Sakura Rubber Co., Ltd. (5189) AI Stock Analysis

• Market Cap: ¥3.65B
• Dividend Yield: 3.25%
• Average Volume (3M): 5.19K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.85
• Revenue Growth: -8.73%
• EPS Growth: -41.93%
• Country: JP
• Employees: 334
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Parts
• EPS (TTM): 285.08
• Shares Outstanding: 2,024,000
• 10 Day Avg. Volume: 530
• 30 Day Avg. Volume: 5,193
• PEG Ratio: -0.02
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.66
• 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

• Rating: 77 Outperform
• Price Target: ¥2,096.00 ▲(15.04%Upside)

Sakura Rubber Co., Ltd. shows a solid overall performance, led by strong valuation metrics and a stable technical outlook. Financial performance is balanced with some pressure on profitability and cash flow variability. The absence of earnings call insights and corporate events does not impact the score significantly.

Sakura Rubber Co., Ltd. Business Overview & Revenue Model

Company Description

Sakura Rubber Co., Ltd. (5189) is a Japanese company specializing in the manufacturing and distribution of rubber products. The company operates primarily in the automotive and industrial sectors, producing a wide range of rubber components that are essential for various applications. Their core products include automotive hoses, industrial rubber parts, and seals, catering to both domestic and international markets.

How the Company Makes Money

Sakura Rubber Co., Ltd. generates revenue through the sale of its diverse range of rubber products. The company primarily earns money by supplying rubber components to automotive manufacturers and industrial clients. Key revenue streams include contracts and orders from automobile companies for hoses and seals, and partnerships with industrial firms requiring specialized rubber parts. Additionally, the company may benefit from long-term supply agreements and strategic partnerships that ensure a steady demand for its products. The company's earnings are influenced by the demand for automotive and industrial manufacturing, as well as its ability to innovate and produce high-quality rubber products.

Sakura Rubber Co., Ltd. Financial Statement Overview

Summary

Sakura Rubber Co., Ltd. demonstrates strong cost management and a stable balance sheet with a manageable debt-to-equity ratio and healthy equity position. However, net profit margin pressures and inconsistent revenue growth indicate challenges in market conditions and operational execution. Cash flow generation shows variability, highlighting the need for improved free cash flow to support growth.

Income Statement

Sakura Rubber Co., Ltd. has shown a mixed performance in its income statement. The company achieved a gross profit margin of 21.7% in the latest annual report, reflecting strong cost management. However, the net profit margin has decreased over the years to 3.5%, indicating pressure on bottom-line profitability. Revenue growth has been inconsistent, with a decline in the latest year, signaling potential challenges in market conditions or operational execution. Despite these challenges, the company maintains a reasonable EBIT margin of 5.3% and an EBITDA margin of 8.0%, which are indicative of operational efficiency.

Balance Sheet

The balance sheet of Sakura Rubber Co., Ltd. presents a stable financial position. The debt-to-equity ratio stands at a manageable 0.33, highlighting a conservative approach to leverage. The return on equity is positive at 4.7%, though this figure has been declining, suggesting potential inefficiencies in generating returns for shareholders. The equity ratio is healthy at 54.6%, indicating a strong asset base supported by shareholder equity. The overall financial health appears sound, though there is room for improving asset utilization.

Cash Flow

Cash flow analysis reveals both strengths and weaknesses for Sakura Rubber Co., Ltd. The operating cash flow to net income ratio is 0.99, indicating that operating cash flows are nearly equivalent to net income, which is a positive sign of cash earnings quality. However, free cash flow has shown variability, with a growth rate of 4.97% year-over-year, reflecting potential volatility in cash generation capability. While the free cash flow to net income ratio is 0.60, suggesting some level of cash efficiency, the company should focus on enhancing its free cash flow generation to support future growth initiatives.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
13.18B	12.19B	13.35B	10.69B	8.87B	10.02B
	Gross Profit
2.70B	2.65B	3.04B	2.16B	1.45B	1.97B
	EBIT
635.32M	645.31M	1.14B	425.79M	-128.46M	278.08M
	EBITDA
838.66M	977.52M	1.40B	865.92M	220.58M	571.92M
	Net Income Common Stockholders
394.87M	425.92M	733.50M	314.19M	-94.50M	235.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.34B	3.14B	3.02B	3.02B	3.36B	3.34B
	Total Assets
15.38B	16.59B	17.57B	16.32B	14.38B	14.78B
	Total Debt
3.23B	3.02B	2.94B	3.11B	3.49B	3.42B
	Net Debt
891.00M	-128.14M	-75.13M	84.38M	136.63M	75.97M
	Total Liabilities
6.87B	7.53B	8.85B	8.56B	6.93B	7.21B
	Stockholders Equity
8.52B	9.06B	8.72B	7.76B	7.44B	7.56B
Cash Flow		Free Cash Flow
0.00	257.43M	245.24M	-381.41M	-111.28M	735.41M
	Operating Cash Flow
0.00	423.08M	367.00M	-254.51M	71.59M	1.21B
	Investing Cash Flow
0.00	-197.15M	-146.90M	292.04M	-90.22M	-504.60M
	Financing Cash Flow
0.00	-101.63M	-223.37M	-370.75M	29.93M	140.49M

Sakura Rubber Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1822.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5189, the sentiment is Negative. The current price of 1822 is below the 20-day moving average (MA) of 1840.75, below the 50-day MA of 1826.32, and below the 200-day MA of 1829.43, indicating a bearish trend. The MACD of 5.35 indicates Positive momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 42.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5189.

Sakura Rubber Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5185	78 Outperform	¥26.98B	8.94		4.63%	0.91%	-3.92%
5189	77 Outperform	¥3.65B	8.39		3.25%	-8.73%	-41.93%
5161	69 Neutral	¥94.94B	23.40		7.27%	2.32%	-21.60%
7284	66 Neutral	¥3.73B	8.24		4.71%	3.82%	―
Sector *	62 Neutral	$6.76B	11.07	2.80%	6.34%	2.68%	-24.87%
5162	56 Neutral	¥2.69B	―		3.37%	6.39%	-276.28%
7256	39 Underperform	¥3.52B	―		―	33.86%	69.12%