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Sanko Gosei Ltd.
(7888)
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Rating:53Neutral
Price Target:
¥859.00
▼(-4.45% Downside)
Action:Reiterated
Date:10/16/26
The score is held back primarily by weakening profitability and returns in the latest year despite strong multi-year revenue growth and a reasonably supported balance sheet. Technicals are notably bearish with the stock trading below key moving averages and negative MACD, though oversold signals suggest potential stabilization. Valuation is mixed: a high P/E is a risk, partially balanced by a solid dividend yield.
Positive Factors
Strong multi-year revenue growth
The substantial multi-year revenue increase shows that Sanko Gosei has expanded its business base and customer activity over time. Continued scale provides a foundation for operating leverage, broader market participation, and future earnings recovery if profitability stabilizes.
Negative Factors
Sharp profitability deterioration
The latest profit contraction materially weakens earnings quality despite continued revenue expansion. A much lower net margin and net income base reduce internal funding capacity and make future results more sensitive to operating costs, mix, and execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong multi-year revenue growth
The substantial multi-year revenue increase shows that Sanko Gosei has expanded its business base and customer activity over time. Continued scale provides a foundation for operating leverage, broader market participation, and future earnings recovery if profitability stabilizes.
Read all positive factors
Sanko Gosei Ltd. (7888) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥24.60B
Dividend Yield3.47%
Average Volume (3M)109.52K
Price to Earnings (P/E)33.5
Beta (1Y)1.14
Revenue Growth8.80%
EPS Growth-81.12%
CountryJP
Employees2,867
SectorGeneral
Sector StrengthN/A
IndustrySemiconductors
Share Statistics
EPS (TTM)24.12
Shares Outstanding30,688,568
10 Day Avg. Volume111,190
30 Day Avg. Volume109,516
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)0.70
Price to Sales (P/S)0.25
P/FCF Ratio11.26
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)167.3
Revenue Forecast (FY)¥105.00B
Sanko Gosei Ltd. Business Overview & Revenue Model
Company Description
Sanko Gosei Ltd. is a global and domestic manufacturer and seller of plastic components. The company's operations extend to the production and assembly of mechanical and digital parts, as well as the design, manufacturing, and distribution of mold...
Sanko Gosei Ltd. Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
63
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2023 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 100.28B | 97.98B | 91.10B | 93.78B | 81.11B | 65.66B |
| Gross Profit | 17.40B | 16.99B | 15.02B | 13.38B | 11.49B | 9.71B |
| EBITDA | 11.68B | 11.41B | 9.86B | 8.35B | 7.09B | 5.74B |
| Net Income | 736.00M | 759.00M | 3.86B | 2.61B | 2.10B | 1.81B |
Balance Sheet | ||||||
| Total Assets | 91.21B | 88.36B | 76.05B | 74.93B | 65.58B | 58.41B |
| Cash, Cash Equivalents and Short-Term Investments | 16.88B | 14.96B | 12.03B | 9.96B | 8.78B | 6.82B |
| Total Debt | 31.33B | 27.46B | 24.20B | 23.17B | 19.96B | 20.06B |
| Total Liabilities | 55.42B | 52.97B | 43.27B | 44.45B | 39.63B | 35.15B |
| Stockholders Equity | 35.11B | 34.73B | 32.19B | 29.91B | 25.48B | 22.82B |
Cash Flow | ||||||
| Free Cash Flow | 2.17B | 2.17B | 3.32B | 782.00M | 4.04B | 16.00M |
| Operating Cash Flow | 8.41B | 8.41B | 8.57B | 5.70B | 6.79B | 3.01B |
| Investing Cash Flow | -6.48B | -6.48B | -5.31B | -4.94B | -2.87B | -2.35B |
| Financing Cash Flow | 240.00M | 240.00M | -984.00M | -110.00M | -2.25B | -2.36B |
Sanko Gosei Ltd. Technical Analysis
Negative
899.00
Price Trends
879.16
Negative
861.43
Negative
884.02
Negative
Market Momentum
-23.43
Positive
34.10
Neutral
21.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7888, the sentiment is Negative. The current price of 899 is above the 20-day moving average (MA) of 847.25, above the 50-day MA of 879.16, and above the 200-day MA of 884.02, indicating a bearish trend. The MACD of -23.43 indicates Positive momentum. The RSI at 34.10 is Neutral, neither overbought nor oversold. The STOCH value of 21.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7888.
Sanko Gosei Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥13.19B | 3.14 | ― | 5.81% | 45.18% | 169.41% | |
75 Outperform | ¥40.40B | 8.34 | 10.90% | 5.76% | 7.86% | 23.62% | |
73 Outperform | ¥16.77B | 14.01 | ― | 3.68% | 0.64% | 1.31% | |
64 Neutral | ¥14.07B | 14.69 | ― | 5.81% | 13.88% | 87.27% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | ¥24.60B | 33.46 | ― | 3.47% | 8.80% | -81.12% |
* General Sector Average
JP:7888
Sanko Gosei Ltd.
807.00
-7.78
-0.95%
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226.08
17.08%
Sanko Gosei Ltd. Corporate Events
Sanko Gosei Posts Higher Sales and Profit, Lifts Dividend Forecast
Oct 9, 2026
Sanko Gosei reported consolidated net sales of ¥24,717 million for the three months ended August 31, 2026, a 10.2% year-on-year increase, with operating profit up 13.1% to ¥1,346 million and ordinary profit up 7.5% to ¥1,070 million...
Sanko Gosei Settles Arbitration Over Thai Brake Component Dispute
Aug 25, 2026
Sanko Gosei Ltd. has executed a settlement agreement to resolve an arbitration claim brought against its Thai subsidiary, Sanko Gosei (Thailand) Co., Ltd., by SIAM AISIN Co., Ltd. over damages related to automotive brake components. The parties op...
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.