Saibo Co., Ltd. (3123) AI Stock Analysis

• Market Cap: ¥7.87B
• Dividend Yield: 2.75%
• Average Volume (3M): 5.57K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.36
• Revenue Growth: -4.76%
• EPS Growth: 8.43%
• Country: JP
• Employees: 115
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 38.70
• Shares Outstanding: 13,600,000
• 10 Day Avg. Volume: 4,210
• 30 Day Avg. Volume: 5,566
• PEG Ratio: -0.87
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 3.18
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥647.00 ▲(10.03% Upside)

Saibo Co., Ltd. is on a positive growth trajectory with strong revenue growth and improved leverage management. The stock is undervalued with a low P/E ratio and decent dividend yield, making it attractive for value investors. However, technical indicators suggest potential short-term weakness, and the company needs to address cost management and cash conversion challenges to enhance financial stability.

Positive Factors

Revenue Growth

The significant revenue growth indicates a robust market position and successful product adoption, which supports long-term business expansion.

Cash Generation

Strong free cash flow growth enhances financial flexibility, allowing Saibo to invest in R&D and strategic initiatives, supporting sustainable growth.

Leverage Management

Improved leverage management reduces financial risk, providing a stable foundation for future investments and growth opportunities.

Negative Factors

Profit Margin Challenges

Declining margins suggest potential cost management issues, which could impact profitability if not addressed, affecting long-term financial health.

Cash Conversion Efficiency

Inefficient cash conversion may limit liquidity, hindering the company's ability to fund operations and growth initiatives sustainably.

Return on Equity

A lower return on equity indicates inefficiencies in profit generation from equity, which may affect investor confidence and capital allocation.

Saibo Co., Ltd. Business Overview & Revenue Model

Company Description

Saibo Co., Ltd. primarily manufactures and sells textile products in Japan and internationally. The company operates through Textile business, Real estate utilization business, and Driving range business segments. It offers apparel products, such as corporate office uniforms, working wear, service wear, jackets, and suits; and novelty and sports-related products. The company also provides textile materials, including rayon filament yarn, polyester yarn, mixed yarn, synthetic cotton, and polyester and linen fabrics, as well as embroidery lace materials. In addition, it involved in the rental of commercial facilities and real estate properties, building maintenance services, as well as golf driving range management activities. Further, the company engages in the provision of repairing services for automobile sheet metal paint products; interior construction and renovation business for general housing, condominiums, factories, and stores.; and sale of new and used vehicles; and insurance and communication equipment. Saibo Co., Ltd. was incorporated in 1948 and is headquartered in Kawaguchi, Japan.

How the Company Makes Money

Saibo Co., Ltd. generates revenue primarily through the sale of its proprietary pharmaceutical products, which include both prescription medications and over-the-counter health solutions. The company also derives income from its contract manufacturing services, providing production capabilities to other companies in the biotech sector. Additionally, Saibo engages in strategic partnerships with research institutions and pharmaceutical companies, allowing it to share development costs and access broader markets. These collaborations often result in milestone payments and royalties, contributing significantly to the company's earnings. Furthermore, Saibo invests in research and development to innovate new products, which can lead to licensing agreements and further revenue opportunities.

Saibo Co., Ltd. Financial Statement Overview

Summary

Saibo Co., Ltd. demonstrates solid profitability with healthy margins and a balanced capital structure. However, modest revenue growth and a decline in free cash flow are concerns.

Income Statement

Saibo Co., Ltd. shows a stable gross profit margin of around 26% in TTM, indicating efficient production. The net profit margin is healthy at 8.34%, reflecting good cost management. However, revenue growth is modest at 1.81% TTM, suggesting limited expansion. EBIT and EBITDA margins are strong, supporting profitability.

Balance Sheet

The debt-to-equity ratio of 0.73 in TTM indicates a balanced capital structure, reducing financial risk. Return on equity is moderate at 4.89%, suggesting average returns for shareholders. The equity ratio is stable, indicating a solid financial foundation.

Cash Flow

Operating cash flow is robust, covering net income effectively. However, free cash flow has declined by 40.49% TTM, which could impact future investments. The free cash flow to net income ratio is strong at 0.82, indicating efficient cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.51B	10.30B	11.42B	10.18B	8.96B	6.73B
Gross Profit	2.65B	2.70B	2.64B	2.40B	1.86B	1.96B
EBITDA	2.70B	2.71B	2.92B	2.61B	2.20B	1.52B
Net Income	1.07B	859.55M	945.72M	733.21M	499.59M	587.76M
Balance Sheet
Total Assets	42.64B	41.95B	43.53B	41.85B	42.90B	39.13B
Cash, Cash Equivalents and Short-Term Investments	3.79B	3.95B	3.64B	2.99B	2.59B	1.82B
Total Debt	12.53B	12.88B	14.00B	15.07B	16.75B	14.80B
Total Liabilities	21.24B	21.82B	23.97B	23.67B	25.41B	22.52B
Stockholders Equity	18.96B	17.74B	17.20B	15.97B	15.33B	14.51B
Cash Flow
Free Cash Flow	1.52B	1.95B	1.94B	1.93B	-1.06B	-10.07B
Operating Cash Flow	2.32B	2.37B	2.27B	2.30B	2.04B	2.14B
Investing Cash Flow	-1.07B	-627.31M	-165.85M	-147.64M	-2.98B	-12.14B
Financing Cash Flow	-1.32B	-1.48B	-1.37B	-1.90B	1.74B	10.07B

Saibo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 588.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3123, the sentiment is Positive. The current price of 588 is below the 20-day moving average (MA) of 594.75, below the 50-day MA of 598.40, and above the 200-day MA of 539.46, indicating a bullish trend. The MACD of 4.82 indicates Negative momentum. The RSI at 61.92 is Neutral, neither overbought nor oversold. The STOCH value of 72.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3123.

Saibo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3580	79 Outperform	¥33.66B	23.56	―	3.23%	6.98%	-42.05%
3104	78 Outperform	¥92.41B	18.44	―	1.79%	10.76%	54.82%
3109	72 Outperform	¥13.38B	14.39	―	4.80%	4.49%	26.84%
3201	72 Outperform	¥112.36B	16.13	―	2.66%	7.56%	-17.12%
3123	70 Outperform	¥7.87B	7.42	―	2.75%	-4.76%	8.43%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3409	41 Neutral	¥3.38B	-62.82	―	―	16.33%	75.48%