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

• Market Cap: ¥7.06B
• 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: ¥657.00 ▼(-10.49% 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

Strong balance sheet and controlled leverage

Controlled leverage and a strong equity ratio provide resilience against demand shocks and give the company financial flexibility to fund capex, working capital, or strategic initiatives without immediate refinancing pressure, supporting stability over the next several months.

Sustained operating cash flow generation

Efficient conversion of income into cash and robust operating cash flow enable the company to fund operations, maintain manufacturing capacity and cover dividends or buybacks. This cash conversion strength cushions profitability volatility and supports durable capital allocation.

Focused business model with branded and OEM sales

A dual revenue model (branded products plus OEM supply) diversifies channels, leverages manufacturing expertise, and smooths demand swings. Long-term, this specialization in sexual wellness supports stable unit demand and margin mix opportunities across markets.

Negative Factors

Declining revenue and shrinking gross margins

Sustained revenue contraction and compressing gross margins suggest weakening pricing power or cost pressures. Over months, this erodes scale economics, reduces funds for R&D/marketing, and makes it harder to restore long-term profitability without structural changes.

Negative EBIT margin indicating operational stress

A negative EBIT margin implies core operations are not covering operating costs, pointing to fixed-cost overhang or rising input/SG&A pressures. If persistent, it weakens internal cash generation and limits capacity to reinvest in growth or product development.

Volatile returns on equity

Volatile ROE indicates unpredictable earnings power and uneven conversion of capital into returns. For investors and management, this reduces visibility on long-term ROI and complicates capital allocation and strategic planning over the coming 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 primarily makes money by selling manufactured sexual wellness products—most notably condoms—through a mix of branded sales and supply to other channels. Key revenue streams include (1) sales of the company’s own branded products to retailers and distributors (e.g., pharmacies, drugstores, mass retailers, and e-commerce channels) where revenue is recognized from wholesale shipments, and (2) business-to-business supply/contract manufacturing (OEM/private-label) where the company produces condoms or related products that are sold under a customer’s brand or through a customer’s distribution network. Revenue is therefore driven by unit volumes shipped and product mix (e.g., standard vs. premium offerings), while profitability depends on manufacturing utilization, raw material/input costs, and selling/distribution expenses. Any specific named partnerships, customer concentration, or segment-level contribution details are null.

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	17.90B	18.24B	17.11B	15.79B
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	7.80B	8.29B	8.19B	8.22B
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: 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 662.85, above the 50-day MA of 681.22, and below the 200-day MA of 827.73, indicating a bearish trend. The MACD of -9.28 indicates Negative momentum. The RSI at 36.04 is Neutral, neither overbought nor oversold. The STOCH value of 19.58 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
8113	78 Outperform	¥1.68T	23.99	10.79%	3.47%	-1.56%	-1.15%
4912	76 Outperform	¥442.65B	16.53	9.09%	1.73%	2.18%	60.81%
4527	71 Outperform	¥548.24B	13.97	12.66%	1.53%	18.35%	31.87%
4452	70 Outperform	¥2.72T	24.05	11.50%	2.41%	4.62%	47.68%
4967	65 Neutral	¥414.72B	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	¥7.06B	20.55	―	1.37%	-2.67%	-143.38%