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

• Market Cap: ¥34.47B
• Dividend Yield: 2.94%
• Average Volume (3M): 353.97K
• Price to Earnings (P/E): 81.3
• Beta (1Y): 1.44
• Revenue Growth: 0.72%
• EPS Growth: -92.17%
• 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: 434,510
• 30 Day Avg. Volume: 353,973
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,000.00
• Price Target Upside: 4.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥1,000.00 ▲(4.82% Upside)

The overall stock score of 61 reflects strong technical momentum and a stable financial position, but is tempered by high valuation concerns and challenges in profitability and cash flow management. The absence of recent earnings call data and corporate events means these factors do not influence the score.

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 production and sale of automotive components. Key revenue streams include the manufacturing of tubing systems and related products for use in fuel and brake systems, which are supplied to major automotive manufacturers worldwide. The company benefits from long-term contracts and partnerships with leading automotive companies, ensuring a steady demand for its products. Additionally, its focus on innovation and quality helps maintain its competitive edge in the automotive industry, contributing positively to its earnings.

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	160.66B	159.54B	156.81B	137.69B	115.94B	113.66B
Gross Profit	23.78B	22.77B	23.30B	14.80B	15.26B	15.49B
EBITDA	10.48B	10.29B	13.83B	8.58B	8.81B	8.83B
Net Income	419.00M	737.00M	4.22B	-907.00M	1.01B	3.63B
Balance Sheet
Total Assets	117.74B	117.14B	111.25B	97.28B	96.44B	86.86B
Cash, Cash Equivalents and Short-Term Investments	23.23B	22.69B	17.65B	12.84B	13.40B	14.42B
Total Debt	41.42B	39.67B	33.01B	28.66B	28.68B	26.02B
Total Liabilities	71.44B	69.05B	62.96B	57.37B	54.76B	51.38B
Stockholders Equity	43.08B	44.27B	44.68B	36.53B	38.64B	32.72B
Cash Flow
Free Cash Flow	-799.00M	-951.00M	2.55B	-575.00M	-2.23B	4.43B
Operating Cash Flow	8.96B	8.48B	10.14B	5.68B	3.34B	7.89B
Investing Cash Flow	-8.40B	-8.12B	-7.14B	-4.45B	-5.65B	-260.00M
Financing Cash Flow	7.72B	4.09B	743.00M	-2.91B	813.00M	-8.79B

Sanoh Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 954.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 954 is above the 20-day moving average (MA) of 902.10, above the 50-day MA of 793.74, and above the 200-day MA of 684.59, indicating a bullish trend. The MACD of 50.40 indicates Positive momentum. The RSI at 67.53 is Neutral, neither overbought nor oversold. The STOCH value of 54.25 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
7236	82 Outperform	¥39.06B	7.88	12.67%	3.63%	1.00%	413.42%
7466	80 Outperform	¥24.03B	9.89	9.27%	2.51%	7.79%	4.43%
6584	61 Neutral	¥34.47B	81.33	―	2.94%	0.72%	-92.17%
6470	58 Neutral	¥21.70B	-5.30	-6.10%	2.67%	2.93%	-349.98%
7266	55 Neutral	¥16.83B	-65.10	-0.52%	2.88%	-7.01%	-108.77%
7294	54 Neutral	¥23.71B	-1.92	-25.60%	3.23%	-4.86%	-162.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Sanoh Industrial Co., Ltd. Corporate Events

Sanoh Industrial Reports Mixed Financial Results for Q1 2025

Sanoh Industrial Co., Ltd. reported a 2.9% increase in net sales for the quarter ending June 30, 2025, compared to the previous year. However, the company experienced a significant decline in net income attributable to shareholders, dropping by 31.2%. Despite the decline in net income, operating income saw a notable increase of 31.4%. The company’s financial position showed a slight decrease in net assets and shareholders’ equity ratio. The dividend forecast for the year ending March 2026 remains unchanged, indicating stability in shareholder returns. These financial results reflect a mixed performance, with growth in sales and operating income but challenges in net income, impacting the company’s overall financial health.

Sanoh Industrial Completes Acquisition of Winkelmann Powertrain México

Sanoh Industrial Co., Ltd. has completed the acquisition of all equity interests in Winkelmann Powertrain México S. de R.L. de C.V., making it a subsidiary. This strategic move is expected to enhance Sanoh’s operational capabilities and market positioning in the automotive components sector, although the financial impact is still under evaluation.

Sanoh Industrial Navigates FY2024 Challenges, Eyes Strategic Growth in FY2025

Sanoh Industrial Co., Ltd. disclosed insights from its FY2024 financial results, highlighting regional challenges and strategic responses. Despite downward revisions in earnings forecasts, the company managed to exceed net income expectations due to lower-than-anticipated impairment losses in China. Looking ahead to FY2025, Sanoh anticipates stable operating income in Japan despite rising costs, potential growth in the Americas due to the absence of one-time expenses, and a recovery in Europe driven by price pass-throughs and streamlining measures. The acquisition of a Mexican subsidiary is expected to enhance profitability through synergies and expanded customer engagement, particularly in the U.S. market.