Sanko Gosei Ltd. (7888) AI Stock Analysis

• Market Cap: ¥25.48B
• Dividend Yield: 2.88%
• Average Volume (3M): 137.05K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 1.47
• 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: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 72 Outperform
• Price Target: ¥937.00 ▲(12.48% 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.

Sanko Gosei Ltd. Business Overview & Revenue Model

Company Description

Sanko Gosei Ltd. (7888) is a Japanese company specializing in the manufacturing of precision plastic components and systems primarily for the automotive, consumer electronics, and industrial sectors. With a strong emphasis on innovation and quality, Sanko Gosei produces a wide range of products including molded plastic parts, electronic connectors, and assembly services that cater to various industries, leveraging advanced technology and engineering capabilities.

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.

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: 833.00
• 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:7888, the sentiment is Negative. The current price of 833 is below the 20-day moving average (MA) of 857.95, below the 50-day MA of 881.54, and above the 200-day MA of 711.88, indicating a neutral trend. The MACD of -5.57 indicates Positive momentum. The RSI at 41.50 is Neutral, neither overbought nor oversold. The STOCH value of 30.45 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
6855	―	¥54.90B	14.58	―	1.45%	32.53%	182.70%
6627	―	¥53.49B	17.93	―	1.95%	-0.46%	-25.32%
6387	―	€31.49B	18.55	13.42%	1.44%	13.89%	15.31%
7888	―	¥25.48B	6.55	―	2.88%	-1.98%	23.24%
7420	―	¥27.06B	9.40	―	4.54%	3.32%	31.11%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%