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

• Market Cap: ¥18.20B
• Dividend Yield: 4.99%
• Average Volume (3M): 19.81K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.83
• Revenue Growth: -16.47%
• EPS Growth: -68.62%
• Country: JP
• Employees: 618
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 10.72
• 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

• Rating: 68 Neutral
• Price Target: ¥2,235.00 ▲(5.62% Upside)

Sakai Heavy Industries' overall stock score is driven by its strong financial performance, particularly its robust balance sheet and profitability. However, recent declines in cash flow and operational margins present challenges. The technical analysis indicates a neutral to slightly bearish short-term trend, while the valuation is supported by a fair P/E ratio and attractive dividend yield.

Sakai Heavy Industries, Ltd. Business Overview & Revenue Model

Company Description

Sakai Heavy Industries, Ltd. (6358) is a Japanese company primarily engaged in the manufacturing and sale of heavy machinery and equipment. The company operates in various sectors, including construction, mining, and shipbuilding, providing a wide range of products such as excavators, cranes, and industrial machinery. With a focus on innovation and quality, Sakai Heavy Industries aims to deliver high-performance solutions that meet the needs of its diverse clientele in both domestic and international markets.

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	4.30B	3.33B	2.34B	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: 2116.00
• 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 2116 is above the 20-day moving average (MA) of 2077.90, above the 50-day MA of 2079.47, and above the 200-day MA of 2052.86, indicating a bullish trend. The MACD of 4.16 indicates Negative momentum. The RSI at 58.59 is Neutral, neither overbought nor oversold. The STOCH value of 69.99 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
6306	73 Outperform	¥29.55B	18.28	―	4.42%	4.63%	-1.01%
6294	72 Outperform	¥16.30B	11.81	―	3.64%	-1.44%	-23.59%
6358	68 Neutral	¥18.20B	21.23	―	4.99%	-16.47%	-68.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6316	58 Neutral	¥9.76B	15.18	―	3.46%	―	―
6310	57 Neutral	¥54.13B	60.53	―	1.23%	5.63%	―
6390	49 Neutral	¥16.46B	―	―	4.94%	-1.28%	-287.74%

Sakai Heavy Industries, Ltd. Corporate Events

Sakai Heavy Industries Issues New Shares for Executive Compensation

Sakai Heavy Industries, Ltd. announced the issuance of new shares as restricted stock compensation to its directors and executive officers. This move is part of a long-term incentive plan to align the interests of the company’s leadership with its shareholders, aiming to enhance corporate value. The issuance involves 44,800 common shares with a total value of 86,732,800 yen, and the shares are subject to a three-year transfer restriction period.

Sakai Heavy Industries Faces Financial Decline Amid Market Challenges

Sakai Heavy Industries reported a significant decline in its financial performance for the fiscal year ended March 31, 2025, with net sales dropping by 15.6% and operating profit decreasing by 52.3% compared to the previous year. The company also announced a reduction in dividends, reflecting the challenging market conditions and its strategic adjustments to improve future profitability.

Sakai Heavy Industries Renews Anti-Takeover Measures

Sakai Heavy Industries, Ltd. has announced the renewal of its anti-takeover measures for another three years, following a resolution by its Board of Directors. This decision reflects the company’s strategy to protect its corporate value and shareholder interests, ensuring that any large-scale share acquisitions align with its long-term goals and specialized market position. The renewal, pending shareholder approval, aims to safeguard against potential hostile takeovers that could disrupt the company’s strategic direction.