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

• Market Cap: ¥8.29B
• Dividend Yield: 2.75%
• Average Volume (3M): 5.57K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.41
• Revenue Growth: -4.76%
• EPS Growth: 8.43%
• Country: JP
• Employees: 115
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 17.33
• 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: 64 Neutral
• Price Target: ¥692.00 ▲(17.69% Upside)
• Action: Downgraded Date: 03/24/26
• Date: Action: Downgraded 03/24/26

The score is driven primarily by improving profitability and reduced leverage, balanced by recent revenue weakness and uneven free cash flow. Valuation is a clear positive (low P/E with a reasonable yield), while technical indicators are neutral-to-mixed and do not add strong support.

Positive Factors

Improving profitability

Sustained improvement in net margin from ~8% to ~12% indicates the company is converting sales into profits more efficiently. This enhances earnings durability, supports internal funding for investment or dividends, and cushions the business against moderate top-line volatility over coming quarters.

Lower leverage

Meaningful reduction in debt-to-equity to ~0.64 materially lowers financial risk and interest burden. A stronger balance sheet increases strategic flexibility for capex, product investment or cyclical downturns, improving the company's ability to sustain operations and pursue growth over the medium term.

Positive operating cash flow

Consistently positive operating cash generation, with OCF exceeding net income, signals earnings quality and cash conversion. Reliable cash from operations supports working-capital needs, funds reinvestment without heavy external financing, and underpins longer-term business stability.

Negative Factors

Revenue contraction

A sharp TTM revenue decline undermines scale and makes margins harder to sustain. Reduced top-line momentum limits the firm's ability to spread fixed costs, restrains pricing power and growth investment, and increases reliance on margin improvements to drive earnings over the next several quarters.

Volatile free cash flow

Significant free cash flow volatility—including large negative FCF in prior years and a meaningful TTM decline—impedes reliable funding for capex, dividends, or acquisitions. Persistent FCF swings weaken financial planning and may force external financing during adverse periods.

Moderate returns on equity

ROE in the low single digits to mid‑single digits indicates modest effectiveness in converting equity into profits. Sustained moderate ROE suggests limited capital allocation efficiency, constraining long‑term shareholder value creation unless operational improvements accelerate.

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.

Saibo Co., Ltd. Financial Statement Overview

Summary

Profitability has improved (TTM net margin ~12% vs ~8% prior), and leverage is meaningfully better (debt-to-equity down to ~0.64). Offsetting this, revenue has recently contracted and free cash flow has been volatile and weaker versus the prior annual period, reducing confidence in earnings sustainability.

Income Statement

Profitability is solid and improving: TTM (Trailing-Twelve-Months) net margin is about 12% versus ~8% in the last two annual periods, and operating profitability remains healthy. However, the top line has weakened—TTM revenue shows a sharp decline (as reported), following a modest decline in the latest annual period after two years of growth. Overall, earnings quality looks decent, but revenue volatility and the recent contraction temper the score.

Balance Sheet

Leverage has improved, with debt-to-equity moving down from above 1.0 (2021–2022) to ~0.64 in TTM (Trailing-Twelve-Months), which reduces financial risk. Equity has also grown versus prior years, supporting balance-sheet resilience. That said, returns on equity remain moderate (roughly 3%–7% over the period), suggesting the capital base is not being leveraged into consistently strong shareholder returns.

Cash Flow

Operating cash generation is consistently positive, and in TTM (Trailing-Twelve-Months) operating cash flow slightly exceeds net income, which is a good sign for earnings quality. The main weakness is free cash flow volatility: large negative free cash flow in 2021 and 2022 contrasts with positive results in 2023–2025, and TTM free cash flow is down meaningfully versus the prior annual period (as reported). With free cash flow running at roughly half of TTM net income, cash conversion is adequate but not strong.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.39B	10.30B	11.42B	10.18B	8.96B	6.73B
Gross Profit	2.59B	2.70B	2.64B	2.40B	1.86B	1.96B
EBITDA	2.78B	2.71B	2.92B	2.61B	2.20B	1.52B
Net Income	1.28B	859.55M	945.72M	733.21M	499.59M	587.76M
Balance Sheet
Total Assets	43.01B	41.95B	43.53B	41.85B	43.36B	39.55B
Cash, Cash Equivalents and Short-Term Investments	3.91B	3.95B	3.64B	2.99B	2.59B	1.82B
Total Debt	12.34B	13.08B	14.24B	15.34B	16.85B	14.92B
Total Liabilities	21.19B	21.82B	23.97B	23.67B	25.88B	22.94B
Stockholders Equity	19.36B	17.74B	17.20B	15.97B	15.33B	14.51B
Cash Flow
Free Cash Flow	1.20B	1.95B	1.94B	1.93B	-1.06B	-10.07B
Operating Cash Flow	2.43B	2.37B	2.27B	2.30B	2.04B	2.14B
Investing Cash Flow	-1.24B	-627.31M	-165.85M	-147.64M	-2.98B	-12.14B
Financing Cash Flow	-1.10B	-1.48B	-1.37B	-1.90B	1.74B	10.07B

Saibo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 588.00
• 50DMA: Negative
• 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:3123, the sentiment is Neutral. The current price of 588 is below the 20-day moving average (MA) of 678.10, below the 50-day MA of 658.46, and below the 200-day MA of 589.10, indicating a neutral trend. The MACD of -1.30 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 18.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3123.

Saibo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3569	78 Outperform	¥165.51B	9.78	10.24%	2.43%	6.08%	8.55%
3104	75 Outperform	¥113.15B	15.30	―	1.79%	10.76%	54.82%
3002	66 Neutral	¥133.81B	17.53	2.80%	3.38%	>-0.01%	-49.83%
8011	66 Neutral	¥37.54B	13.45	―	5.23%	―	―
3123	64 Neutral	¥8.29B	8.70	―	2.75%	-4.76%	8.43%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3591	59 Neutral	¥207.62B	39.72	5.31%	2.29%	-6.04%	146.54%