SATO SHO-JI CORPORATION (8065) AI Stock Analysis

• Market Cap: ¥49.53B
• Dividend Yield: 3.53%
• Average Volume (3M): 42.59K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.94
• Revenue Growth: 3.19%
• EPS Growth: -5.79%
• Country: JP
• Employees: 1,031
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 72.21
• Shares Outstanding: 21,799,050
• 10 Day Avg. Volume: 50,390
• 30 Day Avg. Volume: 42,590
• PEG Ratio: -0.76
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -14.44
• 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: 77 Outperform
• Price Target: ¥2,798.00 ▲(24.19% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

The overall stock score of 77 reflects strong technical momentum and attractive valuation, supported by solid financial performance. The company's robust revenue growth and efficient cost management are key strengths, though cash flow management requires attention. The lack of earnings call data and corporate events does not impact the score.

Positive Factors

Consistent Revenue Growth

The company reports a clear multi-year revenue uptrend and a notable increase from 2024 to 2025. Sustained topline expansion supports scale advantages, better fixed-cost absorption and the flexibility to invest in distribution or product breadth, reinforcing durable growth potential.

Stable Margins via Cost Management

Relatively stable gross and net profit margins indicate consistent operational discipline and effective cost controls. Margin stability through business cycles preserves earnings power, supports reinvestment and dividend capacity, and makes performance less sensitive to short-term revenue swings.

Solid Equity Base and Manageable Leverage

A stable equity position and reasonable leverage provide financial flexibility for capital expenditure and working capital needs. This balance sheet posture reduces refinancing risk, supports credit access, and underpins resilience to sector downturns over the medium term.

Negative Factors

Operating Cash Flow Volatility

Material volatility and a move to negative free cash flow in 2025 indicate weaker cash conversion despite reported earnings. Persistent cash generation issues can constrain capex, dividends and debt servicing, forcing higher reliance on external financing or asset sales over time.

Declining Shareholders' Equity Trend

A downward trend in shareholders' equity reduces the cushion against losses and can signal recurring capital drawdowns or dividend/retention policy stress. If continued, it narrows strategic options, weakens leverage metrics and could elevate funding costs or limit growth investments.

Earnings (EPS) Contraction

Negative EPS growth and a slight net income decline despite revenue gains suggest margin or one-off pressure and less efficient profit conversion. Continued EPS contraction would undermine retained earnings, reduce internal funding capacity and could signal emerging competitive or cost issues.

SATO SHO-JI CORPORATION Business Overview & Revenue Model

Company Description

Sato Shoji Corporation sells iron and steel products, non-ferrous metals, machines, electronic materials, industrial tools, lifestyle goods, precious metals and jewelry, construction materials, and environment-related goods in Japan. It provides ordinary and specialty steel sheets, wire rods, steel pipes, processed products, building materials, and bar steel and section steel products for industries, such as automobiles, construction machinery, bridge building, construction, electrical machinery, ship building, and molds. The company also sells and imports non-ferrous metals, manufacturing equipment, die-casting materials, and sub-materials; and offers laminated board materials of printed circuit boards used in mobile phones and household appliances, sub-materials, equipment, and machines related to manufacturing, as well as semiconductor and liquid crystal, electronics components, and automotive related products. In addition, it offers machinery and tools products, such as machining tools, forging machine, automation, various machines, cutting tools, and others products. Further, the company provides the Martian, DANSK, and Sori Yanagi branded Western crockery and cutlery, as well as tableware, precious metals, and accessories. Sato Shoji Corporation was founded in 1930 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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SATO SHO-JI CORPORATION Financial Statement Overview

Summary

SATO SHO-JI CORPORATION demonstrates strong revenue growth and efficient cost management, contributing to stable profitability margins. The balance sheet is supported by a solid equity base and reasonable leverage, ensuring financial stability. However, cash flow inconsistencies highlight potential operational challenges, necessitating attention to cash generation and expenditure management.

