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Sanoh Industrial Co., Ltd. (JP:6584)
:6584
Japanese Market
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Sanoh Industrial Co., Ltd. (6584) AI Stock Analysis

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JP:6584

Sanoh Industrial Co., Ltd.

(6584)

Rating:66Neutral
Price Target:
¥767.00
▲(5.36% Upside)
Sanoh Industrial Co., Ltd.'s overall stock score is primarily influenced by its stable, albeit challenged, financial performance and strong market momentum. The stock is buoyed by positive technical indicators despite being overbought, while a high P/E ratio suggests potential overvaluation. Absent earnings call and corporate event data limit insights into future projections.

Sanoh Industrial Co., Ltd. (6584) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSanoh Industrial Co., Ltd. (6584) is a Japanese company primarily engaged in the manufacturing of automotive components and industrial equipment. The company focuses on producing a diverse range of products including tubing systems, fuel and brake lines, and other crucial components that are essential for vehicle safety and performance. Sanoh Industrial serves a global customer base, with its products being integral to the automotive manufacturing sector.
How the Company Makes MoneySanoh 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 stable revenue growth but faces declining profitability and cash flow challenges. The income statement shows a steady revenue increase but narrowing margins, suggesting operational inefficiencies. The balance sheet reflects a strong equity position but reduced return on equity. Cash flow analysis reveals strong operational cash flow but negative free cash flow, indicating liquidity constraints. The company should focus on enhancing profit margins and managing capital expenditures to improve its financial health.
Income Statement
68
Positive
Sanoh Industrial Co., Ltd. shows moderate growth and profitability in its income statement. The revenue has increased from 2024 to 2025 by 1.74%, indicating a stable growth trend. The gross profit margin for 2025 stands at 14.27%, highlighting efficient cost management despite a slight decrease from the previous year. The net profit margin is at a low of 0.46% in 2025, down from 2.69% in 2024, reflecting challenges in converting revenue into profit. The EBIT margin has dropped to 3.05% from 5.14% in 2024, indicating operational cost pressures. The EBITDA margin decreased to 6.45% from 8.82% in 2024, suggesting reduced operational efficiency.
Balance Sheet
72
Positive
The balance sheet of Sanoh Industrial Co., Ltd. shows a stable financial position with some areas of concern. The debt-to-equity ratio for 2025 is 0.90, indicating a moderate level of leverage and manageable debt. The return on equity (ROE) has declined to 1.67% from 9.44% in 2024, suggesting decreased profitability for shareholders. The equity ratio stands at 37.79% for 2025, showing a solid equity base but a decrease from the 40.16% in 2024, reflecting a rise in liabilities relative to assets.
Cash Flow
55
Neutral
Sanoh Industrial Co., Ltd.'s cash flow statement reveals strong operational cash flow but concerns with free cash flow. Operating cash flow in 2025 has decreased to 8.48 billion yen from 10.14 billion yen in 2024, indicating a reduction in cash generated from operations. The free cash flow turned negative at -951 million yen in 2025 compared to 2.55 billion yen in 2024, highlighting cash outflows exceeding inflows, primarily due to capital expenditures. The free cash flow to net income ratio is not favorable, indicating pressure on liquidity.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue159.54B156.81B137.69B115.94B113.66B
Gross Profit22.77B23.30B14.80B15.26B15.49B
EBITDA10.29B13.83B7.33B7.43B8.83B
Net Income737.00M4.22B-907.00M1.01B3.63B
Balance Sheet
Total Assets117.14B111.25B97.28B96.44B86.86B
Cash, Cash Equivalents and Short-Term Investments22.69B17.65B12.84B13.40B14.42B
Total Debt39.67B33.01B28.66B28.68B26.02B
Total Liabilities69.05B62.96B57.37B54.76B51.38B
Stockholders Equity44.27B44.68B36.53B38.64B32.72B
Cash Flow
Free Cash Flow-951.00M2.55B-575.00M-2.23B4.43B
Operating Cash Flow8.48B10.14B5.68B3.34B7.89B
Investing Cash Flow-8.12B-7.14B-4.45B-5.65B-260.00M
Financing Cash Flow4.09B743.00M-2.91B813.00M-8.79B

