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

• Market Cap: ¥7.27B
• Dividend Yield: 1.37%
• Average Volume (3M): 9.14K
• Price to Earnings (P/E): 20.5
• 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): 8.93
• 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: ¥677.00 ▼(-7.77% Downside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

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

Balance Sheet Strength

Controlled leverage and a strong equity ratio provide durable financial flexibility. This structure helps Sagami fund manufacturing upkeep, absorb cyclical demand shocks, and pursue targeted investments without relying on volatile external financing, supporting multi-month resilience.

Cash Flow Generation

Sustained operating cash flow and improving free cash flow indicate the company reliably converts operations into cash. Durable cash generation underpins reinvestment in capacity, working capital needs, and potential shareholder returns, cushioning against episodic earnings volatility.

Diversified Revenue Model (Branded + OEM)

A dual model of branded sales plus OEM/private-label manufacturing creates durable, diversified revenue streams. Manufacturing expertise and repeat unit demand in sexual wellness reduce customer-concentration risk and support steady volume-based revenue over intermediate horizons.

Negative Factors

Declining Revenue Trend

Persistent top-line contraction undermines operating leverage and erodes the base needed to cover fixed manufacturing costs. Over several months this reduces scale advantages, constrains margin recovery, and raises pressure to find new channels or products to stabilize revenue.

Margin Compression / Negative EBIT

Shrinking gross margins and a recent negative EBIT margin point to structural cost or pricing issues. Sustained margin pressure limits retained earnings and reinvestment, weakening the firm's ability to modernize factories or compete on product innovation over the coming months.

Earnings Volatility and Weak EPS Growth

A severe decline in EPS and historical ROE volatility signal inconsistent profitability and earnings quality. This variability complicates planning for capex, dividends, or strategic initiatives and suggests operational or demand instability that can persist for multiple quarters.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• STOCH: Neutral

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 673.60, above the 50-day MA of 699.06, and below the 200-day MA of 841.81, indicating a bearish trend. The MACD of -7.08 indicates Negative momentum. The RSI at 39.48 is Neutral, neither overbought nor oversold. The STOCH value of 50.90 is Neutral, 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
8113	78 Outperform	¥1.76T	23.99	10.79%	3.47%	-1.56%	-1.15%
4912	76 Outperform	¥476.85B	16.53	9.77%	1.73%	2.18%	60.81%
4527	71 Outperform	¥523.29B	13.97	13.22%	1.53%	18.35%	31.87%
4452	70 Outperform	¥2.87T	24.05	11.70%	2.41%	4.62%	47.68%
4967	65 Neutral	¥419.61B	110.37	5.37%	1.95%	-3.33%	13.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
5194	52 Neutral	¥7.27B	20.55	―	1.37%	-2.67%	-143.38%