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

• Market Cap: ¥148.04B
• Dividend Yield: N/A
• Average Volume (3M): 124.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -51.82%
• EPS Growth: -96.08%
• Country: JP
• Employees: 8,534
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -102.70
• Shares Outstanding: 20,925,360
• 10 Day Avg. Volume: 125,040
• 30 Day Avg. Volume: 124,793
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 1.33
• P/FCF Ratio: -5.87
• 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
• EPS Forecast (FY): -449.21
• Revenue Forecast (FY): ¥78.60B

• Rating: 55 Neutral
• Price Target: ¥8,364.00 ▲(44.73% Upside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is held back mainly by weak and volatile financial performance (declining margins, negative EBIT, and negative operating cash flow) and a very high P/E valuation. Technicals provide some support due to strong trend/momentum, but overbought signals reduce conviction.

Positive Factors

Application-specific product design supports longer production runs

Sanken's ability to deliver application-specific power modules and ICs creates technical embedding and customer stickiness. Once designs are qualified into a platform, multi-year production contracts and repeatable volumes can emerge, supporting more predictable revenue and higher value-added margins over time.

Diversified end-market exposure across industrial, consumer, automotive

Serving industrial, consumer/home appliance and automotive markets spreads demand risk and captures multiple secular needs for power management. Diversification reduces reliance on one cyclical segment and positions the company to benefit from structural upgrades in equipment and vehicle electrification-related electronics demand.

Improved leverage and stronger equity base

An improving debt-to-equity ratio and rising equity ratio enhance financial flexibility. Stronger capitalization lowers refinancing risk, supports investment in capacity or R&D, and gives the company more resilience to cyclical downturns, enabling longer-term strategic initiatives without immediate liquidity strain.

Negative Factors

Sharp recent revenue decline

A roughly 44% decline in reported revenue signals meaningful loss of scale and end-market demand. Sustained top-line contraction undermines fixed-cost absorption, reduces bargaining power with suppliers, and limits ability to fund product development or customer-specific programs, risking longer-term competitiveness.

Negative operating cash flow and falling free cash flow

Negative operating cash flow and sharply lower free cash flow weaken the company's capacity to self-fund capex, repay debt, or invest in product development. Persistent cash conversion issues constrain strategic flexibility and increase reliance on external financing, raising long-term funding risk.

Declining margins and negative EBIT despite net profit

Falling gross and EBIT margins alongside negative operating profit indicate persistent cost or pricing pressure. Even with sporadic net profit, negative EBIT suggests core operations are not consistently profitable, threatening long-term earnings quality and the ability to sustain investments that drive future growth.

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

Company Description

Sanken Electric Co., Ltd. manufactures, purchases, and sells electric equipment and apparatus. The company operates in two segments, Semiconductor Devices Business and Power System Business. Its Semiconductor Devices Business segment manufactures and sells power modules, power ICs, control ICs, hall-effect ICs, bipolar transistors, MOSFET, IGBT, thyristors, rectifier diodes, and light emitting diodes. The company's Power System Business segment manufactures and sells uninterruptible power supplies, inverters, DC power supplies, airway beacon systems, switching mode power supply units, and transformers. Its products are used in various applications, including automobiles, white goods, industrial devices, office automation equipment, and TV and audio. The company also undertakes electronic, telecommunication, and other construction works. It has operations in Japan, China, Korea, the United States, Europe, and internationally. The company was formerly known as Toho Sanken Electric Co., Ltd. and changed its name to Sanken Electric Co., Ltd. in June 1962. Sanken Electric Co., Ltd. was incorporated in 1946 and is headquartered in Niiza, Japan.

How the Company Makes Money

Sanken Electric generates revenue through the sale of its diverse range of electronic components and power supply solutions. Key revenue streams include the manufacturing and distribution of power semiconductors, which are essential in various applications such as electric vehicles, renewable energy systems, and industrial machinery. The company also earns income from its power supply units used in consumer electronics and industrial equipment. Significant partnerships with automotive manufacturers and electronics companies enhance Sanken's market reach and contribute to its earnings, alongside ongoing investments in research and development to innovate and improve product offerings.

Sanken Electric Co., Ltd. Financial Statement Overview

Summary

Mixed fundamentals: income statement shows volatile revenue and declining margins with negative EBIT despite a return to net profit, while cash flow weakened with negative operating cash flow and sharply lower free cash flow. Balance sheet is comparatively steadier with improved leverage and higher equity, but total debt remains a risk.

