Sanko Gosei Ltd. (7888) AI Stock Analysis

• Market Cap: ¥29.36B
• Dividend Yield: 3.41%
• Average Volume (3M): 137.05K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.39
• Revenue Growth: -1.98%
• EPS Growth: 23.24%
• Country: JP
• Employees: 2,905
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): N/A
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥1,198.00 ▲(33.26% Upside)

The score is driven primarily by strong cash flow and an attractive valuation (low P/E with a ~3.1% dividend yield). Technicals are supportive due to a strong uptrend, but an overbought RSI elevates near-term downside risk, and the recent revenue decline is a key fundamental watch item.

Positive Factors

Free Cash Flow Strength

Sustained growth in operating and free cash flow enhances financial flexibility over cycles, funding capex, R&D, and dividends without heavy external financing. This strengthens the company's ability to invest in production efficiency and sustain returns through downturns.

Margin Sustainability

Consistently healthy gross and operating margins indicate durable cost controls and pricing power in core plastic components businesses. Margin resilience supports long-term profitability and cash generation even if revenue growth slows, underpinning reinvestment capacity.

Improving Leverage

An improving debt-to-equity profile combined with stable ROE signals stronger balance sheet management, reducing refinancing risk. Better leverage management increases financial optionality for strategic investments and cushions the firm against industry cyclicality.

Negative Factors

Recent Revenue Decline

A measurable recent revenue decline suggests demand pressure in end markets; if sustained, it can erode scale economics, stress fixed-cost absorption, and limit free cash flow growth. Persistent top-line weakness would challenge long-term reinvestment and margin stability.

Moderate Debt Reliance

Ongoing moderate reliance on debt increases exposure to interest-rate cycles and reduces capital flexibility. Even with improved leverage, sustained borrowing needs can constrain strategic spending and heighten vulnerability if cash generation weakens or market conditions deteriorate.

End-Market Cyclicality

Concentration in automotive and industrial plastics ties performance to cyclical capex and vehicle production cycles. Structural downturns or OEM slowdown can materially lower order volumes and utilization, producing durable revenue volatility and pressure on margins over multi-quarter horizons.

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 sale of its plastic products to various sectors, including automotive, consumer goods, and industrial applications. The company focuses on establishing long-term relationships with key clients, which allows it to secure consistent orders and foster repeat business. Key revenue streams include direct sales to manufacturers, partnerships with automotive companies for custom plastic parts, and contracts for packaging solutions. Additionally, Sanko Gosei Ltd. may benefit from economies of scale in production, which helps maintain competitive pricing and improve margins. Strategic collaborations with other firms can also enhance its market reach and contribute to its overall earnings.

Sanko Gosei Ltd. Financial Statement Overview

Summary

Strong free cash flow and operating cash flow generation support financial flexibility, and profitability margins have held up with improving net profit margin. Offsetting this, revenue declined recently and the balance sheet shows moderate reliance on debt despite improving leverage.

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	92.17B	91.10B	93.78B	81.11B	65.66B	55.15B
Gross Profit	15.19B	15.02B	13.38B	11.49B	9.71B	8.77B
EBITDA	7.80B	9.78B	8.24B	7.25B	6.09B	5.50B
Net Income	3.89B	3.86B	2.61B	2.10B	1.81B	1.30B
Balance Sheet
Total Assets	79.25B	76.05B	74.93B	65.58B	58.41B	56.63B
Cash, Cash Equivalents and Short-Term Investments	14.44B	12.03B	9.96B	8.78B	6.82B	8.08B
Total Debt	26.60B	24.20B	23.17B	19.96B	20.06B	20.07B
Total Liabilities	45.73B	43.27B	44.45B	39.63B	35.16B	35.98B
Stockholders Equity	32.91B	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: 899.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 899 is below the 20-day moving average (MA) of 977.00, above the 50-day MA of 895.90, and above the 200-day MA of 780.87, indicating a neutral trend. The MACD of 23.15 indicates Positive momentum. The RSI at 52.46 is Neutral, neither overbought nor oversold. The STOCH value of 12.66 is Positive, 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
7888	80 Outperform	¥29.36B	7.34	―	3.41%	-1.98%	23.24%
6387	74 Outperform	¥38.28B	22.10	14.31%	1.36%	18.44%	26.68%
6627	74 Outperform	¥67.32B	21.65	―	1.85%	3.60%	-17.45%
6855	74 Outperform	¥60.60B	15.91	―	1.72%	36.31%	101.77%
7420	66 Neutral	¥26.94B	9.22	―	4.88%	3.32%	31.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Sanko Gosei Ltd. Corporate Events

Sanko Gosei Delivers Higher First-Half Profits and Lifts Interim Dividend

For the six months ended November 30, 2025, Sanko Gosei reported consolidated net sales of ¥48.9 billion, up 6.9% year on year, with operating profit rising 13.6% to ¥3.36 billion and profit attributable to owners of the parent increasing 7.6% to ¥2.07 billion. Comprehensive income surged sharply, equity and total assets both expanded, and earnings per share improved to ¥67.98, underscoring solid profitability and financial stability. The company maintained its dividend policy with an increased interim dividend of ¥14 per share and projects modest full-year growth in fiscal 2026, forecasting net sales of ¥94.0 billion and profit attributable to owners of the parent of ¥4.0 billion, which signals continued steady performance and a stable outlook for shareholders.

The most recent analyst rating on (JP:7888) stock is a Hold with a Yen899.00 price target. To see the full list of analyst forecasts on Sanko Gosei Ltd. stock, see the JP:7888 Stock Forecast page.