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Sakai Heavy Industries, Ltd. (JP:6358)
:6358
Japanese Market

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

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JP

Sakai Heavy Industries, Ltd.

(6358)

Rating:73Outperform
Price Target:
¥2,228.00
▲(12.41%Upside)
The stock of Sakai Heavy Industries is moderately attractive, with the valuation being a significant positive driver due to its low P/E ratio and high dividend yield. While the financial performance is generally strong with a solid balance sheet, concerns about cash flow and operational efficiency have been noted. Technical analysis presents a neutral to slightly bearish outlook, which slightly offsets the attractive valuation.

Sakai Heavy Industries, Ltd. (6358) vs. iShares MSCI Japan ETF (EWJ)

Sakai Heavy Industries, Ltd. Business Overview & Revenue Model

Company DescriptionSakai Heavy Industries, Ltd. (6358) is a Japanese company specializing in the manufacturing of construction equipment. Established in 1918, the company is renowned for its production of road construction machinery, including vibratory rollers, rammers, and other compacting equipment. Sakai Heavy Industries operates within the broader industrial machinery sector, serving both domestic and international markets with a focus on innovation and quality in its equipment offerings.
How the Company Makes MoneySakai Heavy Industries makes money primarily through the sale of its construction equipment products. The company's revenue streams are largely driven by the manufacturing and distribution of road construction machinery, such as vibratory rollers and compactors. These products are sold to construction firms, government agencies, and other entities involved in infrastructure development. Additionally, Sakai Heavy Industries may engage in service contracts and after-sales support, which provide supplementary income. The company's earnings are influenced by factors such as global infrastructure investment trends, technological advancements in construction machinery, and its strategic partnerships or distribution agreements with other companies in the industry.

Sakai Heavy Industries, Ltd. Financial Statement Overview

Summary
Sakai Heavy Industries demonstrates a generally strong financial position with solid profitability and a robust balance sheet. However, recent declines in cash flow and operational margins present potential challenges.
Income Statement
75
Positive
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
82
Very Positive
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
68
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue28.96B27.85B33.02B31.46B26.60B21.62B
Gross Profit8.21B7.67B9.37B8.17B6.41B5.41B
EBITDA2.91B2.85B4.30B3.33B2.34B1.53B
Net Income1.93B1.44B2.44B1.69B1.43B4.00M
Balance Sheet
Total Assets43.77B42.62B44.24B40.80B37.86B35.10B
Cash, Cash Equivalents and Short-Term Investments6.58B7.67B8.38B7.48B7.99B6.98B
Total Debt5.02B5.42B5.05B5.12B6.04B5.85B
Total Liabilities14.04B12.49B15.07B15.51B14.70B13.06B
Stockholders Equity29.66B30.05B29.09B25.23B23.11B22.00B
Cash Flow
Free Cash Flow-241.22M74.82M2.13B1.50B2.07B946.41M
Operating Cash Flow-195.94M399.37M2.48B1.89B2.36B1.53B
Investing Cash Flow95.36M39.19M-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
Neutral
Last Price1982.00
Price Trends
50DMA
1973.12
Positive
100DMA
2037.05
Negative
200DMA
2169.12
Negative
Market Momentum
MACD
11.57
Negative
RSI
59.55
Neutral
STOCH
84.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6358, the sentiment is Neutral. The current price of 1982 is above the 20-day moving average (MA) of 1966.65, above the 50-day MA of 1973.12, and below the 200-day MA of 2169.12, indicating a neutral trend. The MACD of 11.57 indicates Negative momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 84.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6358.

Sakai Heavy Industries, Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥27.83B13.93
4.67%11.49%52.70%
73
Outperform
¥17.22B11.76
6.10%-15.65%-41.32%
68
Neutral
¥14.78B10.06
4.01%-1.89%-21.95%
68
Neutral
¥9.20B14.31
4.20%
65
Neutral
$10.75B15.725.20%1.90%3.09%-27.42%
57
Neutral
¥30.39B
2.23%1.56%-720.36%
49
Neutral
¥15.61B
5.25%-7.94%-242.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6358
Sakai Heavy Industries, Ltd.
2,023.00
-781.06
-27.85%
JP:6294
Okada Aiyon Corporation
1,878.00
-427.26
-18.53%
JP:6306
Nikko Co., Ltd.
726.00
-20.24
-2.71%
JP:6310
Iseki & Co., Ltd.
1,406.00
402.24
40.07%
JP:6316
Maruyama Mfg.Co., Inc.
2,015.00
-304.87
-13.14%
JP:6390
KATO WORKS CO., LTD.
1,350.00
133.23
10.95%

Sakai Heavy Industries, Ltd. Corporate Events

Sakai Heavy Industries Issues New Shares for Executive Compensation
Jun 27, 2025

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
May 14, 2025

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
May 14, 2025

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.

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.Date of analysis: Jul 01, 2025