Strong Equity BaseA ~65.9% equity ratio indicates low reliance on external financing and a solid capital base. This durable financial strength provides resilience to cyclical demand, supports investment capacity, and reduces solvency risk, enabling the company to fund operations and strategic initiatives over the next 2–6 months.

Profitability RecoveryReturn to positive net margin (4.27% in 2025) signals operational improvement and the potential stabilization of earnings. If sustained, this recovery supports cash generation and reinvestment, strengthening long-term viability and allowing management to focus on margin expansion and consistency.

Solid Revenue MomentumReported revenue growth of ~8.6% reflects demand resilience and product-market fit in its niche. Durable top-line growth, if maintained, underpins operating leverage potential, helps absorb fixed costs, and supports margin recovery and reinvestment in product and service capabilities over coming months.

Bears Say

Inconsistent Cash GenerationVolatile and often negative free cash flow impairs the company’s ability to self-fund capex, dividends, or debt reduction. Persistent cash conversion issues constrain strategic flexibility, making the company more vulnerable to demand shocks and limiting sustained investment in product development or service expansion.

Rising LeverageAn increasing debt-to-equity ratio to 0.33 points to rising leverage from a previously strong equity position. Growing debt levels reduce financial flexibility, increase interest exposure, and elevate refinancing risk, which can pressure profitability and capital allocation choices over a multi-month horizon.

Revenue And Margin VolatilityHistorical swings in revenue and gross/net margins indicate earnings instability and operational sensitivity to demand or cost shifts. Such volatility undermines predictable cash flows and makes planning for margin improvement or capacity investments more difficult, increasing execution risk over the medium term.

7255 FAQ

What was Sakurai Ltd.’s price range in the past 12 months?

Sakurai Ltd. lowest stock price was ¥480.00 and its highest was ¥710.00 in the past 12 months.

What is Sakurai Ltd.’s market cap?

Sakurai Ltd.’s market cap is ¥2.29B.

When is Sakurai Ltd.’s upcoming earnings report date?

Sakurai Ltd.’s upcoming earnings report date is May 20, 2026 which is in 92 days.

How were Sakurai Ltd.’s earnings last quarter?

Sakurai Ltd. released its earnings results on Feb 12, 2026. The company reported ¥7.28 earnings per share for the quarter, beating the consensus estimate of N/A by ¥7.28.

Is Sakurai Ltd. overvalued?

According to Wall Street analysts Sakurai Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Sakurai Ltd. pay dividends?

Sakurai Ltd. pays a Annually dividend of ¥10 which represents an annual dividend yield of 1.68%. See more information on Sakurai Ltd. dividends here

What is Sakurai Ltd.’s EPS estimate?

Sakurai Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Sakurai Ltd. have?

Sakurai Ltd. has 4,000,000 shares outstanding.

What happened to Sakurai Ltd.’s price movement after its last earnings report?

Sakurai Ltd. reported an EPS of ¥7.28 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -3.367%.

Which hedge fund is a major shareholder of Sakurai Ltd.?

Currently, no hedge funds are holding shares in JP:7255

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Sakurai Ltd.

Sakurai Ltd. designs, develops, manufactures, assembles, sells, and maintains machine tools and parts in Japan and internationally. The company offers passenger car transmission cases; motorcycle and passenger car cylinder heads; automatic transmission valve bodies; cylinders blocks; and forklift parts and gas meter parts, as well as general-purpose engine parts for use in outboard motors and agricultural machinery. It also manufactures and processes aircraft body parts, flying object parts, processing precision parts, and machine tools in aerospace field; and deburring, milling, multi-spindle and multi head, system integration/overhaul, and special purpose machines. Sakurai Ltd. was incorporated in 1948 and is headquartered in Hamamatsu, Japan.