Sanko Gosei Ltd. (7888) AI Stock Analysis

• Market Cap: ¥27.04B
• Dividend Yield: 3.41%
• Average Volume (3M): 137.05K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 1.45
• 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: ¥1,020.00 ▲(13.46% Upside)
• Action: Reiterated Date: 01/15/26
• Date: Action: Reiterated 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

Cash Generation

Strong free cash flow and rising operating cash flow provide durable financial flexibility. This cash-generation capacity funds capex, R&D, and dividends without heavy new borrowing, cushions cyclicality and supports long-term reinvestment and shareholder returns.

Margin Sustainability

Consistent gross, EBIT and EBITDA margins, together with an improving net profit margin, indicate structural cost control and pricing power. Margin durability helps the company maintain profitability through demand cycles and funds strategic initiatives over the medium term.

Improving Leverage

An improving debt-to-equity ratio and stable ROE reflect better leverage management and efficient capital use. Reduced leverage risk enhances solvency and strategic optionality, making the balance sheet more resilient to interest-rate shocks and cyclical downturns.

Negative Factors

Revenue Decline

A recent 2.71% revenue decline signals potential demand weakness, product mix shifts, or competitive pressure. Persistent top-line erosion would reduce gross profit dollars, constrain reinvestment and may force margin trade-offs despite current cash strength.

Moderate Debt Reliance

An equity ratio that implies moderate reliance on debt leaves the company exposed to higher interest expense and refinancing risk. In adverse conditions this can limit capital allocation, restrict growth investments and pressure credit metrics over the medium term.

Limited Forward Transparency

Absence of earnings guidance or call highlights reduces visibility into management's outlook and strategic priorities. For investors focused on durable fundamentals, limited forward disclosure makes it harder to assess execution risk and anticipate medium-term performance.

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

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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

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	May 2024	May 2023	May 2023	May 2021	May 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: Negative
• Last Price: 899.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 899 is below the 20-day moving average (MA) of 1004.30, below the 50-day MA of 998.56, and above the 200-day MA of 846.90, indicating a neutral trend. The MACD of -25.45 indicates Positive momentum. The RSI at 34.67 is Neutral, neither overbought nor oversold. The STOCH value of 12.19 is Positive, 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
8150	83 Outperform	¥12.40B	12.00	11.46%	4.65%	20.51%	66.82%
7888	80 Outperform	¥27.04B	4.64	―	3.41%	-1.98%	23.24%
3640	80 Outperform	¥17.77B	3.06	―	1.23%	35.89%	162.00%
6337	70 Outperform	¥13.84B	37.68	―	3.47%	-14.79%	-41.15%
7420	66 Neutral	¥26.84B	7.80	―	4.88%	3.32%	31.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6730	61 Neutral	¥12.44B	13.17	―	3.70%	-10.61%	-18.70%

Sanko Gosei Ltd. Corporate Events

Sanko Gosei Faces Major Arbitration Claim Over Thai Brake-Parts Recall

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 November 2018. Siam Aisin has taken the dispute to a Thai arbitration commission, seeking to recover nearly all recall-related costs and asserting that the Thai unit is fully responsible for the alleged defects.

According to the complaint, Siam Aisin is demanding damages of about 984.6 million Thai baht, an amount that the Sanko Gosei group explicitly rejects as unfounded at this stage. The company says it will present its position in the arbitration process while also exploring the possibility of a negotiated settlement, and notes that the financial impact on its overall performance remains uncertain but will be disclosed if it becomes material for stakeholders.

The most recent analyst rating on (JP:7888) stock is a Buy with a Yen1187.00 price target. To see the full list of analyst forecasts on Sanko Gosei Ltd. stock, see the JP:7888 Stock Forecast page.

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.