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

• Market Cap: ¥30.13B
• Dividend Yield: 3.33%
• Average Volume (3M): 354.62K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.47
• Revenue Growth: -3.91%
• EPS Growth: -36.53%
• Country: JP
• Employees: 7,915
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥920.00 ▲(7.23% 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 operational margins

Sustained gross margins (~14.8%) and a positive EBITDA margin (6.5%) indicate underlying manufacturing efficiency and cost control in core tubing businesses. These margins provide a structural cushion to fund incremental R&D and tooling for vehicle platforms over the medium term.

Balanced leverage

A debt-to-equity near 1 with an equity ratio around 37% signals a measured capital structure that supports capital spending for tooling and capacity while retaining borrowing flexibility. This balance helps sustain operations through auto cycle swings without overleveraging the company.

Critical product niche and customer base

Providing essential tubing and piping to major OEMs creates durable demand and sticky customer relationships. Critical safety and fluid systems drive long product lifecycles and repeatable orders, improving revenue visibility and positioning Sanoh as a preferred supplier across vehicle generations.

Negative Factors

Declining revenue trends

Negative recent revenue growth reflects weakening top-line momentum that can erode scale advantages in manufacturing. Persistent revenue declines compromise fixed-cost absorption and limit funds available for reinvestment, increasing execution risk over the next several quarters if not reversed.

Weak cash generation

Negative free cash flow and low operating-cash-to-net-income conversion (0.20x) signal constrained internal funding. Structurally weak cash generation limits ability to finance capex, R&D, or dividends without raising debt or equity and reduces resilience to prolonged industry downturns.

Low profitability and returns

Very low net margins and ROE under 1% show the business currently struggles to convert sales into shareholder returns. Persistently weak profitability undermines capacity to build reserves, invest in product upgrades, or reward shareholders, posing a structural hurdle to long-term value creation.

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

Company Description

Sanoh Industrial Co., Ltd. manufactures and sells automotive parts worldwide. The company offers automotive tubing products, such as cluster tubes; and plastic fuel tubes comprising engine jumpers, fuel tank jumpers, ORVR tubes, in-tank tubes, breather tubes, vapor return tubes, canister drain tubes, ventilation tubes, and fuel filler necks. Its automotive tubing products also include brake tubes; brake vacuum tubes; metal tubing products comprising brazed and welded steel tubing products; surface treatment products, which consists of PA, PC, and PVdF coating products; plastic tubing products that comprise mono-layer, multi-layer, and convoluted tubing products; and quick connectors. In addition, the company offers powertrain products, such as fuel injection rails (FIRs), high-pressure FIRs, intake pipes, and fuel senders for motorcycles; and water and oil cooler pipes. Further, it provides environment and safety products consisting of exhaust gas recirculation pipes, air shutter guides, pre tensioner tubes, and seat belt buckles and shoulder adapters; and wire condensers for refrigerators and timer devices for washing machines. The company was formerly known as Omiya Kohku Kogyo Co., Ltd. and changed its name to Sanoh Industrial Co., Ltd. in March 1952. Sanoh Industrial Co., Ltd. was founded in 1939 and is headquartered in Tokyo, Japan.

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. faces a challenging financial environment, with mixed results across its financial statements. The income statement shows stable margins but declining revenue growth. The balance sheet indicates a balanced leverage but reduced profitability. Cash flow challenges are evident, with negative free cash flow impacting overall financial health. The company needs to focus on improving profitability and cash flow generation to enhance its financial stability.

Income Statement

Sanoh Industrial Co., Ltd. shows a mixed performance in its income statement. The TTM data indicates a slight decline in revenue growth, with a negative growth rate of -2.3%. However, the company maintains a stable gross profit margin of around 14.8% and a modest EBIT margin of 2.3%. The net profit margin is low at 0.26%, indicating challenges in converting revenue into profit. Despite these challenges, the EBITDA margin remains relatively healthy at 6.5%, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is close to 1, indicating a balanced approach to leveraging. However, the return on equity has decreased to 0.94%, showing reduced profitability for shareholders. The equity ratio stands at approximately 37.3%, suggesting a stable capital structure but with room for improvement in asset financing.

Cash Flow

Cash flow analysis reveals some concerns, particularly with free cash flow, which is negative in the TTM period. Despite a significant increase in free cash flow growth, the free cash flow to net income ratio is negative, indicating cash flow challenges. The operating cash flow to net income ratio is 0.20, suggesting limited cash generation relative to net income.

