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

• Market Cap: ¥3.41B
• Dividend Yield: N/A
• Average Volume (3M): 77.12K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.13
• Revenue Growth: 4.61%
• EPS Growth: 33.80%
• Country: JP
• Employees: 212
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): -3.04
• Shares Outstanding: 29,659,554
• 10 Day Avg. Volume: 40,130
• 30 Day Avg. Volume: 77,123
• 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: ¥120.00
• Price Target Upside: 6.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: ¥120.00 ▲(6.19% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and persistent losses. Technical analysis suggests bearish momentum, and valuation metrics are unfavorable with a negative P/E ratio. These factors collectively result in a low stock score.

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

Company Description

The Sailor Pen Co., Ltd. produces and sells writing instruments worldwide. The company offers fountain pens, ballpoint pens, mechanical pencils, puff pens, compound writing instruments, marking pens, fude pens, dip pen/inks, correction fluids, Dodoko sheets, other stationaries, and gift accessories, etc., as well as operates an online shop. It offers automatic take-out robots for plastic injection molded products; secondary and tertiary process automation equipment for plastic injection molded products, stock equipment, factory automation systems, and custom-made equipment; handling robots for semiconductors, metal presses, etc.; and prizes for the gaming industry. The company was founded in 1911 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sailor Pen Co., Ltd. generates revenue primarily through the sale of its writing instruments, with a particular emphasis on its premium fountain pens, which are highly regarded for their quality and precision. The company's revenue streams include direct sales through its retail outlets, online platforms, and authorized distributors worldwide. Additionally, Sailor Pen collaborates with various retailers and luxury brands to offer exclusive and limited edition products, further enhancing its market presence. The company also benefits from its reputation and brand heritage, which contribute to sustained demand and customer loyalty.

Sailor Pen Co., Ltd. Financial Statement Overview

Summary

Sailor Pen Co., Ltd. is experiencing financial difficulties, characterized by declining revenues, persistent losses, and increasing debt levels. The company needs to address its operational inefficiencies and improve cash flow management to stabilize its financial position.

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	-22.65M
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	1.97B	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: 113.00
• 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 113 is below the 20-day moving average (MA) of 118.30, below the 50-day MA of 121.86, and below the 200-day MA of 115.86, indicating a bearish trend. The MACD of -2.72 indicates Positive momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 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
7976	76 Outperform	¥113.76B	15.55	―	2.12%	10.66%	-37.99%
7846	75 Outperform	¥182.34B	13.12	―	2.62%	2.17%	11.48%
7975	70 Neutral	¥4.05B	10.07	―	2.09%	3.24%	―
7984	66 Neutral	¥391.06B	19.63	7.98%	2.45%	3.27%	-12.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7962	61 Neutral	¥23.92B	55.57	―	1.67%	0.22%	―
7992	46 Neutral	¥3.41B	―	―	―	4.61%	33.80%