Sankyu Inc. (9065) AI Stock Analysis

• Market Cap: ¥363.27B
• Dividend Yield: 3.23%
• Average Volume (3M): 188.42K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.64
• Revenue Growth: 7.67%
• EPS Growth: 33.08%
• Country: JP
• Employees: 30,672
• Sector: Industrials
• Sector Strength: 90
• Industry: Integrated Freight & Logistics
• EPS (TTM): 160.13
• Shares Outstanding: 55,470,257
• 10 Day Avg. Volume: 184,190
• 30 Day Avg. Volume: 188,416
• PEG Ratio: 0.99
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.68
• 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: ¥8,274.09
• Price Target Upside: 10.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: ¥7,788.00 ▲(4.31%Upside)

Sankyu Inc. scores well due to its strong financial performance and reasonable valuation. Technical indicators show bullish momentum, though overbought indicators suggest caution. The absence of earnings call and corporate events data had no impact on the score.

Sankyu Inc. Business Overview & Revenue Model

Company Description

Sankyu Inc. provides logistics services in Japan, North and South America, rest of Asia, and internationally. The company offers logistics solutions, such as consulting, air freight, international multi-modal transport, trucking, and customs brokerage services; and operates warehouse and distribution centers, and container terminals. It also provides plant engineering and installation services, including plant design and engineering; fabrication and processing of plant equipment, piping, steel, steel-frame and offshore structures, bridges, and transportation equipment; transportation of heavy loads; plant construction and installation in petrochemical, steel, environmental, and power sectors; and fabrication and construction of bridges, such as road, railway, pedestrian, and water-pipe bridges, as well as maintains the function and performance of expressways. In addition, the company offers various services, such as the transportation of raw materials, intermediate materials, and internal products, as well as line operations, process control, and warehouse management services. Sankyu Inc. was founded in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sankyu Inc. generates revenue primarily through its logistics and engineering services. The logistics segment includes transportation, warehousing, and distribution services, catering to various industries such as automotive, electronics, and chemicals. Revenue is earned from freight forwarding, customs clearance, and integrated supply chain management services. The plant engineering segment contributes to earnings through the design, construction, and maintenance of industrial facilities, serving sectors such as petrochemicals, energy, and manufacturing. The company partners with various industrial players to deliver customized solutions, enhancing efficiency and operational performance for their clients. These comprehensive service offerings enable Sankyu Inc. to maintain a diverse revenue stream across multiple industries.

Sankyu Inc. Financial Statement Overview

Summary

Sankyu Inc. demonstrates solid financial performance with strong revenue growth, improving margins, and effective balance sheet management. The company exhibits robust cash flow generation, supporting operational and strategic initiatives.

Income Statement

Sankyu Inc. demonstrates solid profitability with improving margins. The gross profit margin is consistent, with a recent increase to 12.13%. The net profit margin has also strengthened, reaching 5.07%. Revenue growth is robust at 7.67% from 2024 to 2025, indicating strong market positioning. Both EBIT and EBITDA margins have improved, reflecting efficient cost management and operational leverage, further bolstering profitability.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.31, showcasing prudent financial leverage. Return on equity has increased to 10.49%, indicating effective use of equity to generate profits. The equity ratio stands at 53.79%, indicating a stable capital structure predominantly funded by equity, enhancing financial stability.