Income Statement

The company shows a consistent revenue growth trend over the past few years, with a noticeable increase from 2024 to 2025. Gross profit margin and net profit margin have been relatively stable, indicating efficient cost management and profitability. EBIT and EBITDA margins are healthy, reflecting robust operational performance. However, the net income experienced a slight decline from 2024 to 2025, which could be a potential area of concern.

Balance Sheet

The balance sheet reflects a stable equity position with a reasonable debt-to-equity ratio, suggesting manageable financial leverage. The equity ratio indicates a solid portion of assets financed by equity, enhancing financial stability. However, the declining trend in stockholders' equity over recent years may pose a risk if it continues.

Cash Flow

The cash flow statements exhibit some volatility, with a significant drop in operating cash flow from 2024 to 2025. Free cash flow turned negative in 2025, indicating potential challenges in generating cash from operations after capital expenditures. The ratios of operating and free cash flow to net income suggest the need for improved cash management strategies.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	286.31B	284.55B	273.98B	275.01B	236.16B	175.46B
Gross Profit	23.32B	22.77B	20.85B	21.26B	19.71B	14.37B
EBITDA	8.41B	7.97B	7.53B	7.13B	6.76B	3.85B
Net Income	6.05B	6.02B	6.48B	6.20B	4.02B	2.79B
Balance Sheet
Total Assets	168.56B	171.14B	172.87B	163.74B	152.09B	115.92B
Cash, Cash Equivalents and Short-Term Investments	4.72B	3.91B	3.17B	3.35B	2.94B	2.43B
Total Debt	29.73B	32.20B	28.82B	32.80B	31.98B	15.55B
Total Liabilities	99.72B	102.69B	107.66B	107.64B	101.15B	68.28B
Stockholders Equity	68.82B	68.44B	65.19B	56.09B	50.92B	47.63B
Cash Flow
Free Cash Flow	0.00	-2.16B	3.37B	-1.51B	-12.92B	5.94B
Operating Cash Flow	0.00	2.14B	8.23B	869.00M	-12.55B	7.50B
Investing Cash Flow	0.00	-3.00B	-2.73B	175.00M	-1.51B	-685.00M
Financing Cash Flow	0.00	1.29B	-5.79B	-876.00M	14.42B	-6.35B

SATO SHO-JI CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2253.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8065, the sentiment is Positive. The current price of 2253 is below the 20-day moving average (MA) of 2403.25, below the 50-day MA of 2393.10, and above the 200-day MA of 1987.01, indicating a bullish trend. The MACD of -2.81 indicates Negative momentum. The RSI at 56.98 is Neutral, neither overbought nor oversold. The STOCH value of 81.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8065.

SATO SHO-JI CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8075	80 Outperform	¥60.99B	7.59	―	4.12%	-2.50%	-19.09%
8065	77 Outperform	¥49.53B	7.80	―	3.53%	3.19%	-5.79%
5463	74 Outperform	¥338.77B	12.83	―	3.26%	-7.77%	58.84%
5423	73 Outperform	¥170.69B	7.83	7.36%	3.42%	-18.72%	-25.26%
5440	70 Outperform	¥100.13B	10.61	―	3.70%	-3.06%	1.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5410	61 Neutral	¥52.66B	7.67	―	6.27%	-7.45%	-9.12%

SATO SHO-JI CORPORATION Corporate Events

Sato Shoji Holds Earnings Guidance as Equity Base Strengthens

For the nine months to December 31, 2025, Sato Shoji posted modest top-line growth of 0.8% to ¥216.6 billion while operating and ordinary profits improved nearly 5%, yet bottom-line income slipped 0.9% amid slightly higher share dilution; despite this, net assets climbed on a stronger equity ratio of 40.3% and the company kept its full-year forecast, targeting ¥290 billion in revenue and ¥5.6 billion in profit, alongside reiterating a total annual dividend of ¥76 per share, implying confidence in cash returns even as earnings guidance signals profit pressure in the final quarter.

The most recent analyst rating on (JP:8065) stock is a Buy with a Yen2647.00 price target. To see the full list of analyst forecasts on SATO SHO-JI CORPORATION stock, see the JP:8065 Stock Forecast page.