SANWAYUKA INDUSTRY CORPORATION (4125) AI Stock Analysis

• Market Cap: ¥13.91B
• Dividend Yield: 1.87%
• Average Volume (3M): 27.24K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.83
• Revenue Growth: 7.54%
• EPS Growth: -0.55%
• Country: JP
• Employees: 432
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 73.67
• Shares Outstanding: 4,320,420
• 10 Day Avg. Volume: 47,220
• 30 Day Avg. Volume: 27,236
• PEG Ratio: -0.25
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -8.66
• 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): 208.75
• Revenue Forecast (FY): ¥18.91B

• Rating: 73 Outperform
• Price Target: ¥3,295.00 ▲(102.64% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven by strong technical uptrend signals and reasonable valuation. These positives are partly offset by weaker financial quality, particularly pressured margins and negative free cash flow.

Positive Factors

Consistent revenue growth

Sustained top-line growth near 15% indicates the company is expanding volume or pricing in its core waste-management services. Over 2-6 months this supports scale economics, strengthens customer relationships, and provides room to invest in efficiency or service expansion despite margin headwinds.

Stable balance sheet with moderate leverage

A balanced leverage profile and healthy equity proportion reduce refinancing and solvency risk. This structural financial stability gives management flexibility to fund operations, pursue selective acquisitions or capex, and absorb cyclical pressure without immediate liquidity strain.

Positive operating cash conversion

A positive operating-cash-to-net-income ratio signals earnings quality and reliable cash generation from core operations. Over the medium term this supports working-capital needs and underpins the firm's ability to service obligations and potentially fund growth, even if free cash flow is currently negative.

Negative Factors

Margin erosion across income statement

Declining gross, EBIT and net margins point to rising costs or price pressure that reduce operating leverage. Persisting margin erosion undermines long-term free cash generation and return on invested capital, constraining reinvestment and reducing resilience to competitive or input-cost shocks.

Negative free cash flow

Negative free cash flow is a structural concern: it limits the company's ability to self-fund capex, pay down debt, or return capital. Over months this may force external financing or deferment of strategic investments, raising liquidity and execution risk if negative FCF persists.

Declining returns on equity

A falling ROE suggests lower effectiveness in converting equity into profits, possibly from margin pressure or capital intensity. Structurally, this weakens investor returns and may signal inefficient capital allocation or the need for operational improvement to restore long-term profitability.

SANWAYUKA INDUSTRY CORPORATION Business Overview & Revenue Model

Company Description

Sanwayuka Industry Corporation engages in the disposal, recycling, and management of industrial waste in Japan. The company also manufactures and sells chemicals, including high purity solvents, lubricating and processing oils, washing and cleaning agents, antifreeze/brine, PVD coating film removal liquids, and automotive/casting-related materials. It offers oil replacing and cleaning works; contract manufacturing services for chemicals; and PCBs collection and transport services. The company was incorporated in 1970 and is headquartered in Kariya, Japan.

How the Company Makes Money

SANWAYUKA INDUSTRY CORPORATION generates revenue through multiple channels, primarily by selling its manufactured products to wholesalers and retailers in both domestic and international markets. Key revenue streams include direct sales of automotive components, electronic devices, and consumer products. The company also engages in strategic partnerships with other manufacturers and distributors, enhancing its market reach and operational efficiency. Additionally, SANWAYUKA may benefit from service contracts related to product maintenance and support, further diversifying its income sources.

SANWAYUKA INDUSTRY CORPORATION Financial Statement Overview

Summary

Revenue is growing, but profitability is under pressure with declining gross/EBIT/EBITDA and net margins. The balance sheet is stable with moderate leverage, but negative free cash flow raises liquidity and reinvestment risk.

Income Statement

SANWAYUKA INDUSTRY CORPORATION shows a stable revenue growth with a slight increase in Total Revenue from 2024 to 2025. Gross Profit and Net Profit Margins have decreased slightly, indicating potential pressure on profitability. The EBIT and EBITDA margins have also seen a decline, reflecting reduced operational efficiency. Overall, the company maintains positive revenue growth, but profitability metrics are under pressure.

Balance Sheet

The company has a moderate Debt-to-Equity Ratio, indicating a balanced leverage position. The Return on Equity (ROE) has slightly declined, reflecting challenges in generating returns on shareholder equity. The Equity Ratio shows a healthy proportion of equity in the asset base, suggesting financial stability. Overall, the balance sheet reflects a stable financial position with reasonable leverage.

Cash Flow

The Free Cash Flow has turned negative, indicating challenges in generating sufficient cash post-capital expenditures. The Operating Cash Flow to Net Income Ratio is positive, demonstrating the company's ability to convert net income to cash effectively. However, the Free Cash Flow to Net Income Ratio is negative, highlighting cash flow pressures. Overall, the cash flow statement indicates potential liquidity concerns due to negative free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	16.14B	16.04B	15.63B	17.37B	15.54B	12.46B
Gross Profit	4.56B	4.50B	4.63B	4.98B	4.60B	3.81B
EBITDA	2.08B	2.11B	2.58B	2.96B	2.73B	1.79B
Net Income	577.89M	591.47M	1.04B	1.33B	1.26B	727.41M
Balance Sheet
Total Assets	20.52B	20.64B	21.12B	20.84B	21.38B	17.12B
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.63B	2.74B	2.98B	3.22B	1.50B
Total Debt	4.73B	5.06B	5.34B	6.39B	7.30B	7.87B
Total Liabilities	8.03B	8.12B	9.04B	9.81B	11.61B	11.49B
Stockholders Equity	12.30B	12.33B	12.04B	11.00B	9.77B	5.63B
Cash Flow
Free Cash Flow	0.00	-752.22M	818.20M	668.43M	-636.94M	195.04M
Operating Cash Flow	0.00	1.67B	2.04B	2.62B	1.27B	1.77B
Investing Cash Flow	0.00	-2.34B	-1.07B	-1.88B	-1.84B	-1.33B
Financing Cash Flow	0.00	-450.68M	-1.20B	-983.56M	2.29B	-164.03M

SANWAYUKA INDUSTRY CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1626.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4125, the sentiment is Positive. The current price of 1626 is below the 20-day moving average (MA) of 2849.35, below the 50-day MA of 2634.70, and below the 200-day MA of 1864.51, indicating a bullish trend. The MACD of 167.03 indicates Negative momentum. The RSI at 68.92 is Neutral, neither overbought nor oversold. The STOCH value of 81.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4125.

SANWAYUKA INDUSTRY CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4125	73 Outperform	¥13.91B	16.86	―	1.87%	7.54%	-0.55%
9793	73 Outperform	¥189.32B	20.74	10.88%	2.20%	6.63%	-3.05%
5698	73 Outperform	¥30.55B	16.56	―	2.62%	-9.37%	590.66%
9336	73 Outperform	¥385.59B	27.83	―	1.30%	8.33%	1.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2195	56 Neutral	¥6.11B	19.76	―	1.36%	3.68%	-24.83%
4657	56 Neutral	¥2.21B	54.17	―	1.93%	-1.19%	-89.91%