Sala Corporation (2734) AI Stock Analysis

• Market Cap: ¥58.94B
• Dividend Yield: 3.45%
• Average Volume (3M): 79.11K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.66
• Revenue Growth: 7.61%
• EPS Growth: -11.92%
• Country: JP
• Employees: 3,963
• Sector: Industrials
• Sector Strength: 91
• Industry: Conglomerates
• EPS (TTM): 26.10
• Shares Outstanding: 66,041,145
• 10 Day Avg. Volume: 100,170
• 30 Day Avg. Volume: 79,110
• PEG Ratio: 1.17
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.06
• 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

• Rating: 74 Outperform
• Price Target: ―

Sala Corporation's stock is moderately attractive due to its stable financial performance, positive technical indicators, and favorable valuation. While the company faces cash flow challenges, its revenue growth and equity management are strong. The bullish technical setup and attractive valuation enhance the stock's potential, making it a solid choice for investors seeking both growth and income.

Sala Corporation Business Overview & Revenue Model

Company Description

Sala Corporation (2734) is a Japanese company primarily engaged in the energy and lifestyle services sectors. The company operates through various segments including energy supply, housing and real estate, and lifestyle services. Sala Corporation is involved in the provision of liquefied petroleum gas (LPG), electricity, and housing-related services, catering to both residential and commercial customers. The company also offers real estate services and lifestyle-related products, contributing to a diversified business portfolio.

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 exhibits stable revenue growth and solid equity management. Despite challenges in cash flow, the company's operational efficiency and equity position are commendable. Maintaining positive free cash flow and improving cash management will be crucial for future financial health.

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	247.32B	240.50B	242.06B	234.85B	227.94B	211.70B
Gross Profit	58.86B	57.23B	55.83B	57.60B	58.37B	56.69B
EBITDA	14.34B	14.58B	16.19B	13.87B	13.63B	13.33B
Net Income	5.69B	5.25B	6.10B	5.68B	5.26B	3.49B
Balance Sheet
Total Assets	207.66B	202.28B	189.27B	188.42B	187.48B	188.01B
Cash, Cash Equivalents and Short-Term Investments	24.68B	28.19B	22.97B	25.77B	26.15B	23.44B
Total Debt	64.50B	55.64B	53.94B	53.37B	58.31B	66.01B
Total Liabilities	120.91B	116.66B	110.62B	115.06B	120.78B	126.30B
Stockholders Equity	85.04B	83.98B	77.18B	72.01B	65.42B	60.43B
Cash Flow
Free Cash Flow	-1.75B	2.79B	-1.20B	4.33B	10.15B	4.04B
Operating Cash Flow	4.20B	14.24B	5.76B	9.93B	15.82B	10.79B
Investing Cash Flow	-9.13B	-10.33B	-5.62B	-3.86B	-4.40B	-6.12B
Financing Cash Flow	3.97B	-431.00M	-1.37B	-6.52B	-8.79B	-4.86B

Sala Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 926.00
• 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 926 is below the 20-day moving average (MA) of 943.05, above the 50-day MA of 920.89, and above the 200-day MA of 843.63, indicating a neutral trend. The MACD of 5.11 indicates Positive momentum. The RSI at 45.29 is Neutral, neither overbought nor oversold. The STOCH value of 18.25 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
7130	80 Outperform	¥71.28B	8.34		2.72%	41.28%	-11.01%
8081	78 Outperform	¥42.19B	12.04		3.82%	8.08%	14.92%
8157	76 Outperform	¥48.39B	11.17		3.13%	-21.30%	-13.68%
2734	74 Outperform	¥58.94B	11.90		3.45%	7.61%	-11.92%
3232	70 Outperform	¥49.04B	8.13		3.25%	5.73%	27.30%
Sector *	65 Neutral	$10.85B	15.55	5.22%	1.89%	3.09%	-26.84%
2676	57 Neutral	¥36.68B	24.93		0.20%	11.39%	-0.33%

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.