Sanoh Industrial Co., Ltd. (6584) AI Stock Analysis

• Market Cap: ¥33.64B
• Dividend Yield: 3.4%
• Average Volume (3M): 354.62K
• Price to Earnings (P/E): 79.4
• Beta (1Y): 1.44
• Revenue Growth: -3.91%
• EPS Growth: -36.53%
• Country: JP
• Employees: 7,915
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -10.32
• Shares Outstanding: 37,112,000
• 10 Day Avg. Volume: 196,040
• 30 Day Avg. Volume: 354,616
• PEG Ratio: -0.39
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -24.84
• 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: 59 Neutral
• Price Target: ¥841.00 ▲(2.19% Upside)

Sanoh Industrial Co., Ltd. has a moderate overall stock score. The most significant factor is the challenging financial performance, with mixed results across income, balance sheet, and cash flow statements. Technical analysis indicates bearish momentum, which further impacts the score negatively. However, the valuation is a positive aspect, with a low P/E ratio and attractive dividend yield suggesting potential undervaluation. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Stable Margins

Stable margins indicate operational efficiency and pricing power, which are crucial for maintaining profitability in a competitive market.

Industry Position

A strong industry position as a reliable supplier enhances long-term revenue potential and customer loyalty, supporting sustained business growth.

R&D Investment

Investment in R&D can lead to innovative products, helping the company adapt to industry changes and maintain competitive advantages.

Negative Factors

Declining Revenue Growth

Declining revenue growth can signal market share loss or demand issues, potentially impacting long-term financial performance and strategic positioning.

Negative Free Cash Flow

Negative free cash flow limits the company's ability to invest in growth opportunities, pay down debt, or return capital to shareholders, affecting financial flexibility.

Low Net Profit Margin

A low net profit margin indicates challenges in converting revenue into profit, which can hinder long-term profitability and shareholder returns.

Sanoh Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Sanoh Industrial Co., Ltd. (6584) is a leading manufacturer specializing in automotive components, particularly in the production of high-quality tubing and piping systems. The company operates primarily in the automotive sector, providing essential parts for fuel, brake, and cooling systems. Sanoh's commitment to innovation and quality has positioned it as a reliable supplier to major automotive manufacturers worldwide, contributing to its reputation in the industry.

How the Company Makes Money

Sanoh Industrial Co., Ltd. generates revenue primarily through the sale of its automotive components, including various types of tubing and piping systems designed for fuel, brake, and cooling applications. The company serves a diverse client base, including major automotive manufacturers, which constitutes a significant portion of its revenue stream. Additionally, Sanoh may benefit from long-term contracts and partnerships with these manufacturers, ensuring a steady flow of orders. The company also invests in research and development to enhance its product offerings, which can lead to new revenue streams as it introduces innovative solutions to meet evolving industry needs.

Sanoh Industrial Co., Ltd. Financial Statement Overview

Summary

Sanoh Industrial Co., Ltd. demonstrates strong revenue growth, but profitability and cash flow management remain areas for improvement. The balance sheet is stable, with a manageable debt level, but the company should focus on enhancing its return on equity and cash flow efficiency to strengthen its financial position.

Income Statement

Sanoh Industrial Co., Ltd. shows a strong revenue growth rate of 70.2% in the TTM, indicating robust top-line expansion. However, the net profit margin remains low at 0.46%, suggesting challenges in translating revenue growth into profitability. The gross profit margin of 14.27% is moderate, while the EBIT margin of 2.26% and EBITDA margin of 6.63% reflect operational efficiency improvements but still leave room for enhancement.

Balance Sheet

The company's debt-to-equity ratio of 0.90 indicates a balanced leverage position, though slightly higher than ideal. Return on equity is low at 1.62%, pointing to limited profitability relative to shareholder equity. The equity ratio of 36.58% suggests a stable capital structure, but the company should focus on improving its return metrics.

