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

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Sanyo Engineering & Construction Inc.

(TSE/TYO:1960)

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Rating:75Outperform

Price Target:JPY 2,077.00▲(12.51% Upside)

Action:reiterated

Date:11/12/26

The score is driven primarily by improving financial health (profitability recovery and low leverage) and an attractive valuation (low P/E and solid dividend yield). Technicals are supportive due to price strength above major moving averages, but mixed momentum indicators and the business’s revenue/cash-flow volatility keep the overall score from the high tier.

Positive Factors

Profitability recoveryThe recovery from a loss-making FY2024 to stronger gross and net profitability indicates improved project economics and execution. Higher earnings provide greater capacity to reinvest, strengthen the balance sheet, and absorb cost or scheduling pressure over the next several quarters.

Negative Factors

Revenue contractionThe revenue decline demonstrates that earnings improvement has not yet translated into consistent top-line expansion. For an engineering and construction contractor, uneven project timing and demand can make future workload, capacity utilization, and earnings growth less predictable.

Sanyo Engineering & Construction Inc. (1960) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 28.44B
Dividend Yield: 3.52%
Average Volume (3M): 32.40K
Price to Earnings (P/E): 8.3
Beta (1Y): 1.02
Revenue Growth: -0.81%
EPS Growth: 34.55%
Country: Japan
Employees: 1,483
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Sanyo Engineering & Construction Inc. Business Overview & Revenue Model

Company Description

Sanyo Engineering & Construction Inc., established in 1937 and headquartered in Tokyo, Japan, operates globally and domestically, primarily focusing on electrical infrastructure development. The company specializes in designing and implementing a wid...

How the Company Makes Money

Sanyo Engineering & Construction Inc. (1960) primarily makes money by delivering engineering and construction projects for clients under contract. Key revenue streams typically include (1) EPC/turnkey project revenue where the company is paid based o...

Sanyo Engineering & Construction Inc. Financial Statement Overview

Summary

Profitability is improving (gross margin ~14.9% and net margin ~4.5% with higher net income), supported by a conservative balance sheet (debt-to-equity ~0.11 and improving ROE ~8.3%). Offsetting this, revenue declined ~10.5% and cash flows have been historically volatile despite a strong FY2026 rebound, tempering predictability.

Income Statement

68Positive

Balance Sheet

82Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	63.19B	61.08B	67.86B	50.73B	38.88B	39.87B
Gross Profit	9.59B	9.13B	7.78B	4.93B	4.08B	4.57B
EBITDA	5.46B	5.03B	3.43B	481.94M	1.73B	1.14B
Net Income	3.37B	2.77B	1.75B	-771.20M	479.42M	-31.51M
Balance Sheet
Total Assets	58.75B	60.54B	59.04B	48.80B	45.64B	45.46B
Cash, Cash Equivalents and Short-Term Investments	15.33B	14.40B	9.11B	9.87B	11.02B	8.90B
Total Debt	2.14B	3.79B	3.15B	1.58B	430.48M	670.25M
Total Liabilities	24.82B	26.85B	28.45B	19.96B	15.64B	14.82B
Stockholders Equity	33.66B	33.47B	30.47B	28.78B	29.95B	30.56B
Cash Flow
Free Cash Flow	0	5.36B	-1.97B	-2.11B	907.03M	2.52B
Operating Cash Flow	0	5.83B	-1.55B	-660.29M	1.51B	2.87B
Investing Cash Flow	0	-1.98B	-591.00M	-922.24M	670.57M	-353.02M
Financing Cash Flow	0	-52.00M	1.01B	51.36M	-543.78M	-423.67M

Sanyo Engineering & Construction Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price1846.00

Price Trends

50DMA1651.96Positive

100DMA1578.16Positive

200DMA1501.47Positive

Market Momentum

MACD-1.79Negative

RSI64.29Neutral

STOCH50.13Neutral

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 1846.00 is above the 20-day moving average (MA) of 1621.35, above the 50-day MA of 1651.96, and above the 200-day MA of 1501.47, indicating a bullish trend. The MACD of -1.79 indicates Negative momentum. The RSI at 64.29 is Neutral, neither overbought nor oversold. The STOCH value of 50.13 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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:1960 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1827	81Outperform	JPY 45.13B	8.72	―	2.94%	35.61%	99.85%
JP:9768	78Outperform	JPY 25.06B	9.36	―	3.33%	4.52%	33.33%
JP:1828	77Outperform	JPY 24.83B	6.64	―	4.35%	6.05%	27.08%
JP:1960	75Outperform	JPY 23.83B	8.26	―	3.52%	-0.81%	34.55%
JP:1780	66Neutral	JPY 26.30B	9.16	―	2.32%	-0.83%	-12.73%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

JP:1960 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1960	Sanyo Engineering & Construction Inc.	1846.00	472.40	34.39%
JP:1780	Yamaura Corporation	1465.00	27.93	1.94%
JP:1827	Nakano Corporation	1291.00	343.38	36.24%
JP:1828	Tanabe Engineering Corporation	2300.00	-67.65	-2.86%
JP:9768	Idea Consultants,inc.	3540.00	157.24	4.65%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 12, 2026

Sanyo Engineering & Construction Inc. AI Stock Analysis