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

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

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JP

Sanoh Industrial Co., Ltd.

(6584)

Rating:68Neutral
Price Target:
¥663.00
▲(10.32%Upside)
The overall stock score for Sanoh Industrial Co., Ltd. is driven by its stable financial performance, despite challenges in profitability and cash flow. Technical analysis indicates positive short-term momentum, which is a key strength. However, the high P/E ratio suggests potential overvaluation, moderated by a solid dividend yield. The absence of earnings call insights and corporate events means these factors did not influence the score.

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 leading manufacturer specializing in the production of automotive components. The company operates in the automotive sector, primarily focusing on the development and manufacturing of tubing products for vehicles. Sanoh's core products include brake and fuel tubing, engine oil coolers, and other related automotive components. The company is recognized for its innovation and quality, providing essential parts that enhance vehicle performance and safety.
How the Company Makes MoneySanoh Industrial Co., Ltd. generates revenue through the production and sale of automotive components, primarily targeting the global automotive industry. The company's key revenue streams include the sale of brake and fuel tubing, engine oil coolers, and other automotive parts to major automobile manufacturers worldwide. Sanoh maintains strategic partnerships with leading automotive companies, which ensures a steady demand for its products. Additionally, the company invests in research and development to innovate and expand its product offerings, contributing to its financial growth. Revenue is further supplemented by its global presence, allowing it to tap into various international markets, thereby diversifying its income sources and reducing dependence on any single market.

Sanoh Industrial Co., Ltd. Financial Statement Overview

Summary
Sanoh Industrial Co., Ltd. demonstrates a mixed financial performance with stable revenue growth but 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.
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.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
159.54B156.81B137.69B115.94B113.66B
Gross Profit
22.77B23.30B14.80B15.26B15.49B
EBIT
4.86B8.05B1.32B2.18B3.49B
EBITDA
10.29B13.83B7.33B7.43B8.83B
Net Income Common Stockholders
737.00M4.22B-907.00M1.01B3.63B
Balance SheetCash, Cash Equivalents and Short-Term Investments
22.69B17.65B12.84B13.40B14.42B
Total Assets
117.14B111.25B97.28B96.44B86.86B
Total Debt
39.67B33.01B28.66B28.68B26.02B
Net Debt
16.98B15.36B15.82B15.27B11.60B
Total Liabilities
69.05B62.96B57.37B54.76B51.38B
Stockholders Equity
44.27B44.68B36.53B38.64B32.72B
Cash FlowFree Cash Flow
-951.00M2.55B-575.00M-2.23B4.43B
Operating Cash Flow
8.48B10.14B5.68B3.34B7.89B
Investing Cash Flow
-8.12B-7.14B-4.45B-5.65B-260.00M
Financing Cash Flow
4.09B743.00M-2.91B813.00M-8.79B

Sanoh Industrial Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price601.00
Price Trends
50DMA
597.00
Positive
100DMA
636.96
Negative
200DMA
683.45
Negative
Market Momentum
MACD
0.11
Negative
RSI
52.76
Neutral
STOCH
20.00
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 601 is above the 20-day moving average (MA) of 600.80, above the 50-day MA of 597.00, and below the 200-day MA of 683.45, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 52.76 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥21.97B8.82
2.92%8.56%4.09%
76
Outperform
¥24.20B7.05
6.51%0.36%242.74%
74
Outperform
¥15.77B7.21
3.64%-5.40%
68
Neutral
¥21.72B29.19
4.66%1.74%-82.49%
63
Neutral
$6.98B11.412.80%4.24%2.68%-24.94%
52
Neutral
¥17.90B
3.24%0.66%-340.28%
48
Neutral
¥21.23B
3.62%-1.68%-240.66%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6584
Sanoh Industrial Co., Ltd.
610.00
-334.70
-35.43%
JP:6470
Taiho Kogyo Co., Ltd.
608.00
-136.18
-18.30%
JP:7236
T.RAD Co., Ltd.
4,645.00
1,298.41
38.80%
JP:7266
Imasen Electric Industrial Co., Ltd.
685.00
91.52
15.42%
JP:7294
Yorozu Corporation
889.00
-149.65
-14.41%
JP:7466
SPK Corporation
2,179.00
75.06
3.57%

Sanoh Industrial Co., Ltd. Corporate Events

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.

Sanoh Industrial’s Strategic Positioning Amid Tariff Challenges
Apr 25, 2025

Sanoh Industrial Co., Ltd. hosted a plant tour for institutional investors and analysts to showcase its production operations and address stakeholder inquiries. The company anticipates a negative impact on operating profit due to U.S. tariffs but plans to mitigate this through price adjustments. Sanoh’s ‘Last Man Standing’ strategy has led to increased market share in the Americas and Europe, with potential growth opportunities from competitors’ financial difficulties. The company is cautious about expanding business with Chinese OEMs due to profitability concerns but is exploring opportunities in other regions.

Sanoh Industrial Faces Challenges Amid Market Shifts but Sees Growth Opportunities
Apr 11, 2025

Sanoh Industrial Co., Ltd. disclosed its Q3 FY2024 financial results, revealing a challenging business environment, particularly in China and Europe, leading to a downward revision of earnings forecasts. The company anticipates impairment losses in China due to declining sales from Japanese OEMs and restructuring expenses in Europe due to sluggish sales and a shift towards BEVs. Despite these challenges, Sanoh is optimistic about potential market share growth in the U.S. and Europe, driven by inquiries from major automakers and industry restructuring. The company is also actively pursuing opportunities in the data center cooling market, although no orders have been secured yet.

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.