Sakai Heavy Industries, Ltd. (JP:6358)
:6358
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Sakai Heavy Industries, Ltd.
(6358)
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Rating:62Neutral
Price Target:
¥2,227.00
▲(6.30% Upside)
Action:Downgraded
Date:05/15/26
The score is supported primarily by attractive valuation (low P/E and strong dividend yield) and a conservative balance sheet. Offsetting this, recent cash flow deterioration and weak cash conversion meaningfully raise fundamental risk, while technical signals are only neutral.
Positive Factors
Conservative balance sheet and improving leverage
Sakai's materially lower debt-to-equity and steady equity growth provide durable financial flexibility for capex, R&D, and cyclical downturns. A conservative capital structure reduces refinancing risk and supports long-term investment in product platforms and dealer relationships.
Negative Factors
Severe cash flow deterioration and weak cash conversion
A sharp decline in operating and free cash flow, and cash conversion near single digits, signals structural working-capital or collection issues that can strain funding for capex, dividends, or inventory. Persistent weak cash generation undermines balance sheet resilience over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and improving leverage
Sakai's materially lower debt-to-equity and steady equity growth provide durable financial flexibility for capex, R&D, and cyclical downturns. A conservative capital structure reduces refinancing risk and supports long-term investment in product platforms and dealer relationships.
Read all positive factors
Sakai Heavy Industries, Ltd. (6358) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥18.20B
Dividend Yield5.14%
Average Volume (3M)19.81K
Price to Earnings (P/E)9.9
Beta (1Y)0.89
Revenue Growth-1.12%
EPS Growth22.15%
CountryJP
Employees618
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)98.17
Shares Outstanding8,890,434
10 Day Avg. Volume18,540
30 Day Avg. Volume19,806
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)0.55
Price to Sales (P/S)0.63
P/FCF Ratio53.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)95.6
Revenue Forecast (FY)¥27.50B
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 com...
How the Company Makes Money
Sakai Heavy Industries makes money primarily by manufacturing and selling road construction machinery, with revenue largely derived from (1) sales of new machines (notably road rollers and asphalt pavers/finishers) to construction contractors, dea...
Sakai Heavy Industries, Ltd. Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
78
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.29B | 27.54B | 27.85B | 33.02B | 31.46B | 26.60B |
| Gross Profit | 5.51B | 7.69B | 7.67B | 9.37B | 8.17B | 6.41B |
| EBITDA | 1.61B | 2.32B | 2.30B | 4.00B | 3.22B | 2.06B |
| Net Income | 837.34M | 1.76B | 1.44B | 2.44B | 1.69B | 1.43B |
Balance Sheet | ||||||
| Total Assets | 40.76B | 43.94B | 42.62B | 44.24B | 40.80B | 37.86B |
| Cash, Cash Equivalents and Short-Term Investments | 5.94B | 6.55B | 7.67B | 8.38B | 7.48B | 7.99B |
| Total Debt | 4.34B | 5.21B | 5.58B | 5.05B | 5.12B | 6.04B |
| Total Liabilities | 11.48B | 12.26B | 12.49B | 15.07B | 15.51B | 14.70B |
| Stockholders Equity | 29.20B | 31.59B | 30.05B | 29.09B | 25.23B | 23.11B |
Cash Flow | ||||||
| Free Cash Flow | -241.22M | 322.98M | 74.82M | 2.20B | 1.53B | 2.10B |
| Operating Cash Flow | -195.94M | 878.03M | 399.37M | 2.48B | 1.89B | 2.36B |
| Investing Cash Flow | 95.36M | -561.28M | 39.19M | -353.70M | -399.43M | -263.60M |
| Financing Cash Flow | -888.04M | -1.52B | -1.22B | -1.42B | -2.24B | -1.23B |
Sakai Heavy Industries, Ltd. Technical Analysis
Positive
2095.00
Price Trends
2076.79
Positive
2101.61
Negative
2056.12
Positive
Market Momentum
-1.76
Negative
50.55
Neutral
25.18
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 2095 is above the 20-day moving average (MA) of 2070.00, above the 50-day MA of 2076.79, and above the 200-day MA of 2056.12, indicating a bullish trend. The MACD of -1.76 indicates Negative momentum. The RSI at 50.55 is Neutral, neither overbought nor oversold. The STOCH value of 25.18 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥319.97B | 18.05 | ― | 2.99% | 5.65% | 11.14% | |
70 Outperform | ¥3.03T | 9.53 | 7.55% | 2.22% | 5.51% | 12.24% | |
69 Neutral | ¥5.59T | 12.74 | ― | 4.06% | 0.69% | -12.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥18.20B | 9.88 | ― | 5.14% | -1.12% | 22.15% | |
61 Neutral | ¥1.04T | 16.50 | 9.16% | 3.98% | 2.49% | -10.13% | |
52 Neutral | ¥14.20B | 3.44 | ― | 5.40% | 6.43% | ― |
* Industrials Sector Average
JP:6358
Sakai Heavy Industries, Ltd.
2,084.00
257.78
14.12%
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18.07%
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1.34%
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50.16%
Sakai Heavy Industries, Ltd. Corporate Events
Sakai Heavy Industries Beats Forecasts and Lifts Year-End Dividend on Market Recovery
May 13, 2026
Sakai Heavy Industries reported consolidated results for the year to March 31, 2026 that exceeded its own downgraded forecast, as the global construction machinery market showed signs of bottoming out and demand recovered late in the fiscal year. ...
Sakai Heavy Industries Lifts FY2026 Profit and Dividend, Sees Margin Pressure Ahead
May 13, 2026
Sakai Heavy Industries reported consolidated net sales of ¥27.5 billion for the year ended March 31, 2026, down 1.1% year on year, while operating profit was roughly flat at ¥1.59 billion and ordinary profit rose 5.8%. Profit attributabl...
Sakai Heavy Industries Books ¥900 Million Extraordinary Gain on Share Sale
Apr 1, 2026
Sakai Heavy Industries has completed the sale of a portion of its listed investment securities, realizing an extraordinary gain of ¥900 million in March 2026. The move is part of its stated policy to cap cross-shareholdings at under 20% of co...
Sakai Heavy Industries Cuts Sales Outlook but Lifts Net Profit Guidance, Keeps Dividend Unchanged
Mar 12, 2026
Sakai Heavy Industries revised its consolidated forecast for the fiscal year ending March 31, 2026, projecting lower net sales and reduced operating and ordinary profit as the global construction machinery market shows only a weak recovery. Despit...
Sakai Heavy Industries to Book ¥1.1 Billion Gain From Sale of Cross-Shareholdings
Mar 12, 2026
Sakai Heavy Industries has resolved at a board meeting to sell a portion of its listed investment securities in line with its Policy on Cross-Shareholdings, which aims to keep cross-shareholdings below 20% of consolidated net assets. The move unde...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.