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

• Market Cap: ¥12.36B
• Dividend Yield: 6.82%
• Average Volume (3M): 51.60K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.00
• Revenue Growth: -17.95%
• EPS Growth: -83.01%
• Country: JP
• Employees: 1,418
• Sector: Industrials
• Sector Strength: 85
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.15
• Shares Outstanding: 14,950,000
• 10 Day Avg. Volume: 109,780
• 30 Day Avg. Volume: 51,596
• PEG Ratio: 0.69
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.38
• 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: 66 Neutral
• Price Target: ¥989.00 ▲(10.13%Upside)

Sansha Electric Manufacturing Co., Ltd. benefits from a robust balance sheet with low leverage, which is a significant strength. However, recent challenges in profitability and cash flow generation, combined with high valuation metrics, weigh on the overall score. The stock shows strong technical momentum, but caution is warranted due to potential overbought conditions.

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

Company Description

Sansha Electric Manufacturing Co., Ltd. is a Japanese company specializing in the development, manufacture, and sale of power electronics and energy-related products. The company is involved in sectors such as industrial machinery, renewable energy, and energy management solutions. Its core products include power conditioners, inverters, and transformers that are utilized in various applications including solar power generation and industrial automation.

How the Company Makes Money

Sansha Electric Manufacturing Co., Ltd. generates revenue primarily through the sale of its power electronics products. The company sells its inverters, power conditioners, and transformers to industrial clients, energy providers, and businesses involved in renewable energy projects. In addition to product sales, Sansha Electric may also offer maintenance and support services to its clients. Key revenue streams include contracts with energy companies and industrial firms seeking to optimize their energy usage and enhance the efficiency of their operations. Partnerships with renewable energy developers and participation in large-scale energy infrastructure projects also significantly contribute to the company's 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, challenges arise from recent declines in profitability and negative cash flow trends, which could impact financial health if not addressed.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
25.24B	25.44B	31.00B	28.09B	22.68B	19.44B
	Gross Profit
5.86B	6.29B	8.58B	6.49B	5.45B	4.41B
	EBIT
683.00M	1.07B	3.41B	1.63B	1.32B	416.00M
	EBITDA
1.69B	2.17B	4.32B	2.52B	2.28B	1.43B
	Net Income Common Stockholders
973.00M	502.00M	2.96B	1.24B	1.15B	497.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.47B	5.76B	5.83B	3.96B	5.03B	5.87B
	Total Assets
35.64B	33.57B	35.33B	29.08B	27.15B	24.85B
	Total Debt
3.31B	3.30B	1.16B	190.00M	101.00M	66.00M
	Net Debt
-4.16B	-2.46B	-4.67B	-3.77B	-4.92B	-5.80B
	Total Liabilities
11.09B	9.23B	10.90B	8.02B	7.34B	5.51B
	Stockholders Equity
24.55B	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: 898.00
• 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:6882, the sentiment is Positive. The current price of 898 is above the 20-day moving average (MA) of 830.20, above the 50-day MA of 803.56, and above the 200-day MA of 868.97, indicating a bullish trend. The MACD of 24.20 indicates Negative momentum. The RSI at 63.53 is Neutral, neither overbought nor oversold. The STOCH value of 71.40 is Neutral, 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
7711	79 Outperform	¥11.81B	16.23		1.74%	7.83%	15.48%
6668	79 Outperform	¥11.16B	5.46		1.69%	12.17%	63.70%
5819	77 Outperform	¥10.66B	9.94		3.54%	-3.00%	-7.76%
6882	66 Neutral	¥12.36B	23.31		6.82%	-17.95%	-83.01%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
6619	47 Neutral	¥13.92B	9.97		―	―	―

Sansha Electric Manufacturing Co., Ltd. Corporate Events

Sansha Electric Reports Financial Decline, Projects Recovery

Sansha Electric Manufacturing Co., Ltd. reported a significant decline in its financial performance for the fiscal year ended March 31, 2025, with net sales dropping by 17.9% and profit attributable to owners of the parent plummeting by 83%. Despite these challenges, the company forecasts a recovery in the next fiscal year, projecting an 8.9% increase in net sales and a 67.1% rise in profit attributable to owners, indicating a strategic focus on improving operational efficiency and market positioning.