Sala Corporation (2734) AI Stock Analysis

• Market Cap: ¥66.19B
• Dividend Yield: 2.99%
• Average Volume (3M): 75.29K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.62
• Revenue Growth: 5.82%
• EPS Growth: 21.40%
• Country: JP
• Employees: 3,963
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 15.32
• Shares Outstanding: 66,041,145
• 10 Day Avg. Volume: 75,580
• 30 Day Avg. Volume: 75,290
• PEG Ratio: -0.69
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 18.51
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥1,141.00 ▲(6.64% Upside)

Sala Corporation's stock score is primarily driven by its attractive valuation and stable financial performance. However, technical indicators suggest caution due to short-term bearish trends. Improving cash flow management is essential for enhancing financial health.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Sala's products and services, supporting long-term business expansion and market presence.

Market Position

Leadership in innovation and sustainability enhances Sala's competitive edge, attracting eco-conscious clients and securing its market position.

Equity Management

Balanced leverage and strong equity growth provide financial stability, enabling Sala to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Cash Flow Challenges

Negative free cash flow can limit Sala's ability to reinvest in the business and meet financial obligations, potentially impacting long-term growth.

Profitability Concerns

Modest profitability margins may constrain Sala's ability to generate sufficient returns, affecting its capacity to fund future growth and innovation.

Cash Generation Issues

Challenges in cash generation could impact Sala's operational flexibility and ability to respond to market changes, affecting long-term sustainability.

Sala Corporation Business Overview & Revenue Model

Company Description

Sala Corporation (2734) is a diversified company primarily engaged in manufacturing and distributing high-quality construction materials and solutions. Operating across various sectors, including residential, commercial, and infrastructure development, Sala Corporation offers a wide range of products such as cement, concrete, and other related building materials. The company is known for its innovative technologies and commitment to sustainable practices, positioning itself as a leader in the construction industry.

How the Company Makes Money

Sala Corporation generates revenue through multiple key streams, primarily from the sale of construction materials and products. Its revenue model is built on direct sales to construction companies, contractors, and retail clients, both domestically and internationally. The company also benefits from long-term contracts with large construction firms, ensuring a steady income flow. Furthermore, Sala Corporation has established strategic partnerships with various industry players, enhancing its market reach and distribution capabilities. Additional revenue is derived from value-added services such as technical support, logistics, and consulting, which help clients optimize their use of Sala's products. The growing demand for sustainable building solutions and infrastructure projects also significantly contributes to the company's earnings.

Sala Corporation Financial Statement Overview

Summary

Sala Corporation shows stable revenue growth and solid equity management. However, challenges in cash flow, particularly negative free cash flow, are a concern. Operational efficiency and a strong equity position are positive, but improving cash management is crucial.

Income Statement

Sala Corporation's income statement shows a consistent revenue growth trajectory, with a TTM revenue growth of 2.84% compared to the previous annual report. The gross profit margin is stable at around 23.8%, and the net profit margin improved to 2.3% in the TTM period. EBIT and EBITDA margins remain modest but stable, indicating consistent operational efficiency.

Balance Sheet

The balance sheet demonstrates solid equity growth, with a reasonable debt-to-equity ratio of 0.76, suggesting balanced leverage. The equity ratio stands at 40.95%, reflecting a strong equity position. Return on Equity (ROE) is at 6.68%, indicating moderate profitability relative to shareholder equity.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow in the TTM period, a decline from the previous year. The operating cash flow to net income ratio is 0.74, indicating some cash generation issues. However, the company has historically managed its cash flows effectively, which may mitigate current cash challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	252.85B	240.50B	242.06B	234.85B	227.94B	211.70B
Gross Profit	60.01B	57.23B	55.83B	57.60B	58.37B	56.69B
EBITDA	14.87B	14.58B	16.19B	15.55B	15.25B	13.33B
Net Income	5.00B	5.25B	6.10B	5.68B	5.26B	3.49B
Balance Sheet
Total Assets	209.08B	202.28B	189.27B	188.42B	187.48B	188.01B
Cash, Cash Equivalents and Short-Term Investments	29.86B	28.19B	22.97B	24.19B	24.75B	22.17B
Total Debt	61.62B	55.64B	53.94B	53.37B	58.31B	66.01B
Total Liabilities	120.67B	116.66B	110.62B	115.06B	120.78B	126.30B
Stockholders Equity	86.67B	83.98B	77.18B	72.01B	65.42B	60.43B
Cash Flow
Free Cash Flow	6.25B	2.79B	-1.20B	4.33B	10.15B	4.04B
Operating Cash Flow	15.10B	14.24B	5.76B	9.93B	15.82B	10.79B
Investing Cash Flow	-11.84B	-10.33B	-5.62B	-3.86B	-4.40B	-6.12B
Financing Cash Flow	959.00M	-431.00M	-1.37B	-6.52B	-8.79B	-4.86B

Sala Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1070.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1070 is below the 20-day moving average (MA) of 1085.16, below the 50-day MA of 1072.82, and above the 200-day MA of 944.99, indicating a neutral trend. The MACD of 10.34 indicates Positive momentum. The RSI at 50.21 is Neutral, neither overbought nor oversold. The STOCH value of 14.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2734.

Sala Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8081	78 Outperform	¥44.43B	11.54	―	3.49%	18.42%	51.06%
3232	74 Outperform	¥52.93B	8.81	―	3.01%	-2.75%	-3.17%
7130	72 Outperform	¥70.53B	7.78	―	2.92%	17.27%	-16.85%
2676	69 Neutral	¥36.38B	34.06	―	4.13%	9.48%	17.63%
8157	68 Neutral	¥52.18B	10.37	―	3.06%	-5.63%	52.73%
2734	67 Neutral	¥66.19B	10.59	―	2.99%	5.82%	21.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sala Corporation Corporate Events

SALA Corporation Reports ¥699 Million Gain from Derivatives Valuation

SALA Corporation reported a non-operating income gain of ¥699 million from the valuation of derivatives in the first nine months of the fiscal year ending November 30, 2025. This gain is attributed to forward exchange contracts designed to mitigate exchange-rate risks associated with purchasing imported materials for their biomass power generation. The company aims to maintain a dividend payout ratio of 40% or higher, excluding the effects of derivative valuations.

The most recent analyst rating on (JP:2734) stock is a Buy with a Yen1107.00 price target. To see the full list of analyst forecasts on Sala Corporation stock, see the JP:2734 Stock Forecast page.

SALA Corporation Reports Strong Financial Growth for 2025

SALA Corporation reported a 6% increase in net sales and a significant rise in profits for the nine months ending August 31, 2025, compared to the previous year. The company’s financial position remains stable with a consistent equity-to-asset ratio, and it has maintained its dividend forecast for the fiscal year ending November 30, 2025.

The most recent analyst rating on (JP:2734) stock is a Buy with a Yen1107.00 price target. To see the full list of analyst forecasts on Sala Corporation stock, see the JP:2734 Stock Forecast page.