SANKYO CO., LTD.6417

Why the market may be pricing it low

• Parlors strictly select machines, favoring only long-lasting hits while ignoring most others, making earnings seen as unpredictable.

  パーラーの遊技機に対する評価の目は厳しく、ファンを飽きさせないような人気が長続きする商品を厳選導入する機運が強まり、その他大半の商品は十分な注目を集めるに至っておりません。Risk factors

• New machines require passing government-designated model tests, and delays or failures can disrupt supply plans, adding unpredictability.

  型式試験の期間が長期間に亘ったり、適合に至らなかった場合、当社グループの経営成績が影響を受ける可能性も考えられます。Risk factors

What could close the gap

• The new "SANKYO Yell Price" policy aims to ease parlors' machine-purchase burden and revive a market stalled by weak play activity.

  パチンコ機の新価格方針「ＳＡＮＫＹＯ エールプライス」を通じて、価格の見直しによるパーラーの新台導入負担の軽減と市場活性化に取り組んでまいります。Management policy

• Management explicitly cites flexible shareholder returns via buybacks alongside growth investment as a use of surplus funds.

  成長のための事業投資、自己株式取得による機動的な株主還元などに適正な配分となるよう有効活用してまいります。Dividend policy

How a buyer could still lose (value trap)

• Recurring profit has already turned down from a peak (74.6bn to 64bn yen), showing the hit-dependent model can shrink further if play activity stays weak.

  Based on the figures below

• The higher-margin pachislot segment already saw sales and profit fall sharply, showing how a slump in one core business can hit overall earnings hard.

  Based on the figures below

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✓ROA up on last year
• ✓Cash flow exceeds net profit
• ✓Leverage down on last year
• ✓Current ratio up on last year
• ✓No new shares issued
• ✗Gross margin up on last year
• ✗Asset turnover up on last year

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

¥179.2bn

Operating profit

¥62.5bn

Net profit

¥46.8bn

Operating cash flow

¥51.8bn

Cash

¥192.4bn

Debt

¥0.0bn

Equity

¥250.2bn

Annual report for the year to 2026-03-31