SAN-A CO (2659) AI Stock Analysis

• Market Cap: ¥190.21B
• Dividend Yield: 2.7%
• Average Volume (3M): 145.24K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.38
• Revenue Growth: 2.28%
• EPS Growth: 3.61%
• Country: JP
• Employees: 1,782
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 35.62
• Shares Outstanding: 63,963,306
• 10 Day Avg. Volume: 182,210
• 30 Day Avg. Volume: 145,240
• PEG Ratio: 2.21
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 20.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 194
• Revenue Forecast (FY): ¥253.35B

• Rating: 73 Outperform
• Price Target: ¥3,318.00 ▲(10.05% Upside)
• Action: Reiterated Date: 08/23/25
• Date: Action: Reiterated 08/23/25

SAN-A CO's strong financial performance is the most significant factor driving its stock score, supported by a solid balance sheet and healthy cash flow. The valuation is attractive with a reasonable P/E ratio and a good dividend yield. However, technical analysis indicates a lack of upward momentum, which slightly offsets the overall positive outlook.

Positive Factors

Balance Sheet Strength

SAN-A's very high equity ratio and negligible leverage provide durable financial resilience. Low debt reduces refinancing and interest risk, preserves credit capacity for store investments or M&A, and supports steady dividends or share buybacks during retail cycles.

Cash Generation Quality

Operating cash flow exceeding reported earnings and positive free cash flow indicate strong cash conversion. This sustainable cash generation supports capex for store upkeep, working capital needs, and shareholder returns without reliance on external financing.

Stable Margins & Revenue

Consistent revenue growth with stable gross margin and improving net margin points to effective pricing and cost control in core retail operations. Margin stability across cycles supports predictable profitability and long-term operating leverage as sales scale.

Negative Factors

Free Cash Flow Volatility

A 51% fall in free cash flow, even from a positive base, signals potential volatility in cash available for discretionary use. If sustained, this could constrain capital expenditures, dividends, or strategic initiatives, and increase sensitivity to sales or working-capital swings.

Modest Top-line and EPS Growth

Low single-digit revenue and EPS growth reflect a mature domestic retail footprint with limited expansion tailwinds. Such modest growth can cap long-term return potential and makes continuous margin improvements or share gains necessary to drive meaningful shareholder value.

Moderate Return on Equity

An ROE of 7.6% is moderate given the large equity base, indicating capital is not delivering high returns. In a low-margin retail model this suggests limited capital efficiency and a need for either higher margins, asset turns, or strategic redeployment to lift long-term shareholder returns.

SAN-A CO Business Overview & Revenue Model

Company Description

SAN-A CO.,LTD. operates a chain of retail stores in Okinawa. The company's stores offer groceries, clothing, home appliances, daily necessities, and food items. As of February 2021, it operated 70 retail stores and 13 restaurants, as well as franchised stores. The company was founded in 1950 and is headquartered in Ginowan, Japan.

How the Company Makes Money

SAN-A CO generates revenue through multiple streams, primarily by selling its diverse food products to various sectors, including supermarkets, restaurants, and food service providers. The company's revenue model is built on direct sales of its products, as well as partnerships with distributors and retailers that expand its market reach. Additionally, SAN-A CO may engage in private label manufacturing for other brands, providing an additional source of income. Key partnerships with local and international suppliers also enhance its supply chain efficiency, contributing to cost savings and improved margins, thus positively impacting the overall earnings of the company.

SAN-A CO Financial Statement Overview

Summary

SAN-A CO demonstrates strong financial performance with consistent revenue growth, stable gross profit margins, and improved net profit margins. The balance sheet is robust with a high equity ratio and low debt, while cash flow remains healthy despite a decrease in free cash flow.

Income Statement

SAN-A CO demonstrates strong financial performance in the income statement. The company shows consistent revenue growth, with the latest annual revenue increasing by 4.2% compared to the previous year. Gross profit margin has remained stable at approximately 34.2%, indicating effective cost management. The net profit margin has improved to 4.8%, reflecting enhanced profitability. Both EBIT and EBITDA margins have shown steady growth, with the latest figures at 7.1% and 10.0% respectively, suggesting efficient operational management.

Balance Sheet

The balance sheet of SAN-A CO is robust, with a high equity ratio of 78.7%, signifying a strong capital structure. The debt-to-equity ratio is extremely low at 0.2% due to minimal total debt, indicating low leverage risk. Return on equity has improved to 7.6%, driven by increased net income and solid shareholder value creation. The company maintains substantial cash reserves, enhancing its financial flexibility and stability.

Cash Flow

SAN-A CO's cash flow position is healthy, with a strong operating cash flow to net income ratio of 1.3, indicating efficient cash generation relative to earnings. Although free cash flow decreased by 51.0% in the recent year, it remains positive at 8.9 billion, ensuring sufficient liquidity for operations and investments. Free cash flow to net income ratio is favorable at 0.8, supporting ongoing growth and shareholder returns.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	238.72B	237.16B	227.58B	213.52B	204.35B	202.76B
Gross Profit	88.42B	87.80B	84.11B	77.59B	73.04B	72.36B
EBITDA	17.71B	23.70B	22.72B	18.72B	17.31B	17.08B
Net Income	11.41B	11.47B	10.68B	7.57B	6.66B	6.07B
Balance Sheet
Total Assets	211.77B	191.45B	186.94B	172.54B	165.80B	174.84B
Cash, Cash Equivalents and Short-Term Investments	74.01B	59.84B	54.85B	39.30B	31.59B	40.12B
Total Debt	3.77B	277.00M	289.00M	302.00M	314.00M	327.00M
Total Liabilities	56.16B	36.90B	40.79B	35.13B	34.08B	43.70B
Stockholders Equity	151.52B	150.51B	142.40B	134.01B	128.53B	127.89B
Cash Flow
Free Cash Flow	0.00	8.87B	18.27B	9.91B	-1.98B	13.50B
Operating Cash Flow	0.00	14.98B	21.18B	14.74B	4.08B	19.69B
Investing Cash Flow	0.00	-6.20B	-3.13B	-5.07B	-6.37B	-6.46B
Financing Cash Flow	0.00	-3.79B	-2.51B	-1.96B	-6.24B	-2.11B

