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SANKO TECHNO CO., LTD. (3435) AI Stock Analysis

JP:3435

SANKO TECHNO CO., LTD.

(TSE/TYO:3435)

Select Model
Rating:73Outperform
Price Target:JPY 1,629.00â–²(17.11% Upside)
Action:reiterated
Date:08/18/26

The overall score of 73 is primarily driven by an exceptionally attractive valuation, with a very low P/E ratio and a high dividend yield. This is supported by a solid financial foundation, characterized by a strong balance sheet and recovering profitability. Positive technical trends confirm market support, though near-term momentum indicators warrant some caution. The company's low beta of 0.16 suggests a very stable stock with low market correlation.

Positive Factors
Conservative Balance SheetLow leverage and steadily expanding equity provide financial resilience and flexibility. This reduces dependence on external financing and helps the company absorb operating volatility while supporting continued investment over the medium term.
Negative Factors
Volatile Free Cash FlowUnpredictable free cash flow reduces visibility into internally generated funding. Swings linked to working capital or investment spending may constrain distributions and require closer management of liquidity despite the company’s otherwise strong balance sheet.

SANKO TECHNO CO., LTD. (3435) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%30%35%JP:3435+17.72%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 11.01B
Dividend Yield
3.02%
Average Volume (3M)
7,565
Price to Earnings (P/E)
6.2
Beta (1Y)
0.25
Revenue Growth
6.51%
EPS Growth
64.48%
Country
Japan
Employees
850
Sector
Industrials
Sector Strength
63
Industry
Manufacturing - Metal Fabrication

SANKO TECHNO CO., LTD. Business Overview & Revenue Model

Company Description

Sanko Techno Co., Ltd., based in Nagareyama, Japan, is a multifaceted enterprise engaged in the research, development, manufacturing, and distribution of a diverse range of construction materials, including composites and waterproofing solutions, acr...

How the Company Makes Money

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SANKO TECHNO CO., LTD. Financial Statement Overview

Summary

Solid financial health driven by a strong, low-leverage balance sheet (Score 85) and consistent revenue growth. Profitability has recovered in FY2026, though cash flow generation remains somewhat volatile, tempering the overall financial performance.

Income Statement

70Positive

Balance Sheet

85Very Positive

Cash Flow

60Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue22.50B21.76B21.25B21.14B20.60B18.74B
Gross Profit7.14B6.71B5.96B6.47B6.06B5.65B
EBITDA2.42B2.20B1.70B2.45B2.31B2.02B
Net Income1.79B1.59B1.12B1.74B1.40B1.07B
Balance Sheet
Total Assets28.02B28.75B26.56B24.63B20.91B19.28B
Cash, Cash Equivalents and Short-Term Investments5.05B4.80B4.00B3.28B2.36B2.43B
Total Debt3.53B3.95B3.54B2.61B1.08B698.59M
Total Liabilities7.62B8.42B7.80B7.06B5.04B4.77B
Stockholders Equity20.06B19.99B18.44B17.28B15.62B14.28B
Cash Flow
Free Cash Flow0562.35M476.07M1.06B-305.14M135.56M
Operating Cash Flow01.39B1.47B1.43B308.73M1.32B
Investing Cash Flow0-758.43M-1.44B-1.62B-520.00M-833.87M
Financing Cash Flow0-9.96M642.50M1.07B117.00M-523.35M

SANKO TECHNO CO., LTD. Technical Analysis

Technical Analysis SentimentNegative
Last Price1391.00

Price Trends

50DMA1482.04Negative
100DMA1448.69Negative
200DMA1399.15Negative

Market Momentum

MACD-25.71Positive
RSI33.78Neutral
STOCH50.67Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3435, the sentiment is Negative. The current price of 1391.00 is below the 20-day moving average (MA) of 1450.05, below the 50-day MA of 1482.04, and below the 200-day MA of 1399.15, indicating a bearish trend. The MACD of -25.71 indicates Positive momentum. The RSI at 33.78 is Neutral, neither overbought nor oversold. The STOCH value of 50.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3435.

SANKO TECHNO CO., LTD. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:3435 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6497JP:649778OutperformJPY 9.51B11.28―3.16%9.23%36.23%
JP:3435JP:343573OutperformJPY 11.22B6.15―3.02%6.51%64.48%
JP:5644JP:564472OutperformJPY 22.25B7.34―2.12%2.42%49.60%
JP:5852JP:585270OutperformJPY 14.80B7.46―6.19%-0.50%―
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
JP:6998JP:699855NeutralJPY 14.50B21.60―2.97%12.13%-3.95%
JP:5994JP:599440UnderperformJPY 4.00B-1.29―2.74%3.08%-260.66%

* Industrials Sector Average

Performance Comparison

0%50%100%150%JP:3435JP:5644JP:5852JP:5994JP:6497JP:6998Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:3435 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3435SANKO TECHNO CO., LTD.1391.00198.7116.67%
JP:5644Metalart Corporation7300.003304.6982.71%
JP:5852Ahresty Corporation582.00-181.65-23.79%
JP:5994Fine Sinter Co., Ltd.912.00-627.55-40.76%
JP:6497Hamai Industries Ltd.1426.00280.9324.53%
JP:6998Nippon Tungsten Co., Ltd.2866.001417.3697.84%
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: Aug 18, 2026