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

• Market Cap: ¥21.15B
• Dividend Yield: 2.9%
• Average Volume (3M): 55.90K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.44
• Revenue Growth: 28.15%
• EPS Growth: 895.81%
• Country: JP
• Employees: 1,356
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 17.50
• Shares Outstanding: 16,000,000
• 10 Day Avg. Volume: 148,500
• 30 Day Avg. Volume: 55,900
• PEG Ratio: -0.02
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -6.35
• 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: 73 Outperform
• Price Target: ¥1,125.00 ▲(11.61% Upside)

The stock is supported by strong technical momentum and a solid financial foundation, despite cash flow challenges. The reasonable valuation further enhances its attractiveness.

Sanyo Engineering & Construction Inc. Business Overview & Revenue Model

Company Description

Sanyo Engineering & Construction Inc. engages in the electric facility construction business in Japan and internationally. The company designs and constructs electrical equipment, such as security and disaster prevention systems, and electrical installation work in a range of fields, including public facilities, office buildings, commercial facilities, medical and welfare facilities, and various production facilities; and air conditioning ventilation and fire extinguishing equipment, as well as water supply and drainage sanitation equipment in office buildings, commercial facilities, housing, medical and welfare facilities, and various production facilities. It also designs and manufactures systems, such as plant equipment, environment processing facilities, and leisure equipment, etc.; and high and low voltage distribution boards, power boards, control boards, and safety grounding tools for overhead electric circuits, as well as designs and constructs power distribution facilities, including overhead and underground power transmission facilities. In addition, the company engages in indoor electric facility, interior finish, painting, power generation and substation facility, and distribution wiring facility works. Further, it is involved in the leasing and management of real estate properties; and construction consultancy business related to power generation and electric power selling. The company was founded in 1937 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sanyo Engineering & Construction Inc. generates revenue primarily through its construction and engineering services. The company bids on and secures contracts for large-scale infrastructure projects, industrial facilities, and commercial buildings, which are a significant source of income. Key revenue streams include project execution fees, design and consulting services, and maintenance contracts. Additionally, Sanyo often collaborates with government entities and private corporations, forming strategic partnerships that enhance its project portfolio and provide access to larger contracts. The company also benefits from repeat business and long-term relationships with clients, which contribute to steady revenue generation.

Sanyo Engineering & Construction Inc. Financial Statement Overview

Summary

Sanyo Engineering & Construction Inc. shows strong revenue growth and a solid balance sheet with low leverage. However, there are notable cash flow challenges due to negative operating and free cash flow, which raise concerns about liquidity.

Income Statement

The company has experienced strong revenue growth, with a significant increase from the previous year. Gross profit margin is healthy at approximately 11.5%, indicating efficient cost management. However, net profit margin is modest at around 2.6%, reflecting room for improvement in profitability. Notably, EBIT and EBITDA margins have improved from negative figures in previous years, showcasing operational recovery.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of approximately 51.6%, indicating financial stability. The debt-to-equity ratio is low at around 0.10, suggesting low leverage and reduced financial risk. Return on Equity (ROE) stands at about 5.7%, highlighting moderate profitability from shareholders' equity.

Cash Flow

The cash flow statement shows challenges with negative operating cash flow and free cash flow, indicating potential liquidity issues. However, the company has maintained a strong cash position, which may help mitigate short-term cash flow concerns. The operating cash flow to net income ratio is negative, pointing to potential inefficiencies in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.27B	67.86B	50.73B	38.75B	39.87B	41.66B
Gross Profit	7.80B	7.78B	4.93B	4.18B	4.57B	4.20B
EBITDA	3.55B	3.43B	481.94M	1.73B	1.14B	1.46B
Net Income	1.64B	1.75B	-708.97M	479.00M	-31.51M	318.18M
Balance Sheet
Total Assets	50.88B	59.04B	48.97B	45.70B	45.46B	44.86B
Cash, Cash Equivalents and Short-Term Investments	8.40B	9.11B	9.87B	11.02B	8.90B	6.64B
Total Debt	3.36B	3.05B	1.54B	419.35M	622.24M	533.56M
Total Liabilities	20.97B	28.45B	19.87B	15.65B	14.82B	14.06B
Stockholders Equity	29.77B	30.47B	29.03B	29.94B	30.56B	30.69B
Cash Flow
Free Cash Flow	0.00	-1.97B	-2.11B	778.85M	2.44B	-2.35B
Operating Cash Flow	0.00	-1.55B	-660.29M	1.51B	2.87B	-1.32B
Investing Cash Flow	0.00	-591.00M	-936.00M	670.57M	-353.02M	1.30B
Financing Cash Flow	0.00	1.01B	65.00M	-543.78M	-423.67M	-373.07M

Sanyo Engineering & Construction Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1008.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 1008 is below the 20-day moving average (MA) of 1157.70, below the 50-day MA of 1067.34, and above the 200-day MA of 891.55, indicating a bullish trend. The MACD of 110.81 indicates Negative momentum. The RSI at 75.51 is Negative, neither overbought nor oversold. The STOCH value of 63.05 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
1867	75 Outperform	¥16.60B	7.83	―	3.09%	-5.06%	2.78%
1960	73 Outperform	¥21.15B	12.95	―	2.90%	28.15%	895.81%
1770	71 Outperform	¥14.29B	10.57	―	4.13%	-12.29%	-34.50%
1807	71 Outperform	¥10.07B	9.79	―	4.73%	3.49%	9.50%
1914	67 Neutral	¥13.34B	12.69	―	3.81%	17.93%	-31.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1776	54 Neutral	¥13.57B	78.87	―	2.69%	0.66%	-65.05%