SATO SHO-JI CORPORATION (8065) AI Stock Analysis

• Market Cap: ¥50.80B
• Dividend Yield: 3.53%
• Average Volume (3M): 42.59K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.95
• 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: ¥2,802.00 ▲(24.37% 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

Sustained top-line growth across multiple years, including a marked increase in 2024–2025, indicates expanding customer demand or market share. Over a 2–6 month horizon this trend underpins revenue visibility, supports reinvestment capacity and reduces execution risk relative to peers.

Stable margins and efficient cost control

Relatively stable gross and net margins with healthy EBIT/EBITDA suggest durable cost structure and pricing power. This resilience supports operating cash generation when revenue is sustained and provides buffer versus input-cost swings, aiding longer-term profitability stability.

Reasonable leverage and solid equity base

A solid equity ratio and manageable debt profile enhance financial flexibility for investments or downturns. Sustainable leverage levels reduce refinancing risk and allow the firm to fund growth or weather cyclical industry stresses without immediate capital raises.

Negative Factors

Volatile operating cash flow

A sharp decline in operating cash flow weakens the company’s ability to self-fund working capital and capex. Over the medium term this raises reliance on external financing, increases sensitivity to interest or credit cycles, and can constrain strategic investments.

Negative free cash flow in 2025

Negative free cash flow after capex signals cash generation is insufficient to cover reinvestment. Persisting FCF deficits impair balance sheet repair, limit dividends/share buybacks, and force prioritization between growth and liquidity management over the next several quarters.

Declining stockholders' equity & EPS pressure

A shrinking equity base combined with negative EPS growth points to sustained earnings pressure or capital erosion. If continued, this undermines financial cushions, limits strategic options and raises the likelihood of tougher financing terms or the need for capital actions.

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

SATO SHO-JI CORPORATION generates revenue through a diversified business model that includes commission-based sales, direct sales of imported goods, and value-added services such as logistics and supply chain management. Key revenue streams stem from partnerships with manufacturers and suppliers, allowing the company to act as an intermediary in the trading process. Additionally, the company's ability to offer tailored solutions to clients enhances its competitive edge and fosters long-term relationships, contributing to consistent earnings. Strategic collaborations with international firms further expand its market reach and boost sales volume.

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	11.31B	9.96B	10.19B	10.05B	6.76B	3.85B
Net Income	6.05B	6.02B	6.48B	6.19B	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	107.67B	107.64B	101.16B	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	3.26B	-1.60B	-12.97B	5.90B
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: Neutral
• Last Price: 2253.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8065, the sentiment is Neutral. The current price of 2253 is below the 20-day moving average (MA) of 2440.30, below the 50-day MA of 2372.46, and above the 200-day MA of 1941.30, indicating a neutral trend. The MACD of 15.85 indicates Positive momentum. The RSI at 48.73 is Neutral, neither overbought nor oversold. The STOCH value of 33.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥68.25B	7.59	―	4.12%	-2.50%	-19.09%
8076	79 Outperform	¥20.30B	8.47	―	5.36%	-3.55%	5.47%
5464	78 Outperform	¥39.03B	10.05	―	4.09%	-3.99%	-12.45%
8065	77 Outperform	¥50.80B	7.80	―	3.53%	3.19%	-5.79%
5976	67 Neutral	¥43.41B	18.59	―	4.64%	-5.13%	18.49%
5408	64 Neutral	¥34.32B	-185.54	―	5.02%	-13.64%	-45.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.