Sanko Gosei Ltd. (7888) AI Stock Analysis

• Market Cap: ¥25.18B
• Dividend Yield: 3.41%
• Average Volume (3M): 137.05K
• Price to Earnings (P/E): 6.5
• 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. (7888) is a prominent Japanese company specializing in the manufacturing and sales of plastic products, particularly in the automotive and consumer goods sectors. The company is known for its advanced production techniques and high-quality standards, offering a wide range of products including plastic components, packaging materials, and other industrial applications. With a focus on innovation and sustainability, Sanko Gosei Ltd. aims to meet the evolving needs of its clients across various industries.

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

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: Negative
• Last Price: 826.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 826 is above the 20-day moving average (MA) of 825.31, below the 50-day MA of 833.32, and above the 200-day MA of 730.43, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 48.33 is Neutral, neither overbought nor oversold. The STOCH value of 45.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7888.

Sanko Gosei Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6627	79 Outperform	¥54.76B	17.61	―	1.85%	3.60%	-17.45%
6387	74 Outperform	¥31.77B	18.35	14.31%	1.53%	18.44%	26.68%
7888	72 Outperform	¥25.18B	6.47	―	3.41%	-1.98%	23.24%
6855	72 Outperform	¥45.67B	11.99	―	1.82%	36.31%	101.77%
7420	66 Neutral	¥25.82B	9.10	―	4.97%	3.32%	31.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%