Sanritsu Corporation (9366) AI Stock Analysis

• Market Cap: ¥5.17B
• Dividend Yield: 3.44%
• Average Volume (3M): 7.29K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.48
• 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: ¥1,061.00 ▲(23.80% 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

A 3.55 operating cash flow to net income ratio indicates high quality earnings and strong cash conversion. This durable cash generation supports capital expenditures, dividends and working capital needs, reducing refinancing risk and enabling strategic investments over the next several quarters.

Healthy capital structure

An equity ratio near 47% and a moderate debt-to-equity around 0.68 signal a balanced capital structure that preserves financial flexibility. Manageable leverage helps absorb cyclical downturns in logistics demand and leaves room for targeted capex or M&A without overly constraining cash flow.

Consistent revenue and gross margin

Sustained revenue expansion and a gross margin near 22% indicate effective cost control and steady demand for logistics services. Stable EBIT/EBITDA margins suggest operational consistency, supporting predictable free cash flow and the ability to fund service quality and network capacity over multiple quarters.

Negative Factors

Declining return on equity

A falling ROE signals that the company is generating lower returns on shareholder capital, potentially from margin pressure or lower asset efficiency. Persistently weak ROE can limit equity reinvestment benefits and make it harder to improve shareholder returns absent operational improvements or strategic change.

Net profit margin compression

Declining net margin despite revenue growth points to cost pressures, pricing constraints or higher non-operating expenses. Margin erosion reduces retained earnings and free cash flow available for growth or distributions, and if persistent it undermines long-term profitability and return metrics.

Negative EPS growth

A roughly 29% decline in EPS signals meaningful earnings weakness or one-off impacts. Even with strong cash flow, falling EPS can indicate lower reported profitability and may constrain dividend policy or capital allocation choices unless underlying earnings recover or structural cost issues are addressed.

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	4.28B	4.21B	4.02B	3.79B	3.13B
EBITDA	1.84B	1.79B	1.64B	1.79B	1.80B	1.33B
Net Income	381.81M	468.69M	572.68M	980.56M	759.37M	367.60M
Balance Sheet
Total Assets	24.17B	24.76B	21.43B	21.22B	20.54B	19.79B
Cash, Cash Equivalents and Short-Term Investments	2.39B	3.80B	2.22B	2.73B	2.75B	2.86B
Total Debt	8.43B	7.98B	6.56B	6.67B	6.97B	7.28B
Total Liabilities	12.78B	12.96B	10.65B	10.97B	11.09B	11.16B
Stockholders Equity	11.28B	11.68B	10.67B	10.16B	9.36B	8.55B
Cash Flow
Free Cash Flow	0.00	662.83M	247.16M	256.95M	386.12M	923.53M
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: Neutral
• Last Price: 857.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 857 is below the 20-day moving average (MA) of 939.85, below the 50-day MA of 926.66, and below the 200-day MA of 868.18, indicating a neutral trend. The MACD of -5.63 indicates Positive momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 34.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9366.

Sanritsu Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9051	76 Outperform	¥7.10B	25.66	―	1.05%	2.07%	-29.13%
9363	72 Outperform	¥3.49B	6.48	―	2.83%	5.46%	11.93%
9366	71 Outperform	¥5.17B	5.26	―	3.44%	5.32%	8.54%
9355	68 Neutral	¥5.93B	5.71	―	1.44%	3.99%	151.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9326	41 Neutral	¥4.71B	25.18	―	2.35%	17.65%	-5123.90%
9327	40 Underperform	¥3.18B	16.96	―	―	-28.30%	97.73%

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.