Sansha Electric Manufacturing Co., Ltd. (6882) AI Stock Analysis

• Market Cap: ¥14.64B
• Dividend Yield: 4.42%
• Average Volume (3M): 42.48K
• Price to Earnings (P/E): 39.9
• Beta (1Y): 0.92
• Revenue Growth: -11.74%
• EPS Growth: -84.61%
• Country: JP
• Employees: 1,418
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 6.82
• Shares Outstanding: 14,950,000
• 10 Day Avg. Volume: 42,220
• 30 Day Avg. Volume: 42,476
• PEG Ratio: -0.28
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.45
• P/FCF Ratio: -10.77
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥1,012.00 ▲(9.76% Upside)

Sansha Electric Manufacturing Co., Ltd. shows financial stability with a strong balance sheet, but faces challenges with profitability and cash flow. The technical indicators suggest a neutral market sentiment, while the high P/E ratio indicates potential overvaluation despite a good dividend yield.

Positive Factors

Balance Sheet Strength

A very low debt-to-equity ratio and high equity ratio materially reduce financial distress risk. This durable capital structure supports capital expenditure, access to external financing on better terms, and resilience to cyclical downturns over the medium term.

Stable Product Demand & R&D

Long-term industrial contracts and strategic partnerships create recurring revenue and bargaining relationships that stabilize demand. Ongoing R&D sustains product competitiveness, enabling steady market share retention and long-term revenue streams across cycles.

Gross Margin Sustainability

A recurring gross margin near 25% indicates consistent manufacturing efficiency and pricing ability on core products. Stable underlying margins provide a structural buffer to absorb moderate volume declines while preserving capacity to invest in product upgrades.

Negative Factors

Revenue Decline

A material top-line contraction reduces economies of scale and pressures fixed-cost absorption. If the revenue decline persists, it undermines long-term profitability, R&D funding, and the ability to maintain customer service levels, harming competitive position.

Compression of Net Profit Margin

A sharp fall in net margin signals cost or pricing stress that erodes retained earnings and cash available for reinvestment. Sustained margin compression jeopardizes dividend capacity and limits strategic initiatives, leaving the business more vulnerable to shocks.

Negative Free Cash Flow & Cash Conversion

Negative FCF and weaker cash conversion reduce liquidity and raise funding needs for capex or working capital. Over months, this may force higher borrowing, asset monetization, or cutbacks in R&D and dividends, impairing long-run growth prospects.

Sansha Electric Manufacturing Co., Ltd. Business Overview & Revenue Model

Company Description

Sansha Electric Manufacturing Co.,Ltd. manufactures and sells electric, semiconductor and its applied, and medical machinery and equipment in Japan and internationally. It provides discrete semiconductors, such as triac, thyristors, rectifier diodes, and fast recovery diodes; and power modules, including triac, thyristors, rectifier diodes, fast and soft recovery diodes, and SBD and SiC products. The company also offers power supply products for metal surface treatment; grid connected photovoltaic central inverters; uninterrupted power sources; DC power supplies/charging apparatus; electrical regulators; welding machines; and rectification devices. In addition, it is involved in the installation of machinery and equipment, electric wiring, and piping activities. The company was founded in 1933 and is headquartered in Osaka, Japan.

How the Company Makes Money

Sansha Electric generates revenue through the sale of its electrical products and components, which cater to both industrial and consumer markets. The company has established key revenue streams from bulk orders by large industrial clients, as well as smaller-scale sales to retailers and distributors. Additionally, Sansha Electric benefits from long-term contracts with major corporations in the manufacturing sector, providing consistent income. Strategic partnerships with technology firms and collaborations in product development further enhance its market reach and profitability. The company also invests in research and development to innovate its product line, which helps attract new customers and retain existing ones, contributing significantly to its overall earnings.

Sansha Electric Manufacturing Co., Ltd. Financial Statement Overview

Summary

Sansha Electric Manufacturing Co., Ltd. has a strong balance sheet with low debt and high equity, indicating financial stability. However, recent declines in profitability and negative cash flow in 2025 highlight challenges in maintaining financial health.

