Sankyo Co (6417) AI Stock Analysis

• Market Cap: $470.31B
• Dividend Yield: 4.74%
• Average Volume (3M): 646.72K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.65
• Revenue Growth: -8.81%
• EPS Growth: 14.09%
• Country: JP
• Employees: 878
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 62.54
• Shares Outstanding: 260,000,000
• 10 Day Avg. Volume: 500,290
• 30 Day Avg. Volume: 646,720
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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

Sankyo Co's strong financial performance, characterized by solid profitability and a robust balance sheet, is the primary driver of the stock's overall score. The undervalued P/E ratio and attractive dividend yield enhance its appeal. However, the technical analysis suggests caution due to bearish short-term indicators and a recent decline in revenue and stagnant cash flow.

Sankyo Co Business Overview & Revenue Model

Company Description

Sankyo Co., Ltd. is a Japan-based company primarily engaged in the development, manufacture, and sale of pachinko and pachislot machines. Known for its innovative designs and high-quality gaming machines, Sankyo serves a significant portion of the Japanese gaming industry. The company operates through its core segments, providing a range of entertainment products primarily for the domestic market, catering to various gaming enthusiasts.

How the Company Makes Money

Sankyo Co., Ltd. generates revenue primarily through the sale of its pachinko and pachislot machines. These machines are distributed to pachinko parlors across Japan, which are the main venues where such games are played by consumers. The company also engages in the development and licensing of gaming software and content for these machines, further enhancing their appeal and functionality. Additionally, Sankyo may earn revenue from maintenance and service agreements with parlors to ensure the optimal performance of its machines. Partnerships with other gaming and entertainment companies can also play a role in expanding its market reach and product offerings, contributing to its revenue.

Sankyo Co Financial Statement Overview

Summary

Sankyo Co exhibits strong financial health with a high net profit margin and robust profitability. The balance sheet is exceptionally solid with no debt and a high equity ratio, indicating financial stability. However, a recent decline in TTM revenue and stagnant operating cash flow are areas to watch.

Income Statement

Sankyo Co's income statement shows strong profitability with a high net profit margin of 28.02% in TTM (Trailing-Twelve-Months). The revenue growth has been impressive over the years, with significant growth from 2021 to 2024. The gross profit margin is robust at 58.85% in TTM, indicating efficient cost management. However, there is a slight decline in total revenue in the TTM compared to the previous annual report, which could be a point of concern.

Balance Sheet

The company maintains a very strong balance sheet with no total debt, resulting in a perfect debt-to-equity ratio of 0. The equity ratio is high at 82.89%, reflecting a solid financial structure with a high proportion of equity financing. Return on equity is commendable at 18.44% for TTM, showcasing effective utilization of shareholder funds. The company's excellent liquidity position further strengthens its financial stability.

Cash Flow

The cash flow analysis reveals stability with consistent positive free cash flow over the years. However, there is a lack of growth in operating cash flow from the previous period, as it is reported as zero in TTM. The free cash flow growth rate is not calculable due to missing data, which limits the analysis. The cash flow situation is stable but could benefit from more robust growth in operating cash flow.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
199.10B	157.30B	84.86B	58.13B	78.42B
	Gross Profit
110.68B	90.92B	47.82B	30.73B	41.74B
	EBIT
72.50B	58.53B	21.36B	6.59B	12.55B
	EBITDA
75.41B	60.37B	23.47B	8.99B	16.07B
	Net Income Common Stockholders
53.79B	46.89B	18.47B	5.75B	13.04B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
205.44B	267.61B	233.01B	223.87B	242.85B
	Total Assets
292.12B	365.95B	309.21B	292.10B	325.23B
	Total Debt
0.00	0.00	0.00	0.00	20.01B
	Net Debt
-130.44B	-92.61B	-98.01B	-88.87B	-102.84B
	Total Liabilities
40.54B	55.69B	39.09B	23.22B	55.71B
	Stockholders Equity
251.58B	310.26B	270.12B	268.89B	269.52B
Cash Flow		Free Cash Flow
44.62B	32.41B	20.74B	9.02B	16.03B
	Operating Cash Flow
47.59B	35.10B	22.71B	10.56B	18.97B
	Investing Cash Flow
15.12B	6.66B	8.88B	29.64B	-21.75B
	Financing Cash Flow
-109.88B	-7.16B	-16.89B	-29.18B	-79.22B

Sankyo Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2144.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6417, the sentiment is Positive. The current price of 2144 is above the 20-day moving average (MA) of 2059.95, above the 50-day MA of 2106.13, and above the 200-day MA of 1992.02, indicating a bullish trend. The MACD of 6.41 indicates Negative momentum. The RSI at 59.87 is Neutral, neither overbought nor oversold. The STOCH value of 90.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6417.

Sankyo Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6419	82 Outperform	¥50.61B	5.99		6.52%	29.41%	10.66%
6418	77 Outperform	¥29.52B	4.81		4.02%	38.95%	66.23%
6417	74 Outperform	$470.31B	9.25	18.38%	4.74%	-8.81%	14.09%
6412	74 Outperform	€218.08B	8.52	10.26%	3.71%	18.25%	117.04%
6460	72 Outperform	$626.97B	16.01	10.45%	1.62%	-5.84%	-16.40%
Sector *	61 Neutral	$6.65B	11.64	3.00%	3.98%	2.61%	-21.41%
6425	47 Neutral	$84.54B	―	-4.07%	2.75%	-29.42%	-154.74%

Sankyo Co Corporate Events

Sankyo Co., Ltd. Announces Leadership Changes

Sankyo Co., Ltd. announced a significant change in its leadership, with Akihiko Ishihara retiring as Representative Director, President, CEO, and COO. Toshio Ogura will take over as the new Representative Director, President, CEO, and COO, while Hiroshi Takahashi will become the Senior Executive Vice President. These changes, effective June 27, 2025, are expected to impact the company’s strategic direction and operational focus, potentially influencing its market positioning and stakeholder relations.

SANKYO Forms Alliance with CommSeed for Online Pachinko Content

SANKYO Co., Ltd. has entered into a business alliance with CommSeed Corporation to develop an online content business focused on pachinko/pachislot machine simulator applications. This partnership aims to leverage both companies’ expertise to create new value and expand their businesses, with plans to release a new online virtual parlor game service by summer 2025.

Sankyo Co. Announces Change in Leadership to Enhance Growth

Sankyo Co., Ltd. has announced a change in its representative directors to strengthen its management foundation and promote sustainable growth. Toshio Ogura will be appointed as the new Representative Director, Senior Executive Vice President, and COO, effective June 27, 2025, following the approval at the upcoming General Meeting of Shareholders.