Sanyo Engineering & Construction Inc. (1960) AI Stock Analysis

• Market Cap: ¥13.09B
• Dividend Yield: 4.68%
• Average Volume (3M): 7.66K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.40
• Revenue Growth: 33.76%
• EPS Growth: N/A
• Country: JP
• Employees: 1,356
• Sector: Industrials
• Sector Strength: 94
• Industry: Engineering & Construction
• EPS (TTM): 16.72
• Shares Outstanding: 16,000,000
• 10 Day Avg. Volume: 9,310
• 30 Day Avg. Volume: 7,660
• PEG Ratio: <0.01
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 76 Outperform
• Price Target: ¥949.00 ▲(11.65%Upside)

The stock's overall score is driven by its strong valuation and positive technical indicators, which suggest potential for return and upward price movement. While financial performance shows growth and stability, cash flow issues need to be addressed to ensure long-term financial health.

Sanyo Engineering & Construction Inc. Business Overview & Revenue Model

Company Description

Sanyo Engineering & Construction Inc., established in 1960, is a Japan-based company specializing in engineering, procurement, and construction (EPC) services. The company operates primarily in sectors such as infrastructure, industrial facilities, and environmental systems, providing comprehensive solutions from project planning and design to construction and maintenance.

How the Company Makes Money

Sanyo Engineering & Construction Inc. generates revenue through its diverse range of EPC services. The company earns income by undertaking large-scale projects in infrastructure development, such as roads, bridges, and public facilities, where it provides end-to-end services from design to construction. Additionally, the company is involved in industrial projects, including the construction and maintenance of manufacturing plants and environmental systems. Revenue is primarily driven by contracts with government agencies and private sector clients. Key partnerships with other engineering firms and suppliers also play a significant role in securing large projects and optimizing operational efficiency, thereby contributing to the company's earnings.

Sanyo Engineering & Construction Inc. Financial Statement Overview

Summary

Sanyo Engineering & Construction Inc. has shown strong revenue growth and profitability improvement, supported by a stable balance sheet with low leverage. However, cash flow inconsistencies, such as periods of negative Free Cash Flow, pose a risk and need attention.

Income Statement

Sanyo Engineering & Construction Inc. has demonstrated strong revenue growth, with a noticeable increase in Total Revenue from previous periods, particularly in the TTM. The company has improved its Gross and Net Profit Margins, reflecting better cost management and profitability. However, there have been fluctuations in EBIT and EBITDA margins over the years, indicating potential volatility in operational efficiency.

Balance Sheet

The company's balance sheet is solid with a high Equity Ratio, indicating financial stability and low leverage. The Debt-to-Equity Ratio is low, suggesting prudent financial management. Return on Equity has improved, aligning with the increased net income, highlighting effective use of shareholders' equity to generate profit.

Cash Flow

Cash flows have been inconsistent, with periods of negative Free Cash Flow and operating cash flows. Although there are improvements in the latest period, the company needs to focus on sustaining positive cash flow to support its growth and operational needs. The Operating Cash Flow to Net Income Ratio indicates a disconnect between reported profits and cash generation.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
63.61B	50.73B	38.75B	39.87B	41.66B	46.80B
	Gross Profit
7.67B	4.93B	4.18B	4.57B	4.20B	5.29B
	EBIT
2.15B	-1.13B	-831.89M	-227.23M	-151.91M	709.00M
	EBITDA
3.14B	481.94M	1.73B	1.14B	1.46B	2.48B
	Net Income Common Stockholders
1.61B	-708.97M	436.83M	-31.51M	318.18M	1.01B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.87B	9.87B	11.02B	8.90B	6.64B	7.54B
	Total Assets
53.33B	48.97B	45.70B	45.46B	44.86B	45.91B
	Total Debt
3.35B	1.54B	419.35M	622.24M	533.56M	380.00M
	Net Debt
-5.52B	-8.33B	-10.60B	-8.28B	-6.11B	-7.16B
	Total Liabilities
23.24B	19.87B	15.52B	14.82B	14.06B	340.40M
	Stockholders Equity
29.98B	29.03B	30.10B	30.56B	30.69B	30.09B
Cash Flow		Free Cash Flow
0.00	-2.19B	778.85M	2.44B	-2.35B	-1.43B
	Operating Cash Flow
0.00	-660.29M	1.51B	2.87B	-1.32B	-452.00M
	Investing Cash Flow
0.00	-936.00M	670.57M	-353.02M	1.30B	-631.00M
	Financing Cash Flow
0.00	65.86M	-543.78M	-423.67M	-373.07M	-912.00M

Sanyo Engineering & Construction Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 850.00
• 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:1960, the sentiment is Positive. The current price of 850 is above the 20-day moving average (MA) of 829.40, above the 50-day MA of 808.30, and above the 200-day MA of 740.97, indicating a bullish trend. The MACD of 12.79 indicates Negative momentum. The RSI at 58.15 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1960.

Sanyo Engineering & Construction Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1807	83 Outperform	¥9.84B	11.56		4.83%	5.27%	-26.39%
1770	80 Outperform	¥13.47B	7.54		4.08%	1.16%	12.22%
1867	78 Outperform	¥12.60B	6.51		4.65%	-9.31%	2.81%
1960	76 Outperform	¥13.09B	7.50		4.68%	33.76%	―
1914	70 Neutral	¥13.17B	8.36		3.87%	32.17%	298.59%
Sector *	66 Neutral	$4.48B	12.24	5.32%	248.54%	4.09%	-12.10%
1776	61 Neutral	¥13.66B	82.31		2.67%	-2.45%	-71.57%