Sanko Gosei Ltd. (7888) AI Stock Analysis

• Market Cap: ¥25.94B
• Dividend Yield: 3.36%
• Average Volume (3M): 137.05K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 1.43
• Revenue Growth: -1.98%
• EPS Growth: 23.24%
• Country: JP
• Employees: 2,905
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 23.25
• Shares Outstanding: 30,688,568
• 10 Day Avg. Volume: 201,480
• 30 Day Avg. Volume: 137,053
• PEG Ratio: 0.10
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 5.68
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥937.00 ▲(13.44% Upside)

Sanko Gosei Ltd. scores well due to its strong financial performance and attractive valuation, which are the most significant factors. The technical analysis indicates some short-term bearish momentum, but long-term indicators suggest potential support. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing Sanko Gosei to invest in growth opportunities and manage debt effectively.

Profitability Margins

Consistent profitability margins indicate operational efficiency and the ability to sustain earnings, supporting long-term financial health.

Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to weather economic fluctuations.

Negative Factors

Revenue Decline

A decline in revenue growth can indicate challenges in market demand or competitive pressures, potentially impacting future earnings.

Moderate Debt Reliance

Reliance on debt can increase financial vulnerability, especially in volatile markets, potentially affecting long-term stability.

Market Position Challenges

Negative revenue growth suggests potential market position challenges, which could hinder expansion and competitive advantage.

Sanko Gosei Ltd. Business Overview & Revenue Model

Company Description

Sanko Gosei Ltd. engages in the molding and sale of plastic parts in Japan and internationally. It is involved in the production and assembly of mechanical/digital parts; and design, production, and sale of molds for plastic molded parts, industrial products, and industrial robots. The company's products include auto parts, such as exterior and interior parts, structured parts, instrument panels, functional parts, fan shrouds, and power pistons. It also provides OA apparatus, such as printer flames and fuser assemblies, automated fuser assembly lines, toner cartridge plastic parts, CMT automated assembly lines, printer covers, printers, and optical equipment flames; and air-conditioner products, including quiet and heat-resistant cross flow fans, propeller fans, and turbofans, as well as panels and covers for air conditioners. In addition, the company offers molded plastic parts for medical equipment; and GPS parts, saxophones, compact disc and mechanical chassis parts, nursing care bed parts, and recaps. Its products are used in industrial electric equipment, information and telecommunication appliance, automobile, household appliance, housing equipment, and nursing care products. Sanko Gosei Ltd. was founded in 1940 and is headquartered in Nanto, Japan.

How the Company Makes Money

Sanko Gosei Ltd. generates revenue primarily through the production and sale of plastic components and assemblies for its clients in the automotive and electronics industries. The company's revenue model is based on long-term contracts and partnerships with major manufacturers, which provide a steady stream of income. Key revenue streams include direct sales of molded parts, contract manufacturing services, and the provision of specialized engineering solutions. Additionally, strategic collaborations with technology firms and ongoing investments in research and development enable Sanko Gosei to enhance its product offerings and expand its market reach, thereby contributing to its overall earnings.

Sanko Gosei Ltd. Financial Statement Overview

Summary

Sanko Gosei Ltd. presents a solid financial position with strong cash flow generation and improving leverage ratios. Despite a recent revenue decline, the company maintains healthy profitability margins and cash flow metrics, positioning it well for future opportunities in the semiconductor industry.

Income Statement

Sanko Gosei Ltd. has demonstrated a strong gross profit margin and consistent EBIT and EBITDA margins over the years. However, the recent revenue decline of 2.71% indicates potential challenges in maintaining growth. Despite this, the company has shown resilience with a net profit margin improvement from previous years.

Balance Sheet

The company's debt-to-equity ratio has improved over time, indicating better leverage management. Return on equity has been stable, reflecting efficient use of equity. However, the equity ratio suggests moderate reliance on debt, which could pose risks if not managed carefully.

Cash Flow

Sanko Gosei Ltd. has shown impressive growth in free cash flow, with a significant increase in operating cash flow. The operating cash flow to net income ratio indicates strong cash generation relative to earnings, enhancing financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	92.75B	91.10B	93.78B	81.11B	65.66B	55.15B
Gross Profit	14.83B	15.02B	13.38B	11.49B	9.71B	8.77B
EBITDA	9.61B	9.78B	8.24B	7.25B	6.09B	5.50B
Net Income	3.57B	3.86B	2.61B	2.10B	1.81B	1.30B
Balance Sheet
Total Assets	75.66B	76.05B	74.93B	65.58B	58.41B	56.63B
Cash, Cash Equivalents and Short-Term Investments	12.05B	12.03B	9.96B	8.78B	6.82B	8.08B
Total Debt	25.26B	24.20B	23.17B	19.96B	20.06B	20.07B
Total Liabilities	44.06B	43.27B	44.45B	39.63B	35.16B	35.98B
Stockholders Equity	31.02B	32.19B	29.91B	25.48B	22.81B	20.29B
Cash Flow
Free Cash Flow	0.00	3.32B	782.00M	4.04B	16.00M	859.00M
Operating Cash Flow	0.00	9.14B	5.70B	6.79B	3.01B	3.53B
Investing Cash Flow	0.00	-5.89B	-4.94B	-2.87B	-2.35B	-3.34B
Financing Cash Flow	0.00	-984.00M	-110.00M	-2.25B	-2.36B	-102.00M

Sanko Gosei Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 826.00
• 50DMA: Negative
• 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:7888, the sentiment is Positive. The current price of 826 is above the 20-day moving average (MA) of 824.19, below the 50-day MA of 842.60, and above the 200-day MA of 717.32, indicating a neutral trend. The MACD of -6.72 indicates Negative momentum. The RSI at 52.05 is Neutral, neither overbought nor oversold. The STOCH value of 25.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7888.

Sanko Gosei Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6387	74 Outperform	€32.89B	19.38	13.42%	1.57%	13.89%	15.31%
7888	72 Outperform	¥25.94B	6.67	―	3.36%	-1.98%	23.24%
6627	72 Outperform	¥50.76B	16.33	―	1.85%	3.60%	-17.45%
6855	72 Outperform	¥44.47B	11.67	―	1.48%	36.31%	101.77%
7420	66 Neutral	¥27.24B	9.60	―	4.99%	3.32%	31.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%