Sanoh Industrial Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price728.00
Price Trends
50DMA
639.52
Positive
100DMA
626.69
Positive
200DMA
662.61
Positive
Market Momentum
MACD
23.47
Negative
RSI
73.16
Negative
STOCH
76.12
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 728 is above the 20-day moving average (MA) of 674.45, above the 50-day MA of 639.52, and above the 200-day MA of 662.61, indicating a bullish trend. The MACD of 23.47 indicates Negative momentum. The RSI at 73.16 is Negative, neither overbought nor oversold. The STOCH value of 76.12 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥24.05B9.66
2.49%8.56%4.07%
78
Outperform
¥17.25B7.88
2.70%-5.40%
76
Outperform
¥29.66B5.99
4.78%1.00%413.42%
66
Neutral
¥25.58B34.39
3.99%1.74%-82.49%
64
Neutral
€7.11B13.9010.63%3.55%1.82%-129.24%
58
Neutral
¥18.71B
3.12%2.93%-349.98%
55
Neutral
¥23.13B
3.23%-1.68%-240.66%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6584
Sanoh Industrial Co., Ltd.
728.00
-23.14
-3.08%
JP:6470
Taiho Kogyo Co., Ltd.
646.00
76.24
13.38%
JP:7236
T.RAD Co., Ltd.
6,590.00
3,511.95
114.10%
JP:7266
Imasen Electric Industrial Co., Ltd.
761.00
230.45
43.44%
JP:7294
Yorozu Corporation
967.00
-50.27
-4.94%
JP:7466
SPK Corporation
2,425.00
331.75
15.85%

Sanoh Industrial Co., Ltd. Corporate Events

Sanoh Industrial Completes Acquisition of Winkelmann Powertrain México
Jul 11, 2025

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
Jul 8, 2025

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.

Sanoh Industrial Acquires Winkelmann Powertrain México to Boost Market Position
Jun 6, 2025

Sanoh Industrial Co., Ltd. has announced its decision to acquire all equity interests in Winkelmann Powertrain México S. de R.L. de C.V., a key player in the automotive components sector for ICE pickup trucks in the U.S. market. This acquisition is part of Sanoh’s strategy to strengthen its position in the fuel injection business for vehicles manufactured in Mexico, enhancing its competitiveness and global supplier presence.

Sanoh Industrial Co., Ltd. Announces Strategic Shift and FY2024 Financial Results
Jun 6, 2025

Sanoh Industrial Co., Ltd. has disclosed its FY2024 financial results, highlighting increased upfront investments in new business areas such as BEV-related product development and data centers. These investments are part of a strategic shift from automotive parts to non-internal combustion technologies. The company also discussed the challenges of passing increased costs onto customers due to inflation, with partial success in FY2024. Looking ahead to FY2025, Sanoh anticipates a decline in revenue due to exchange rate fluctuations, with a financial forecast of ¥147 billion in net sales and ¥1.8 billion in net income.

Sanoh Industrial Co., Ltd. FY2024 Financial Results Briefing Overview
Jun 6, 2025

Sanoh Industrial Co., Ltd. recently held a financial results briefing for FY2024, where key executives discussed the company’s financial performance and strategic progress. The briefing highlighted the company’s ongoing mid-term strategy and targets, providing insights into its future direction and potential impact on its market positioning.

Sanoh Industrial Announces Year-End Dividend and Revised Forecast
May 20, 2025

Sanoh Industrial Co., Ltd. has announced a year-end dividend of JPY 14.00 per share for the fiscal year ending March 31, 2025, and revised its dividend forecast for the fiscal year ending March 31, 2026, to a total of JPY 28.00 per share. This decision reflects the company’s commitment to maintaining stable dividends while considering its business performance and financial condition, aiming for sustainable enhancement over time.

Sanoh Industrial Reports Extraordinary Impairment Loss Amid Overseas Challenges
May 12, 2025

Sanoh Industrial Co., Ltd. has recognized an extraordinary impairment loss of JPY 1.299 billion due to deteriorating business performance at its overseas subsidiaries, particularly in China. This impairment has been factored into the fiscal year-end earnings forecast, and despite the loss, the net income exceeded expectations due to the impairment being lower than initially anticipated.

Sanoh Industrial Reports Fiscal Year 2025 Financial Results
May 12, 2025

Sanoh Industrial Co., Ltd. announced a slight discrepancy between its forecasted and actual consolidated financial results for the fiscal year ending March 31, 2025. The net income surpassed expectations due to lower impairment losses in China, despite a minor shortfall in sales and operating income. Year-over-year standalone results showed a decline in sales and operating income due to reduced production and increased labor costs, although net income rose due to gains from investment securities sales.

Sanoh Industrial Co., Ltd. Reports Decline in FY2024 Financial Results
May 12, 2025

Sanoh Industrial Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 1.7% to 159,538 million yen. However, the company experienced a significant decline in operating income, ordinary income, and net income attributable to shareholders, with decreases of 39.7%, 37.0%, and 82.5% respectively. The company’s comprehensive income also saw a sharp decline of 84.6%. Despite these challenges, Sanoh Industrial anticipates a recovery in operating income for the next fiscal year, projecting a 13.2% increase, although net sales are expected to decrease by 7.9%. The company has not yet determined its dividend forecast for the fiscal year ending March 31, 2026.

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 29, 2025