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Sanko Gosei Ltd. (JP:7888)
:7888
Japanese Market
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Sanko Gosei Ltd. (7888) AI Stock Analysis

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JP:7888

Sanko Gosei Ltd.

(7888)

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Neutral 53 (OpenAI - Gpt-5.6Sol)
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)

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
Multi-year revenue growth is strong (about ¥55.1B in 2021 to ~¥98.0B in 2026) and leverage looks manageable with rising equity. However, the latest year shows a sharp profitability deterioration (net margin ~0.8% vs ~4.2% prior year; net income ~¥0.76B vs ~¥3.86B) and ROE dropped to ~2.2%, indicating weaker returns and higher earnings volatility. Operating and free cash flow are positive, but cash conversion has been inconsistent.
Income Statement
55
Neutral
Balance Sheet
63
Positive
Cash Flow
57
Neutral
BreakdownTTMMay 2025May 2024May 2023May 2023May 2021
Income Statement
Total Revenue100.28B97.98B91.10B93.78B81.11B65.66B
Gross Profit17.40B16.99B15.02B13.38B11.49B9.71B
EBITDA11.68B11.41B9.86B8.35B7.09B5.74B
Net Income736.00M759.00M3.86B2.61B2.10B1.81B
Balance Sheet
Total Assets91.21B88.36B76.05B74.93B65.58B58.41B
Cash, Cash Equivalents and Short-Term Investments16.88B14.96B12.03B9.96B8.78B6.82B
Total Debt31.33B27.46B24.20B23.17B19.96B20.06B
Total Liabilities55.42B52.97B43.27B44.45B39.63B35.15B
Stockholders Equity35.11B34.73B32.19B29.91B25.48B22.82B
Cash Flow
Free Cash Flow2.17B2.17B3.32B782.00M4.04B16.00M
Operating Cash Flow8.41B8.41B8.57B5.70B6.79B3.01B
Investing Cash Flow-6.48B-6.48B-5.31B-4.94B-2.87B-2.35B
Financing Cash Flow240.00M240.00M-984.00M-110.00M-2.25B-2.36B

Sanko Gosei Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price899.00
Price Trends
50DMA
879.16
Negative
100DMA
861.43
Negative
200DMA
884.02
Negative
Market Momentum
MACD
-23.43
Positive
RSI
34.10
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥13.19B3.14―5.81%45.18%169.41%
75
Outperform
¥40.40B8.3410.90%5.76%7.86%23.62%
73
Outperform
¥16.77B14.01―3.68%0.64%1.31%
64
Neutral
¥14.07B14.69―5.81%13.88%87.27%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
53
Neutral
¥24.60B33.46―3.47%8.80%-81.12%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7888
Sanko Gosei Ltd.
807.00
-7.78
-0.95%
JP:8150
Sanshin Electronics Co
3,300.00
558.47
20.37%
JP:3640
Densan Co., Ltd.
2,635.00
-335.39
-11.29%
JP:6337
Tesec Corporation
2,582.00
589.07
29.56%
JP:6730
Axell Corporation
1,550.00
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.Date of analysis: Oct 16, 2026