Sankyo Frontier Co., Ltd. (9639) AI Stock Analysis

• Market Cap: ¥45.35B
• Dividend Yield: 4.26%
• Average Volume (3M): 7.47K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.17
• Revenue Growth: -5.36%
• EPS Growth: -8.38%
• Country: JP
• Employees: 1,119
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 53.14
• Shares Outstanding: 23,356,800
• 10 Day Avg. Volume: 7,610
• 30 Day Avg. Volume: 7,470
• PEG Ratio: 2.00
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 14.24
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥2,188.00 ▲(9.73% Upside)

Sankyo Frontier Co., Ltd. has a strong financial foundation and attractive valuation, which are significant strengths. However, the weak technical indicators suggest bearish momentum, which could pose short-term risks. The absence of recent earnings call data and corporate events limits additional insights.

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

Company Description

Sankyo Frontier Co., Ltd. (9639) is a Japanese company specializing in the development, manufacturing, and sales of various products and services primarily in the fields of entertainment, including gaming machines and digital content. The company operates in sectors such as pachinko and pachislot machines, providing innovative gaming solutions that cater to both domestic and international markets. Sankyo Frontier is known for its commitment to high-quality design and technology, focusing on enhancing user experience and engagement in the gaming industry.

How the Company Makes Money

Sankyo Frontier generates revenue primarily through the sale of its gaming machines, including pachinko and pachislot machines, to operators and establishments within the entertainment sector. The company also earns income from the licensing of its gaming content and technology. Additionally, partnerships with other gaming operators and entertainment companies bolster its revenue streams by expanding its market reach and increasing the distribution of its products. The company may also benefit from after-sales services, maintenance contracts, and the sale of accessories related to its gaming machines, contributing to its overall earnings.

Sankyo Frontier Co., Ltd. Financial Statement Overview

Summary

Sankyo Frontier Co., Ltd. exhibits strong financial health with consistent revenue and profit growth, supported by a solid balance sheet and effective cash flow management. The company's low leverage and high equity ratio indicate financial stability, though a reduction in cash reserves could pose a risk if not managed.

Income Statement

Sankyo Frontier Co., Ltd. has demonstrated strong growth in revenue and profitability over the years. The revenue grew from 2024 to 2025 by 7.11%, with a consistent gross profit margin hovering around 38% across multiple years. The net profit margin for 2025 stood at 9.81%, reflecting healthy profitability. EBIT and EBITDA margins are solid, indicating efficient core operations. However, the slight decrease in gross profit compared to 2024 suggests potential cost pressures.

Balance Sheet

The company's balance sheet is strong, with a decreasing trend in total debt, leading to a low debt-to-equity ratio of 0.05 in 2025. The equity ratio is robust at 74.68%, highlighting financial stability and low leverage. ROE for 2025 is 11.28%, indicating effective use of shareholders' equity to generate profits. However, a reduction in cash and cash equivalents over the years may limit liquidity.

Cash Flow

The cash flow statement shows a decrease in operating cash flow from 2024 to 2025, impacting the free cash flow growth rate negatively. The free cash flow to net income ratio in 2025 is 0.57, indicating moderate cash generation relative to net income. The operating cash flow to net income ratio remains stable, reflecting good conversion of income to cash. Continued investment in capital expenditures suggests reinvestment for growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.07B	56.09B	52.37B	50.00B	53.35B	48.18B
Gross Profit	20.72B	22.03B	21.29B	20.11B	22.96B	20.56B
EBITDA	14.89B	14.16B	14.23B	12.09B	14.99B	13.20B
Net Income	4.85B	5.50B	5.29B	4.34B	6.35B	5.12B
Balance Sheet
Total Assets	64.27B	65.33B	68.59B	61.12B	64.49B	59.23B
Cash, Cash Equivalents and Short-Term Investments	3.17B	4.68B	5.29B	3.68B	6.88B	4.41B
Total Debt	3.74B	2.43B	3.46B	4.02B	6.17B	8.38B
Total Liabilities	15.71B	16.53B	23.72B	19.81B	25.86B	24.75B
Stockholders Equity	48.57B	48.80B	44.87B	41.30B	38.63B	34.48B
Cash Flow
Free Cash Flow	0.00	3.13B	4.09B	951.00M	6.84B	4.47B
Operating Cash Flow	0.00	5.12B	6.23B	3.32B	8.56B	6.15B
Investing Cash Flow	0.00	-2.91B	-2.54B	-2.62B	-1.69B	-1.68B
Financing Cash Flow	0.00	-2.84B	-2.38B	-3.91B	-3.91B	-3.12B

Sankyo Frontier Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1994.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9639, the sentiment is Negative. The current price of 1994 is below the 20-day moving average (MA) of 2022.10, below the 50-day MA of 2028.29, and above the 200-day MA of 1961.94, indicating a neutral trend. The MACD of -10.07 indicates Positive momentum. The RSI at 34.13 is Neutral, neither overbought nor oversold. The STOCH value of 63.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9639.

Sankyo Frontier Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8931	78 Outperform	¥18.21B	5.10	―	4.91%	10.42%	48.21%
3242	75 Outperform	¥21.00B	9.94	―	3.79%	84.40%	142.34%
3010	69 Neutral	¥46.31B	12.61	―	1.52%	40.03%	-45.93%
9639	68 Neutral	¥45.35B	9.12	―	4.26%	-5.36%	-8.38%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3475	63 Neutral	¥38.47B	16.72	―	3.42%	21.25%	28.04%
1431	57 Neutral	¥17.08B	34.65	―	0.87%	3.69%	26.04%