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Sala Corporation (JP:2734)
:2734
Japanese Market
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Sala Corporation (2734) AI Stock Analysis

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JP:2734

Sala Corporation

(2734)

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Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
¥1,080.00
▼(-4.76% Downside)
Action:Reiterated
Date:03/24/26
The score is driven by improving financial performance (revenue and cash flow recovery) and supportive valuation (low P/E and solid dividend yield). These positives are tempered by weak technicals, with the stock in a downtrend below major moving averages and negative momentum indicators.
Positive Factors
Revenue rebound and higher net income
A strong 2025 revenue rebound and higher net income indicate recovering end-market demand and improved operational throughput. Sustained top-line recovery over multiple quarters supports lasting revenue visibility, enabling better planning, capacity deployment and longer-term margin recovery potential.
Negative Factors
Structurally thin operating and net margins
Very low EBIT and net margins constrain the company's ability to generate surplus profits from revenue growth and leave little buffer for cost inflation or demand downturns. Over the medium term, thin margins limit reinvestment capacity and make returns more sensitive to small adverse cost or price moves.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound and higher net income
A strong 2025 revenue rebound and higher net income indicate recovering end-market demand and improved operational throughput. Sustained top-line recovery over multiple quarters supports lasting revenue visibility, enabling better planning, capacity deployment and longer-term margin recovery potential.
Read all positive factors

Sala Corporation (2734) vs. iShares MSCI Japan ETF (EWJ)

Sala Corporation Business Overview & Revenue Model

Company Description
SALA Corporation, operating through its various subsidiaries, is a diversified Japanese enterprise with a primary focus on energy supply and solutions. The company provides natural gas, liquefied petroleum gas (LP gas), and petroleum products, sel...

Sala Corporation Financial Statement Overview

Summary
Financials are improving, led by a strong 2025 revenue rebound (+21.2% YoY) and higher net income, plus a clear recovery in operating and free cash flow versus 2023. Offsetting this are persistently thin profitability (net margin ~2.3%, EBIT margin ~2.9%), only moderate ROE (~6.4%), and uneven cash conversion with free cash flow well below net income in 2024–2025.
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
64
Positive
BreakdownTTMNov 2025Nov 2024Nov 2023Nov 2022Nov 2021
Income Statement
Total Revenue251.79B251.53B240.50B242.06B234.85B227.94B
Gross Profit62.24B55.91B51.83B50.54B52.07B52.89B
EBITDA17.66B16.31B14.58B16.19B15.55B15.25B
Net Income6.68B5.87B5.25B6.10B5.68B5.26B
Balance Sheet
Total Assets221.12B218.34B202.28B189.27B188.42B187.48B
Cash, Cash Equivalents and Short-Term Investments25.98B31.88B26.40B22.97B24.19B24.75B
Total Debt67.61B61.65B55.64B54.23B53.65B58.60B
Total Liabilities124.79B124.77B116.66B110.62B115.06B120.78B
Stockholders Equity94.37B91.72B83.98B77.18B72.01B65.43B
Cash Flow
Free Cash Flow2.55B6.89B4.37B98.00M5.14B10.47B
Operating Cash Flow15.48B16.16B14.24B5.76B9.93B15.82B
Investing Cash Flow-14.85B-12.43B-10.33B-5.62B-3.86B-4.40B
Financing Cash Flow671.00M1.75B-431.00M-1.37B-6.52B-8.79B

Sala Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1134.00
Price Trends
50DMA
1012.62
Positive
100DMA
1053.07
Negative
200DMA
1052.68
Negative
Market Momentum
MACD
9.36
Negative
RSI
65.23
Neutral
STOCH
89.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2734, the sentiment is Positive. The current price of 1134 is above the 20-day moving average (MA) of 995.76, above the 50-day MA of 1012.62, and above the 200-day MA of 1052.68, indicating a neutral trend. The MACD of 9.36 indicates Negative momentum. The RSI at 65.23 is Neutral, neither overbought nor oversold. The STOCH value of 89.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2734.

