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Sankyo Co (6417) AI Stock Analysis

3 Followers
JP:6417

Sankyo Co

(TSE/TYO:6417)

Select Model
Rating:79Outperform
Price Target:JPY 2,450.00â–²(11.06% Upside)
Action:reiterated
Date:08/17/26

Sankyo's strong financial health, highlighted by its debt-free balance sheet and robust profitability, combined with an attractive valuation (low P/E and high dividend yield), support a positive outlook. However, technical indicators show the stock is overbought, which may limit near-term upside. The overall score of 79 reflects a solid investment with some caution on short-term price momentum.

Positive Factors
High ProfitabilityStrong gross, operating, and net margins indicate that Sankyo converts its gaming-machine business into substantial earnings. This profitability provides resilience against moderate revenue fluctuations and supports ongoing investment, shareholder returns, and competitive product development over the next several quarters.
Negative Factors
Revenue ContractionThe reversal from strong earlier growth to consecutive annual revenue declines signals weaker top-line momentum in Sankyo’s domestic gaming-machine market. If this persists, lower scale could limit operating leverage and make it harder to sustain current profit levels despite healthy margins.

Sankyo Co (6417) vs. iShares MSCI Japan ETF (EWJ)

-50%-40%-30%-20%-10%0%10%20%30%JP:6417-12.71%EWJ+13.61%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 2.14B
Dividend Yield
4.31%
Average Volume (3M)
1.01M
Price to Earnings (P/E)
11.4
Beta (1Y)
0.29
Revenue Growth
-20.68%
EPS Growth
-26.21%
Country
Japan
Employees
895
Sector
Consumer Cyclical
Sector Strength
61
Industry
Gambling, Resorts & Casinos

Sankyo Co Business Overview & Revenue Model

Company Description

Established in 1960 and headquartered in Tokyo, Japan, Sankyo Co., Ltd. specializes in the development and distribution of gaming machines, including pachinko and pachislot, alongside sophisticated ball bearing supply systems. The company's operation...

Sankyo Co Financial Statement Overview

Summary

Sankyo exhibits strong profitability with net margins around 26-30% and operating margins near 35%, though revenue has declined recently. Balance sheet is debt-free with ¥250B equity, providing financial flexibility. Cash flow generation is healthy with operating cash flow covering net income 1.86x, though free cash flow declined due to increased capex. Overall, financial fundamentals are robust.

Income Statement

78Positive

Balance Sheet

95Very Positive

Cash Flow

80Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue157.60B179.21B191.82B199.10B157.30B84.86B
Gross Profit91.05B104.67B112.33B110.68B90.92B47.82B
EBITDA53.26B66.96B77.80B78.19B68.10B27.64B
Net Income37.38B46.75B53.99B53.79B46.89B18.47B
Balance Sheet
Total Assets287.61B287.46B337.89B293.56B368.56B311.71B
Cash, Cash Equivalents and Short-Term Investments172.65B192.44B240.05B205.44B267.61B233.01B
Total Debt000000
Total Liabilities38.47B37.30B52.89B41.98B58.30B41.59B
Stockholders Equity249.14B250.16B285.00B251.58B310.26B270.12B
Cash Flow
Free Cash Flow034.94B53.79B44.62B32.41B20.74B
Operating Cash Flow051.83B58.04B47.59B35.10B22.71B
Investing Cash Flow0-17.09B-3.58B15.12B6.66B8.88B
Financing Cash Flow0-82.35B-19.85B-109.88B-7.16B-16.89B

Sankyo Co Technical Analysis

Technical Analysis SentimentPositive
Last Price2206.00

Price Trends

50DMA2089.86Positive
100DMA1900.30Positive
200DMA1914.39Positive

Market Momentum

MACD25.80Positive
RSI56.92Neutral
STOCH38.20Neutral

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 2206.00 is above the 20-day moving average (MA) of 2180.13, above the 50-day MA of 2089.86, and above the 200-day MA of 1914.39, indicating a bullish trend. The MACD of 25.80 indicates Positive momentum. The RSI at 56.92 is Neutral, neither overbought nor oversold. The STOCH value of 38.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6417.

Sankyo Co Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:6417 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6419JP:641983OutperformJPY 53.88B10.11―4.62%-10.30%-18.12%
JP:9672JP:967281OutperformJPY 141.85B12.96―2.56%2.93%6.77%
JP:6417JP:641779OutperformJPY 422.58B11.3715.24%4.31%-20.68%-26.21%
JP:7458JP:745875OutperformJPY 185.54B11.30―4.02%5.10%13.99%
JP:4680JP:468065NeutralJPY 423.91B22.8620.75%1.25%――
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:6412JP:641255NeutralJPY 206.54B18.224.55%3.79%29.85%-15.13%

* Consumer Cyclical Sector Average

Performance Comparison

-40%-20%0%20%40%JP:6417JP:6412JP:4680JP:6419JP:7458JP:9672Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6417 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6417Sankyo Co 2206.00-286.97-11.51%
JP:6412Heiwa Corporation2112.00195.5010.20%
JP:4680ROUND ONE Corporation1443.50440.5043.92%
JP:6419Mars Group Holdings Corporation3245.00361.5612.54%
JP:7458Daiichikosho Co., Ltd.1816.00285.4318.65%
JP:9672Tokyotokeiba Co., Ltd.5200.0019.160.37%

Sankyo Co Corporate Events

Sankyo Presents First-Half Fiscal 2027 Business Results

Nov 5, 2026

Sankyo Co., Ltd. is a Japanese gaming-machine company serving the pachinko and pachislot industry, with its business focused on products and initiatives related to these entertainment markets.The company presented an overview of its business results...

Sankyo Reports Higher Sales but Lower First-Half Profit

Nov 5, 2026

Sankyo Co., Ltd. is a Japanese entertainment-equipment manufacturer focused on pachinko and pachislot machines, serving the domestic gaming and amusement market.For the six months ended September 30, 2026, consolidated net sales rose 14.9% year on ye...

Sankyo Acquires A-gon to Bolster Pachinko and Pachislot Portfolio

Oct 21, 2026

Sankyo Co., Ltd., a major pachinko and pachislot machine manufacturer, has acquired all shares of A-gon Co., Ltd., a smaller Japanese maker of gaming machines and components, turning it into a wholly owned subsidiary. A-gon has now been formally reco...

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 17, 2026