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Sankyo Co
(6417)
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Rating:82Outperform
Price Target:
¥2,459.00
▲(23.79% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong financial quality (high margins, debt-free balance sheet, and positive free cash flow) and supportive valuation (low P/E and high dividend yield). Technicals are constructive but slightly tempered by overbought momentum signals, and recent revenue declines are a key risk to monitor.
Positive Factors
Debt-free balance sheet
A debt-free balance sheet materially reduces refinancing exposure and interest-related pressure, giving Sankyo greater resilience through industry cycles. Strong equity backing also preserves flexibility to fund machine development, sustain distributions, or respond to changing pachinko hall demand without relying on leverage.
Negative Factors
Revenue contraction
The reversal from strong revenue growth in 2022–2024 to declines in 2025 and 2026 signals weaker top-line momentum. If demand for new machines or replacement activity remains subdued, lower sales volumes could eventually pressure fixed-cost absorption and reduce the benefit of Sankyo’s strong margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A debt-free balance sheet materially reduces refinancing exposure and interest-related pressure, giving Sankyo greater resilience through industry cycles. Strong equity backing also preserves flexibility to fund machine development, sustain distributions, or respond to changing pachinko hall demand without relying on leverage.
Read all positive factors
Sankyo Co (6417) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥418.73B
Dividend Yield4.25%
Average Volume (3M)1.00M
Price to Earnings (P/E)11.4
Beta (1Y)0.37
Revenue Growth-23.05%
EPS Growth-31.04%
CountryJP
Employees895
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)185.74
Shares Outstanding230,000,000
10 Day Avg. Volume1,268,220
30 Day Avg. Volume1,000,896
Financial Highlights & Ratios
PEG Ratio-1.15
Price to Book (P/B)1.59
Price to Sales (P/S)2.22
P/FCF Ratio11.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)212.4
Revenue Forecast (FY)¥176.46B
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 operat...
How the Company Makes Money
Sankyo’s core revenue model is centered on selling pachinko and pachislot machines to pachinko hall operators and distributors in Japan. The largest revenue stream is the shipment (unit sales) of new machines, where demand is driven by the release...
Sankyo Co Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 157.60B | 179.21B | 191.82B | 199.10B | 157.30B | 84.86B |
| Gross Profit | 91.05B | 104.67B | 112.33B | 110.68B | 90.92B | 47.82B |
| EBITDA | 54.41B | 66.96B | 77.80B | 78.19B | 68.10B | 27.64B |
| Net Income | 37.38B | 46.75B | 53.99B | 53.79B | 46.89B | 18.47B |
Balance Sheet | ||||||
| Total Assets | 287.61B | 287.46B | 337.89B | 293.56B | 368.56B | 311.71B |
| Cash, Cash Equivalents and Short-Term Investments | 172.65B | 192.44B | 240.05B | 205.44B | 267.61B | 233.01B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 38.47B | 37.30B | 52.89B | 41.98B | 58.30B | 41.59B |
| Stockholders Equity | 249.14B | 250.16B | 285.00B | 251.58B | 310.26B | 270.12B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 34.94B | 53.79B | 44.62B | 32.41B | 20.74B |
| Operating Cash Flow | 0.00 | 51.83B | 58.04B | 47.59B | 35.10B | 22.71B |
| Investing Cash Flow | 0.00 | -17.09B | -3.58B | 15.12B | 6.66B | 8.88B |
| Financing Cash Flow | 0.00 | -82.35B | -19.85B | -109.88B | -7.16B | -16.89B |
Sankyo Co Technical Analysis
Positive
1986.50
Price Trends
1918.82
Positive
1790.33
Positive
2012.45
Positive
Market Momentum
57.73
Negative
63.64
Neutral
70.84
Neutral
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 1986.5 is below the 20-day moving average (MA) of 2049.67, above the 50-day MA of 1918.82, and below the 200-day MA of 2012.45, indicating a bullish trend. The MACD of 57.73 indicates Negative momentum. The RSI at 63.64 is Neutral, neither overbought nor oversold. The STOCH value of 70.84 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥53.54B | 9.76 | ― | 4.75% | -18.65% | -14.43% | |
82 Outperform | ¥418.73B | 11.41 | 14.89% | 4.25% | -23.05% | -31.04% | |
75 Outperform | ¥195.45B | 12.74 | ― | 2.92% | 4.38% | -13.98% | |
74 Outperform | ¥136.00B | 12.21 | ― | 2.71% | 2.93% | 6.77% | |
62 Neutral | ¥341.93B | 18.81 | 20.75% | 1.52% | ― | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ¥216.70B | 19.12 | 4.55% | 3.61% | 47.13% | -26.80% |
* Consumer Cyclical Sector Average
JP:6417
Sankyo Co
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Sankyo Co Corporate Events
Sankyo to Dispose Treasury Shares for Director Stock Compensation Plan
Aug 6, 2026
Sankyo Co., Ltd. has approved the disposal of 1,090,000 treasury shares via third-party allotment to Custody Bank of Japan, Ltd. at ¥1,821.5 per share, for total proceeds of about ¥1.99 billion. The shares, representing roughly 0.47% of ...
Sankyo Raises Payout Ratio and Lifts Dividend Forecast to ¥100 Per Share
Aug 6, 2026
Sankyo has overhauled its dividend policy by raising its target consolidated payout ratio from 40% to 50% and introducing a 5% dividend-on-equity guideline, with the higher of the two determining payouts. To reinforce stability, the company will, ...
Sankyo outlines first-quarter FY 3/2027 results and industry context
Aug 6, 2026
Sankyo Co., Ltd. reported its business results for the first quarter of fiscal year ending March 2027, covering the period from April 1 to June 30, 2026. The company’s presentation highlights an overview of financial performance alongside th...
Sankyo Q1 Profit Slumps Over 50% Despite Strong Sales Gain
Aug 6, 2026
Sankyo reported a sharp year-on-year earnings decline for the first quarter of FY2027, with operating income, recurring income and profit attributable to owners of parent all falling by more than 50% despite net sales growth of 38.1%. The company&...
Sankyo Subsidiary SAN ART to Acquire Pachinko Software and Content Business from Data Art
Jul 15, 2026
Sankyo’s subsidiary SAN ART Co., Ltd. has agreed to acquire from Data Art, Inc. the business that plans and produces effect control software, video content and machine component design for pachinko and pachislot development. The unit generat...
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.