Sanko Co Ltd

Sanko maintains a strong liquidity position, with cash and equivalents amounting to ¥5.63 billion, representing 26% of total assets. The company's liquidity FPT (free cash flow to total liabilities) is robust, supported by an operating cash flow of ¥1.27 billion and a current ratio of 2.92, indicating a solid ability to meet short-term obligations.

Profitability metrics show a return on equity (ROE) of 0.96% and a return on assets (ROA) of 0.67%, both below the typical thresholds for industrial machinery firms. The company's operating income of ¥115.7 million and net income of ¥145.97 million reflect a narrow margin structure, with gross profit at ¥469.3 million or 11.9% of revenue.

Geographically, Sanko's revenue is concentrated in Japan, with no disclosed international segments. The company's exposure to domestic demand and supply chain dynamics is a key factor in its performance. No material revenue diversification is evident in the latest financials.

Looking ahead, Sanko's revenue is expected to remain stable, with no significant growth or contraction projected in the current or next fiscal year. Capital expenditures of ¥798.17 million in the latest period suggest ongoing investment in production capabilities, though the scale is modest relative to total assets.

Risk factors are limited, with no immediate liquidity or dilution concerns identified. The company's debt-to-equity ratio is 0.0, indicating a conservative capital structure with no long-term debt. However, the low ROE and ROA suggest potential challenges in generating returns relative to industry peers.

Recent filings and transcripts do not highlight any material events or strategic shifts. The company's financial performance remains consistent with historical trends, with no significant deviations in operating cash flow or capital spending.

Revenue grew at a 6.0% CAGR over four years, demonstrating consistent top-line expansion despite recent volatility.

The company maintains a zero debt-to-equity ratio, placing it in the top quartile for financial leverage safety.

Cash conversion of 8.73 is best-in-class compared to the cohort median of 0.95, indicating superior efficiency.

Dilution, liquidity, and credit risks are all assessed as low, suggesting a stable operational risk profile.

Return on equity of 0.96% lags significantly behind the cohort median of 3.56%, indicating poor capital efficiency.

Revenue ¥5.21B, +21,4% YoY; Operating income +41,0% YoY.

• ▍Revenue ¥5.21B, +21,4% YoY
• ▍Operating income +41,0% YoY
• ▍Net income −15,8% YoY
• ▍Net margin 4.8%

Revenue ¥4.41B, +6,8% YoY; Operating income −7,8% YoY.

• ▍Revenue ¥4.41B, +6,8% YoY
• ▍Operating income −7,8% YoY
• ▍Net income −12,7% YoY
• ▍Net margin 2.8%

Revenue ¥4.18B, +4,5% YoY; Operating income +5,2% YoY.

• ▍Revenue ¥4.18B, +4,5% YoY
• ▍Operating income +5,2% YoY
• ▍Net income −28,6% YoY
• ▍Net margin 1.5%

Revenue ¥4.42B, +11,8% YoY; Operating income −36,2% YoY.

• ▍Revenue ¥4.42B, +11,8% YoY
• ▍Operating income −36,2% YoY
• ▍Net income −71,4% YoY
• ▍Net margin 0.9%

Revenue ¥4.29B; Operating income ¥204.0M.

• ▍Revenue ¥4.29B
• ▍Operating income ¥204.0M
• ▍Net margin 6.9%

Revenue ¥4.13B; Operating income ¥160.5M.

• ▍Revenue ¥4.13B
• ▍Operating income ¥160.5M
• ▍Net margin 3.5%

Revenue ¥4.00B; Operating income ¥96.8M.

• ▍Revenue ¥4.00B
• ▍Operating income ¥96.8M
• ▍Net margin 2.2%

Revenue ¥3.95B; Operating income ¥115.7M.

• ▍Revenue ¥3.95B
• ▍Operating income ¥115.7M
• ▍Net margin 3.7%

Revenue ¥16.84B, −0,6% YoY; Operating income −30,6% YoY.

• ▍Revenue ¥16.84B, −0,6% YoY
• ▍Operating income −30,6% YoY
• ▍Net income −19,2% YoY
• ▍Free cash flow −118,5% YoY
• ▍Net margin 3.4%

Revenue ¥16.94B, +8,1% YoY; Operating income +59,0% YoY.

• ▍Revenue ¥16.94B, +8,1% YoY
• ▍Operating income +59,0% YoY
• ▍Net income +67,5% YoY
• ▍Free cash flow +12,6% YoY
• ▍Net margin 4.2%

Revenue ¥15.67B, +11,2% YoY; Operating income −17,8% YoY.

• ▍Revenue ¥15.67B, +11,2% YoY
• ▍Operating income −17,8% YoY
• ▍Net income −23,4% YoY
• ▍Free cash flow +365,4% YoY
• ▍Net margin 2.7%

Revenue ¥14.09B, +5,8% YoY; Operating income −2,5% YoY.

• ▍Revenue ¥14.09B, +5,8% YoY
• ▍Operating income −2,5% YoY
• ▍Net income −3,6% YoY
• ▍Free cash flow −74,7% YoY
• ▍Net margin 3.9%