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

• Market Cap: ¥174.83B
• Dividend Yield: 0.38%
• Average Volume (3M): 184.24K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 1.11
• Revenue Growth: -37.39%
• EPS Growth: 410.55%
• Country: JP
• Employees: 8,534
• Sector: Technology
• Sector Strength: 77
• Industry: Semiconductors
• EPS (TTM): 0.47
• Shares Outstanding: 25,098,060
• 10 Day Avg. Volume: 182,170
• 30 Day Avg. Volume: 184,240
• PEG Ratio: 0.48
• Price to Book (P/B): 1.05
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: ―

Sanken Electric Co., Ltd. faces significant challenges with declining revenues and profitability, and the lack of cash flow data raises concerns about liquidity. While the balance sheet provides some stability, negative technical indicators reflect bearish market sentiment. Despite a low P/E ratio suggesting undervaluation, the overall outlook remains cautious, warranting attention to financial and operational improvements.

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

Company Description

Sanken Electric Co., Ltd. (6707) is a Japanese company specializing in the manufacturing and distribution of electronic components and equipment. The company is known for its power semiconductor products, including power ICs, power modules, and LED lighting solutions. Sanken Electric operates in sectors such as automotive, industrial, consumer electronics, and telecommunications, providing advanced solutions that enhance energy efficiency and performance.

How the Company Makes Money

Sanken Electric Co., Ltd. generates revenue primarily through the sale of its power semiconductor products. These products are essential components in a variety of applications, including automotive systems, consumer electronics, and industrial machinery, where they help manage and convert electrical power more efficiently. The company also earns income from its LED lighting solutions, which are used in both commercial and residential settings. Sanken Electric's revenue model is bolstered by its focus on research and development, enabling it to innovate and maintain a competitive edge. Additionally, the company benefits from strategic partnerships and collaborations with other firms in the electronics and automotive industries, which help expand its market reach and drive sales.

Sanken Electric Co., Ltd. Financial Statement Overview

Summary

Sanken Electric Co., Ltd. shows a challenging financial position with declining revenues and profitability in the TTM period. The balance sheet remains stable with a reasonable equity base and moderate leverage, providing some financial stability. However, the lack of cash flow data for the TTM period poses significant risks to liquidity and operational sustainability. Addressing profitability and cash flow generation should be key priorities for the company.

Income Statement

The company exhibits mixed performance with a notable gross profit margin of 24.11% for the TTM period, indicating efficient production. However, the net profit margin is negative, suggesting profitability issues. The revenue growth rate from the previous year to the TTM period is negative, showing declining sales. EBIT margin is also negative, indicating operational challenges. EBITDA margin is positive, reflecting some operational cash generation, but overall profitability remains a concern.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 0.41 for the TTM period, reflecting moderate leverage. Return on Equity (ROE) is strong in the TTM period at 24.86%, indicating good returns for shareholders despite negative net income in the previous year. The equity ratio of 56.47% suggests a stable capital structure with a good proportion of equity funding.

Cash Flow

The company reports zero operating and free cash flows for the TTM period, indicating potential liquidity and cash management issues. Historical free cash flow growth is negative, and without current data, assessing cash flow health is challenging. The absence of cash flow information raises concerns about the company's ability to finance operations and growth.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
151.48B	235.22B	225.39B	175.66B	156.79B	160.22B
	Gross Profit
36.53B	86.89B	83.68B	55.19B	39.14B	38.45B
	EBIT
-7.67B	19.54B	26.16B	13.72B	-1.20B	4.31B
	EBITDA
7.59B	32.96B	41.83B	27.05B	6.38B	16.71B
	Net Income Common Stockholders
38.58B	-8.11B	9.53B	3.20B	-6.95B	-5.56B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
62.60B	50.36B	65.44B	58.96B	60.99B	40.78B
	Total Assets
274.79B	383.59B	301.95B	244.73B	233.67B	194.02B
	Total Debt
63.98B	140.77B	82.09B	67.38B	70.39B	84.48B
	Net Debt
5.38B	90.41B	16.65B	8.42B	9.40B	43.70B
	Total Liabilities
119.13B	184.97B	128.76B	107.33B	120.42B	122.25B
	Stockholders Equity
155.14B	119.37B	111.09B	94.97B	83.57B	49.84B
Cash Flow		Free Cash Flow
0.00	-14.85B	-3.89B	-4.07B	-3.17B	1.06B
	Operating Cash Flow
0.00	15.53B	19.20B	13.68B	7.63B	13.12B
	Investing Cash Flow
0.00	-89.11B	-27.68B	-12.60B	-12.29B	-8.31B
	Financing Cash Flow
0.00	51.27B	11.71B	-6.59B	21.09B	12.21B

Sanken Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7243.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 7243 is above the 20-day moving average (MA) of 6873.45, above the 50-day MA of 6948.14, and above the 200-day MA of 6444.88, indicating a bullish trend. The MACD of 215.92 indicates Negative momentum. The RSI at 56.06 is Neutral, neither overbought nor oversold. The STOCH value of 38.30 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
6701	78 Outperform	¥5.10T	28.56	8.97%	0.75%	-1.55%	17.24%
6501	77 Outperform	¥17.35T	28.39	10.50%	1.06%	0.56%	5.32%
6752	75 Outperform	¥3.79T	10.36	7.85%	2.90%	-0.45%	-17.53%
6770	73 Outperform	$282.01B	7.40	9.28%	4.21%	2.73%	―
6723	72 Outperform	$3.16T	19.28	7.22%	1.50%	-10.70%	-47.63%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
6707	48 Neutral	¥174.83B	3.43		0.38%	-37.39%	410.55%

Sanken Electric Co., Ltd. Corporate Events

Sanken Electric Completes Share Repurchase to Enhance Market Position

Sanken Electric Co., Ltd. announced the completion of a share repurchase program, acquiring 326,600 shares for approximately 2.38 billion yen between March 1 and March 31, 2025. This move is part of a broader strategy to repurchase up to 6 million shares, aiming to strengthen shareholder value and optimize capital structure, reflecting positively on the company’s market positioning.

Sanken Electric Acquires POWDEC to Boost GaN Device Commercialization

Sanken Electric Co., Ltd. has announced the acquisition of POWDEC K.K., a company with proprietary gallium nitride (GaN) epitaxial technology, to accelerate the commercialization of GaN devices. This strategic move is expected to enhance Sanken’s development capabilities in the GaN power device market, allowing for the creation of high-performance devices with improved efficiency and environmental benefits. The acquisition, valued at approximately 1.3 billion yen, aligns with Sanken’s 2024 Medium-Term Management Plan and aims to strengthen its position in the automotive, white goods, and industrial equipment markets.

Sanken Electric Unveils Advanced MCU for Power Electronics Control

Sanken Electric Co., Ltd. has announced the development of a cutting-edge microcontroller unit (MCU) for power electronics control, utilizing TSMC’s advanced 22ULL RRAM technology and featuring a RISC-V CPU core. This development aims to significantly enhance the efficiency and functionality of power control systems. Scheduled for mass production in Q4 2025, the MCU will enable high-performance processing of power control algorithms, supporting applications in micro-controlling units, IoT, and automotive sectors. The collaboration with TSMC underscores Sanken’s commitment to innovation and provides a strategic advantage in the global market for power electronics systems.