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	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	94.03B	121.62B	235.22B	225.39B	175.66B	156.79B
Gross Profit	14.20B	24.93B	86.89B	83.68B	55.19B	39.14B
EBITDA	63.45B	63.15B	32.96B	42.92B	27.05B	6.38B
Net Income	52.76B	50.93B	-8.11B	9.53B	3.20B	-6.95B
Balance Sheet
Total Assets	233.27B	259.07B	383.59B	301.95B	244.73B	233.67B
Cash, Cash Equivalents and Short-Term Investments	39.78B	51.41B	50.36B	65.44B	58.96B	60.99B
Total Debt	62.01B	63.14B	140.77B	82.09B	67.38B	70.39B
Total Liabilities	100.41B	111.13B	184.97B	128.76B	107.33B	120.42B
Stockholders Equity	132.34B	147.43B	119.37B	111.09B	94.97B	83.57B
Cash Flow
Free Cash Flow	0.00	-27.54B	-14.85B	-3.89B	-4.07B	-3.17B
Operating Cash Flow	0.00	-9.71B	15.53B	19.20B	13.68B	7.63B
Investing Cash Flow	0.00	98.05B	-89.11B	-27.68B	-12.60B	-12.29B
Financing Cash Flow	0.00	-47.89B	51.27B	11.71B	-6.59B	21.09B

Sanken Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5779.00
• 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:6707, the sentiment is Neutral. The current price of 5779 is below the 20-day moving average (MA) of 7915.90, below the 50-day MA of 7029.36, and below the 200-day MA of 7346.64, indicating a neutral trend. The MACD of 167.99 indicates Positive momentum. The RSI at 49.61 is Neutral, neither overbought nor oversold. The STOCH value of 24.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6920	81 Outperform	¥3.09T	35.39	53.12%	1.11%	32.51%	57.19%
7735	78 Outperform	¥1.93T	23.78	21.73%	2.29%	11.29%	11.38%
6723	63 Neutral	¥4.84T	-93.84	-2.51%	1.31%	-10.97%	-118.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6707	55 Neutral	¥148.04B	-40.83	―	―	-51.82%	-96.08%
6963	49 Neutral	¥1.15T	-31.37	-4.26%	2.30%	0.04%	-323.26%

Sanken Electric Co., Ltd. Corporate Events

Sanken Electric Posts Weak Q3 Results as Portfolio Realignment Weighs on Earnings

Sanken Electric Co., Ltd. reported supplementary data for the nine months ended December 31, 2025, showing consolidated net sales of ¥59.16 billion for the third-quarter cumulative period, down from the prior full-year level as the portfolio was reshaped. The core Sanken business accounted for the bulk of revenue, while the “Others” segment shrank significantly after Allegro Micro Systems and Polar Semiconductor were excluded from consolidation and related product lines were reclassified.

Profitability remained weak, with operating and ordinary losses persisting and net loss attributable to owners of the parent widening, despite reductions in capital expenditure and a more focused investment profile. The company continued to invest in R&D and depreciation within its core operations, suggesting a strategic emphasis on reinforcing power device and module competitiveness in key automotive and industrial markets amid currency fluctuations and portfolio realignment.

The most recent analyst rating on (JP:6707) stock is a Hold with a Yen7840.00 price target. To see the full list of analyst forecasts on Sanken Electric Co., Ltd. stock, see the JP:6707 Stock Forecast page.

Sanken Electric Flags Modest Q4 Sales Uptick Amid Production Reorganization

Sanken Electric reported supplementary information on its financial results for the nine months ended December 31, 2025, highlighting performance of its core business after deconsolidation of Allegro from the second quarter of fiscal 2025. The company detailed exchange-rate impacts, extraordinary gains from the sale of an Indonesian factory and changes in Allegro-related equity, as well as restructuring costs, including severance linked to production reorganization.

For the third quarter, net sales and operating profit slightly exceeded earlier forecasts, helped by favorable currency movements and inventory buildup ahead of a back-end production overhaul. Looking to the fourth quarter, Sanken expects a modest increase in net sales due to seasonal strength in automotive and white goods, but anticipates lower operating profit as it adjusts both front-end and back-end production, signaling continued focus on structural optimization and cost control.

The most recent analyst rating on (JP:6707) stock is a Hold with a Yen7840.00 price target. To see the full list of analyst forecasts on Sanken Electric Co., Ltd. stock, see the JP:6707 Stock Forecast page.

Sanken Electric Swings to Loss as Sales Slump and Balance Sheet Weakens

Sanken Electric reported a sharp downturn for the nine months ended Dec. 31, 2025, with net sales falling 38.4% year on year to ¥59.2 billion and losses across operating, ordinary, and bottom-line profit, reversing a large profit in the prior year. Comprehensive income plunged, equity and total assets declined, and the equity ratio weakened to 51.3%, signaling pressure on the balance sheet and a more cautious financial stance.

The company maintained a zero-dividend policy for the current and next fiscal years, underlining a focus on capital preservation amid deteriorating earnings and a forecast for continued losses through the year ending March 31, 2026. Shares outstanding decreased versus the previous year, which, together with weaker profitability, may affect shareholder returns and underscores ongoing challenges in Sanken’s operating environment.

The most recent analyst rating on (JP:6707) stock is a Hold with a Yen7840.00 price target. To see the full list of analyst forecasts on Sanken Electric Co., Ltd. stock, see the JP:6707 Stock Forecast page.