Sangetsu Corporation (8130) AI Stock Analysis

• Market Cap: ¥180.73B
• Dividend Yield: 4.91%
• Average Volume (3M): 110.75K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.48
• Revenue Growth: 6.35%
• EPS Growth: 14.05%
• Country: JP
• Employees: 2,645
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 60.09
• Shares Outstanding: 59,200,000
• 10 Day Avg. Volume: 111,340
• 30 Day Avg. Volume: 110,753
• PEG Ratio: -1.12
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.85
• P/FCF Ratio: 11.77
• 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: 76 Outperform
• Price Target: ¥3,390.00 ▲(9.18% Upside)

Sangetsu Corporation's strong financial performance is the primary driver of its overall score, supported by a solid balance sheet and effective cash management. The valuation is attractive with a reasonable P/E ratio and high dividend yield. Technical indicators suggest some short-term bearish trends, but potential upward momentum exists.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term financial stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and resilience against economic downturns.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and reduces risk, enabling Sangetsu to withstand market fluctuations and invest in future growth.

Negative Factors

Decline in ROE

A declining ROE may indicate inefficiencies in generating profits from equity, potentially impacting investor confidence and long-term value creation.

EBIT Margin Pressure

Decreasing EBIT margins suggest rising costs or pricing pressures, which could affect profitability if not managed effectively over the long term.

EPS Growth Decline

Negative EPS growth reflects challenges in profit expansion, which may hinder the company's ability to deliver shareholder returns and fund future initiatives.

Sangetsu Corporation Business Overview & Revenue Model

Company Description

Sangetsu Corporation, together with its subsidiaries, develops and sells interior decorating products in China and internationally. The company's products include wallcoverings, flooring materials, curtains, and upholstery products. It operates showrooms in Shinagawa, Nagoya, Fukuoka, Osaka, Sendai, Kanazawa, Hiroshima, and Okinawa. The company was formerly known as Sangetsudoshoten Co., Ltd. and changed its name to Sangetsu Corporation in 1970. Sangetsu Corporation was founded in 1849 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Sangetsu Corporation generates revenue primarily through the sale of its decorative materials and solutions across various sectors. Key revenue streams include the wholesale and retail distribution of wallpapers, textiles, and other interior goods. The company collaborates with designers, architects, and contractors, supplying them with customized solutions that meet specific project requirements. Significant partnerships with construction firms and interior design companies also bolster revenue, as they often lead to large-scale projects. Additionally, Sangetsu invests in research and development to create new products and maintain a competitive edge in the market, which contributes to its earnings by attracting a diverse clientele seeking innovative design options.

Sangetsu Corporation Financial Statement Overview

Summary

Sangetsu Corporation demonstrates strong financial health with consistent revenue growth, improved net profit margin, robust cash flows, and a solid balance sheet. Despite slight pressure on operating margins, the company maintains low leverage and effective cash management.

Income Statement

Sangetsu Corporation has demonstrated consistent revenue growth over the past years, with a notable increase in gross profit margin to 31.1% in 2025. The net profit margin also improved to 6.3%, reflecting strong profitability. However, EBIT margin saw a slight decline, indicating potential cost pressures.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.11, indicating low leverage. The equity ratio of 61.5% shows a strong equity position. However, a decrease in ROE to 11.1% suggests a slight dip in shareholder value creation compared to previous years.

Cash Flow

Sangetsu Corporation exhibits strong cash flow generation with a significant increase in free cash flow. The free cash flow to net income ratio is healthy, and operating cash flow is well above net income, indicating efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	203.05B	200.38B	189.86B	176.02B	149.48B	145.32B
Gross Profit	63.03B	62.37B	58.96B	56.38B	39.96B	47.64B
EBITDA	22.65B	22.35B	23.79B	24.40B	7.42B	10.07B
Net Income	12.91B	12.57B	14.29B	14.01B	276.00M	4.78B
Balance Sheet
Total Assets	179.43B	183.86B	170.75B	164.45B	147.94B	158.83B
Cash, Cash Equivalents and Short-Term Investments	30.49B	34.03B	25.40B	25.12B	18.65B	26.02B
Total Debt	16.67B	12.78B	7.48B	10.45B	10.10B	16.14B
Total Liabilities	67.50B	70.07B	64.04B	68.63B	59.62B	65.17B
Stockholders Equity	111.23B	113.04B	106.69B	95.81B	87.88B	93.44B
Cash Flow
Free Cash Flow	0.00	14.52B	7.80B	14.18B	3.50B	5.04B
Operating Cash Flow	0.00	19.26B	12.82B	17.37B	5.72B	9.69B
Investing Cash Flow	0.00	-6.87B	-1.85B	-408.00M	-827.00M	-2.60B
Financing Cash Flow	0.00	-3.98B	-11.25B	-9.36B	-13.34B	-11.84B

Sangetsu Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3105.00
• 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:8130, the sentiment is Positive. The current price of 3105 is above the 20-day moving average (MA) of 3096.75, above the 50-day MA of 3062.86, and above the 200-day MA of 2936.01, indicating a bullish trend. The MACD of 8.52 indicates Positive momentum. The RSI at 54.36 is Neutral, neither overbought nor oversold. The STOCH value of 59.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8130.

Sangetsu Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7887	80 Outperform	¥9.07B	6.15	―	1.66%	8.56%	2690.35%
8130	76 Outperform	¥180.73B	13.14	―	4.91%	6.35%	14.05%
7840	75 Outperform	¥44.96B	16.66	―	2.97%	0.89%	-14.25%
7898	66 Neutral	¥8.47B	3.54	―	2.65%	1.11%	―
7972	65 Neutral	¥132.31B	13.62	―	2.20%	7.63%	29.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7822	46 Neutral	¥9.99B	31.61	―	4.41%	2.78%	-88.37%

Sangetsu Corporation Corporate Events

Sangetsu Corporation Reports Strong Financial Performance for H1 2025

Sangetsu Corporation reported a positive financial performance for the six months ending September 30, 2025, with net sales increasing by 5.3% and operating profit rising by 10.9% compared to the previous year. The company also announced a slight increase in dividends, reflecting its stable financial position and commitment to shareholder returns.