SANWAYUKA INDUSTRY CORPORATION (4125) AI Stock Analysis

• Market Cap: ¥13.18B
• Dividend Yield: 1.87%
• Average Volume (3M): 27.24K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.81
• 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: 72 Outperform
• Price Target: ¥3,452.00 ▲(112.30% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven primarily by solid but mixed financial performance—revenue growth and a stable balance sheet are offset by margin compression and negative free cash flow. Technicals are supportive with an established uptrend and neutral momentum, while valuation is a key positive due to the low P/E and a modest dividend yield.

Positive Factors

Consistent revenue growth

Revenue growth near 15% demonstrates durable top-line momentum over recent periods. For a waste-management operator, sustained revenue expansion signals stable contract demand and scale benefits that support long-term service coverage, network utilization and the ability to invest in operations.

Balanced leverage and equity base

A moderate debt-to-equity ratio and healthy equity ratio indicate a stable capital structure. This balanced leverage reduces refinancing and liquidity risk, preserves borrowing capacity for strategic investments, and provides resilience to cyclical pressures common in utility-like waste services.

Strong operating cash conversion

Positive conversion of net income into operating cash flow points to earnings quality and effective working-capital management. Even though FCF is negative, strong OCF suggests the business can generate recurring cash from operations once capex is normalized, aiding sustainability and deleveraging options.

Negative Factors

Margin compression

Declining gross, EBIT/EBITDA and net margins indicate ongoing pressure on profitability and operational efficiency. Persistently squeezed margins reduce reinvestment capacity, lower returns on new projects and leave less buffer against input-cost inflation, which can erode long-term cash generation.

Negative free cash flow

Negative free cash flow signals the company is not generating surplus cash after capital expenditures, constraining the ability to fund dividends, pay down debt or invest opportunistically. Over the medium term this may necessitate external financing or capex cuts, raising strategic and liquidity risk.

Declining return on equity

A slipping ROE suggests the business is generating lower returns on shareholder capital, potentially from weaker margins or asset inefficiencies. If ROE remains below peers or the company's cost of capital, it undermines long-term value creation and may pressure capital allocation priorities.

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

Stable revenue growth, but profitability is under pressure with declining gross/EBIT/EBITDA and net margins. Balance sheet leverage appears reasonable and equity base is healthy, yet negative free cash flow points to cash generation and potential liquidity concerns.

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: Positive
• RSI: Neutral
• STOCH: Neutral

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 3038.25, below the 50-day MA of 2756.32, and below the 200-day MA of 1928.13, indicating a bullish trend. The MACD of 108.58 indicates Positive momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 53.98 is Neutral, 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
9793	73 Outperform	¥184.09B	17.31	11.00%	2.20%	6.63%	-3.05%
5698	73 Outperform	¥27.15B	7.02	―	2.62%	-9.37%	590.66%
9336	73 Outperform	¥368.60B	25.33	―	1.30%	8.33%	1.73%
4125	72 Outperform	¥13.18B	7.75	―	1.87%	7.54%	-0.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2195	56 Neutral	¥5.46B	16.59	―	1.36%	3.68%	-24.83%
4657	56 Neutral	¥2.10B	104.52	―	1.93%	-1.19%	-89.91%