Strong Equity BaseA near 66% equity ratio indicates a solid capital structure and low reliance on external financing. This durable strength provides flexibility to fund capex, weather cyclical downturns, and support strategic initiatives without immediate refinancing risk, underpinning long-term stability.

Profitability RecoveryThe return to positive net margin and a gross margin peak signal operational improvements and cost control that can sustain earnings. Persistent recovery in profitability supports reinvestment, potential dividend support, and a stronger ability to absorb future shocks to demand.

Recent Revenue ImprovementThe uptick in revenue through 2024 suggests regained market demand or better order execution. If maintained, this top-line momentum can drive operating leverage, improve margin sustainability, and provide a base for gradual, durable growth over the medium term.

Bears Say

Weak Cash Flow StabilityNegative and volatile free cash flow undermines the company's ability to self-fund capex, service debt, and sustain dividends. Over 2-6 months this limits strategic flexibility, may force external financing, and increases execution risk on growth or efficiency initiatives.

Rising LeverageAn increasing debt-to-equity ratio, although moderate now, combined with uneven cash conversion raises financing risk. Rising leverage reduces buffer against demand swings, increases interest exposure, and could constrain investment if cash generation does not stabilize.

Volatile Revenue & MarginsHistorical swings in revenue and margins create uncertainty in earnings predictability and planning. Persistent volatility complicates budgeting, deters long-term contracts or investments, and raises execution risk for strategies that depend on steady cashflows and margins.

7255 FAQ

What was Sakurai Ltd.’s price range in the past 12 months?

Sakurai Ltd. lowest stock price was ¥480.00 and its highest was ¥710.00 in the past 12 months.

What is Sakurai Ltd.’s market cap?

Sakurai Ltd.’s market cap is ¥2.41B.

When is Sakurai Ltd.’s upcoming earnings report date?

Sakurai Ltd.’s upcoming earnings report date is May 20, 2026 which is in 74 days.

How were Sakurai Ltd.’s earnings last quarter?

Sakurai Ltd. released its earnings results on Feb 12, 2026. The company reported ¥7.28 earnings per share for the quarter, beating the consensus estimate of N/A by ¥7.28.

Is Sakurai Ltd. overvalued?

According to Wall Street analysts Sakurai Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Sakurai Ltd. pay dividends?

Sakurai Ltd. pays a Annually dividend of ¥10 which represents an annual dividend yield of 1.68%. See more information on Sakurai Ltd. dividends here

What is Sakurai Ltd.’s EPS estimate?

Sakurai Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Sakurai Ltd. have?

Sakurai Ltd. has 4,000,000 shares outstanding.

What happened to Sakurai Ltd.’s price movement after its last earnings report?

Sakurai Ltd. reported an EPS of ¥7.28 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -3.367%.

Which hedge fund is a major shareholder of Sakurai Ltd.?

Currently, no hedge funds are holding shares in JP:7255

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Sakurai Ltd.

Sakurai Ltd. designs, develops, manufactures, assembles, sells, and maintains machine tools and parts in Japan and internationally. The company offers passenger car transmission cases; motorcycle and passenger car cylinder heads; automatic transmission valve bodies; cylinders blocks; and forklift parts and gas meter parts, as well as general-purpose engine parts for use in outboard motors and agricultural machinery. It also manufactures and processes aircraft body parts, flying object parts, processing precision parts, and machine tools in aerospace field; and deburring, milling, multi-spindle and multi head, system integration/overhaul, and special purpose machines. Sakurai Ltd. was incorporated in 1948 and is headquartered in Hamamatsu, Japan.