Sangetsu Corporation (8130) AI Stock Analysis

• Market Cap: ¥195.29B
• Dividend Yield: 4.91%
• Average Volume (3M): 110.75K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.45
• 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): 65.83
• 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): 235.6
• Revenue Forecast (FY): ¥210.38B

• Rating: 76 Outperform
• Price Target: ¥3,791.00 ▲(21.90% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

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

Balance sheet strength

Very low leverage and a high equity ratio give the company durable financial flexibility. This reduces interest burden, supports capital allocation (dividends, capex, or M&A), and helps absorb cyclical revenue swings, preserving long-term solvency and strategic optionality.

Cash flow generation

Sustained strong operating cash flow and rising free cash flow indicate high cash conversion and internal funding capacity. That enables reinvestment, dividend payments, and buffer against external funding needs, supporting durable operations and shareholder returns.

Margin expansion

Improved gross and net margins point to pricing power or procurement/operational efficiency in core product lines. Higher structural margins increase resilience to volume declines and provide headroom to invest in product mix, distribution, or service capabilities.

Negative Factors

EBIT margin pressure

A declining EBIT margin suggests rising operating costs or weaker operational leverage. If persistent, this can erode operating profitability even as gross margins improve, constraining reinvestment capacity and making earnings more sensitive to input cost inflation.

Weaker ROE

A falling ROE signals lower returns on capital despite a strong equity base. Over time, this can reflect suboptimal capital allocation, slower profit growth relative to equity, or margin pressures—factors that limit long-term shareholder value creation.

Cyclical end-market exposure

Revenue concentration in construction and renovation ties sales to macro and housing cycles. Structural exposure means multi-month downturns in building activity can materially reduce volumes and margins, limiting predictability and requiring active diversification or countercyclical strategies.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 3110.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 3110 is below the 20-day moving average (MA) of 3275.00, below the 50-day MA of 3201.80, and above the 200-day MA of 3032.06, indicating a bullish trend. The MACD of 41.32 indicates Negative momentum. The RSI at 70.93 is Negative, neither overbought nor oversold. The STOCH value of 84.34 is Negative, 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
8130	76 Outperform	¥195.29B	14.14	―	4.91%	6.35%	14.05%
7887	76 Outperform	¥11.28B	10.09	―	1.66%	8.56%	2690.35%
7840	75 Outperform	¥47.03B	17.00	―	2.97%	0.89%	-14.25%
7972	69 Neutral	¥194.76B	18.98	―	2.20%	7.63%	29.07%
7898	66 Neutral	¥10.31B	4.26	―	2.65%	1.11%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7822	46 Neutral	¥11.49B	25.72	―	4.41%	2.78%	-88.37%

Sangetsu Corporation Corporate Events

Sangetsu Posts Record Sales While Interior and Exterior Segments Show Resilient Profitability

Sangetsu reported record consolidated net sales for the nine months ended December 31, 2025, with year-on-year growth across all profit lines, supported by improved performance at domestic and overseas group companies and strict control of selling, general and administrative expenses. Although overall sales progress slightly lagged plans due to sluggish domestic demand, including weakness in new housing, operating profit remained on par with the previous year, underscoring resilient profitability.

In the Domestic Interior Segment, net sales declined year on year as core products such as wallcoverings saw lower volumes amid soft demand, post–price revision adjustment and the impact of a fire at a major flooring supplier, yet profits still grew thanks to successful price hikes, stronger sales of high value-added products and greater contributions from group firms. The Domestic Exterior Segment, led by Sungreen Co., Ltd., achieved higher net sales and maintained profitability through price increases, new customer development in the Kanto region and continued cost discipline, highlighting stable performance despite a challenging market environment.

The most recent analyst rating on (JP:8130) stock is a Hold with a Yen3255.00 price target. To see the full list of analyst forecasts on Sangetsu Corporation stock, see the JP:8130 Stock Forecast page.

Sangetsu Lifts Nine-Month Profit, Confirms Outlook and Higher Dividend

Sangetsu reported consolidated net sales of ¥151.4 billion for the nine months to December 31, 2025, up 2.8% year on year, with operating profit rising 7.7% to ¥13.6 billion and profit attributable to owners of parent jumping 15.8% to ¥10.2 billion. Earnings per share climbed to ¥173.23, while total assets edged down slightly and the equity ratio improved to 63.4%, reflecting solid profitability and balance sheet strength.

The company kept its full-year forecast unchanged, targeting ¥210 billion in sales and ¥13 billion in profit attributable to owners of parent, implying continued but moderate growth into March 2026. It also maintained its dividend forecast at ¥155 per share for the full year, including an increased interim payout, and expanded its consolidation scope with the addition of SDS Corporation, signaling ongoing shareholder returns and measured business expansion.

The most recent analyst rating on (JP:8130) stock is a Hold with a Yen3255.00 price target. To see the full list of analyst forecasts on Sangetsu Corporation stock, see the JP:8130 Stock Forecast page.