Sailor Pen Co., Ltd. (7992) AI Stock Analysis

• Market Cap: ¥3.02B
• Dividend Yield: N/A
• Average Volume (3M): 37.38K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.09
• Revenue Growth: 4.11%
• EPS Growth: 33.06%
• Country: JP
• Employees: 212
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): -3.18
• Shares Outstanding: 29,659,554
• 10 Day Avg. Volume: 48,530
• 30 Day Avg. Volume: 37,376
• PEG Ratio: 0.11
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 0.65
• P/FCF Ratio: -6.29
• 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: 50 Neutral
• Price Target: ¥121.00 ▲(15.24% Upside)

The overall stock score is primarily impacted by the company's financial difficulties, with declining revenues and persistent losses. Technical analysis shows some positive momentum, but the negative valuation metrics, including a negative P/E ratio, weigh heavily on the score.

Positive Factors

Product Innovation

Sailor Pen's focus on craftsmanship and innovation in product design supports its competitive edge in the premium writing instruments market.

Multi-Channel Distribution

A diversified distribution strategy enhances market reach and resilience, supporting revenue stability across various channels.

Brand Partnerships

Strategic partnerships for co-branded products can drive additional revenue streams and enhance brand visibility in new markets.

Negative Factors

Declining Revenue

Persistent revenue decline and negative growth indicate challenges in market demand or competitive positioning, impacting long-term viability.

Increasing Debt Levels

Rising debt levels can strain financial resources, limiting flexibility and increasing risk during economic downturns.

Negative Cash Flow

Negative cash flow from operations suggests inefficiencies in converting sales into cash, potentially hindering investment and growth.

Sailor Pen Co., Ltd. Business Overview & Revenue Model

Company Description

Sailor Pen Co., Ltd. (7992) is a renowned manufacturer of high-quality writing instruments, specializing in fountain pens, ballpoint pens, and mechanical pencils. Founded in Japan, the company has established a reputation for craftsmanship and innovation, catering to both professional and personal consumers. Sailor's products are distinguished by their precision engineering, luxurious designs, and the use of premium materials, appealing to a diverse market ranging from collectors to everyday users.

How the Company Makes Money

Sailor Pen Co., Ltd. generates revenue primarily through the sale of its writing instruments, which includes a wide range of fountain pens, ballpoint pens, and accessories. The company employs a multi-channel distribution strategy, selling products through both retail partners and its own online platform. Key revenue streams include direct sales to consumers, wholesale to specialty shops and stationery stores, and limited edition releases that attract collectors. Additionally, Sailor has established partnerships with other brands for co-branded products, which contributes further to its earnings. Seasonal promotions and participation in stationery fairs also enhance visibility and sales, driving growth in both domestic and international markets.

Sailor Pen Co., Ltd. Financial Statement Overview

Summary

Sailor Pen Co., Ltd. is facing financial difficulties with declining revenues, persistent losses, and increasing debt levels. The company has negative revenue growth, deeply negative net profit margins, and negative cash flows, indicating significant operational and financial challenges.

Income Statement

Sailor Pen Co., Ltd. has experienced a decline in revenue from 2019 to 2024, with a negative revenue growth rate of -2.8% from 2023 to 2024. The net profit margin is deeply negative, indicating consecutive years of losses. The company also has negative EBIT and EBITDA margins, showing operational challenges and reduced profitability.

Balance Sheet

The company's debt-to-equity ratio has increased over recent years, indicating a growing reliance on debt financing. Stockholders' equity has decreased significantly, reducing financial stability. However, the equity ratio remains positive, showing some level of capitalization, albeit diminished from previous years.

Cash Flow

Sailor Pen Co., Ltd. reports negative operating and free cash flows, reflecting cash flow challenges. The free cash flow growth rate is negative, with significant cash outflows in capital expenditures. The operating cash flow to net income ratio is negative, indicating inefficiencies in turning profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.70B	4.68B	4.56B	5.03B	5.39B	4.80B
Gross Profit	1.52B	1.35B	1.29B	1.60B	1.70B	1.44B
EBITDA	8.13M	-947.09M	-1.31B	-39.09M	183.60M	-46.15M
Net Income	-1.03B	-1.15B	-1.51B	-193.93M	53.62M	-136.80M
Balance Sheet
Total Assets	4.44B	4.76B	5.55B	7.22B	7.18B	6.94B
Cash, Cash Equivalents and Short-Term Investments	601.44M	579.83M	656.09M	1.18B	2.47B	2.84B
Total Debt	1.98B	1.93B	1.53B	1.22B	3.02B	3.03B
Total Liabilities	3.32B	3.50B	3.16B	3.30B	5.07B	4.89B
Stockholders Equity	1.11B	1.26B	2.39B	3.92B	2.11B	2.05B
Cash Flow
Free Cash Flow	0.00	-480.80M	-866.29M	-1.46B	-405.82M	-374.47M
Operating Cash Flow	0.00	-405.54M	-435.97M	-279.08M	166.79M	-179.52M
Investing Cash Flow	0.00	-68.75M	-385.50M	-1.18B	-586.50M	-194.65M
Financing Cash Flow	0.00	387.52M	291.07M	157.53M	-11.25M	1.97B

Sailor Pen Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 105.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7992, the sentiment is Negative. The current price of 105 is below the 20-day moving average (MA) of 107.40, below the 50-day MA of 108.60, and below the 200-day MA of 117.75, indicating a bearish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 45.57 is Neutral, neither overbought nor oversold. The STOCH value of 8.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7992.

Sailor Pen Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7846	75 Outperform	¥178.72B	12.86	―	2.59%	-0.26%	3.35%
7976	74 Outperform	¥107.80B	15.00	―	2.07%	6.39%	-34.84%
7984	72 Outperform	¥421.55B	19.00	8.83%	2.24%	6.29%	8.74%
7975	70 Neutral	¥4.19B	10.43	―	2.03%	3.24%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7962	58 Neutral	¥24.12B	69.24	―	1.65%	-2.71%	―
7992	50 Neutral	¥3.02B	―	―	―	4.11%	33.06%