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: Neutral
• Last Price: 858.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 858 is below the 20-day moving average (MA) of 866.25, above the 50-day MA of 844.36, and above the 200-day MA of 763.74, indicating a neutral trend. The MACD of -3.83 indicates Positive momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 27.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
7236	77 Outperform	¥51.30B	5.39	―	3.60%	0.14%	882.91%
7466	75 Outperform	¥23.47B	8.96	―	2.77%	8.92%	15.98%
7266	64 Neutral	¥18.50B	15.30	―	2.70%	-8.63%	-55.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6584	59 Neutral	¥30.13B	11.65	―	3.33%	-3.91%	-36.53%
7294	57 Neutral	¥24.67B	-2.36	―	3.19%	-8.99%	-62.26%
6470	51 Neutral	¥24.46B	99.51	―	2.45%	4.93%	―

Sanoh Industrial Co., Ltd. Corporate Events

Sanoh Industrial Balances ICE Tailwinds, China Exit and Mexico Expansion in FY2025 Outlook

Sanoh Industrial reported that first-half FY2025 operating and ordinary income slightly exceeded internal plans, while net income was buoyed by a bargain purchase gain from acquiring a Mexican subsidiary, even as it prepares to book a sizable extraordinary loss tied to the dissolution and liquidation of a major Chinese subsidiary. Regional performance was mixed: Japan and Asia remained solid, the Americas faced tariff-related cost pressures and some demand timing effects, Europe continued to struggle but is benefiting from plant closures and cost cuts, and China remains challenging with declining sales and unresolved pricing negotiations, culminating in the decision to exit a large operation that will significantly reduce local sales but improve group profitability through fixed-cost reductions from FY2026. The company maintained its full-year earnings forecast, citing offsetting factors including higher North American tariffs, semiconductor-driven production adjustments, temporary disruptions at customer plants, and the fading boost from new projects in Japan, while expecting tariff pass-through to largely neutralize the impact from Q4. The newly acquired Mexican subsidiary will start contributing to earnings from Q4 FY2025, with around ¥7 billion in sales expected in FY2026 and a planned doubling by FY2027 on new programs for the U.S. Big Three automakers, positioning Sanoh to deepen its North American footprint. Strategically, management views the global slowdown in the EV shift and renewed strength in internal combustion engine demand as a tailwind for its traditional ICE-related product lines, where rivals have retrenched, even as it continues to push longer-term growth in non-ICE thermal parts, plastic cooling piping and emerging fields such as the data center business.

The most recent analyst rating on (JP:6584) stock is a Hold with a Yen816.00 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 Q2 FY2025 Results and Strategic Outlook

Sanoh Industrial Co., Ltd. has disclosed its Q2 FY2025 financial results, highlighting a significant project in Japan involving service parts and production equipment, which underscores its manufacturing capabilities. Despite recording extraordinary income, the company maintains its full-year earnings forecast due to uncertainties like U.S. tariff policies and industry consolidation in China. Sanoh is restructuring its China segment due to declining sales but sees growth potential in data centers and production solutions, aiming for substantial sales growth through organic and inorganic measures.

The most recent analyst rating on (JP:6584) stock is a Hold with a Yen849.00 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 Co., Ltd. Q2 FY2025 Financial Results Briefing

Sanoh Industrial Co., Ltd. recently held a financial results briefing for Q2 FY2025, where CFO Sasaki and COO Takeda discussed the company’s financial performance and strategic progress. The briefing aimed to update institutional investors and analysts on the company’s mid-term strategy and targets, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (JP:6584) stock is a Hold with a Yen849.00 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 to Liquidate Chinese Subsidiary Amid Market Challenges

Sanoh Industrial Co., Ltd. has announced the decision to dissolve and liquidate its consolidated subsidiary, Guangzhou Sanoh Seikan Co., Ltd., due to deteriorating performance and uncertain recovery prospects in the Chinese market. This strategic move aims to optimize the company’s management resources and enhance overall corporate value. The liquidation is expected to result in an extraordinary loss of 1,455 million yen, impacting the financial results for the fiscal year ending March 2026, with the earnings forecast currently under review.

The most recent analyst rating on (JP:6584) stock is a Hold with a Yen849.00 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 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.