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Sankyo Seiko Co., Ltd. (8018) AI Stock Analysis

JP:8018

Sankyo Seiko Co., Ltd.

(TSE/TYO:8018)

Select Model
Rating:73.1Outperform
Price Target:JPY 959.00â–²(15.26% Upside)
Action:upgraded
Date:08/17/26

Sankyo Seiko's strong balance sheet and improving cash flow provide a solid foundation, though declining operating margins temper optimism. The stock exhibits positive technical momentum and trades at a reasonable valuation. Overall, the stock is moderately attractive.

Positive Factors
Steady Revenue GrowthSustained top-line growth indicates continued demand and market reach despite profitability pressure. If maintained, this provides a durable base for operating leverage and supports the company’s ability to invest in its apparel retail business.
Negative Factors
Sharp Operating Margin CompressionThe steep margin decline suggests materially weaker earnings quality, whether from higher costs, reduced operating efficiency, or other headwinds. Continued compression would limit the benefit of revenue growth and could weaken future profitability.

Sankyo Seiko Co., Ltd. (8018) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%JP:8018+27.54%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 31.04B
Dividend Yield
3.24%
Average Volume (3M)
45.26K
Price to Earnings (P/E)
14.4
Beta (1Y)
0.77
Revenue Growth
8.48%
EPS Growth
9.50%
Country
Japan
Employees
247
Sector
General
Sector Strength
55
Industry
Apparel - Retail

Sankyo Seiko Co., Ltd. Business Overview & Revenue Model

Company Description

Sankyo Seiko Co., Ltd., an Osaka, Japan-based company founded in 1920, operates a multifaceted business primarily focused on the fashion sector. The enterprise is involved in the design, manufacturing, international sourcing, and worldwide distributi...

Sankyo Seiko Co., Ltd. Financial Statement Overview

Summary

Revenue growth over four years and a strong balance sheet with low debt (D/E 0.12) are positives, but operating margin fell sharply from 13.0% to 3.1%, weighing on core profitability. Cash flow improved, with positive free cash flow. Overall financial health is moderate.

Income Statement

50Neutral

Balance Sheet

80Positive

Cash Flow

70Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue24.46B23.98B22.59B21.27B19.47B16.91B
Gross Profit11.02B10.53B9.88B9.86B8.12B6.65B
EBITDA4.80B1.98B4.22B4.48B3.65B3.44B
Net Income2.19B2.07B2.11B2.23B2.21B2.14B
Balance Sheet
Total Assets84.22B78.61B69.82B66.61B53.00B50.68B
Cash, Cash Equivalents and Short-Term Investments10.19B11.79B9.01B11.91B14.37B16.41B
Total Debt6.26B6.58B5.59B6.24B3.92B3.09B
Total Liabilities23.02B22.46B18.64B18.88B12.84B11.01B
Stockholders Equity60.84B55.78B50.83B47.39B39.83B39.36B
Cash Flow
Free Cash Flow01.62B-150.00M-2.05B2.64B2.36B
Operating Cash Flow02.85B1.11B3.20B2.77B2.39B
Investing Cash Flow0197.00M-817.00M-5.93B-1.52B-457.00M
Financing Cash Flow0-1.41B-3.10B-421.00M-3.38B-2.72B

Sankyo Seiko Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price832.00

Price Trends

50DMA842.84Negative
100DMA825.77Positive
200DMA828.80Positive

Market Momentum

MACD-3.88Positive
RSI49.67Neutral
STOCH32.58Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8018, the sentiment is Positive. The current price of 832.00 is below the 20-day moving average (MA) of 835.00, below the 50-day MA of 842.84, and above the 200-day MA of 828.80, indicating a neutral trend. The MACD of -3.88 indicates Positive momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 32.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8018.

Sankyo Seiko Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:8018 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7606JP:760685OutperformJPY 69.46B10.24―4.03%8.20%69.92%
JP:2726JP:272677OutperformJPY 274.12B14.50―2.67%7.11%57.75%
JP:8018JP:801873OutperformJPY 33.25B14.38―3.24%8.48%9.50%
JP:8227JP:822771OutperformJPY 743.40B15.629.11%2.23%5.20%11.08%
JP:2792JP:279267NeutralJPY 38.93B16.03―3.94%-3.56%-29.47%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:3548JP:354849NeutralJPY 19.23B-16.89―7.12%-9.23%47.73%

* General Sector Average

Performance Comparison

-20%0%20%40%JP:8018JP:8227JP:2726JP:2792JP:3548JP:7606Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:8018 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:8018Sankyo Seiko Co., Ltd.833.00178.9227.35%
JP:8227SHIMAMURA Co 3359.00116.983.61%
JP:2726PAL GROUP Holdings Co., Ltd.1500.00-433.86-22.44%
JP:2792HONEYS HOLDINGS CO. LTD.1397.00-31.94-2.24%
JP:3548BAROQUE JAPAN LIMITED534.00-176.22-24.81%
JP:7606UNITED ARROWS LTD.2509.00659.4035.65%
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: Aug 17, 2026