratio suggests potential undervaluation, which slightly offsets the negative aspects.

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

Company Description

Sanken Electric Co., Ltd. (6707) is a Japanese company that specializes in the development, manufacturing, and sale of electronic components and power systems. Its core products include semiconductors, such as power management ICs and sensors, as well as power supplies, inverters, and UPS systems. The company serves a variety of sectors, including automotive, industrial, and consumer electronics, providing solutions that enhance energy efficiency and performance.

How the Company Makes Money

Sanken Electric Co., Ltd. generates revenue primarily through the sale of its semiconductor and power system products. Its key revenue streams include sales to automotive manufacturers seeking advanced electronic components for vehicle systems, industrial clients requiring power management solutions, and consumer electronics companies needing efficient and reliable components. The company's earnings are supported by its focus on innovation and development of energy-efficient technologies, which align with global trends towards sustainability and energy conservation. Significant partnerships with major electronics manufacturers and a robust distribution network further bolster its revenue generation capabilities.

Sanken Electric Co., Ltd. Financial Statement Overview

Summary

Sanken Electric Co., Ltd. faces challenges with profitability and cash flow, despite some improvements in leverage and equity. Revenue and profit volatility, combined with negative operating cash flow, pose risks to financial stability.

Income Statement

Sanken Electric Co., Ltd. experienced significant volatility in its income statement metrics. The gross profit margin has shown a decreasing trend from 2024 to 2025, indicating pressure on production efficiency or pricing power. Notably, the company turned a net income loss in 2024 to a profit in 2025, but EBIT remained negative, highlighting operational challenges. Revenue growth has been inconsistent, with a significant drop in 2025, and EBIT and EBITDA margins have declined, suggesting challenges in maintaining profitability.

Balance Sheet

The balance sheet shows a relatively stable financial position. The debt-to-equity ratio has improved, indicating better leverage management, while equity has grown. The equity ratio has increased, reflecting a stronger asset base supported by equity. However, the high level of total debt remains a potential risk factor.

Cash Flow

Cash flow analysis reveals some concerns. Operating cash flow turned negative in 2025, indicating cash flow issues from core operations. Free cash flow has declined significantly, which could impact future investments or debt servicing. The free cash flow to net income ratio is unfavorable, highlighting inefficiencies in converting profits into cash flows.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	121.62B	235.22B	225.39B	175.66B	156.79B
Gross Profit	24.93B	86.89B	83.68B	55.19B	39.14B
EBITDA	63.15B	32.96B	41.83B	27.05B	6.38B
Net Income	50.93B	-8.11B	9.53B	3.20B	-6.95B
Balance Sheet
Total Assets	259.07B	383.59B	301.95B	244.73B	233.67B
Cash, Cash Equivalents and Short-Term Investments	51.41B	50.36B	65.44B	58.96B	60.99B
Total Debt	63.14B	140.77B	82.09B	67.38B	70.39B
Total Liabilities	111.13B	184.97B	128.76B	107.33B	120.42B
Stockholders Equity	147.43B	119.37B	111.09B	94.97B	83.57B
Cash Flow
Free Cash Flow	-27.54B	-14.85B	-3.89B	-4.07B	-3.17B
Operating Cash Flow	-9.71B	15.53B	19.20B	13.68B	7.63B
Investing Cash Flow	98.05B	-89.11B	-27.68B	-12.60B	-12.29B
Financing Cash Flow	-47.89B	51.27B	11.71B	-6.59B	21.09B

Sanken Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7688.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6707, the sentiment is Negative. The current price of 7688 is below the 20-day moving average (MA) of 8373.90, below the 50-day MA of 8450.40, and above the 200-day MA of 7073.44, indicating a neutral trend. The MACD of -152.75 indicates Positive momentum. The RSI at 31.36 is Neutral, neither overbought nor oversold. The STOCH value of 10.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6707.

Sanken Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%
6707	54 Neutral	¥185.57B	3.52		0.38%	-58.24%	―
DINRF	―	$6.65B	11.32	24.92%	2.74%	―	―
LSRCF	―	$9.53B	16.86	47.47%	2.02%	―	―
RNECF	―	$19.95B	20.80	-4.72%	1.51%	―	―
ROHCF	―	$5.52B	62.37	-5.40%	2.61%	―	―
6967	60 Neutral		―		―	2.41%	-3.95%

Sanken Electric Co., Ltd. Corporate Events

Sanken Electric Completes Share Repurchase Program

Sanken Electric Co., Ltd. announced the completion of a share repurchase program, acquiring 367,600 shares for approximately 2.89 billion yen between June 1 and June 30, 2025. This move is part of a broader strategy to repurchase up to 6 million shares, representing 24.8% of its issued and outstanding shares, with a total budget of 30 billion yen, indicating a strong commitment to enhancing shareholder value.

Sanken Electric Completes Share Repurchase as Part of Strategic Plan

Sanken Electric Co., Ltd. announced the completion of a share repurchase program, acquiring 346,500 shares for a total of 2,312,810,200 yen between May 1 and May 31, 2025. This move is part of a larger plan approved by the board to repurchase up to 6,000,000 shares, aiming to enhance shareholder value and optimize capital structure, with a maximum budget of 30 billion yen.

Sanken Electric Evaluates Investment Unit Adjustment

Sanken Electric Co., Ltd. has announced its position on the potential lowering of its investment unit on the Tokyo Stock Exchange. While acknowledging the benefits of increased share liquidity and broader investor participation, the company has no immediate plans to implement changes such as a stock split, citing the need to monitor market trends and consider associated costs.

Sanken Electric Announces Leadership Changes

Sanken Electric Co., Ltd. announced changes in its board of directors and corporate officers, which will be proposed at the upcoming general meeting of shareholders. These changes include new nominations and retirements among directors and corporate officers, aiming to strengthen the company’s management structure and strategic direction.

Sanken Electric Exceeds Financial Forecasts with Increased Profits

Sanken Electric Co., Ltd. reported a positive variance between its forecasted and actual financial results for the fiscal year ending March 31, 2025. The company experienced an increase in profits due to a weaker yen and higher foreign currency-denominated sales, alongside improved production rates following the closure of a plant, which positively impacted its financial performance.

Sanken Electric Reports Increased Non-Operating Expenses and Losses

Sanken Electric Co., Ltd. has reported an increase in non-operating expenses and extraordinary losses in its financial results for the fiscal year ended March 31, 2025. The company recorded a significant share of loss from entities accounted for using the equity method due to the partial sale of shares in Allegro MicroSystems, Inc., which led to Allegro becoming an equity method affiliate. Additionally, Sanken faced losses from investments in investment partnerships and the liquidation of a subsidiary in Indonesia, impacting its overall financial performance.

Sanken Electric Reports Significant Financial Decline for FY 2025

Sanken Electric Co., Ltd. reported a significant decline in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales dropping by 48.3% and a substantial operating loss recorded. The company’s financial position also weakened, with total assets and net assets decreasing compared to the previous year. The exclusion of Allegro MicroSystems, Inc. and Polar Semiconductor, LLC from the scope of consolidation, along with changes in accounting policies, contributed to these results. This financial downturn may impact the company’s market positioning and stakeholder confidence.

Sanken Electric Completes Share Repurchase Program

Sanken Electric Co., Ltd. announced the completion of a share repurchase program, acquiring 1,249,900 shares for approximately 8.23 billion yen between April 1 and April 30, 2025. This move is part of a broader strategy approved by the board to repurchase up to 6 million shares, aiming to enhance shareholder value and optimize capital structure.