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

2 Followers

Sanyo Denki Co., Ltd.

(TSE/TYO:6516)

Select Model

Rating:69Neutral

Price Target:JPY 4,599.00▲(1.19% Upside)

Action:downgraded

Date:10/30/26

Strong financial quality is the primary support, driven by profitability and an excellent balance sheet. However, weakening cash flow and clearly negative technical momentum materially reduce the score; valuation provides moderate support.

Positive Factors

Very low leverageVery low leverage reduces financial risk and preserves flexibility through changing demand conditions. The company can support operations and pursue product or capacity investments without relying heavily on borrowing, while its expanding equity base provides additional balance-sheet resilience.

Negative Factors

Weak recent cash conversionRecent cash generation has lagged accounting earnings, with operating cash flow representing only a small portion of net income and free cash flow falling sharply. If this persists, it could reduce flexibility for investment, dividends, or other capital-allocation priorities.

Sanyo Denki Co., Ltd. (6516) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 161.48B
Dividend Yield: 3.52%
Average Volume (3M): 123.99K
Price to Earnings (P/E): 14.0
Beta (1Y): 1.43
Revenue Growth: 20.05%
EPS Growth: 53.26%
Country: Japan
Employees: 3,599
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

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

Company Description

Sanyo Denki Co., Ltd., headquartered in Tokyo, Japan, is a global company with operations across Japan, North America, Europe, East Asia, and Southeast Asia. The firm specializes in manufacturing and supplying a diverse array of products and services...

How the Company Makes Money

Sanyo Denki primarily makes money by designing, manufacturing, and selling three main product families: (1) cooling systems, (2) motion control systems, and (3) power systems. 1) Product sales to OEMs and industrial customers (core revenue driver) -...

Sanyo Denki Co., Ltd. Financial Statement Overview

Summary

Strong profitability and excellent balance-sheet strength, supported by improving margins, very low leverage, and substantial equity. The score is moderated by declining free cash flow and weaker cash conversion.

Income Statement

86Very Positive

Balance Sheet

92Very Positive

Cash Flow

61Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	122.58B	107.35B	97.85B	112.90B	120.80B	101.12B
Gross Profit	35.37B	29.95B	24.81B	28.74B	31.09B	25.93B
EBITDA	20.95B	17.17B	14.26B	19.37B	20.43B	17.54B
Net Income	11.51B	8.66B	5.64B	10.48B	11.41B	9.02B
Balance Sheet
Total Assets	180.67B	166.37B	145.63B	150.69B	143.87B	128.67B
Cash, Cash Equivalents and Short-Term Investments	25.76B	28.72B	28.90B	26.69B	20.55B	18.78B
Total Debt	6.78B	5.99B	7.28B	14.53B	20.15B	20.25B
Total Liabilities	45.49B	38.51B	32.28B	40.31B	50.65B	48.01B
Stockholders Equity	135.18B	127.86B	113.35B	110.36B	93.21B	80.65B
Cash Flow
Free Cash Flow	4.17B	9.36B	13.12B	15.72B	5.08B	4.96B
Operating Cash Flow	6.34B	10.83B	15.79B	21.45B	8.26B	8.23B
Investing Cash Flow	-8.37B	-7.66B	-3.73B	-6.47B	-4.42B	-4.83B
Financing Cash Flow	-3.58B	-4.92B	-9.69B	-10.67B	-2.67B	-622.00M

Sanyo Denki Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price4545.00

Price Trends

50DMA5134.75Negative

100DMA5513.61Negative

200DMA5425.69Negative

Market Momentum

MACD-227.52Positive

RSI39.69Neutral

STOCH58.83Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6516, the sentiment is Negative. The current price of 4545.00 is below the 20-day moving average (MA) of 4805.00, below the 50-day MA of 5134.75, and below the 200-day MA of 5425.69, indicating a bearish trend. The MACD of -227.52 indicates Positive momentum. The RSI at 39.69 is Neutral, neither overbought nor oversold. The STOCH value of 58.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6516.

Sanyo Denki Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6516 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6637	79Outperform	JPY 46.38B	10.19	―	1.77%	15.89%	2.08%
JP:6504	76Outperform	JPY 1.66T	14.67	14.39%	1.93%	9.29%	34.43%
JP:6503	70Outperform	JPY 10.44T	18.91	11.51%	1.26%	12.06%	31.99%
JP:6516	69Neutral	JPY 173.45B	14.02	―	3.52%	20.05%	53.26%
JP:6905	61Neutral	JPY 50.30B	-18.99	―	4.45%	17.15%	-463.16%
JP:6506	57Neutral	JPY 999.65B	27.33	7.43%	1.85%	5.82%	-37.13%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6516 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6516	Sanyo Denki Co., Ltd.	4545.00	848.92	22.97%
JP:6503	Mitsubishi Electric Corp	4755.00	530.48	12.56%
JP:6504	Fuji Electric Co	11330.00	942.62	9.07%
JP:6506	Yaskawa Electric Corporation	3791.00	-168.33	-4.25%
JP:6637	Terasaki Electric Co., Ltd.	3455.00	-1353.83	-28.15%
JP:6905	Cosel Co., Ltd.	1236.00	102.77	9.07%

Sanyo Denki Co., Ltd. Corporate Events

Sanyo Denki Posts Strong Q2 Earnings and Confirms Robust FY2027 Outlook

Oct 29, 2026

Sanyo Denki reported a strong second quarter for FY2027, with revenue rising 30% year on year to ¥66.0 billion and operating profit climbing 84.7% amid improved profitability. Profit attributable to owners of the parent surged 81.3%, lifting basic ea...

Sanyo Denki Raises Earnings Outlook and Interim Dividend on Strong AI and Automation Demand

Oct 28, 2026

Sanyo Denki Co., Ltd. has revised upward its consolidated forecasts for the second quarter and full fiscal year ending March 31, 2027, citing stronger-than-expected demand in communications equipment, factory automation, robotics, semiconductor manuf...

Sanyo Denki Posts Surge in Q1 Earnings and Holds Confident FY2027 Outlook

Sep 1, 2026

Sanyo Denki reported strong first-quarter results for fiscal 2027, with revenue rising 33.5% year on year to ¥32.24 billion and operating profit surging 138.1% to ¥4.21 billion. Profit attributable to owners of the parent climbed 184.6% to ¥2.99 bill...

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: Oct 30, 2026

Sanyo Denki Co., Ltd. AI Stock Analysis