Sankyo Frontier Co., Ltd. (9639) AI Stock Analysis

• Market Cap: ¥46.79B
• Dividend Yield: 4.14%
• Average Volume (3M): 5.06K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.22
• Revenue Growth: -4.53%
• EPS Growth: -16.03%
• Country: JP
• Employees: 1,119
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 36.91
• Shares Outstanding: 23,356,800
• 10 Day Avg. Volume: 8,940
• 30 Day Avg. Volume: 5,063
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,217.00
• Price Target Upside: 8.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥2,217.00 ▲(8.15% Upside)

Sankyo Frontier Co., Ltd. is well-positioned with strong financial performance and attractive valuation metrics, suggesting potential undervaluation. However, technical indicators show a neutral to slightly bearish trend, which may limit short-term upside potential. Overall, the company is financially robust, but careful management of liquidity and costs will be crucial for future growth.

Sankyo Frontier Co., Ltd. Business Overview & Revenue Model

Company Description

Sankyo Frontier Co., Ltd. is a Japanese company that specializes in the design, manufacture, and sale of modular buildings and temporary structures. It operates primarily in the construction sector, providing innovative solutions for temporary and semi-permanent building needs. The company's core products include prefabricated buildings that are utilized across various industries, including education, healthcare, and disaster relief, offering flexible and quick-to-deploy options for space management.

How the Company Makes Money

Sankyo Frontier Co., Ltd. makes money through the design, production, and sale of modular units and prefabricated buildings. Its revenue model is primarily based on the sale and leasing of these structures to various sectors such as commercial, educational, and governmental organizations. The company benefits from partnerships with construction firms and public sector entities that require temporary or semi-permanent buildings for projects. Additionally, Sankyo Frontier may generate income from related services such as installation, maintenance, and customization of modular units to meet specific client needs. Factors contributing to its earnings include the growing demand for quick and cost-effective building solutions and its ability to adapt products for diverse applications.

Sankyo Frontier Co., Ltd. Financial Statement Overview

Summary

Sankyo Frontier Co., Ltd. shows strong financial health with consistent revenue and profit growth, a solid balance sheet, and effective cash flow management. The low leverage and high equity ratio indicate financial stability, though a reduction in cash reserves could pose a risk if not managed. Attention to cost management and liquidity is advisable for sustained growth.

Income Statement

Sankyo Frontier Co., Ltd. has demonstrated strong growth in revenue and profitability over the years. The revenue grew from 2024 to 2025 by 7.11%, with a consistent gross profit margin hovering around 38% across multiple years. The net profit margin for 2025 stood at 9.81%, reflecting healthy profitability. EBIT and EBITDA margins are solid, indicating efficient core operations. However, the slight decrease in gross profit compared to 2024 suggests potential cost pressures.

Balance Sheet

The company's balance sheet is strong, with a decreasing trend in total debt, leading to a low debt-to-equity ratio of 0.05 in 2025. The equity ratio is robust at 74.68%, highlighting financial stability and low leverage. ROE for 2025 is 11.28%, indicating effective use of shareholders' equity to generate profits. However, a reduction in cash and cash equivalents over the years may limit liquidity.

Cash Flow

The cash flow statement shows a decrease in operating cash flow from 2024 to 2025, impacting the free cash flow growth rate negatively. The free cash flow to net income ratio in 2025 is 0.57, indicating moderate cash generation relative to net income. The operating cash flow to net income ratio remains stable, reflecting good conversion of income to cash. Continued investment in capital expenditures suggests reinvestment for growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.09B	56.09B	52.37B	50.00B	53.35B	48.18B
Gross Profit	20.48B	22.03B	21.29B	20.11B	22.96B	20.56B
EBITDA	16.12B	14.16B	14.23B	12.09B	14.99B	13.20B
Net Income	5.50B	5.50B	5.29B	4.34B	6.35B	5.12B
Balance Sheet
Total Assets	65.33B	65.33B	68.59B	61.12B	64.49B	59.23B
Cash, Cash Equivalents and Short-Term Investments	4.68B	4.68B	5.29B	3.68B	6.88B	4.41B
Total Debt	2.43B	2.43B	3.46B	4.02B	6.17B	8.38B
Total Liabilities	16.53B	16.53B	23.72B	19.81B	25.86B	24.75B
Stockholders Equity	48.80B	48.80B	44.87B	41.30B	38.63B	34.48B
Cash Flow
Free Cash Flow	0.00	3.13B	4.09B	951.00M	6.84B	4.47B
Operating Cash Flow	0.00	5.12B	6.23B	3.32B	8.56B	6.15B
Investing Cash Flow	0.00	-2.91B	-2.54B	-2.62B	-1.69B	-1.68B
Financing Cash Flow	0.00	-2.84B	-2.38B	-3.91B	-3.91B	-3.12B

Sankyo Frontier Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2050.00
• 50DMA: Positive
• 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:9639, the sentiment is Positive. The current price of 2050 is below the 20-day moving average (MA) of 2064.20, above the 50-day MA of 2047.78, and above the 200-day MA of 1993.76, indicating a neutral trend. The MACD of 0.54 indicates Positive momentum. The RSI at 46.11 is Neutral, neither overbought nor oversold. The STOCH value of 35.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9639.

Sankyo Frontier Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3475	85 Outperform	47.18B	20.18	23.82%	2.58%	21.25%	28.04%
9639	79 Outperform	¥46.79B	9.39		4.14%	-4.53%	-16.03%
8931	78 Outperform	17.90B	4.98	9.48%	4.35%	17.62%	60.92%
3242	75 Outperform	20.89B	9.78	10.67%	3.96%	21.34%	4.63%
3010	73 Outperform	49.59B	13.44	9.22%	1.42%	40.03%	-45.93%
1431	69 Neutral	17.69B	35.78	0.00%	0.84%	3.69%	25.91%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%