Sanyo Denki Co., Ltd. (6516) AI Stock Analysis

• Market Cap: ¥116.28B
• Dividend Yield: 1.69%
• Average Volume (3M): 42.46K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.91
• Revenue Growth: -13.34%
• EPS Growth: -45.52%
• Country: JP
• Employees: 3,705
• Sector: Industrials
• Sector Strength: 77
• Industry: Electrical Equipment & Parts
• EPS (TTM): 472.62
• Shares Outstanding: 12,972,187
• 10 Day Avg. Volume: 56,670
• 30 Day Avg. Volume: 42,463
• 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

Sanyo Denki Co., Ltd. has a solid financial foundation with a strong balance sheet and effective cash flow management. Technical analysis shows positive momentum, although the stock may be overbought. The valuation is moderate, with a reasonable P/E ratio and a modest dividend yield. The main concern is the declining revenue and free cash flow growth, which could impact future performance.

Sanyo Denki Co., Ltd. Business Overview & Revenue Model

Company Description

Sanyo Denki Co., Ltd. engages in cooling systems, power systems, servo systems, electrical equipment sales, and electrical works contracting businesses in Japan, North America, Europe, East Asia, and Southeast Asia. Its cooling systems include cooling fans and cooling fan units; power systems products comprise uninterruptible power supplies, inverters, engine generators, and power conditioners for photovoltaic generation systems; and servo systems products consist of servo motors, servo amplifiers, stepping motors and drivers, controllers, and encoders. The company also sells industrial electrical equipment, control equipment, and electrical materials for medical and other markets. In addition, it operates in the field of electrical contracting for steel mills, and maintenance and repair work of old electrical equipment. The company sells its products under the SANYO DENKI brand. The company was formerly known as Sanyo Shokai Co., Ltd. and changed its name to Sanyo Denki Co., Ltd. in April 1942. Sanyo Denki Co., Ltd. was founded in 1927 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sanyo Denki Co., Ltd. generates revenue through the sale of its electronic and electrical products across its three main business divisions. The Cooling Systems division provides cooling solutions such as fans and blowers, which are crucial for thermal management in electronic devices. The Power Systems division offers power supply units and battery systems, serving industries that require reliable and efficient power solutions. The Servo Systems division produces servo motors and amplifiers used in precise motion control applications, catering to sectors like robotics and factory automation. The company also engages in significant partnerships with other technology firms to expand its market reach and enhance its product offerings, contributing to its earnings.

Sanyo Denki Co., Ltd. Financial Statement Overview

Summary

Sanyo Denki Co., Ltd. demonstrates strong financial stability with a robust balance sheet and effective cash flow management. However, declining revenue and negative free cash flow growth are concerns that might hinder future growth.

Income Statement

Sanyo Denki Co., Ltd. has experienced declining revenue in the most recent year, with a revenue decrease of 13.3%. Despite this, the company maintains a healthy gross profit margin of 25.7% and a net profit margin of 5.8%. The EBIT and EBITDA margins are also solid at 7.5% and 14.9% respectively, indicating reasonable operational efficiency. However, the decline in revenue raises concerns about future growth prospects.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.06, suggesting conservative leverage. The return on equity remains strong at 5.0%, indicating efficient use of shareholder capital. The equity ratio is high at 77.9%, reflecting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Sanyo Denki has demonstrated solid cash flow management with a free cash flow to net income ratio of 2.33, indicating effective conversion of profits into cash. However, the free cash flow growth rate is negative at -10.7%, reflecting a decline in free cash flow. The operating cash flow to net income ratio of 2.80 shows strong cash generation capabilities.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
112.90B	120.80B	101.12B	77.51B	70.71B
	Gross Profit
28.90B	31.22B	25.60B	17.04B	13.95B
	EBIT
11.81B	13.42B	10.97B	4.83B	1.04B
	EBITDA
19.36B	20.43B	17.54B	10.53B	6.34B
	Net Income Common Stockholders
10.48B	11.41B	9.02B	3.94B	426.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.38B	21.43B	19.05B	15.23B	14.07B
	Total Assets
150.69B	143.87B	128.67B	113.96B	106.10B
	Total Debt
14.53B	20.15B	20.25B	19.11B	17.97B
	Net Debt
-12.16B	-394.00M	1.47B	4.26B	4.33B
	Total Liabilities
40.32B	50.66B	48.01B	43.58B	43.56B
	Stockholders Equity
110.36B	93.20B	80.64B	70.38B	62.53B
Cash Flow		Free Cash Flow
14.69B	4.23B	3.54B	799.00M	3.02B
	Operating Cash Flow
21.45B	8.26B	8.23B	4.96B	8.73B
	Investing Cash Flow
-6.47B	-4.42B	-4.83B	-4.29B	-5.33B
	Financing Cash Flow
-10.67B	-2.67B	-622.00M	10.00M	-1.11B

Sanyo Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9750.00
• 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:6516, the sentiment is Positive. The current price of 9750 is above the 20-day moving average (MA) of 8835.00, above the 50-day MA of 8874.46, and above the 200-day MA of 8571.35, indicating a bullish trend. The MACD of 277.09 indicates Negative momentum. The RSI at 62.02 is Neutral, neither overbought nor oversold. The STOCH value of 82.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6516.

Sanyo Denki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6516	72 Outperform	¥116.28B	20.62		1.69%	-13.34%	-45.52%
Sector *	64 Neutral	$4.25B	11.69	5.23%	249.83%	4.04%	-9.46%

Sanyo Denki Co., Ltd. Corporate Events

Sanyo Denki Announces Treasury Stock Acquisition Strategy

Sanyo Denki Co., Ltd. has resolved to acquire up to 110,000 of its own shares through the Tokyo Stock Exchange’s off-hours trading system, ToSTNeT-3, as part of its strategy to implement flexible capital policies in response to the evolving business environment. This move, involving a maximum expenditure of ¥1,060,400,000, is intended to strengthen the company’s financial position and potentially enhance shareholder value, although market conditions may affect the final acquisition outcome.

Sanyo Denki Increases Dividend Forecast Amid Strong Performance

Sanyo Denki has announced a revision in its dividend forecast for the fiscal year ending March 2025, increasing the dividend per share from the previously forecasted ¥75 to ¥90. This decision reflects the company’s strong performance and commitment to maintaining a robust corporate structure, ensuring competitiveness in the industry.

Sanyo Denki Reports FY2025 Results and Optimistic FY2026 Forecast

Sanyo Denki Co., Ltd. reported a decline in its FY2025 financial results, with a 13.3% decrease in revenue and a significant drop in profits compared to the previous year. Despite these challenges, the company has increased its annual dividend and forecasts a recovery in FY2026, expecting a 9.5% increase in revenue and substantial growth in profits, indicating a positive outlook for stakeholders.