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

• Market Cap: ¥44.31B
• Dividend Yield: 4.63%
• Average Volume (3M): 6.10K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.20
• Revenue Growth: 7.11%
• EPS Growth: 4.07%
• Country: JP
• Employees: 1,119
• Sector: Real Estate
• Sector Strength: 63
• Industry: Real Estate - Diversified
• EPS (TTM): 75.40
• Shares Outstanding: 23,356,800
• 10 Day Avg. Volume: 3,020
• 30 Day Avg. Volume: 6,103
• PEG Ratio: 0.72
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.14
• 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

• Rating: 79 Outperform
• Price Target: ¥2,217.00 ▲(14.04%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 primarily engaged in the manufacturing and sale of temporary buildings and modular construction units. The company operates in the industrial materials sector, providing innovative solutions for temporary and semi-permanent structures used in various industries, including construction, events, and disaster relief. Their product lineup includes prefabricated units, such as office spaces, storage solutions, and housing, designed for quick assembly and relocation.

How the Company Makes Money

Sankyo Frontier Co., Ltd. generates revenue through the sale and rental of its modular and prefabricated building units. The company's revenue model is driven by providing temporary and semi-permanent structures to clients in need of rapid deployment solutions. Key revenue streams include direct sales of modular units, rental agreements for temporary use, and offering additional services such as transportation, installation, and maintenance of these units. Significant partnerships with construction companies, event organizers, and government agencies for disaster response further contribute to the company's earnings.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
58.03B	56.09B	52.37B	50.00B	53.35B	48.18B
	Gross Profit
22.66B	21.29B	21.29B	20.11B	22.96B	20.56B
	EBIT
8.63B	8.05B	8.07B	6.58B	9.79B	7.93B
	EBITDA
14.72B	14.16B	14.23B	12.09B	14.99B	15.31B
	Net Income Common Stockholders
5.64B	5.50B	5.29B	4.34B	6.35B	5.12B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.42B	4.68B	5.29B	3.68B	6.88B	4.41B
	Total Assets
66.22B	65.33B	68.59B	61.12B	64.49B	64.33B
	Total Debt
2.60B	2.43B	3.46B	4.02B	6.17B	8.38B
	Net Debt
-2.82B	-2.25B	-1.82B	341.00M	-711.00M	3.98B
	Total Liabilities
19.28B	16.53B	23.72B	19.81B	25.86B	24.75B
	Stockholders Equity
46.94B	48.80B	44.87B	41.30B	38.63B	39.57B
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: 1944.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1944 is above the 20-day moving average (MA) of 1922.50, above the 50-day MA of 1922.30, and below the 200-day MA of 1972.70, indicating a neutral trend. The MACD of 4.50 indicates Negative momentum. The RSI at 61.80 is Neutral, neither overbought nor oversold. The STOCH value of 50.41 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
9639	79 Outperform	¥44.31B	7.85		4.63%	7.11%	4.07%
3010	78 Outperform	¥53.76B	13.61		1.30%	23.67%	-36.65%
3475	70 Outperform	¥32.13B	9.64		3.78%	165.16%	217.53%
8931	70 Outperform	¥16.21B	5.13		6.03%	3.36%	19.70%
3242	64 Neutral	¥16.30B	45.20		4.19%	-14.37%	-83.84%
1431	63 Neutral	¥16.22B	26.08		0.92%	10.88%	185.34%
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%