Sala Corporation (2734) AI Stock Analysis

• Market Cap: ¥67.78B
• Dividend Yield: 3.1%
• Average Volume (3M): 66.38K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.63
• Revenue Growth: 7.61%
• EPS Growth: -11.92%
• Country: JP
• Employees: 3,963
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 26.11
• Shares Outstanding: 66,041,145
• 10 Day Avg. Volume: 91,350
• 30 Day Avg. Volume: 66,383
• 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: ¥1,107.00
• Price Target Upside: 3.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,107.00 ▲(3.94% Upside)

The overall stock score of 75 reflects Sala Corporation's strong technical analysis and attractive valuation, which are slightly offset by challenges in cash flow. The stock benefits from solid operational efficiency and a strong equity position, while the absence of earnings call data and corporate events did not impact the evaluation.

Sala Corporation Business Overview & Revenue Model

Company Description

SALA Corporation, through its subsidiaries, engages in the energy supply and solution business in Japan. It provides natural gas, and LP gas/petroleum products; sells electricity; and generates biomass power. The company also engages in the transportation of gas and petroleum for private homes; and water delivery, renovation, and cultural lectures and cooking classes businesses. In addition, it develops social infrastructure facilities, including office buildings, hospitals, schools, condominiums, parks, roads, bridges, and harbor facilities; offers infrastructure maintenance services to urban functions, such as gas, water supply/sewage, civil engineering, paving, and harbor construction; and provides integrated services comprising electric, air conditioning, and plumbing design, as well as construction and maintenance. Further, the company engages in the system development business for various industries, including factories and universities; develops houses; operates automobile dealerships; provides automobile inspection and maintenance services; and sells animal pharmaceuticals, as well as provides dietetic treatment for obese animals. Additionally, it operates restaurants under the SHISEN HANTEN and XIÈ XIÈ names; and hotels and sport clubs, as well as offers real estate brokerage services. The company also provides various insurance/financing products and credit cards; and manufactures electronic equipment for automobiles and motorcycles. SALA Corporation was founded in 1909 and is headquartered in Toyohashi, Japan.

How the Company Makes Money

Sala Corporation generates revenue through multiple streams, primarily from its energy supply segment, which includes the sale of liquefied petroleum gas (LPG) and electricity to residential and commercial users. The housing and real estate segment contributes to its earnings by providing construction, renovation, and real estate brokerage services. Additionally, the lifestyle services segment adds to the company's revenue by offering a variety of consumer products and services. The company's diverse operations across these sectors help stabilize its revenue streams by mitigating risks associated with reliance on a single market. Significant partnerships with local suppliers and utility companies further bolster its market presence and revenue generation capabilities.

Sala Corporation Financial Statement Overview

Summary

Sala Corporation shows stable revenue growth and solid equity management. However, challenges in cash flow, with negative free cash flow in the TTM period, bring down the overall score. The company maintains operational efficiency and a strong equity position.

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: Neutral
• Last Price: 1065.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2734, the sentiment is Neutral. The current price of 1065 is above the 20-day moving average (MA) of 1056.40, above the 50-day MA of 1023.26, and above the 200-day MA of 902.11, indicating a neutral trend. The MACD of 18.37 indicates Positive momentum. The RSI at 49.62 is Neutral, neither overbought nor oversold. The STOCH value of 30.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2734.

Sala Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8157	80 Outperform	¥53.33B	12.05	10.79%	2.96%	-14.87%	-0.65%
2734	75 Outperform	¥67.78B	14.08	―	3.10%	7.61%	-11.92%
7130	74 Outperform	¥75.00B	8.70	9.58%	2.59%	27.80%	12.67%
8081	73 Outperform	¥41.59B	12.30	8.21%	3.73%	16.51%	19.39%
3232	71 Outperform	¥52.43B	9.02	9.64%	2.94%	0.70%	11.52%
2676	63 Neutral	¥35.52B	33.83	8.66%	4.37%	8.53%	-30.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sala Corporation Corporate Events

SALA Corporation Announces Corrections to Financial Results

SALA Corporation has announced corrections to its previously released financial results for the six months ending May 31, 2025. The corrections involve adjustments to the planned capital investment and depreciation figures for the fiscal year ending November 30, 2025, reflecting a decrease in capital investment and an increase in depreciation. This correction may impact stakeholders’ expectations regarding the company’s financial planning and resource allocation.

SALA Corporation Reports ¥430 Million Loss on Derivative Valuation

SALA Corporation has reported a non-operating expense of ¥430 million due to a loss on the valuation of derivatives related to forward exchange contracts. This financial impact arises from fluctuations in foreign exchange rates affecting the cost of imported materials for its subsidiary, SALA e POWER Co., Ltd. The company has taken measures to mitigate these risks by entering into additional forward exchange contracts, ensuring long-term stability in its operations despite the current financial loss.

Sala Corporation Reports Increased Sales but Decline in Profits for H1 2025

Sala Corporation reported its consolidated financial results for the six months ended May 31, 2025, showing a 10.4% increase in net sales compared to the previous year, reaching 131,253 million yen. Despite this growth in sales, the company experienced a decline in ordinary profit and profit attributable to owners of the parent by 6.4% and 5.9%, respectively. The equity-to-asset ratio remained stable at 41.5%. The company also announced a forecasted annual dividend of 32 yen per share for the fiscal year ending November 30, 2025.