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Sakurai Ltd. (JP:7255)
:7255
Japanese Market

Sakurai Ltd. (7255) AI Stock Analysis

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JP:7255

Sakurai Ltd.

(7255)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
¥704.00
▲(12.28% Upside)
Action:ReiteratedDate:10/28/25
Sakurai Ltd.'s overall stock score is driven primarily 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 remain. The technical analysis suggests a neutral to slightly bearish trend, which tempers the overall score. The low P/E ratio and reasonable dividend yield enhance the stock's appeal, particularly for value investors.
Positive Factors
Strong equity base
A high equity ratio (~65.9%) signals a robust capital structure and low dependency on external financing. This gives Sakurai durable financial flexibility to fund operations, absorb cyclical shocks, and invest in product upkeep or modest R&D, reducing solvency risk over the medium term.
Negative Factors
Inconsistent cash flow generation
Volatile and sometimes negative free cash flow reduces the company's ability to self-fund capex, service debt, and pay dividends without tapping reserves or incurring financing costs. Persistent cash conversion weakness constrains strategic investments and raises liquidity risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong equity base
A high equity ratio (~65.9%) signals a robust capital structure and low dependency on external financing. This gives Sakurai durable financial flexibility to fund operations, absorb cyclical shocks, and invest in product upkeep or modest R&D, reducing solvency risk over the medium term.
Read all positive factors

Sakurai Ltd. (7255) vs. iShares MSCI Japan ETF (EWJ)

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 transmi...
How the Company Makes Money
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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
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue5.28B4.96B5.54B4.60B4.87B3.41B
Gross Profit882.90M746.73M357.88M201.92M641.30M15.01M
EBITDA1.09B965.88M1.08B397.65M854.99M362.55M
Net Income326.18M211.91M321.50M-306.21M185.94M-372.01M
Balance Sheet
Total Assets7.29B7.37B7.12B7.81B7.34B7.69B
Cash, Cash Equivalents and Short-Term Investments1.56B1.29B1.29B566.09M1.16B1.16B
Total Debt1.53B1.61B1.39B1.84B1.13B1.57B
Total Liabilities2.39B2.51B2.36B3.17B2.36B2.82B
Stockholders Equity4.90B4.86B4.76B4.64B4.98B4.87B
Cash Flow
Free Cash Flow0.0059.79M539.47M-1.28B446.35M-231.22M
Operating Cash Flow0.00311.38M1.09B-472.63M1.02B127.83M
Investing Cash Flow0.00-416.23M155.34M-762.52M-542.02M-305.65M
Financing Cash Flow0.0097.87M-527.06M625.90M-508.68M263.39M

Sakurai Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price627.00
Price Trends
50DMA
654.33
Negative
100DMA
632.06
Negative
200DMA
607.91
Negative
Market Momentum
MACD
-20.07
Positive
RSI
23.79
Positive
STOCH
15.65
Positive
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 627 is below the 20-day moving average (MA) of 647.61, below the 50-day MA of 654.33, and above the 200-day MA of 607.91, indicating a bearish trend. The MACD of -20.07 indicates Positive momentum. The RSI at 23.79 is Positive, neither overbought nor oversold. The STOCH value of 15.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7255.

Sakurai Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
¥2.00B21.651.68%8.58%11.74%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
¥3.24B27.412.92%-0.31%3.93%
59
Neutral
¥3.45B10.65-9.58%
58
Neutral
¥4.93B2.754.51%0.61%-453.99%
57
Neutral
¥3.82B-23.964.39%9.38%0.07%
57
Neutral
¥6.10B3.203.44%-7.72%-311.30%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7255
Sakurai Ltd.
546.00
49.78
10.03%
JP:7214
GMB Corporation
925.00
228.60
32.83%
JP:7215
FALTEC Co., Ltd.
368.00
44.00
13.58%
JP:7217
Tein, Inc.
390.00
58.08
17.50%
JP:7219
HKS Co., Ltd.
2,292.00
445.79
24.15%
JP:7297
Car Mate Mfg. Co Ltd
865.00
78.70
10.01%
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: Oct 28, 2025