sanwacompany (3187) AI Stock Analysis

• Market Cap: ¥5.12B
• Dividend Yield: 1.2%
• Average Volume (3M): 23.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 3.87%
• EPS Growth: -170.87%
• Country: JP
• Employees: 274
• Sector: Services
• Sector Strength: N/A
• Industry: Industrial - Distribution
• EPS (TTM): 3.20
• Shares Outstanding: 19,299,300
• 10 Day Avg. Volume: 28,310
• 30 Day Avg. Volume: 23,136
• PEG Ratio: 0.08
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -16.86
• 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: 41 Neutral
• Price Target: ¥252.00 ▼(-20.50% Downside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

The overall stock score is primarily influenced by the company's weak financial performance and bearish technical indicators. The negative P/E ratio and modest dividend yield further contribute to the low score, indicating significant challenges and risks.

Positive Factors

Revenue Growth

Consistent revenue growth, albeit slight, indicates resilience in market demand and potential for future expansion in core sectors.

Diverse Revenue Streams

Diverse revenue streams and long-term contracts provide stability and reduce dependency on any single market, supporting steady cash flow.

Strong Market Presence

A strong market presence in multiple regions enhances competitive positioning and offers opportunities for growth and market share expansion.

Negative Factors

Declining Profitability

Declining profitability and negative earnings indicate operational challenges that could impact long-term financial health and investment capacity.

Increased Leverage

Higher leverage increases financial risk, potentially straining cash flow and limiting flexibility in adverse market conditions.

Negative Cash Flow

Negative cash flow indicates inefficiencies in operations and could hinder the company's ability to invest in growth opportunities.

sanwacompany Business Overview & Revenue Model

Company Description

Sanwa Company (3187) is a leading Japanese trading firm specializing in the distribution of industrial machinery, tools, and equipment. Operating primarily in the manufacturing and construction sectors, the company offers a diverse range of products, including precision instruments, electrical equipment, and automation solutions. With a strong presence in both domestic and international markets, Sanwa Company focuses on providing high-quality products and exceptional customer service to meet the needs of various industries.

How the Company Makes Money

Sanwa Company generates revenue through multiple streams, primarily from the sale of industrial machinery and tools to businesses in the manufacturing and construction sectors. The company operates on a wholesale distribution model, sourcing products from manufacturers and selling them to retailers and end-users. Additionally, Sanwa Company may engage in value-added services such as product customization and technical support, which can enhance its revenue. Significant partnerships with key manufacturers and suppliers facilitate competitive pricing and access to innovative products, thereby contributing to the company's profitability. The firm also benefits from long-term contracts with clients, ensuring a steady cash flow and stability in earnings.

sanwacompany Financial Statement Overview

Summary

The company is experiencing financial difficulties with declining profitability and cash flow challenges. Despite slight revenue growth, increased leverage and negative earnings are concerning. Operational inefficiencies need addressing to improve financial health.

Income Statement

The company has experienced a slight revenue growth of 1.08% in the latest year, but profitability has significantly declined, with a negative net income and EBIT. The gross profit margin remains relatively stable, but the negative EBIT and EBITDA margins indicate operational challenges.

Balance Sheet

The debt-to-equity ratio has increased, indicating higher leverage, which could pose a risk if earnings do not improve. The equity ratio is moderate, suggesting a balanced capital structure, but the negative return on equity highlights profitability issues.

Cash Flow

The company shows negative free cash flow and operating cash flow, reflecting cash management challenges. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	16.75B	16.12B	15.50B	13.26B	11.26B
Gross Profit	5.85B	5.68B	5.54B	4.95B	4.04B
EBITDA	-430.69M	969.29M	1.09B	1.06B	176.12M
Net Income	-447.88M	635.33M	525.01M	606.24M	-50.90M
Balance Sheet
Total Assets	8.79B	9.36B	9.10B	7.64B	4.72B
Cash, Cash Equivalents and Short-Term Investments	1.31B	2.04B	2.36B	1.39B	793.46M
Total Debt	3.14B	3.13B	3.35B	2.06B	1.00B
Total Liabilities	5.89B	5.78B	6.05B	4.84B	2.92B
Stockholders Equity	2.90B	3.57B	3.05B	2.80B	1.80B
Cash Flow
Free Cash Flow	-341.88M	181.30M	209.23M	369.72M	-107.58M
Operating Cash Flow	-55.51M	536.76M	437.19M	714.99M	171.79M
Investing Cash Flow	-734.62M	-419.88M	-443.31M	-325.51M	-301.75M
Financing Cash Flow	55.46M	-400.99M	946.21M	203.92M	102.09M

sanwacompany Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 317.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3187, the sentiment is Positive. The current price of 317 is above the 20-day moving average (MA) of 268.45, above the 50-day MA of 264.36, and above the 200-day MA of 314.29, indicating a neutral trend. The MACD of 0.96 indicates Negative momentum. The RSI at 54.93 is Neutral, neither overbought nor oversold. The STOCH value of 49.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3187.

sanwacompany Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3176	78 Outperform	¥54.06B	10.49	―	3.87%	2.66%	-11.41%
8103	76 Outperform	¥38.34B	12.30	―	4.05%	-3.82%	18.03%
8052	73 Outperform	¥60.27B	12.05	―	3.00%	16.06%	31.78%
8077	64 Neutral	¥5.50B	5.56	―	2.55%	0.57%	8.60%
9830	61 Neutral	¥166.37B	10.48	―	2.42%	9.74%	6.48%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
3187	41 Neutral	¥5.12B	-20.43	-13.53%	1.20%	3.87%	-170.87%