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

• Market Cap: ¥116.37B
• Dividend Yield: N/A
• Average Volume (3M): 124.79K
• Price to Earnings (P/E): 103.0
• Beta (1Y): 0.92
• Revenue Growth: -51.82%
• EPS Growth: -96.08%
• Country: JP
• Employees: 8,534
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -26.17
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥5,898.00 ▲(1.25% Upside)

Sanken Electric Co., Ltd. faces significant financial and technical challenges. The company's high P/E ratio and negative cash flow are major concerns, while technical indicators suggest bearish momentum. Improvements in leverage and equity offer some stability, but overall risks remain high.

Positive Factors

Improved Leverage Management

Improved leverage management enhances financial stability, reducing risk and increasing the company's ability to invest in growth opportunities.

Equity Growth

Growth in equity strengthens the company's balance sheet, providing a buffer against financial instability and supporting long-term investments.

Market Reach through Partnerships

Strategic partnerships expand market access and drive revenue growth, positioning the company for sustained success in key sectors.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow suggests challenges in generating cash from core activities, potentially hindering investment and debt servicing.

Inconsistent Revenue Growth

Inconsistent revenue growth undermines financial stability and can impact the company's ability to plan and invest for the future.

Decreasing Gross Profit Margin

A decreasing gross profit margin indicates pressure on production efficiency or pricing power, potentially affecting long-term profitability.

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

Company Description

Sanken Electric Co., Ltd. (6707) is a leading Japanese manufacturer specializing in power supply components, semiconductor devices, and electronic equipment. The company operates primarily in the fields of automotive, industrial, and consumer electronics sectors. Sanken's core products include power supplies, power semiconductors, and various electronic components that cater to a diverse range of applications, including automotive electronics, industrial automation, and home appliances.

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

Sanken Electric Co., Ltd. faces challenges in profitability and cash flow, with negative operating cash flow and inconsistent revenue growth. However, improvements in leverage and equity provide some 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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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: Positive
• Last Price: 5825.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 5825 is above the 20-day moving average (MA) of 5677.70, below the 50-day MA of 6277.30, and below the 200-day MA of 7309.58, indicating a neutral trend. The MACD of -136.58 indicates Negative momentum. The RSI at 49.63 is Neutral, neither overbought nor oversold. The STOCH value of 32.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
7735	77 Outperform	¥1.22T	14.11	21.73%	2.43%	11.29%	11.38%
6920	67 Neutral	¥2.73T	28.54	53.12%	1.10%	32.51%	57.19%
6723	64 Neutral	¥3.80T	-75.83	-2.51%	1.31%	-10.97%	-118.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6967	60 Neutral	―	―	―	―	2.41%	-3.95%
6707	46 Neutral	¥116.37B	102.95	―	―	-51.82%	-96.08%
6963	46 Neutral	¥859.23B	-20.04	-4.26%	2.32%	0.04%	-323.26%

Sanken Electric Co., Ltd. Corporate Events

Sanken Electric Revises Full-Year Forecast Amid Market Challenges

Sanken Electric Co., Ltd. reported a discrepancy between its forecasted and actual financial results for the first half of 2025, citing reduced losses due to cost-cutting and operational reorganization. However, the company revised its full-year forecast downward due to declining market share in China and challenges in the automotive sector, expecting significant sales and profit declines. The company plans production adjustments and anticipates extraordinary losses from the closure of a plant affected by an earthquake.

Sanken Electric Reports Decline in Financial Performance

Sanken Electric Co., Ltd. reported a significant decline in its financial performance for the six months ended September 30, 2025, with net sales dropping by 43.7% compared to the previous year. The company’s operating and ordinary profits also showed negative figures, indicating challenges in maintaining profitability. The financial forecast for the fiscal year ending March 31, 2026, anticipates a continued decrease in net sales and profits, reflecting ongoing difficulties in the market.

Sanken Electric Completes Share Repurchase and Announces Share Cancellation

Sanken Electric Co., Ltd. has completed a significant share repurchase and announced the cancellation of a portion of its own shares. This strategic move, involving the repurchase of 279,900 shares and the cancellation of 4,172,700 shares, is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value. The cancellation represents 16.6% of the shares issued before cancellation, reflecting the company’s commitment to efficient capital management.