OTCPK:SNKO.F

Stock Analysis Report

Executive Summary

Sanko Co., Ltd. manufactures and sells automobile, mechatronics, digital consumer electronic, press, office, and plastic related products in Japan.

Rewards

Trading at 47.7% below its fair value

Risk Analysis

Unstable dividend track record

Profit margins (3%) are lower than last year (4.7%)

Does not have a meaningful market cap ($5B)



Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Sanko's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SNKO.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

SNKO.F

1.7%

US Electronic

1.5%

US Market


1 Year Return

n/a

SNKO.F

10.4%

US Electronic

20.1%

US Market

Return vs Industry: Insufficient data to determine how SNKO.F performed against the US Electronic industry.

Return vs Market: Insufficient data to determine how SNKO.F performed against the US Market.


Shareholder returns

SNKO.FIndustryMarket
7 Day0%1.7%1.5%
30 Day0%-4.7%1.4%
90 Day0%2.4%8.7%
1 Yearn/a11.5%10.4%22.7%20.1%
3 Yearn/a37.4%33.6%50.1%40.5%
5 Yearn/a70.5%62.1%73.1%54.1%

Price Volatility Vs. Market

How volatile is Sanko's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sanko undervalued compared to its fair value and its price relative to the market?

48.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SNKO.F ($3.75) is trading below our estimate of fair value ($7.18)

Significantly Below Fair Value: SNKO.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SNKO.F is good value based on its PE Ratio (11.6x) compared to the Electronic industry average (21.2x).

PE vs Market: SNKO.F is good value based on its PE Ratio (11.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SNKO.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SNKO.F is good value based on its PB Ratio (0.4x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

How is Sanko forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.4%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sanko has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether Sanko is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Sanko's filings and announcements here.
  • Explore growth companies in the Tech industry.

Past Performance

How has Sanko performed over the past 5 years?

35.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNKO.F has high quality earnings.

Growing Profit Margin: SNKO.F's current net profit margins (3%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: SNKO.F has become profitable over the past 5 years, growing earnings by 35.4% per year.

Accelerating Growth: SNKO.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SNKO.F had negative earnings growth (-30.5%) over the past year, making it difficult to compare to the Electronic industry average (53.6%).


Return on Equity

High ROE: SNKO.F's Return on Equity (3.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sanko's financial position?


Financial Position Analysis

Short Term Liabilities: SNKO.F's short term assets (¥12.9B) exceed its short term liabilities (¥4.2B).

Long Term Liabilities: SNKO.F's short term assets (¥12.9B) exceed its long term liabilities (¥887.0M).


Debt to Equity History and Analysis

Debt Level: SNKO.F is debt free.

Reducing Debt: SNKO.F had no debt 5 years ago.

Debt Coverage: SNKO.F has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SNKO.F has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: SNKO.F has a high level of physical assets or inventory.

Debt Coverage by Assets: SNKO.F's debt is not covered by short term assets (assets are -285.6x debt).


Next Steps

Dividend

What is Sanko's current dividend yield, its reliability and sustainability?

2.35%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SNKO.F's dividend (2.32%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: SNKO.F's dividend (2.32%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: SNKO.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: SNKO.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.8%), SNKO.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.6yrs

Average board tenure


CEO

Kiyoshi Takemura (62yo)

8.8yrs

Tenure

0

Mr. Kiyoshi Takemura has been the President of Sanko Co., Ltd. since April 2011. Mr. Takemura served as Managing Director of Sanko Co. Ltd. since June 2009 and served as its Director of Plastic Business si ...


Board Members

NamePositionTenureCompensationOwnership
Kiyoshi Takemura
President and Representative Director8.8yrsno data0.055% ¥25.4k
Junichi Hiraide
General Manager of Business Administration and Director4.6yrsno data0.11% ¥50.8k
Masanori Tamura
Chairman8.6yrsno data22.16% ¥10.2m
Ichiro Hata
External Director and Member of Audit & Supervisory Board8.6yrsno datano data
Hiromi Akabane
External Director and Member of Audit & Supervisory Board8.8yrsno datano data
Satoshi Kusama
External Director and Chairman of the Audit & Supervisory Board4.6yrsno datano data

8.6yrs

Average Tenure

62yo

Average Age

Experienced Board: SNKO.F's board of directors are considered experienced (8.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sanko Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sanko Co., Ltd.
  • Ticker: SNKO.F
  • Exchange: OTCPK
  • Founded: 1963
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: JP¥4.990b
  • Listing Market Cap: JP¥45.808m
  • Shares outstanding: 9.02m
  • Website: https://www.sko.co.jp

Number of Employees


Location

  • Sanko Co., Ltd.
  • 959 788 Hirokino village Shiojiri
  • Shiojiri
  • Nagano
  • 399-0782
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6964TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJan 1992
SNKO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992

Biography

Sanko Co., Ltd. manufactures and sells automobile, mechatronics, digital consumer electronic, press, office, and plastic related products in Japan. It offers automotive related products, including impact lock and hollow single axis hinges, opening and closing mechanism products, slide mechanism products, and insulators; and video related products, such as logo marks, small 2-axis hinges, tilt hinges, hollow biaxial hinges, and resin frames. The company also provides digital camera related products comprising caulking pin and press parts, small 2-axis hinges, parallel biaxial hinges, and hollow biaxial hinges; and computer related products consisting of rotary 2-axis hinges, synchro hinges, compact retractable hinges, and heat conduction hinges. In addition, it offers mobile phone related products, including precision shearing of rectangular shafts, in-process ultra-precision cold forgings, slide hinges, and resin frames; OA related products, such as precision machining and high precision parts, outsert moulded articles, and high precision resin gears; and press products. Further, the company provides hinge products comprising click hinges, free stop hinges, retractable hinges, high torque hinges, and slide hinges; and plastic products consisting of outserts, thin wall mouldings, and high precision gears. Sanko Co., Ltd. was founded in 1963 and is headquartered in Shiojiri, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/28 01:30
End of Day Share Price2019/10/30 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.