Sansha Electric Manufacturing Co Ltd

Sansha Electric Manufacturing Co Ltd maintains a strong liquidity position, with a current ratio of 2.6 and cash and equivalents of ¥5.8 billion, which supports its operational flexibility. The company's price-to-book ratio of 0.78 and price-to-tangible-book ratio of 0.78 indicate that the market values the company below its book value, suggesting potential undervaluation. The debt-to-equity ratio of 0.05 reflects a conservative capital structure, with long-term debt of ¥1.25 billion compared to total equity of ¥24.43 billion.

Profitability metrics show a return on equity of 1.93% and a return on assets of 1.34%, which are below the industry median for electrical components and equipment firms. The company's net income of ¥472 million and operating income of ¥91 million indicate modest profitability, with a gross profit of ¥1.44 billion supporting its cost structure. The company's operating cash flow of ¥2.3 billion provides a buffer for capital expenditures and debt servicing.

The company's revenue of ¥7.31 billion is concentrated in a single business segment, with no disclosed geographic diversification. This concentration increases exposure to sector-specific risks and limits growth opportunities outside its core markets. The company's capital expenditures of -¥937 million suggest a reduction in investment, which may impact long-term growth.

Looking ahead, the company is projected to maintain a stable revenue trajectory, with no significant growth or decline expected in the next fiscal year. The current fiscal year's revenue is expected to remain flat, with a mean EPS estimate of ¥60.10 compared to the last actual EPS of ¥37.80. The company's low dilution risk and strong liquidity position support its ability to meet obligations and fund operations without external financing.

The company's risk assessment indicates low liquidity and dilution risks, with no immediate filing-based flags detected. The conservative capital structure and strong cash reserves reduce the likelihood of financial distress. The company's low debt-to-equity ratio and high current ratio further support its financial stability.

Recent events, including analyst estimates and financial filings, indicate a positive outlook from the investment community. The mean recommendation of 1.00 (strong buy) and the absence of sell or strong-sell ratings suggest confidence in the company's future performance. The company's strong liquidity and conservative capital structure are likely to support its ability to navigate economic uncertainties.

Cash conversion ratio of 4.88 ranks best-in-class, far surpassing the 0.89 cohort median.

Debt-to-equity ratio of 0.05 is well below the 0.24 cohort median, reflecting a conservative capital structure.

The company maintains low dilution, liquidity, and credit risk flags, suggesting minimal immediate financial distress.

Revenue grew at a 7.0% CAGR over four years, demonstrating long-term top-line expansion capability.

Operating margin of 1.2% falls well below the 5.3% cohort median, indicating weak operational efficiency.

Revenue ¥6.55B, +3,9% YoY; Operating income −30,8% YoY.

• ▍Revenue ¥6.55B, +3,9% YoY
• ▍Operating income −30,8% YoY
• ▍Net income −69,5% YoY
• ▍Net margin 1.7%

Revenue ¥6.21B, +9,9% YoY; Operating income +170,2% YoY.

• ▍Revenue ¥6.21B, +9,9% YoY
• ▍Operating income +170,2% YoY
• ▍Net income +159,6% YoY
• ▍Net margin 1.4%

Revenue ¥5.41B, −9,4% YoY; Operating income −125,2% YoY.

• ▍Revenue ¥5.41B, −9,4% YoY
• ▍Operating income −125,2% YoY
• ▍Net income −143,2% YoY
• ▍Net margin -2.2%

Revenue ¥7.50B, +2,7% YoY; Operating income +379,1% YoY.

• ▍Revenue ¥7.50B, +2,7% YoY
• ▍Operating income +379,1% YoY
• ▍Net income −99,6% YoY
• ▍Net margin 0.0%

Revenue ¥6.31B; Operating income ¥461.0M.

• ▍Revenue ¥6.31B
• ▍Operating income ¥461.0M
• ▍Net margin 5.9%

Revenue ¥5.65B; Operating income -¥265.0M.

• ▍Revenue ¥5.65B
• ▍Operating income -¥265.0M
• ▍Net margin -2.7%

Revenue ¥5.97B; Operating income ¥469.0M.

• ▍Revenue ¥5.97B
• ▍Operating income ¥469.0M
• ▍Net margin 4.7%

Revenue ¥7.31B; Operating income ¥91.0M.

• ▍Revenue ¥7.31B
• ▍Operating income ¥91.0M
• ▍Net margin 6.5%

Revenue ¥25.44B, −17,9% YoY; Operating income −68,1% YoY.

• ▍Revenue ¥25.44B, −17,9% YoY
• ▍Operating income −68,1% YoY
• ▍Net income −83,0% YoY
• ▍Free cash flow −169,0% YoY
• ▍Net margin 2.0%

Revenue ¥31.00B, +10,4% YoY; Operating income +106,4% YoY.

• ▍Revenue ¥31.00B, +10,4% YoY
• ▍Operating income +106,4% YoY
• ▍Net income +137,9% YoY
• ▍Free cash flow +147,2% YoY
• ▍Net margin 9.5%

Revenue ¥28.09B, +23,9% YoY; Operating income +27,9% YoY.

• ▍Revenue ¥28.09B, +23,9% YoY
• ▍Operating income +27,9% YoY
• ▍Net income +8,3% YoY
• ▍Free cash flow −33,3% YoY
• ▍Net margin 4.4%

Revenue ¥22.68B, +16,7% YoY; Operating income +226,2% YoY.

• ▍Revenue ¥22.68B, +16,7% YoY
• ▍Operating income +226,2% YoY
• ▍Net income +130,8% YoY
• ▍Free cash flow +80,4% YoY
• ▍Net margin 5.1%