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

• Market Cap: ¥14.27B
• Dividend Yield: 4.42%
• Average Volume (3M): 42.48K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.88
• Revenue Growth: -11.74%
• EPS Growth: -84.61%
• Country: JP
• Employees: 1,418
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 8.58
• 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: 65 Neutral
• Price Target: ¥1,076.00 ▲(16.70% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is anchored by a robust balance sheet and generally solid financial stability, but it is held back by the sharp drop in profitability and negative free cash flow. Technically, the uptrend is strong yet overbought signals raise pullback risk, and valuation is the biggest headwind due to the very high P/E despite a moderate dividend yield.

Positive Factors

Strong Balance Sheet

Low leverage and a high equity ratio materially reduce financial risk and support resilience over cyclical swings. This durable capital structure gives management flexibility to fund capex, weather downturns, and pursue strategic investments without relying on expensive external financing.

Stable Gross Profit Margin

A stable ~25% gross margin signals enduring core product economics and pricing/cost discipline. Even if operating profitability swings, this structural gross-margin buffer supports recovery of operating profits as revenue normalizes and helps protect cash conversion potential in the medium term.

Dividend Yield Provides Support

A consistent dividend yield reflects management willingness to return cash and can anchor a stable investor base. Over 2-6 months, a sustainable payout signals policy discipline and can moderate shareholder pressure during profit cyclicality, assuming cash generation stabilizes.

Negative Factors

Sharp Profitability Decline

A severe margin drop indicates either cost pressures, pricing erosion, or one-off hits that materially weaken earnings power. Persistently lower net margins undermine reinvestment capacity, dividend sustainability and the firm’s ability to rebuild reserves, elevating medium-term operational risk.

Negative Free Cash Flow

Negative FCF erodes financial flexibility despite low leverage; it constrains the company’s ability to fund dividends, repay or refinance debt, and invest organically. If cash conversion does not recover, management may need external financing or cuts to capex/dividends, pressuring long-term strategy.

Substantial Revenue Decline 2024–2025

A meaningful top-line drop signals weakening demand or lost market share, which impairs operating leverage and profit recovery. Without a clear recovery of revenues or new sales drivers, structural top-line weakness will pressure margins and long-term 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

null

Sansha Electric Manufacturing Co., Ltd. Financial Statement Overview

Summary

Financials are mixed: a strong, low-leverage balance sheet supports stability (Balance Sheet Score 85), but profitability deteriorated sharply (net margin down to 1.97% in 2025 from 9.53% in 2024) and free cash flow turned negative in 2025 (Cash Flow Score 60).

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	24.88B	25.44B	31.00B	28.09B	22.68B	19.44B
Gross Profit	5.74B	6.09B	8.38B	6.25B	5.21B	4.21B
EBITDA	1.50B	1.99B	4.32B	2.52B	2.28B	1.43B
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	3.43B	1.16B	190.00M	101.00M	66.00M
Total Liabilities	8.86B	9.23B	10.90B	8.02B	7.33B	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	1.42B	-956.00M	637.00M	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: Negative
• 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:6882, the sentiment is Positive. The current price of 922 is below the 20-day moving average (MA) of 1038.60, below the 50-day MA of 1024.20, and above the 200-day MA of 918.75, indicating a neutral trend. The MACD of -2.68 indicates Positive momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 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
6643	85 Outperform	¥28.05B	6.42	―	3.12%	6.60%	0.27%
5819	75 Outperform	¥12.70B	10.63	―	3.02%	3.43%	3.75%
6637	72 Outperform	¥53.74B	12.37	―	0.91%	5.28%	18.38%
6882	65 Neutral	¥14.27B	27.15	―	4.42%	-11.74%	-84.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥49.52B	195.39	―	5.01%	-32.74%	-117.06%
6943	51 Neutral	¥4.04B	7.18	―	1.79%	-10.43%	-368.47%

Sansha Electric Manufacturing Co., Ltd. Corporate Events

Sansha Electric Posts Profit Slump Despite Higher Sales, Keeps Full-Year Outlook and Dividend Plan

Sansha Electric reported a marginal 1.4% year-on-year increase in consolidated net sales to ¥18.18 billion for the nine months ended December 31, 2025, but profitability deteriorated sharply, with operating profit down 43.8% to ¥347 million and profit attributable to owners of parent plunging 83.2% to ¥84 million, resulting in a significant drop in earnings per share to ¥6.34. Despite weaker interim profits, the company’s financial position remained solid with a high equity ratio of 71.7% and largely unchanged net assets, and it maintained its dividend policy—paying an interim ¥10 per share and forecasting a full-year total of ¥40—while leaving its full-year guidance unchanged, projecting an 8.9% rise in net sales to ¥27.7 billion and a strong recovery in profit attributable to owners of parent to ¥840 million, which would represent a 67.1% increase year on year.

The most recent analyst rating on (JP:6882) stock is a Hold with a Yen986.00 price target. To see the full list of analyst forecasts on Sansha Electric Manufacturing Co., Ltd. stock, see the JP:6882 Stock Forecast page.