SATO SHO-JI CORPORATION (8065) AI Stock Analysis

• Market Cap: ¥52.13B
• 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

Sustained top-line growth across multiple years provides a durable foundation for the business, supporting scale advantages, reinvestment capacity and long-term earnings power. That trend improves the company's ability to fund strategic initiatives and absorb cyclical shocks without relying on short-term financing.

Efficient cost management and stable margins

Stable gross and net margins, plus healthy EBIT/EBITDA levels, indicate the company can convert revenue into sustainable profits. This cost discipline supports durable cash generation, funds capital allocation choices, and helps preserve profitability through industry cycles and input-cost volatility.

Solid equity base and reasonable leverage

A solid equity ratio and manageable leverage provide long-term financial flexibility, lowering refinancing risk and enabling the company to invest in growth or withstand downturns. This structural strength improves credit access and supports strategic investments without immediate pressure to deleverage.

Negative Factors

Volatile operating cash flow

Material swings in operating cash flow undermine predictability of internally generated funds, complicating capital planning and dividend consistency. Persistent volatility reduces resilience to shocks, can force reliance on external financing, and weakens the company's ability to fund growth without increasing leverage.

Negative free cash flow in 2025

A shift to negative free cash flow is a structural concern if it persists, as it limits the firm's capacity for debt reduction, dividends, or strategic M&A. Sustained negative FCF may necessitate equity issuance or higher borrowing, constraining strategic flexibility and increasing financial risk over the medium term.

Declining stockholders' equity trend

A downward trend in shareholders' equity erodes the balance-sheet buffer that absorbs losses and supports borrowing capacity. Over time this can raise cost of capital, limit ability to pursue investments, and signal structural profitability or capital-return issues if not reversed by improved earnings retention or 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

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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	¥62.98B	7.59	―	4.12%	-2.50%	-19.09%
8065	77 Outperform	¥52.13B	7.80	―	3.53%	3.19%	-5.79%
5463	74 Outperform	¥343.57B	12.83	―	3.26%	-7.77%	58.84%
5423	73 Outperform	¥175.60B	7.83	7.36%	3.42%	-18.72%	-25.26%
5440	70 Outperform	¥102.48B	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	¥53.90B	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.