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Sanko Gosei Ltd.
(7888)
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Rating:61Neutral
Price Target:
¥817.00
▼(-9.12% Downside)
Action:Downgraded
Date:07/15/26
The score is driven primarily by mixed financial performance—strong revenue growth and manageable leverage, but a sharp drop in profitability and ROE—offset by clearly attractive valuation (low P/E and a solid dividend). Technical indicators are a headwind, with the price below key moving averages and negative MACD signaling weak momentum.
Positive Factors
Sustained Revenue Growth
Multi-year revenue growth from ¥55.1B (2021) to ¥98.0B (2026) indicates sustained end-market demand and successful commercial scaling in core molded-plastics businesses. That scale supports fixed-cost absorption, stronger supplier leverage, and room for continued investment in tooling and capacity over the medium term.
Negative Factors
Sharp Profitability Decline
A material collapse in net margin and net income demonstrates a deterioration in bottom-line profitability and operating leverage conversion. Lower margins reduce returns on capital and limit reinvestment capacity, making it harder to sustain dividends or finance growth without improving cost structure or pricing.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Multi-year revenue growth from ¥55.1B (2021) to ¥98.0B (2026) indicates sustained end-market demand and successful commercial scaling in core molded-plastics businesses. That scale supports fixed-cost absorption, stronger supplier leverage, and room for continued investment in tooling and capacity over the medium term.
Read all positive factors
Sanko Gosei Ltd. (7888) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥28.38B
Dividend Yield3.01%
Average Volume (3M)137.05K
Price to Earnings (P/E)37.4
Beta (1Y)1.23
Revenue Growth7.55%
EPS Growth-80.35%
CountryJP
Employees2,909
SectorGeneral
Sector StrengthN/A
IndustrySemiconductors
Share Statistics
EPS (TTM)24.88
Shares Outstanding30,688,568
10 Day Avg. Volume201,480
30 Day Avg. Volume137,053
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)0.70
Price to Sales (P/S)0.25
P/FCF Ratio11.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)137.8
Revenue Forecast (FY)¥101.00B
Sanko Gosei Ltd. Business Overview & Revenue Model
Company Description
Sanko Gosei Ltd. is a global and domestic manufacturer and seller of plastic components. The company's operations extend to the production and assembly of mechanical and digital parts, as well as the design, manufacturing, and distribution of mold...
How the Company Makes Money
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Sanko Gosei Ltd. Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
63
Positive
Cash Flow
57
Neutral
| Breakdown | May 2025 | May 2024 | May 2023 | May 2023 | May 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 97.98B | 91.10B | 93.78B | 81.11B | 65.66B |
| Gross Profit | 16.99B | 15.02B | 13.38B | 11.49B | 9.71B |
| EBITDA | 11.41B | 9.86B | 8.35B | 7.09B | 5.74B |
| Net Income | 759.00M | 3.86B | 2.61B | 2.10B | 1.81B |
Balance Sheet | |||||
| Total Assets | 88.36B | 76.05B | 74.93B | 65.58B | 58.41B |
| Cash, Cash Equivalents and Short-Term Investments | 14.96B | 12.03B | 9.96B | 8.78B | 6.82B |
| Total Debt | 27.46B | 24.20B | 23.17B | 19.96B | 20.06B |
| Total Liabilities | 52.97B | 43.27B | 44.45B | 39.63B | 35.15B |
| Stockholders Equity | 34.73B | 32.19B | 29.91B | 25.48B | 22.82B |
Cash Flow | |||||
| Free Cash Flow | 2.17B | 3.32B | 782.00M | 4.04B | 16.00M |
| Operating Cash Flow | 8.41B | 8.57B | 5.70B | 6.79B | 3.01B |
| Investing Cash Flow | -6.48B | -5.31B | -4.94B | -2.87B | -2.35B |
| Financing Cash Flow | 240.00M | -984.00M | -110.00M | -2.25B | -2.36B |
Sanko Gosei Ltd. Technical Analysis
Positive
899.00
Price Trends
840.64
Positive
839.93
Positive
869.59
Positive
Market Momentum
26.53
Positive
57.73
Neutral
20.65
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 899 is below the 20-day moving average (MA) of 936.30, above the 50-day MA of 840.64, and above the 200-day MA of 869.59, indicating a neutral trend. The MACD of 26.53 indicates Positive momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 20.65 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥13.83B | 3.29 | ― | 1.23% | 45.18% | 169.41% | |
76 Outperform | ¥11.96B | 9.99 | ― | 3.70% | 0.64% | 1.31% | |
75 Outperform | ¥18.74B | 19.51 | ― | 3.47% | 13.11% | 172.23% | |
66 Neutral | ¥13.10B | 7.91 | 11.52% | 4.65% | 7.86% | 23.62% | |
61 Neutral | ¥28.38B | 37.42 | ― | 3.41% | 7.55% | -80.35% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:7888
Sanko Gosei Ltd.
931.00
42.76
4.81%
JP:8150
Sanshin Electronics Co
3,130.00
690.95
28.33%
JP:3640
Densan Co., Ltd.
2,763.00
289.36
11.70%
JP:6337
Tesec Corporation
3,440.00
1,756.57
104.34%
JP:6730
Axell Corporation
1,105.00
4.13
0.38%
Sanko Gosei Ltd. Corporate Events
Sanko Gosei Exceeds Earnings Forecasts but Books Large Settlement Loss
Jul 14, 2026
Sanko Gosei Ltd. reported ordinary income of 6,351 million yen and operating income of 7,091 million yen, both exceeding prior forecasts thanks to revenue growth and cost reductions in areas such as freight and packaging. Despite these gains, net ...
Sanko Gosei Corrects Cash Flow Figures in FY2025 Consolidated Results
Jul 14, 2026
Sanko Gosei Ltd. has announced corrections to its previously released consolidated financial results for the fiscal year ended May 31, 2025, focusing on errors identified in the Consolidated Statement of Cash Flows. The company revised figures rel...
Sanko Gosei Books Extraordinary Loss on Thai Subsidiary Without Hitting Group Earnings
Jul 14, 2026
Sanko Gosei Ltd. has booked a substantial extraordinary loss in its non-consolidated accounts for the fiscal year ending May 31, 2026, driven by the deteriorating performance and financial condition of its Thai subsidiary. The company recognized a...
Sanko Gosei Forecasts Sharp Profit Rebound for Fiscal 2027
Jul 14, 2026
Sanko Gosei Ltd. has issued a forecast for its consolidated financial results for the fiscal year ending May 31, 2027, projecting net sales of ¥105 billion, a 7.2% increase year on year. The company expects operating profit of ¥7.9 billi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.