Cash Flow

Sankyu Inc. exhibits strong cash flow management with a significant operating cash flow to net income ratio of 1.42, highlighting robust cash generation relative to profit. Free cash flow has grown impressively by 219.38%, supporting future investment and debt servicing. The free cash flow to net income ratio of 0.72 indicates efficient conversion of profits into cash.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
597.31B	606.79B	563.55B	579.23B	553.83B	533.87B
	Gross Profit
70.14B	73.58B	61.99B	63.71B	58.12B	54.75B
	EBIT
41.06B	43.95B	35.22B	38.17B	34.47B	33.93B
	EBITDA
60.85B	65.94B	56.83B	57.68B	53.19B	51.15B
	Net Income Common Stockholders
28.13B	30.75B	24.38B	24.96B	22.64B	23.54B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
54.47B	48.60B	52.13B	52.67B	43.62B	37.68B
	Total Assets
549.68B	545.19B	505.05B	481.66B	462.47B	456.83B
	Total Debt
106.01B	89.50B	79.79B	56.16B	53.55B	55.43B
	Net Debt
52.76B	41.95B	29.07B	5.04B	10.80B	18.81B
	Total Liabilities
265.73B	248.12B	219.61B	209.13B	213.75B	219.80B
	Stockholders Equity
280.34B	293.21B	282.05B	269.28B	245.95B	234.92B
Cash Flow		Free Cash Flow
0.00	22.07B	6.91B	17.20B	28.25B	6.22B
	Operating Cash Flow
0.00	43.53B	21.73B	33.28B	43.69B	25.04B
	Investing Cash Flow
0.00	-26.47B	-18.43B	-16.53B	-14.94B	-15.30B
	Financing Cash Flow
0.00	-25.31B	-9.14B	-11.11B	-24.49B	-7.11B

Sankyu Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7466.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9065, the sentiment is Positive. The current price of 7466 is above the 20-day moving average (MA) of 7024.10, above the 50-day MA of 6527.16, and above the 200-day MA of 5536.05, indicating a bullish trend. The MACD of 221.45 indicates Negative momentum. The RSI at 79.45 is Negative, neither overbought nor oversold. The STOCH value of 89.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9065.

Sankyu Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9065	75 Outperform	¥363.27B	12.96	10.64%	3.23%	7.67%	33.08%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
KMGIF		$2.63B	16.45	6.91%	3.84%	―	―
MIB		€2.62B	13.24	8.09%	2.84%	―	―
1CM		€2.40B	23.33	6.74%	1.74%	―	―
7WE		€1.93B	15.83	9.28%	2.47%	―	―
9302	70 Outperform	¥299.63B	29.80		3.65%	7.73%	-17.17%

Sankyu Inc. Corporate Events

Sankyu Inc. Reports Strong Financial Growth and Increased Dividends for FY 2025

Sankyu Inc. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 7.7% and operating profit increasing by 24.8%. This growth reflects the company’s strong operational strategies and market positioning. The company also announced an increase in annual dividends, indicating confidence in its financial stability and commitment to shareholder returns.

Sankyu Inc. Revises Medium-Term Management Plan 2026

Sankyu Inc. has revised its ‘Medium-Term Management Plan 2026’ due to delays in adapting to a rapidly changing external environment, which created a gap between projected and actual earnings in its logistics business. The revised plan, under new CEO leadership, focuses on improving capital profitability by reviewing the cost structure, maintaining appropriate equity capital levels, and optimizing human resource allocation.

Sankyu Inc. Announces Treasury Stock Acquisition and Cancellation

Sankyu Inc. has announced its decision to acquire and subsequently cancel a portion of its treasury stock, aiming to enhance corporate value through capital structure optimization and improved shareholder returns. The company plans to acquire up to 5 million shares, representing 9.52% of outstanding shares, with a budget of JPY 20 billion, and will cancel shares exceeding 5% of issued shares by March 2026.

Sankyu Inc. Increases Year-End Dividend Amid Strong Performance

Sankyu Inc. announced an increase in its year-end dividend to JPY 130 per share, up from the previously forecasted JPY 102, reflecting strong performance and strategic investment plans. This decision aligns with its Medium-Term Management Plan 2026, which emphasizes sustainable growth and maximizing corporate value, with a target dividend payout ratio of 40%.

Sankyu Inc. Introduces Restricted Stock Plan to Align Director and Shareholder Interests

Sankyu Inc. announced the introduction of a restricted transfer stock remuneration plan for its directors, aimed at incentivizing them to enhance corporate value and align their interests with shareholders. The plan, subject to shareholder approval, involves issuing common stock or monetary claims for stock acquisition, with a cap on annual remuneration and specific conditions for stock transfer and compensation.