Sanritsu Corporation (9366) AI Stock Analysis

• Market Cap: ¥5.42B
• Dividend Yield: 3.44%
• Average Volume (3M): 7.29K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.44
• Revenue Growth: 5.32%
• EPS Growth: 8.54%
• Country: JP
• Employees: 449
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 43.54
• Shares Outstanding: 6,006,373
• 10 Day Avg. Volume: 11,100
• 30 Day Avg. Volume: 7,293
• 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: ¥1,072.00 ▲(25.09% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

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

Strong cash generation

Sanritsu converts a high proportion of reported earnings into cash; an OCF/net income ratio of 3.55 and rising free cash flow provide durable internal funding for capex, dividends, debt reduction or M&A. This cash conversion reduces external financing reliance and cushions cycles.

Healthy balance sheet / manageable leverage

A near-50% equity ratio and moderate D/E keep financial flexibility high. This capital structure supports investment in logistics assets, funds working capital needs, and preserves borrowing capacity during downturns, enabling long-term operational continuity and strategic spending.

Consistent revenue growth and stable operating margins

Steady top-line expansion together with stable gross and operating margins point to resilient service demand and effective cost control in core logistics operations. This supports predictable earnings power and long-term cash generation from recurring transport and warehousing fees.

Negative Factors

Declining return on equity

Falling ROE signals the company is generating lower returns on shareholder capital. Over time this can constrain ability to attract equity investment, reduce retained-earnings growth, and indicate either margin erosion or inefficient capital deployment versus peers.

EPS contraction

A near-30% drop in EPS points to volatility or recurring pressure on net income. Persistent EPS weakness can limit retained earnings for reinvestment, impair credit metrics over time, and weaken the firm’s capacity to fund strategic initiatives without tapping external capital.

Thin net profit margin

A low and falling net margin leaves little room to absorb cost inflation, fuel price swings, or competitive price pressures typical in logistics. Such thin profitability reduces resilience and limits the incremental capacity to increase dividends or reinvestment from net income.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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 below the 20-day moving average (MA) of 933.85, below the 50-day MA of 921.04, and below the 200-day MA of 858.53, indicating a bullish trend. The MACD of 16.04 indicates Negative momentum. The RSI at 66.09 is Neutral, neither overbought nor oversold. The STOCH value of 65.31 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	¥6.28B	24.71	―	1.24%	-2.89%	―
9051	76 Outperform	¥7.55B	22.88	―	1.05%	2.07%	-29.13%
9363	72 Outperform	¥3.10B	8.83	―	2.83%	5.46%	11.93%
9366	71 Outperform	¥5.42B	12.63	―	3.44%	5.32%	8.54%
9355	68 Neutral	¥5.74B	7.83	―	1.44%	3.99%	151.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9326	41 Neutral	¥4.87B	-15.37	―	2.35%	17.65%	-5123.90%

Sanritsu Corporation Corporate Events

Sanritsu Posts Higher Sales but Lower Profits, Keeps Dividend Outlook Intact

Sanritsu Corporation reported consolidated net sales of ¥15.25 billion for the nine months ended December 31, 2025, a 1.5% increase year-on-year, but operating profit fell 11.3% to ¥765 million and profit attributable to owners of parent declined 7.8% to ¥475 million. Despite weaker profitability and a sharp drop in comprehensive income, the company’s equity ratio improved to 48.4%, and it maintained its dividend stance with a forecast full-year payout of ¥27 per share for fiscal 2026.

For the full year ending March 31, 2026, Sanritsu forecasts net sales of ¥21.0 billion, up 4.4% from the prior year, while projecting operating profit and ordinary profit to decline 8.2% and 9.0%, respectively, indicating continued margin pressure. Profit attributable to owners of parent is expected to rise 4.5% to ¥490 million, signaling modest bottom-line recovery, and basic earnings per share are forecast at ¥87.70, which will be closely watched by investors assessing the balance between growth, profitability, and shareholder returns.

The most recent analyst rating on (JP:9366) stock is a Hold with a Yen937.00 price target. To see the full list of analyst forecasts on Sanritsu Corporation stock, see the JP:9366 Stock Forecast page.