Sakai Heavy Industries, Ltd. (6358) AI Stock Analysis

• Market Cap: ¥17.82B
• Dividend Yield: 5.09%
• Average Volume (3M): 19.81K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.82
• Revenue Growth: -13.63%
• EPS Growth: -74.53%
• Country: JP
• Employees: 618
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 39.73
• Shares Outstanding: 8,890,434
• 10 Day Avg. Volume: 18,540
• 30 Day Avg. Volume: 19,806
• PEG Ratio: -0.31
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 243.96
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥2,291.00 ▲(10.46% Upside)

Sakai Heavy Industries has a strong financial foundation with robust profitability and a solid balance sheet, which are the most significant factors in its overall score. The technical analysis suggests a neutral market position, while the valuation indicates potential overvaluation despite a high dividend yield. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, allowing the company to invest in growth opportunities and weather economic downturns.

Market Diversification

Diversifying revenue through international markets reduces dependency on domestic sales and mitigates regional economic risks, supporting long-term growth.

Technological Advancements

Investing in technology enhances product competitiveness and can lead to increased sales and market share, driving sustainable revenue growth.

Negative Factors

Declining Revenue Growth

A decline in revenue growth indicates potential challenges in market demand or competition, which could impact future profitability and market position.

Operational Margin Decline

Decreasing operational margins suggest inefficiencies or increased costs, which could erode profitability if not addressed.

Cash Flow Fluctuations

Fluctuating cash flow can strain liquidity and limit the company's ability to invest in growth or manage debt, affecting long-term financial health.

Sakai Heavy Industries, Ltd. Business Overview & Revenue Model

Company Description

Sakai Heavy Industries, Ltd. manufactures and sells construction equipment and industrial machinery in Japan and internationally. The company offers vibratory single drum, vibratory tandem, static pneumatic tired, static three wheel, vibratory combined, vibratory pneumatic tired, vibratory three wheel, and walk behind rollers, as well as rammers and plate compactors. It also provides road maintenance and repair equipment, such as road planers, reclaimers, asphalt pavers, road cleaners, and water sprinklers. In addition, the company is involved in the sale of outsourced industrial machinery. Sakai Heavy Industries, Ltd. was founded in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sakai Heavy Industries generates revenue through the sales of its heavy machinery and equipment, which are critical for construction and infrastructure development. Key revenue streams include the sale of new machinery, spare parts, and after-sales services, which ensure ongoing customer support and maintenance. The company also benefits from long-term contracts and partnerships with major construction and engineering firms, enhancing its market presence. Additionally, Sakai Heavy Industries may engage in export activities, supplying equipment to overseas markets, thus diversifying its revenue sources. The company's emphasis on technological advancements in machinery also positions it favorably in a competitive landscape, potentially leading to increased sales and profitability.

Sakai Heavy Industries, Ltd. Financial Statement Overview

Summary

Sakai Heavy Industries demonstrates a generally strong financial position with a history of revenue growth and solid profitability. The balance sheet is robust, with low leverage and strong equity standing. However, recent declines in cash flow and operational margins highlight potential areas of concern that need addressing to sustain long-term growth.

Income Statement

Sakai Heavy Industries has shown a robust revenue growth trajectory over the past few years, notably increasing from 2021 to 2024, although there was a significant drop in 2025. Gross profit margin has remained strong, and the company maintains a healthy net profit margin. However, the decline in EBIT and EBITDA margins in 2025 indicates challenges in operational efficiency. Overall, the income statement reflects solid profitability with some recent headwinds.

Balance Sheet

The balance sheet is strong, characterized by a high equity ratio and a decreasing debt-to-equity ratio, indicating prudent financial management and low leverage risk. Return on equity has been stable, reflecting effective use of shareholders' funds. The company has maintained a solid cash position, supporting its financial stability.

Cash Flow

Operating cash flow has seen fluctuations, with a significant drop in 2025, which may pose risks to liquidity. Free cash flow has also decreased, reflecting challenges in maintaining cash generation. Despite these issues, the company has managed to cover its capital expenditures with its operating cash flow, maintaining positive free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.29B	27.85B	33.02B	31.46B	26.60B	21.62B
Gross Profit	5.51B	7.67B	9.37B	8.17B	6.41B	5.41B
EBITDA	1.79B	2.85B	4.23B	3.33B	2.25B	1.53B
Net Income	836.47M	1.44B	2.44B	1.69B	1.43B	4.00M
Balance Sheet
Total Assets	40.76B	42.62B	44.24B	40.80B	37.86B	35.10B
Cash, Cash Equivalents and Short-Term Investments	5.94B	7.67B	8.38B	7.48B	7.99B	6.98B
Total Debt	4.34B	5.42B	5.05B	5.12B	6.04B	5.85B
Total Liabilities	11.48B	12.49B	15.07B	15.51B	14.70B	13.06B
Stockholders Equity	29.20B	30.05B	29.09B	25.23B	23.11B	22.00B
Cash Flow
Free Cash Flow	-241.22M	74.82M	2.13B	1.50B	2.07B	946.41M
Operating Cash Flow	-195.94M	399.37M	2.48B	1.89B	2.36B	1.53B
Investing Cash Flow	95.36M	39.19M	-353.70M	-399.43M	-263.60M	-508.90M
Financing Cash Flow	-888.04M	-1.22B	-1.42B	-2.24B	-1.23B	-812.50M

Sakai Heavy Industries, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2074.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6358, the sentiment is Positive. The current price of 2074 is above the 20-day moving average (MA) of 2049.50, above the 50-day MA of 2064.84, and above the 200-day MA of 2026.45, indicating a bullish trend. The MACD of -1.68 indicates Negative momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 36.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6358.

Sakai Heavy Industries, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6294	74 Outperform	¥17.11B	10.79	―	3.50%	-1.36%	5.14%
6306	74 Outperform	¥28.98B	16.01	―	4.46%	-4.23%	-1.63%
6358	70 Outperform	¥17.82B	20.78	―	5.09%	-13.63%	-74.53%
6316	68 Neutral	¥9.87B	11.77	―	3.73%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6310	45 Neutral	¥43.34B	26.60	―	1.60%	10.90%	―
6390	43 Neutral	¥16.23B	-2.58	―	5.45%	-2.22%	18.80%

Sakai Heavy Industries, Ltd. Corporate Events

Sakai Heavy Industries Reports Decline in Six-Month Financial Results

Sakai Heavy Industries reported a decline in its financial performance for the six months ending September 30, 2025, with net sales dropping by 9.8% and profits attributable to owners decreasing by 66.9% compared to the previous year. Despite the downturn, the company maintains a strong capital adequacy ratio of 69.1%, indicating a stable financial position. The forecast for the fiscal year ending March 31, 2026, shows a slight increase in net sales but anticipates further declines in operating and ordinary profits, reflecting ongoing challenges in the market.