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

• Market Cap: ¥9.75B
• Dividend Yield: 3.19%
• Average Volume (3M): 1.59K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.20
• Revenue Growth: 0.09%
• EPS Growth: -26.27%
• Country: JP
• Employees: 560
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 26.74
• 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: -470.65
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥1,050.00 ▲(31.41% Upside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is driven primarily by strong financial stability (high equity ratio and low leverage) and attractive valuation (low P/E with a moderate dividend). These positives are partially offset by weaker cash generation (free cash flow turning slightly negative) and near-overbought technical conditions (RSI ~71) despite an overall uptrend.

Positive Factors

Balance Sheet Strength

A very high equity ratio and minimal leverage materially reduce financial risk and interest burden, giving management long-term flexibility. This balance sheet strength supports capital allocation, dividend continuity and resilience through fuel-price or demand shocks.

Margin Stability

Consistent gross and operating margins indicate the company maintains structural pricing or cost controls across retail and wholesale channels. Stable margins help preserve earnings through cyclical fuel prices and underpin predictable operating cash flow over the medium term.

Cash Conversion Efficiency

An OCF-to-net-income ratio near 1.0 signals that reported profits translate reliably into operating cash, reflecting earnings quality. That steady cash conversion supports working-capital needs and operational continuity even if free cash flow fluctuates year-to-year.

Negative Factors

Free Cash Flow Drop

A sharp swing to slightly negative free cash flow constrains the company's ability to fund capex, pay dividends or build cash buffers without drawing on reserves or increasing borrowing. If persistent, it limits strategic investment and raises liquidity risk.

Revenue Contraction

A year-over-year revenue decline signals potential demand softness or competitive pressure in core fuel sales and distribution. Sustained top-line erosion would pressure margins and cash generation, making it harder to scale ancillary services or invest in retail improvements.

Low Return on Equity

ROE under 4% indicates limited effectiveness in converting shareholder capital into profits. Over time this can constrain reinvestment and make raising equity less attractive, potentially limiting growth and shareholder returns relative to peers in the sector.

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. makes money primarily by selling petroleum products through retail (e.g., service stations) and through wholesale/commercial distribution to corporate and institutional customers. Revenue is generated from (1) product sales volume multiplied by per-unit margins on fuels (gasoline, kerosene, diesel and related oil products), (2) distribution and delivery services associated with supplying fuel to customers, and (3) any ancillary, fuel-adjacent services offered at points of sale (specific items not available). The company’s earnings are influenced by fuel demand, competitive pricing, and gross margin management; details on material partnerships, contract structures, or segment profit contributions are not available.

Sanrin Co., Ltd. Financial Statement Overview

Summary

Solid balance sheet strength (71.9% equity ratio, low 0.14 debt-to-equity) supports stability, and profitability is steady (21.7% gross margin; 2.1% EBIT margin). However, revenue declined 3.8% and free cash flow fell sharply to -16M JPY, creating a meaningful cash-generation concern.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	31.19B	30.83B	32.04B	32.84B	30.16B	26.62B
Gross Profit	6.66B	6.69B	6.42B	6.26B	6.27B	6.82B
EBITDA	1.37B	1.44B	1.33B	1.29B	1.47B	1.95B
Net Income	636.00M	821.00M	700.00M	537.00M	527.00M	903.00M
Balance Sheet
Total Assets	27.84B	29.07B	27.77B	26.68B	26.39B	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	3.00B	3.08B	3.20B	3.33B	3.43B
Total Liabilities	7.19B	8.17B	8.16B	7.84B	8.12B	7.88B
Stockholders Equity	20.64B	20.90B	19.60B	18.83B	18.27B	18.16B
Cash Flow
Free Cash Flow	0.00	-17.00M	1.29B	329.00M	-705.00M	1.15B
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: Positive
• Last Price: 799.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7486, the sentiment is Positive. The current price of 799 is below the 20-day moving average (MA) of 807.25, above the 50-day MA of 790.50, and above the 200-day MA of 727.36, indicating a neutral trend. The MACD of 2.16 indicates Positive momentum. The RSI at 49.42 is Neutral, neither overbought nor oversold. The STOCH value of 4.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7486.

Sanrin Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7486	76 Outperform	¥9.75B	7.50	―	3.19%	0.09%	-26.27%
8131	74 Outperform	¥129.70B	17.49	―	2.57%	7.46%	153.98%
5019	68 Neutral	¥1.98T	21.95	2.23%	3.07%	-7.68%	-73.03%
8132	67 Neutral	¥74.74B	32.15	―	1.37%	-5.02%	186.97%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
8133	63 Neutral	¥226.78B	12.70	―	3.45%	-4.87%	26.27%
5020	56 Neutral	$3.88T	11.54	-0.15%	2.74%	-14.13%	33.18%