Sagami Rubber Industries Co., Ltd. (5194) AI Stock Analysis

• Market Cap: ¥7.78B
• Dividend Yield: 1.37%
• Average Volume (3M): 9.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -2.67%
• EPS Growth: -143.38%
• Country: JP
• Employees: 854
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -7.81
• Shares Outstanding: 10,937,449
• 10 Day Avg. Volume: 11,640
• 30 Day Avg. Volume: 9,140
• PEG Ratio: 0.03
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 14.35
• 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: 52 Neutral
• Price Target: ¥820.00 ▲(11.72% Upside)

The overall stock score of 52 reflects a stable financial structure but is weighed down by bearish technical indicators and poor valuation metrics. The company's challenges in revenue growth and profitability, combined with weak market sentiment, contribute to the lower score.

Positive Factors

Stable Financial Structure

A stable financial structure with efficient cash management ensures the company can meet its obligations and invest in growth opportunities, supporting long-term sustainability.

Strong Cash Generation

Strong cash generation provides the company with the flexibility to invest in R&D, pay dividends, or reduce debt, enhancing its financial resilience and growth potential.

Controlled Leverage

Controlled leverage indicates prudent financial management, reducing risk and ensuring the company can withstand economic fluctuations, supporting long-term viability.

Negative Factors

Declining Revenue

Declining revenue suggests challenges in market demand or competitive positioning, which could impact long-term growth and profitability if not addressed.

Negative EBIT Margin

A negative EBIT margin indicates operational inefficiencies or high costs, which could hinder profitability and require strategic adjustments to improve financial performance.

Inconsistent Profitability

Volatile return on equity reflects inconsistent profitability, which may affect investor confidence and the company's ability to fund future growth initiatives.

Sagami Rubber Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Sagami Rubber Industries Co., Ltd. primarily manufactures and supplies condoms. The company offers polyurethane and latex condoms, external catheters, and probe covers; plastic films; and healthcare products and services. It sells its products in Japan, France, Switzerland, Italy, Portugal, Spain, Finland, Norway, Sweden, Korea, Vietnam, Mexico, and the United States. The company was founded in 1934 and is headquartered in Atsugi, Japan.

How the Company Makes Money

Sagami Rubber Industries generates revenue primarily through the sale of its condom products, which are distributed both domestically in Japan and internationally. The company benefits from a strong brand reputation and a loyal customer base, which helps drive sales in a competitive market. Key revenue streams include retail sales through pharmacies, convenience stores, and supermarkets, as well as online sales channels. Additionally, Sagami has entered into partnerships with various health organizations and distributors, expanding its market reach and enhancing its product visibility. The company also invests in research and development to innovate new products, ensuring it stays ahead of industry trends and consumer preferences, further contributing to its earnings.

Sagami Rubber Industries Co., Ltd. Financial Statement Overview

Summary

Sagami Rubber Industries Co., Ltd. shows a stable financial structure with a strong balance sheet and efficient cash management. However, challenges in revenue growth and operational profitability, as indicated by the income statement, need to be addressed to improve overall financial health.

Income Statement

The income statement shows a mixed performance with declining total revenue over the years. Gross profit margin has been shrinking, indicating pressure on cost management or pricing power. The net profit margin has seen significant fluctuation, with recent recovery in profitability. However, the EBIT margin is negative for the latest period, suggesting challenges in operational efficiency or increased expenses. Revenue growth has been negative, indicating a contraction in sales.

Balance Sheet

The balance sheet reflects a stable financial structure with a reasonable debt-to-equity ratio, demonstrating controlled leverage. The equity ratio indicates a strong position, showing that a significant portion of assets is financed by equity. However, the return on equity has been volatile, suggesting inconsistent profitability. Overall, the company maintains solid asset management but needs to improve its return on equity.

Cash Flow

Cash flow analysis depicts positive trends with sustained operating cash flow generation and improved free cash flow over the years. The operating cash flow to net income ratio is robust, indicating efficient conversion of income into cash. Free cash flow to net income ratio highlights strong cash generation relative to earnings. However, free cash flow growth has been inconsistent, reflecting potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.02B	5.69B	6.11B	5.98B	5.41B	5.59B
Gross Profit	1.61B	1.47B	1.83B	1.89B	2.24B	2.43B
EBITDA	1.23B	1.47B	1.14B	1.75B	2.00B	1.46B
Net Income	175.89M	392.54M	40.96M	673.52M	1.10B	598.05M
Balance Sheet
Total Assets	18.28B	18.64B	17.72B	18.15B	17.04B	15.72B
Cash, Cash Equivalents and Short-Term Investments	2.05B	1.93B	1.19B	1.85B	1.53B	1.47B
Total Debt	5.59B	5.66B	5.74B	6.41B	6.50B	6.46B
Total Liabilities	7.51B	7.52B	7.61B	8.20B	8.12B	8.15B
Stockholders Equity	10.51B	10.84B	9.84B	9.66B	8.66B	7.33B
Cash Flow
Free Cash Flow	0.00	693.67M	241.52M	711.94M	230.31M	-753.05M
Operating Cash Flow	0.00	790.28M	373.60M	898.87M	905.32M	1.41B
Investing Cash Flow	0.00	438.49M	-133.05M	-184.86M	-675.76M	-2.16B
Financing Cash Flow	0.00	-503.15M	-906.58M	-422.13M	-189.90M	671.23M

Sagami Rubber Industries Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 734.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5194, the sentiment is Negative. The current price of 734 is above the 20-day moving average (MA) of 725.80, below the 50-day MA of 764.14, and below the 200-day MA of 875.14, indicating a bearish trend. The MACD of -12.58 indicates Negative momentum. The RSI at 28.13 is Positive, neither overbought nor oversold. The STOCH value of 4.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5194.

Sagami Rubber Industries Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4932	68 Neutral	¥11.46B	36.97	―	5.92%	22.86%	-32.11%
4936	63 Neutral	¥9.69B	25.52	―	2.65%	11.87%	-31.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
5194	52 Neutral	¥7.78B	-62.56	―	1.37%	-2.67%	-143.38%
4934	52 Neutral	¥6.21B	13.45	―	―	-19.42%	―
4935	49 Neutral	¥9.77B	-70.84	―	0.48%	10.13%	-14654.18%