CK San-Etsu Co., Ltd. (5757) AI Stock Analysis

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CK San-Etsu Co., Ltd.

(TSE/TYO:5757)

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Rating:60Neutral

Price Target:JPY 4,814.00▲(4.99% Upside)

Action:reiterated

Date:08/18/26

The score is driven primarily by fundamentals: improving operating margins and a conservatively levered balance sheet are positives, but the 2026 drop in net margin and the shift to negative free cash flow materially weaken overall financial quality. Technically, near-term momentum is slightly negative (below short-term moving averages and negative MACD), while valuation is reasonable with a moderate P/E and modest dividend yield.

Positive Factors

Strong Revenue GrowthThe recent acceleration in revenue demonstrates expanding demand for the company’s copper, alloy, and processed-material products. Sustained top-line growth can improve operating leverage, support customer relationships across multiple end markets, and provide a durable base for future earnings.

Negative Factors

Negative Free Cash FlowThe shift from positive free cash flow to a deficit weakens the quality of recent earnings and reduces internally generated funding for investment or shareholder returns. The sharp decline in operating cash flow also makes near-term cash conversion less dependable if this pattern persists.

CK San-Etsu Co., Ltd. (5757) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 38.22B
Dividend Yield: 2.07%
Average Volume (3M): 11.59K
Price to Earnings (P/E): 11.7
Beta (1Y): 1.03
Revenue Growth: 25.16%
EPS Growth: -51.59%
Country: Japan
Employees: 1,015
Sector: Industrials
Sector Strength: 63
Industry: Manufacturing - Metal Fabrication

CK San-Etsu Co., Ltd. Business Overview & Revenue Model

Company Description

CK SAN-ETSU Co., Ltd. is a Japanese-headquartered company, established in Takaoka in 1919, that manufactures and distributes brass rod and wire products across Japan, China, and Taiwan. The firm's offerings also encompass precisely engineered parts c...

CK San-Etsu Co., Ltd. Financial Statement Overview

Summary

Operating performance improved with strong multi-year revenue growth and higher EBIT/gross margins, and leverage remains conservative. Offsetting this, net margin fell in 2026 and cash generation deteriorated sharply with negative free cash flow and weak cash conversion, lowering confidence in earnings quality.

Income Statement

66Positive

Balance Sheet

78Positive

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	162.95B	149.44B	125.11B	111.43B	123.84B	115.34B
Gross Profit	23.93B	20.37B	15.42B	13.02B	13.24B	15.55B
EBITDA	20.14B	16.56B	12.16B	9.98B	10.52B	13.33B
Net Income	3.29B	3.59B	5.21B	3.82B	5.32B	4.31B
Balance Sheet
Total Assets	112.19B	97.52B	86.97B	77.14B	75.45B	71.10B
Cash, Cash Equivalents and Short-Term Investments	1.47B	1.29B	3.70B	981.00M	1.03B	679.00M
Total Debt	24.28B	13.15B	8.50B	7.94B	9.23B	8.44B
Total Liabilities	48.21B	34.87B	27.93B	23.53B	26.30B	27.20B
Stockholders Equity	56.03B	54.91B	52.27B	47.44B	43.39B	38.52B
Cash Flow
Free Cash Flow	0	-832.00M	3.02B	1.02B	905.00M	4.19B
Operating Cash Flow	0	2.96B	5.31B	3.70B	3.24B	6.28B
Investing Cash Flow	0	-4.83B	-2.32B	-2.68B	-2.54B	-2.63B
Financing Cash Flow	0	-539.00M	-279.00M	-1.07B	-553.00M	-4.71B

CK San-Etsu Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price4585.00

Price Trends

50DMA4832.24Negative

100DMA5031.33Negative

200DMA4695.00Negative

Market Momentum

MACD-102.61Negative

RSI45.70Neutral

STOCH62.78Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5757, the sentiment is Negative. The current price of 4585.00 is below the 20-day moving average (MA) of 4623.25, below the 50-day MA of 4832.24, and below the 200-day MA of 4695.00, indicating a bearish trend. The MACD of -102.61 indicates Negative momentum. The RSI at 45.70 is Neutral, neither overbought nor oversold. The STOCH value of 62.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5757.

CK San-Etsu Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:5757 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1787	80Outperform	JPY 13.60B	13.24	―	6.20%	1.58%	8.83%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:5852	62Neutral	JPY 14.82B	7.38	―	6.30%	-0.50%	―
JP:6998	61Neutral	JPY 13.42B	21.87	―	3.10%	26.73%	99.36%
JP:5757	60Neutral	JPY 38.24B	11.68	―	2.07%	25.16%	-51.59%
JP:2962	38Underperform	JPY 14.25B	2519.05	―	―	11.41%	―
JP:5994	37Underperform	JPY 3.71B	-1.18	―	2.92%	3.08%	-260.66%

* Industrials Sector Average

Performance Comparison

JP:5757 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5757	CK San-Etsu Co., Ltd.	4585.00	779.50	20.48%
JP:1787	Nakabohtec Corrosion Protecting Co., Ltd.	5400.00	299.50	5.87%
JP:2962	TECNISCO LTD.	1607.00	1142.00	245.59%
JP:5852	Ahresty Corporation	571.00	-157.33	-21.60%
JP:5994	Fine Sinter Co., Ltd.	855.00	-1031.47	-54.68%
JP:6998	Nippon Tungsten Co., Ltd.	2746.00	1304.17	90.45%

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

CK San-Etsu Co., Ltd. AI Stock Analysis