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Sanko Gosei Ltd. (JP:7888)
:7888
Japanese Market

Sanko Gosei Ltd. (7888) AI Stock Analysis

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JP:7888

Sanko Gosei Ltd.

(7888)

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Outperform 80 (OpenAI - 5.2)
Rating:80Outperform
Price Target:
¥1,005.00
▲(11.79% Upside)
Action:ReiteratedDate:01/15/26
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
Strong cash generation
Material free cash flow growth and rising operating cash flow strengthen the company’s ability to fund capex, tooling and product development, sustain dividends, and repay debt without relying on external financing. This enhances multi-quarter resilience and strategic optionality.
Negative Factors
Recent revenue decline
A tangible revenue contraction suggests demand or market-share pressure that could persist absent new product wins or market expansion. Continued top-line weakness would constrain scaling of fixed-cost leverage and pressure long-term earnings and investment plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Material free cash flow growth and rising operating cash flow strengthen the company’s ability to fund capex, tooling and product development, sustain dividends, and repay debt without relying on external financing. This enhances multi-quarter resilience and strategic optionality.
Read all positive factors

Sanko Gosei Ltd. (7888) vs. iShares MSCI Japan ETF (EWJ)

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, industri...
How the Company Makes Money
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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
75
Positive
Balance Sheet
70
Positive
Cash Flow
80
Positive
BreakdownTTMMay 2024May 2023May 2023May 2021May 2020
Income Statement
Total Revenue92.17B91.10B93.78B81.11B65.66B55.15B
Gross Profit15.19B15.02B13.38B11.49B9.71B8.77B
EBITDA10.05B9.86B8.35B7.09B5.74B5.50B
Net Income3.89B3.86B2.61B2.10B1.81B1.30B
Balance Sheet
Total Assets79.25B76.05B74.93B65.58B58.41B56.63B
Cash, Cash Equivalents and Short-Term Investments14.44B12.03B9.96B8.78B6.82B8.08B
Total Debt26.60B24.20B23.17B19.96B20.06B20.07B
Total Liabilities45.73B43.27B44.45B39.63B35.15B35.98B
Stockholders Equity32.91B32.19B29.91B25.48B22.82B20.29B
Cash Flow
Free Cash Flow0.003.32B782.00M4.04B16.00M859.00M
Operating Cash Flow0.008.57B5.70B6.79B3.01B3.53B
Investing Cash Flow0.00-5.31B-4.94B-2.87B-2.35B-3.34B
Financing Cash Flow0.00-984.00M-110.00M-2.25B-2.36B-102.00M

Sanko Gosei Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price899.00
Price Trends
50DMA
958.72
Negative
100DMA
921.02
Negative
200DMA
864.88
Positive
Market Momentum
MACD
-21.57
Negative
RSI
43.23
Neutral
STOCH
54.78
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 899 is above the 20-day moving average (MA) of 881.20, below the 50-day MA of 958.72, and above the 200-day MA of 864.88, indicating a neutral trend. The MACD of -21.57 indicates Negative momentum. The RSI at 43.23 is Neutral, neither overbought nor oversold. The STOCH value of 54.78 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥26.64B9.193.41%-1.98%23.24%
80
Outperform
¥15.60B3.061.23%35.89%162.00%
70
Outperform
¥14.73B37.683.47%-14.79%-41.15%
67
Neutral
¥11.62B12.0011.46%4.65%20.51%66.82%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
¥12.43B13.173.70%-10.61%-18.70%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7888
Sanko Gosei Ltd.
874.00
351.09
67.14%
JP:8150
Sanshin Electronics Co
2,777.00
1,040.25
59.90%
JP:3640
Densan Co., Ltd.
3,115.00
1,675.32
116.37%
JP:6337
Tesec Corporation
2,703.00
1,444.75
114.82%
JP:6730
Axell Corporation
1,149.00
190.76
19.91%

Sanko Gosei Ltd. Corporate Events

Sanko Gosei Holds Steady on Fiscal 2026 Earnings Outlook and Capital Structure
Apr 7, 2026
Sanko Gosei has maintained its earnings outlook for the fiscal year ending May 31, 2026, projecting net sales of ¥94 billion, operating profit of ¥6.1 billion, ordinary profit of ¥5.5 billion, and profit attributable to owners of th...
Sanko Gosei Faces Major Arbitration Claim Over Thai Brake-Parts Recall
Mar 9, 2026
Sanko Gosei Ltd. has disclosed that its Thai consolidated subsidiary, Sanko Gosei (Thailand) Co., Ltd., is facing an arbitration claim in Thailand tied to a vehicle recall involving automotive brake parts supplied to Siam Aisin between June and No...
Sanko Gosei Delivers Higher First-Half Profits and Lifts Interim Dividend
Jan 13, 2026
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 increasin...
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.Date of analysis: Jan 15, 2026