Sanrin Co., Ltd. (7486) AI Stock Analysis

• Market Cap: ¥8.68B
• Dividend Yield: 3.39%
• Average Volume (3M): 1.59K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.11
• Revenue Growth: 0.09%
• EPS Growth: -26.27%
• Country: JP
• Employees: 560
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -7.33
• Shares Outstanding: 12,300,000
• 10 Day Avg. Volume: 1,010
• 30 Day Avg. Volume: 1,593
• PEG Ratio: 0.55
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -500.07
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥778.00 ▲(10.04% Upside)

Sanrin Co., Ltd. has a strong technical outlook and attractive valuation, which bolster its overall stock score. However, financial performance is hampered by declining revenue and poor cash flow management, which are areas of concern that slightly offset the positive aspects.

Positive Factors

Balance Sheet Strength

A strong equity ratio of 71.9% indicates financial stability and low leverage, providing a solid foundation for long-term growth and resilience against market fluctuations.

Supplier and Client Relationships

Strong supplier and client relationships ensure a reliable supply chain and customer base, which are critical for sustaining revenue and market position in the competitive wholesale distribution sector.

Gross Profit Margin Stability

A stable gross profit margin of 21.7% reflects effective cost management and pricing strategies, supporting consistent profitability and competitive positioning in the market.

Negative Factors

Declining Revenue

Declining revenue indicates potential challenges in market demand or operational efficiency, which could impact long-term growth and profitability if not addressed.

Negative Free Cash Flow

Negative free cash flow suggests potential liquidity issues, which could constrain the company's ability to invest in growth opportunities and meet financial obligations.

EPS Decline

A significant decline in EPS growth of over 33% may reflect operational challenges or increased costs, potentially affecting investor confidence and long-term earnings potential.

Sanrin Co., Ltd. Business Overview & Revenue Model

Company Description

Sanrin Co., Ltd. manufactures and sells briquette, bean coal, petroleum, LP gas, and other fuel products in Japan. It offers petroleum products, including gasoline, white kerosene, light oil, heavy oil, lubricates, and other products; LP gas for household, commercial, automobile, and industrial uses; and oxygen, nitrogen, and laughing gases, as well as other general high-pressure gases. The company also supplies hot pot, oil FF heaters, bathtub boilers, water heaters, LP gas/table water heaters, rice cookers, stoves, and machine bath kettles; and household equipment comprising bathtubs, washbasin units, sinks, clean flush toilets, septic tanks, solar hot water systems, central cleaner exhaust fans, ventilators, commercial kitchen equipment, and system kitchen and bath units. In addition, it provides solar power generation system and fuel cells; refrigerators, air-conditioners, fans, radiators, pump and cooling towers, warm-up machines, and other cold equipment; LP gas supply equipment, including propane containers, fuse cocks, regulators, steel pipes, and microcomputer gas meters; and household goods, such as gas leak alarms, fire alarms, anti-freeze products, and other consumer home appliances. Further, the company offers tires, car air-conditioners, batteries, and other car accessories; and high-pressure gas equipment for industrial and medical purposes, as well as operates golf practice fields. Additionally, it designs and constructs air-conditioning and hot water supply facility; housing renovations; and high-pressure gas facilities for oxygen. Sanrin Co., Ltd. was founded in 1934 and is headquartered in Higashichikuma, Japan.

How the Company Makes Money

Sanrin Co., Ltd. generates revenue primarily through the sale of its electronic components and materials. The company's revenue model is built on direct sales to manufacturers and suppliers in various industries, including automotive, telecommunications, and consumer electronics. Key revenue streams include the distribution of passive components, custom manufacturing solutions, and long-term contracts with major electronics manufacturers. Additionally, Sanrin may benefit from strategic partnerships with technology firms and collaborations on research and development projects, which can enhance its product offerings and open up new market opportunities. The company's focus on quality and innovation helps maintain a competitive edge, contributing to its overall earnings.

Sanrin Co., Ltd. Financial Statement Overview

Summary

The company demonstrates strong balance sheet strength with low leverage and a high equity ratio. However, the income statement shows a decline in revenue, and cash flow management is a concern due to a significant drop in free cash flow, impacting liquidity.

Income Statement

Sanrin Co., Ltd. has shown a stable gross profit margin of 21.7% for 2025, with a net profit margin of 2.7%, indicating modest profitability. The EBIT and EBITDA margins are 2.1% and 6.4% respectively, which are healthy for the industry. However, the revenue has declined over the past year by 3.8%, which might signal challenges in market conditions or operational efficiency.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 71.9%, suggesting financial stability. The debt-to-equity ratio stands at a low 0.14, indicating low leverage and reduced financial risk. Return on equity is moderate at 3.9%, which reflects steady but not exceptional returns on shareholder investments.

Cash Flow

Sanrin Co., Ltd. experienced a significant decline in free cash flow from 1.2 billion JPY in 2024 to -16 million JPY in 2025, indicating potential liquidity issues. The operating cash flow to net income ratio is 1.04, showing reasonable cash conversion efficiency. However, the negative free cash flow to net income ratio raises concerns about cash reserves and operational sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.19B	30.83B	32.04B	32.84B	30.16B	26.62B
Gross Profit	6.88B	7.13B	6.86B	6.72B	6.76B	7.32B
EBITDA	1.80B	1.98B	1.70B	1.58B	1.64B	2.17B
Net Income	636.00M	821.00M	700.00M	537.00M	526.00M	903.00M
Balance Sheet
Total Assets	27.84B	29.07B	27.77B	26.68B	26.06B	26.04B
Cash, Cash Equivalents and Short-Term Investments	6.67B	6.16B	6.56B	5.70B	5.88B	7.04B
Total Debt	2.94B	2.95B	3.04B	3.16B	3.33B	3.43B
Total Liabilities	7.19B	8.17B	8.17B	7.85B	7.79B	7.88B
Stockholders Equity	20.64B	20.90B	19.60B	18.83B	18.27B	18.16B
Cash Flow
Free Cash Flow	0.00	-16.00M	1.23B	256.00M	-792.00M	1.14B
Operating Cash Flow	0.00	855.00M	2.00B	1.11B	-53.00M	1.63B
Investing Cash Flow	0.00	-971.00M	-677.00M	-854.00M	-720.00M	-365.00M
Financing Cash Flow	0.00	-367.00M	-390.00M	-437.00M	-371.00M	-370.00M

Sanrin Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 707.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7486, the sentiment is Neutral. The current price of 707 is below the 20-day moving average (MA) of 709.20, above the 50-day MA of 705.18, and above the 200-day MA of 681.26, indicating a neutral trend. The MACD of 2.78 indicates Negative momentum. The RSI at 48.23 is Neutral, neither overbought nor oversold. The STOCH value of 61.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7486.

Sanrin Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5009	82 Outperform	―	―	―	―	8.57%	15.83%
7486	79 Outperform	¥8.68B	13.60	―	3.39%	0.09%	-26.27%
8131	74 Outperform	¥119.01B	9.80	―	2.59%	7.46%	153.98%
5015	73 Outperform	¥22.15B	22.07	―	4.47%	13.76%	13.58%
8132	67 Neutral	¥64.66B	20.55	―	1.44%	-5.02%	186.97%
5010	66 Neutral	¥3.69B	3.11	―	―	-10.55%	-21.44%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%