Sanritsu Corporation (9366) AI Stock Analysis

• Market Cap: ¥4.92B
• Dividend Yield: 3.56%
• Average Volume (3M): 4.87K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.46
• Revenue Growth: 5.32%
• EPS Growth: 8.54%
• Country: JP
• Employees: 449
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 36.02
• Shares Outstanding: 6,006,373
• 10 Day Avg. Volume: 7,790
• 30 Day Avg. Volume: 4,866
• PEG Ratio: -0.52
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 6.85
• 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: 71 Outperform
• Price Target: ¥946.00 ▲(10.39% Upside)

Sanritsu Corporation's overall stock score is driven primarily by its strong financial performance and attractive valuation. The company's robust cash flow and stable balance sheet are significant strengths. However, technical indicators suggest a lack of strong momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategy, supporting long-term financial stability.

Cash Generation

Strong cash generation relative to earnings reflects efficient operations and provides flexibility for reinvestment and debt management.

Balance Sheet Health

A balanced capital structure with manageable leverage enhances financial resilience and supports long-term growth initiatives.

Negative Factors

Declining Profit Margins

Pressure on profit margins could affect future profitability, requiring strategic adjustments to maintain competitive edge.

Return on Equity Decline

A declining ROE suggests challenges in generating returns for shareholders, potentially impacting investor confidence and capital allocation.

Earnings Growth Challenges

Negative EPS growth indicates potential difficulties in scaling profitability, necessitating strategic initiatives to drive earnings improvement.

Sanritsu Corporation Business Overview & Revenue Model

Company Description

Sanritsu Corporation (9366) is a prominent player in the telecommunications and information technology sector, primarily engaged in providing advanced network solutions and services. The company specializes in manufacturing and selling telecommunications equipment, including network management systems, testing and measurement instruments, and various software solutions aimed at enhancing connectivity and operational efficiency for businesses and service providers.

How the Company Makes Money

Sanritsu Corporation generates revenue through multiple streams, primarily by selling its telecommunications equipment and software solutions to a diverse clientele, including telecom operators, enterprises, and government agencies. The company also earns significant income from maintenance contracts, support services, and upgrades for its products, ensuring ongoing customer engagement and recurring revenue. Key partnerships with major technology firms and telecom providers further bolster its market presence and contribute to its earnings. Additionally, participation in government contracts and projects related to network infrastructure development plays a crucial role in enhancing its revenue base.

Sanritsu Corporation Financial Statement Overview

Summary

Sanritsu Corporation shows strong financial health with consistent revenue growth and stable operational margins. The balance sheet reflects a solid capital structure with manageable leverage. Cash flow metrics highlight excellent cash generation capabilities. However, declining profit margins and ROE suggest areas for improvement in profitability.

Income Statement

Sanritsu Corporation has demonstrated solid revenue growth over the past few years, with a notable increase from 2024 to 2025. The gross profit margin stands at approximately 21.9% for 2025, indicating efficient cost management. However, the net profit margin has decreased to 2.3% in 2025 from 2.9% in 2024, reflecting some pressure on profitability. Both EBIT and EBITDA margins show stability, suggesting consistent operational performance.

Balance Sheet

The company maintains a healthy equity ratio of 47.3% in 2025, showing a balanced capital structure. The debt-to-equity ratio is relatively moderate at 0.68, indicating manageable leverage levels. Return on equity has decreased to 4.0% in 2025 from 5.4% in 2024, suggesting a need for improved profitability to enhance shareholder returns.

Cash Flow

Sanritsu Corporation's operating cash flow to net income ratio is robust at 3.55 for 2025, demonstrating strong cash generation relative to earnings. The free cash flow growth rate has significantly increased, reflecting improved cash management. The free cash flow to net income ratio also indicates efficient conversion of earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.38B	20.12B	19.40B	20.34B	18.53B	15.21B
Gross Profit	4.34B	4.40B	4.37B	4.14B	3.84B	3.19B
EBITDA	1.57B	1.64B	1.80B	2.23B	1.93B	1.44B
Net Income	381.83M	468.69M	572.68M	980.56M	759.37M	367.60M
Balance Sheet
Total Assets	24.17B	24.67B	21.36B	21.17B	20.48B	19.74B
Cash, Cash Equivalents and Short-Term Investments	2.39B	3.80B	2.22B	2.73B	2.75B	2.86B
Total Debt	8.71B	7.98B	6.56B	6.67B	6.97B	7.28B
Total Liabilities	12.78B	12.88B	10.58B	10.92B	11.03B	11.11B
Stockholders Equity	11.28B	11.68B	10.67B	10.16B	9.36B	8.55B
Cash Flow
Free Cash Flow	0.00	662.83M	221.28M	54.25M	255.44M	910.53M
Operating Cash Flow	0.00	1.66B	1.10B	1.42B	1.23B	1.14B
Investing Cash Flow	0.00	-1.23B	-976.97M	-904.97M	-973.68M	-197.34M
Financing Cash Flow	0.00	1.06B	-677.65M	-678.49M	-430.70M	190.00M

Sanritsu Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 857.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9366, the sentiment is Positive. The current price of 857 is above the 20-day moving average (MA) of 855.35, below the 50-day MA of 861.72, and above the 200-day MA of 822.88, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 61.26 is Neutral, neither overbought nor oversold. The STOCH value of 65.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9366.

Sanritsu Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9036	77 Outperform	¥6.10B	17.14	―	1.33%	-2.89%	―
9051	76 Outperform	¥7.79B	20.67	―	0.99%	2.07%	-29.13%
9363	72 Outperform	¥2.76B	8.62	―	2.84%	5.46%	11.93%
9366	71 Outperform	¥4.92B	9.77	―	3.56%	5.32%	8.54%
9355	68 Neutral	¥4.92B	8.89	―	1.56%	3.99%	151.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9326	41 Neutral	¥4.25B	―	―	2.43%	17.65%	-5123.90%

Sanritsu Corporation Corporate Events

Sanritsu Corporation Reports Mixed Financial Results for First Half of 2025

Sanritsu Corporation reported a 3.7% increase in net sales for the six months ended September 30, 2025, compared to the same period in the previous year. Despite the rise in sales, the company experienced a 7.1% decline in operating profit. However, ordinary profit and profit attributable to owners of the parent increased by 13.5% and 15.8%, respectively. The company’s financial position remains stable with a slight improvement in the equity-to-asset ratio. The forecast for the fiscal year ending March 31, 2026, anticipates a 4.4% increase in net sales, though operating and ordinary profits are expected to decline. This mixed financial performance indicates challenges in maintaining profitability despite revenue growth, which could impact stakeholder confidence.