SAN-A CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3015.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2659, the sentiment is Positive. The current price of 3015 is below the 20-day moving average (MA) of 3018.07, above the 50-day MA of 2960.77, and above the 200-day MA of 2829.44, indicating a bullish trend. The MACD of 22.51 indicates Negative momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 85.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2659.

SAN-A CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9956	79 Outperform	¥193.59B	7.25	―	2.18%	6.30%	27.88%
2659	73 Outperform	¥190.21B	20.12	7.56%	2.70%	2.28%	3.61%
8273	63 Neutral	¥216.74B	17.32	―	3.01%	18.89%	-34.43%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8278	61 Neutral	¥174.15B	100.03	―	1.44%	1.48%	-33.32%
3222	53 Neutral	¥178.09B	-65.24	―	1.77%	30.67%	―
8217	45 Neutral	¥33.05B	-145.82	―	3.11%	1.46%	-436.55%

SAN-A CO Corporate Events

SAN-A to Build New ¥54 Billion Food Processing Center and Head Office in Okinawa

SAN-A CO. has approved a major capital investment to build a new food processing center and head office on company-owned land in Ginowan City, Okinawa, addressing aging facilities and capacity constraints caused by its expanding store network. The planned complex, including a multi-story parking structure, represents about ¥54 billion in total investment and is scheduled to start construction in February 2026, with operations to begin in September 2028.

By consolidating dispersed manufacturing and logistics operations and installing advanced automation and hygiene systems, SAN-A aims to boost productivity, cut costs, and enhance product quality and supply reliability for its growing retail footprint. The new head office is designed to improve workplace efficiency and organizational cohesion, and management expects the project to underpin medium- to long-term earnings stability and corporate value, while the near-term impact on financial results is described as minimal.

The most recent analyst rating on (JP:2659) stock is a Hold with a Yen3075.00 price target. To see the full list of analyst forecasts on SAN-A CO stock, see the JP:2659 Stock Forecast page.

SAN-A Revamps Board Ahead of Organizational Restructuring in 2026

SAN-A CO., LTD. has announced boardroom changes to take effect following its 56th Ordinary General Meeting of Shareholders in May 2026, appointing long-serving executive Junichi Hasegawa as Director and General Manager of the Manufacturing and Logistics Headquarters, overseeing both food manufacturing and logistics operations. At the same time, Director Kentaro Arashiro will retire at the end of his term, while the company maintains continuity through the reelection of President and CEO Taku Toyoda and key executive directors, signaling a broader management realignment in conjunction with an upcoming organizational restructuring and the introduction of an executive officer system aimed at strengthening governance and operational efficiency.

The most recent analyst rating on (JP:2659) stock is a Hold with a Yen3075.00 price target. To see the full list of analyst forecasts on SAN-A CO stock, see the JP:2659 Stock Forecast page.

SAN-A Launches Major Organizational Overhaul to Strengthen Governance and Strategy

SAN-A CO., LTD. has approved a wide-ranging organizational restructuring that introduces a new headquarters structure, an executive officer system, and changes in directors to better respond to rapid shifts in its operating environment and reinforce corporate governance. Effective March 1, 2026, all divisions will be reorganized into four main headquarters—Sales Management, Manufacturing and Logistics, Corporate, and Development—clarifying chains of command and responsibilities across sales, corporate functions, logistics, and store development. The company will also create new entities such as a Management Strategy Department, Sustainability Management Promotion Office, Diversity Promotion Office, Digital Transformation Promotion Office, and a dedicated Logistics Department, while reorganizing core units like grocery, food products, food manufacturing, and finance to separate manufacturing from sales and strengthen financial strategy. These moves aim to enhance strategic planning, ESG management, digital transformation, and operational specialization, positioning SAN-A for more agile decision-making and improved competitiveness in its retail and supply chain operations.

The most recent analyst rating on (JP:2659) stock is a Hold with a Yen3075.00 price target. To see the full list of analyst forecasts on SAN-A CO stock, see the JP:2659 Stock Forecast page.

SAN-A Posts Higher Revenue but Slight Profit Dip, Keeps Forecasts and Lifts Dividend Outlook

SAN-A CO. reported a 3.3% year-on-year increase in operating revenue to ¥182.46 billion for the nine months ended November 30, 2025, while operating profit and ordinary profit grew modestly, and profit attributable to owners of parent edged down 0.9%, resulting in a slight dip in earnings per share. The company’s total assets rose to ¥211.15 billion and net assets to ¥158.11 billion, though its equity ratio declined, and SAN-A kept its full-year earnings and dividend forecasts unchanged, signaling steady but slowing profit growth and a planned increase in the annual dividend to ¥100 per share for FY2026, underscoring continued shareholder returns despite margin pressure.

The most recent analyst rating on (JP:2659) stock is a Buy with a Yen3318.00 price target. To see the full list of analyst forecasts on SAN-A CO stock, see the JP:2659 Stock Forecast page.