Sakurai Ltd. (7255) AI Stock Analysis

• Market Cap: ¥2.17B
• Dividend Yield: 1.68%
• Average Volume (3M): 2.87K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.23
• Revenue Growth: -2.81%
• EPS Growth: -15.16%
• Country: JP
• Employees: 308
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 35.03
• Shares Outstanding: 4,000,000
• 10 Day Avg. Volume: 3,030
• 30 Day Avg. Volume: 2,873
• 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: ¥637.00
• Price Target Upside: 7.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥637.00 ▲(7.24% Upside)

Sakurai Ltd.'s stock score is primarily influenced by its mixed financial performance and attractive valuation. The company's strong equity position and recent profitability recovery are positive, but challenges in revenue consistency and cash flow generation pose risks. The technical analysis suggests neutral market sentiment, while the low P/E ratio and reasonable dividend yield highlight potential undervaluation. Overall, the stock presents a balanced risk-reward profile.

Sakurai Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Sakurai Ltd. generates revenue primarily through the sale of its printing machinery and related products. The company's key revenue streams include the manufacturing and distribution of offset printing presses and other printing equipment. Sakurai Ltd. also earns income from after-sales services, including maintenance and support for its machines. Additionally, the company may engage in strategic partnerships or collaborations with other firms within the printing industry to enhance its product offerings and expand its market reach. These partnerships can contribute to its earnings by providing access to new technologies or customer bases.

Sakurai Ltd. Financial Statement Overview

Summary

Sakurai Ltd. shows a mixed financial performance with strengths in maintaining a strong equity position and recent profitability recovery. However, the company faces challenges in revenue consistency, profitability margins, and cash flow generation. While the balance sheet provides a stable foundation, attention to managing debt levels and improving cash flow efficiency will be crucial for future growth and sustainability.

Income Statement

Sakurai Ltd. has shown an inconsistent revenue trend with a decrease from 2020 to 2025, although there was a notable increase in revenue for the year ending 2024. Gross profit margins have fluctuated, peaking in 2025 at 15.04%, indicating some profitability recovery. The net profit margin has been volatile, with significant losses in some years. However, the company returned to profitability in 2025 with a net profit margin of 4.27%. EBIT and EBITDA margins have also been unstable, reflecting operational challenges. Overall, the company shows potential for recovery but faces profitability pressures.

Balance Sheet

Sakurai Ltd. maintains a strong equity base with an equity ratio of approximately 65.93% in 2025, suggesting financial stability and lower reliance on debt financing. However, the debt-to-equity ratio has been increasing, reaching 0.33 in 2025, indicating rising leverage. Return on equity has been inconsistent, reflecting fluctuating net income levels. Overall, the company has a solid asset base but needs to manage debt levels carefully to mitigate financial risk.

Cash Flow

The company has experienced inconsistent free cash flow generation, with fluctuations reflecting capital expenditure and operating cash flow volatility. The free cash flow growth rate has been negative in recent years, highlighting challenges in maintaining positive cash generation. The operating cash flow to net income ratio has varied, indicating potential efficiency issues in converting earnings to cash. Overall, cash flow stability is a concern that needs addressing to support long-term operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.96B	4.96B	5.54B	4.60B	4.87B	3.41B
Gross Profit	746.60M	746.73M	357.88M	201.92M	641.30M	15.01M
EBITDA	965.88M	965.88M	1.08B	397.65M	854.99M	362.55M
Net Income	211.16M	211.91M	321.50M	-306.21M	185.94M	-372.01M
Balance Sheet
Total Assets	7.37B	7.37B	7.12B	7.81B	7.34B	7.69B
Cash, Cash Equivalents and Short-Term Investments	1.29B	1.29B	1.29B	566.09M	1.16B	1.16B
Total Debt	1.59B	1.59B	1.38B	1.83B	1.13B	1.57B
Total Liabilities	2.50B	2.50B	2.36B	3.16B	2.36B	2.82B
Stockholders Equity	4.86B	4.86B	4.76B	4.64B	4.98B	4.87B
Cash Flow
Free Cash Flow	0.00	59.79M	539.47M	-1.28B	446.35M	-231.22M
Operating Cash Flow	0.00	311.38M	1.09B	-472.63M	1.02B	127.83M
Investing Cash Flow	0.00	-416.23M	155.34M	-762.52M	-542.02M	-305.65M
Financing Cash Flow	0.00	97.87M	-527.06M	625.90M	-508.68M	263.39M

Sakurai Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 594.00
• 50DMA: Negative
• 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:7255, the sentiment is Negative. The current price of 594 is below the 20-day moving average (MA) of 596.95, below the 50-day MA of 598.96, and above the 200-day MA of 558.86, indicating a neutral trend. The MACD of -1.10 indicates Positive momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 64.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7255.

Sakurai Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7219	76 Outperform	¥3.07B	8.78	3.37%	3.00%	1.42%	-20.24%
7217	75 Outperform	¥4.00B	9.45	3.99%	4.19%	9.12%	-35.97%
7255	64 Neutral	¥2.17B	6.17	―	1.68%	-2.81%	-15.16%
7215	63 Neutral	¥3.56B	11.03	1.75%	―	-4.36%	―
6982	55 Neutral	¥1.59B	-12.37	-4.04%	1.62%	-14.59%	-1005.45%
7256	39 Underperform	¥3.33B	-0.62	―	―	13.02%	15.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%