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

• Market Cap: ¥6.67B
• Dividend Yield: 2.64%
• Average Volume (3M): 1.49K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.87
• Revenue Growth: 2.28%
• EPS Growth: 41.72%
• Country: JP
• Employees: 334
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 95.98
• Shares Outstanding: 2,024,000
• 10 Day Avg. Volume: 1,500
• 30 Day Avg. Volume: 1,490
• PEG Ratio: -0.21
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 14.25
• 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: 75 Outperform
• Price Target: ¥3,611.00 ▲(59.71% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

Overall score is supported primarily by solid financial stability and cost structure alongside an attractive valuation (low P/E and dividend yield). The main offset is technical risk from an overbought setup (RSI 77.3) even though the broader trend remains bullish.

Positive Factors

Conservative leverage

A low debt-to-equity ratio (0.33) and a 54.6% equity ratio provide durable financial flexibility. This conservative capital structure limits interest burden, supports investment or downturn absorption in the cyclical auto-parts industry, and preserves borrowing capacity over months.

Strong gross and operating margins

A 21.7% gross margin and positive EBIT/EBITDA margins indicate structural cost control in manufacturing and pricing power on produced components. These margins help sustain profitability through revenue cycles and provide a buffer to fund fixed costs and incremental strategic investments over time.

High cash earnings quality

Operating cash flow nearly equals net income, signaling that reported profits reliably convert to cash. This durable cash conversion supports dividends, capex, or debt servicing without reliance on one-off accounting gains, increasing resilience across multiple quarters.

Negative Factors

Declining net profitability

Net margin erosion to 3.5% shows pressure below the operating line, reducing retained earnings available for reinvestment. Persistent margin decline can reflect rising input costs, pricing compression, or inefficiencies that weaken long-term return generation for shareholders.

Revenue volatility and recent decline

Inconsistent revenue growth and a recent decline undermine scale economics and make fixed-cost absorption harder in manufacturing. For an auto-parts supplier, sustained demand variability can limit predictable cash flow and constrain multi-quarter planning for capacity or R&D.

Moderate, variable free cash flow

Free cash flow converts only moderately to reported earnings and has shown variability. That limits the company's ability to consistently fund expansions, pay higher dividends, or build cash cushions, increasing sensitivity to margin or revenue shocks over the coming months.

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

Company Description

Sakura Rubber Co., Ltd. manufactures and sells specialty rubber products. The company offers firefighting products, including fire hoses, firefighting suction hoses, toxic substances measuring instruments, firefighting training and rescue apparatus, air respirators, emergency life saving tools, powered impact tools, air lifting bags, community disaster prevention apparatus, couplings for large diameter hoses, MVU fans and blowers, and rescue support systems, as well as mountain, hydraulic, and water rescue tools. It also provides aerospace products, such as various fittings; PTFE, rubber, lightweight rubber and PTFE, oxygen suction, and duct hoses; extruded, sheet, and molded goods; and inflatable seals, insulation products, bending tubes, and quick disconnectors. In addition, the company offers industrial rubber products comprising tank vapor seals; oil-resistant hoses for petrochemical plants; suction delivery hoses; tank lorry hoses; gate seals; joints; rubber sheets; pressed products; molded rubber; and insulation and hydraulic hoses, as well as couplings for the general industry. Further, it engages in the real estate business comprising operation of shopping mall. Sakura Rubber Co., Ltd. was incorporated in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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Sakura Rubber Co., Ltd. Financial Statement Overview

Summary

Balanced fundamentals: strong gross margin (21.7%) and solid leverage profile (debt-to-equity 0.33, equity ratio 54.6%), but profitability has come under pressure (net margin down to 3.5%) and revenue declined in the latest year. Cash earnings quality is good (operating cash flow to net income 0.99), though free cash flow efficiency is only moderate (FCF to net income 0.60) and variable.

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	12.50B	12.19B	13.35B	10.69B	8.87B	10.02B
Gross Profit	2.70B	2.65B	3.04B	2.16B	1.45B	1.97B
EBITDA	1.00B	977.52M	1.40B	865.92M	220.58M	571.92M
Net Income	453.86M	425.92M	733.50M	314.19M	-94.50M	235.78M
Balance Sheet
Total Assets	15.41B	16.59B	17.57B	16.32B	14.38B	14.78B
Cash, Cash Equivalents and Short-Term Investments	3.28B	3.14B	3.02B	3.02B	3.36B	3.34B
Total Debt	3.09B	3.02B	2.94B	3.11B	3.49B	3.42B
Total Liabilities	6.52B	7.53B	8.85B	8.56B	6.93B	7.21B
Stockholders Equity	8.89B	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: Positive
• Last Price: 2261.00
• 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:5189, the sentiment is Positive. The current price of 2261 is below the 20-day moving average (MA) of 3142.40, below the 50-day MA of 2770.38, and below the 200-day MA of 2284.58, indicating a bullish trend. The MACD of 122.50 indicates Positive momentum. The RSI at 60.65 is Neutral, neither overbought nor oversold. The STOCH value of 55.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	77 Outperform	¥26.65B	14.38	―	4.20%	-1.15%	-34.09%
7282	75 Outperform	¥521.96B	7.76	8.58%	2.62%	1.44%	-0.92%
5189	75 Outperform	¥6.67B	5.89	―	2.64%	2.28%	41.72%
5161	73 Outperform	¥149.15B	16.04	―	5.78%	-4.26%	17.85%
5988	66 Neutral	¥42.10B	50.47	―	5.35%	-6.20%	-64.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5162	58 Neutral	¥3.67B	10.35	―	3.03%	4.17%	-693.96%