Cash Flow

Operating cash flow is positive, but the free cash flow is negative, indicating potential liquidity challenges. The operating cash flow to net income ratio of 0.20 suggests limited cash conversion efficiency. The negative free cash flow growth rate and free cash flow to net income ratio highlight the need for better cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	156.97B	159.54B	156.81B	137.69B	115.94B	113.66B
Gross Profit	24.18B	22.77B	23.30B	14.80B	15.26B	15.49B
EBITDA	13.03B	10.29B	13.83B	8.58B	8.81B	8.83B
Net Income	2.56B	737.00M	4.22B	-907.00M	1.01B	3.63B
Balance Sheet
Total Assets	123.98B	117.14B	111.25B	97.28B	96.44B	86.86B
Cash, Cash Equivalents and Short-Term Investments	17.89B	22.69B	17.65B	12.84B	13.40B	14.42B
Total Debt	42.57B	39.95B	33.01B	28.66B	28.68B	26.02B
Total Liabilities	74.39B	69.05B	62.96B	57.37B	54.76B	51.38B
Stockholders Equity	46.23B	44.27B	44.68B	36.53B	38.64B	32.72B
Cash Flow
Free Cash Flow	-6.82B	-951.00M	2.55B	-575.00M	-2.23B	4.43B
Operating Cash Flow	3.49B	8.48B	10.14B	5.68B	3.34B	7.89B
Investing Cash Flow	-11.63B	-8.12B	-7.14B	-4.45B	-5.65B	-260.00M
Financing Cash Flow	10.38B	4.09B	743.00M	-2.91B	813.00M	-8.79B

Sanoh Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 823.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6584, the sentiment is Positive. The current price of 823 is above the 20-day moving average (MA) of 814.35, below the 50-day MA of 874.82, and above the 200-day MA of 722.80, indicating a neutral trend. The MACD of -19.50 indicates Negative momentum. The RSI at 46.71 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6584.

Sanoh Industrial Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7466	75 Outperform	¥23.03B	8.80	―	2.81%	8.92%	15.98%
7236	74 Outperform	¥37.64B	5.85	―	3.62%	0.14%	882.91%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6584	59 Neutral	¥33.64B	79.37	―	3.40%	-3.91%	-36.53%
7294	57 Neutral	¥22.19B	-1.79	―	3.28%	-8.99%	-62.26%
6470	51 Neutral	¥20.22B	575.18	―	2.60%	4.93%	―
7266	51 Neutral	¥16.66B	-64.43	―	2.83%	-8.63%	-55.68%

Sanoh Industrial Co., Ltd. Corporate Events

Sanoh Industrial Reports Extraordinary Income from Strategic Acquisition

Sanoh Industrial Co., Ltd. has reported an extraordinary income due to a gain on bargain purchase following the acquisition of Winkelmann Powertrain México, now renamed Sanoh Powertrain México. This strategic acquisition, finalized in the second quarter of the fiscal year ending March 2026, is expected to impact the company’s financial results, with further assessments to determine its full-year performance implications.

The most recent analyst rating on (JP:6584) stock is a Hold with a Yen1000.00 price target. To see the full list of analyst forecasts on Sanoh Industrial Co., Ltd. stock, see the JP:6584 Stock Forecast page.

Sanoh Industrial Reports Q2 Financial Results with Strategic Expansion

Sanoh Industrial Co., Ltd. reported its consolidated financial results for the second quarter ending September 30, 2025, showing a decrease in net sales by 3.2% compared to the previous year. Despite the decline in sales, the company experienced a significant increase in profit attributable to owners of the parent, which rose by 158.3%. The inclusion of Sanoh Powertrain México S. de R.L. de C.V. in the consolidation scope marks a strategic expansion, potentially enhancing Sanoh’s market position and operational capabilities.

The most recent analyst rating on (JP:6584) stock is a Hold with a Yen1000.00 price target. To see the full list of analyst forecasts on Sanoh Industrial Co., Ltd. stock, see the JP:6584 Stock Forecast page.

Sanoh Industrial’s Strong FY2025 Start and Strategic Expansions

Sanoh Industrial Co., Ltd. reported a strong start to FY2025, driven by robust performance in Japan, the Americas, and Asia, despite challenges in Europe and China. The company is addressing tariff impacts in the Americas and expects continued one-time expenses. Strategic measures in Europe and China aim for recovery, while a recent acquisition in Mexico positions Sanoh for increased sales. The data center business is expanding, with new product developments and orders, aiming for significant growth by FY2030.

The most recent analyst rating on (JP:6584) stock is a Hold with a Yen1000.00 price target. To see the full list of analyst forecasts on Sanoh Industrial Co., Ltd. stock, see the JP:6584 Stock Forecast page.