Income Statement

Sansha Electric Manufacturing Co., Ltd. has shown mixed performance in terms of revenue and profit margins. Gross profit margin remained stable at around 25% in recent years. However, net profit margin decreased significantly in 2025 to 1.97% from 9.53% in 2024, indicating pressure on bottom line profitability. The company experienced a substantial decline in revenue from 2024 to 2025, impacting its EBIT and EBITDA margins negatively. Overall, while there is a history of revenue growth, recent trends highlight challenges in maintaining profitability.

Balance Sheet

The balance sheet of Sansha Electric Manufacturing Co., Ltd. is robust, with a strong equity base and low debt levels. The debt-to-equity ratio remains very low, emphasizing financial stability. The equity ratio is high, reflecting a solid capital structure predominantly financed by equity. Despite a decrease in total assets in 2025, the company maintains a healthy balance sheet with solid shareholder equity, reducing financial risk.

Cash Flow

Cash flow analysis reveals some concerns. Free cash flow turned negative in 2025, primarily due to a decline in operating cash flow and increased capital expenditures. The operating cash flow to net income ratio decreased, signaling reduced efficiency in converting income to cash. Historically, free cash flow was positive, but recent trends indicate potential liquidity challenges. The company needs to manage its cash flows more effectively to enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.88B	25.44B	31.00B	28.09B	22.68B	19.44B
Gross Profit	5.74B	6.29B	8.58B	6.49B	5.45B	4.41B
EBITDA	1.55B	2.17B	4.32B	2.52B	2.28B	1.63B
Net Income	104.00M	502.00M	2.96B	1.24B	1.15B	497.00M
Balance Sheet
Total Assets	32.53B	33.57B	35.33B	29.08B	27.15B	24.85B
Cash, Cash Equivalents and Short-Term Investments	6.12B	5.76B	5.83B	3.96B	5.03B	5.87B
Total Debt	2.81B	3.30B	1.16B	190.00M	101.00M	66.00M
Total Liabilities	8.86B	9.23B	10.90B	8.02B	7.34B	5.51B
Stockholders Equity	23.66B	24.34B	24.43B	21.07B	19.81B	19.34B
Cash Flow
Free Cash Flow	0.00	-1.07B	1.37B	-999.00M	602.00M	1.20B
Operating Cash Flow	0.00	950.00M	2.30B	-198.00M	940.00M	1.73B
Investing Cash Flow	0.00	-2.39B	-1.10B	-799.00M	-317.00M	-355.00M
Financing Cash Flow	0.00	1.41B	488.00M	-189.00M	-1.67B	-249.00M

Sansha Electric Manufacturing Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 922.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6882, the sentiment is Positive. The current price of 922 is above the 20-day moving average (MA) of 920.30, above the 50-day MA of 904.30, and above the 200-day MA of 863.03, indicating a bullish trend. The MACD of 24.27 indicates Negative momentum. The RSI at 85.90 is Negative, neither overbought nor oversold. The STOCH value of 94.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6882.

Sansha Electric Manufacturing Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5819	81 Outperform	¥12.51B	10.51	―	3.02%	3.43%	3.75%
6668	71 Outperform	¥11.49B	6.59	―	1.66%	12.23%	65.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥14.64B	39.95	―	4.42%	-11.74%	-84.61%
7711	61 Neutral	¥37.05B	44.98	―	0.67%	10.13%	24.53%
6619	41 Neutral	¥8.69B	-0.67	―	―	―	―

Sansha Electric Manufacturing Co., Ltd. Corporate Events

Sansha Electric Reports Financial Results and Positive Outlook

Sansha Electric Manufacturing Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing stable net sales but a significant drop in operating and ordinary profits compared to the previous year. The company anticipates a positive outlook for the fiscal year ending March 31, 2026, with expected increases in net sales and profits, indicating potential recovery and growth.

The most recent analyst rating on (JP:6882) stock is a Hold with a Yen913.00 price target. To see the full list of analyst forecasts on Sansha Electric Manufacturing Co., Ltd. stock, see the JP:6882 Stock Forecast page.