Sala Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥53.12B14.043.48%15.87%4.48%
77
Outperform
¥61.11B12.1516.91%2.28%8.57%43.80%
73
Outperform
¥94.38B7.803.74%-3.93%3.02%
68
Neutral
¥100.13B7.062.91%34.02%56.48%
64
Neutral
¥62.47B33.071.52%24.74%-18.83%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
¥66.32B10.062.91%1.81%17.36%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2734
Sala Corporation
1,047.00
147.61
16.41%
JP:6328
Ebara Jitsugyo Co., Ltd.
2,397.00
648.83
37.11%
JP:5821
Hirakawa Hewtech Corp.
3,825.00
2,477.79
183.92%
JP:8014
Chori Co., Ltd.
3,800.00
10.18
0.27%
JP:8057
Uchida Yoko Co., Ltd.
1,938.00
131.58
7.28%
JP:8081
Kanaden Corporation
2,501.00
620.65
33.01%

Sala Corporation Corporate Events

SALA Corporation Reports Nearly 47% Progress on Share Buyback Program
Jun 3, 2026
SALA Corporation has reported progress on its ongoing share buyback program authorized by its board in March 2026, conducted under provisions of the Companies Act. Between May 1 and May 29, the company repurchased 224,900 common shares through mar...
SALA Corporation Reports One-Third Progress on Ongoing Share Buyback Program
May 8, 2026
SALA Corporation has reported progress on its ongoing share buyback program authorized by the board in early March, using provisions under Japan’s Companies Act to repurchase its own common shares. The company acquired 214,900 shares on the ...
Sala Realigns Smart Energy Leadership After Executive Officer Resigns
Apr 7, 2026
Sala Corporation has announced a change in its executive lineup following a Board of Directors meeting held on April 7, 2026, as it adjusts leadership in its smart energy operations. Executive Officer Hiroshi Suwa, who had been in charge of Smart ...
Sala Corporation to Divest Miyashita Koumuten in Portfolio Refocus
Apr 7, 2026
Sala Corporation has decided to transfer all shares of its consolidated sub-subsidiary Miyashita Koumuten, a Hamamatsu-based construction and real estate firm, to its founder Yuji Miyashita, a related family member, and MIYA Co. The move follows a...
SALA Books Derivative Valuation Gain and Clarifies Dividend Policy
Apr 7, 2026
SALA Corporation reported that in the first quarter of the fiscal year ending November 30, 2026, it booked ¥313 million in non-operating income as a gain on valuation of derivatives tied to forward exchange contracts. These contracts hedge fo...
Sala Corporation boosts quarterly profit, nudges dividend higher despite margin pressures
Apr 7, 2026
Sala Corporation reported consolidated net sales of ¥66.2 billion for the three months ended February 28, 2026, a modest 0.4% year-on-year increase. However, operating profit surged 49.3% to ¥4.54 billion, and profit attributable to owne...
Sala Sets Terms for ¥6.25 Billion Secondary Share Offering
Mar 11, 2026
Sala Corporation has set the terms for a secondary offering of its common shares, following a board decision earlier in March, in a move that will see underwriters purchase stock at a discount and sell it into the market. The main tranche is price...
SALA Corporation Launches Share Buyback to Boost Capital Efficiency and Support Stock
Mar 4, 2026
SALA Corporation has completed a repurchase of 500,000 of its common shares for approximately ¥576.5 million via the Tokyo Stock Exchange’s off-auction ToSTNeT-3 system. The buyback is part of a broader capital policy aimed at enhancing...
SALA Corporation Launches Targeted Buyback Under ¥3 Billion Share Repurchase Mandate
Mar 3, 2026
SALA Corporation’s board has approved a concrete step in its previously announced share buyback program, opting to repurchase 500,000 common shares for up to ¥576.5 million through the Tokyo Stock Exchange’s off-auction ToSTNeT-3 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 24, 2026