Sanrio Company (8136) AI Stock Analysis

• Market Cap: ¥1.29T
• Dividend Yield: 1.25%
• Average Volume (3M): 12.88M
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.86
• Revenue Growth: 42.84%
• EPS Growth: 91.66%
• Country: JP
• Employees: 1,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 66.45
• Shares Outstanding: 255,408,310
• 10 Day Avg. Volume: 12,533,870
• 30 Day Avg. Volume: 12,878,999
• PEG Ratio: 0.27
• Price to Book (P/B): 15.17
• Price to Sales (P/S): 11.20
• P/FCF Ratio: 42.32
• 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: ¥6,950.00
• Price Target Upside: 49.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 218.18
• Revenue Forecast (FY): ¥190.83B

• Rating: 61 Neutral
• Price Target: ¥4,986.00 ▲(7.36% Upside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

Sanrio Company's overall stock score is driven by its strong financial performance, characterized by robust revenue growth and profitability. However, technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold conditions. Valuation metrics suggest the stock may be overvalued, with a high P/E ratio and modest dividend yield. These factors combined result in a moderate overall stock score.

Positive Factors

Robust Revenue Growth

Sustained near-45% revenue growth demonstrates durable demand for Sanrio's character IP and effectiveness of its commercialization model. Such outsized growth supports long-term scaling of licensing royalties, retail sales, and content monetization across markets, improving revenue base predictability.

High Profitability and Margins

Very high gross and operating margins reflect strong pricing power and a scalable IP/licensing model with low variable costs. Durable margin structure supports cash generation and reinvestment capacity, enabling sustained profitability even if growth moderates.

Strong Cash Generation

Exceptional free cash flow growth and near-par conversion of net income to cash indicate robust internal funding ability. This durable cash generation underpins capital allocation flexibility for marketing, IP investment, and shareholder returns without heavy reliance on external financing.

Negative Factors

Rising Total Liabilities

An increase in total liabilities raises long-term refinancing and interest obligations risk. Even with prudent leverage today, higher liabilities can constrain financial flexibility, limit funding for strategic investments, and increase sensitivity to funding cost changes over the medium term.

Concentration on Character IP/Licensing

Heavy reliance on a finite portfolio of characters concentrates revenue risk: brand fatigue, changing consumer tastes, or licensee execution failures would materially affect royalties and merchandise demand. Sustained growth requires ongoing IP refresh and global brand management.

Retail & Merchandise Execution Risk

Revenue from wholesale and direct retail exposes Sanrio to inventory, channel, and retail execution risks. Long-term profitability hinges on product mix, inventory control and retail demand predictability; poor execution or retail disruption could erode margins and downstream licensing revenue.

Sanrio Company Business Overview & Revenue Model

Company Description

Sanrio Company, Ltd., together with its subsidiaries, plans, designs, and sells social communication gifts, greeting cards, and books in Japan and internationally. The company also operates restaurants; and produces, promotes, and distributes movies. In addition, it engages in the production and sale of videos and DVDs; planning and presentation of musicals and live performances; copyright licensing activities; and planning and operation of theme parks. Sanrio Company, Ltd. was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sanrio generates revenue primarily through licensing its characters to third-party manufacturers and retailers, allowing them to create and sell products featuring Sanrio's popular characters. This licensing model is a significant source of income, as it enables the company to earn royalties without directly manufacturing the products. Additionally, Sanrio operates its own retail stores and e-commerce platforms, selling exclusive merchandise directly to consumers. The company also engages in collaborations with other brands, contributing to its revenue through co-branded products and limited-edition releases. Moreover, Sanrio has expanded into entertainment, with revenues from animation, games, and themed attractions, enhancing the overall brand visibility and driving further merchandise sales.

Sanrio Company Financial Statement Overview

Summary

Sanrio Company demonstrates robust financial health with strong revenue growth and profitability metrics, supported by solid cash flow generation and stable leverage. The company is well-positioned in the specialty retail industry, with effective cost management and equity stability. However, it should continue to focus on optimizing operational efficiencies and monitoring liabilities to sustain its financial performance.

Income Statement

Sanrio Company has demonstrated strong revenue growth with a remarkable increase from ¥99.98 billion to ¥144.90 billion year-over-year, representing a 44.97% growth rate. The gross profit margin is robust at 75.01%, indicating excellent cost management. The net profit margin of 28.80% and EBIT margin of 35.75% further emphasize profitability. However, the EBITDA margin of 40.03% suggests some room for operational efficiency improvements.

Balance Sheet

The company maintains a healthy equity position with an equity ratio of 52.89%, reflecting financial stability. The debt-to-equity ratio is favorable at 0.42, showing prudent leverage management. Return on equity is impressive at 38.99%, suggesting effective utilization of shareholders' funds. Nonetheless, the company should monitor its total liabilities, which have increased to ¥94.79 billion.

Cash Flow

Sanrio Company exhibits strong cash flow generation, with a free cash flow growth rate of 93.37%, indicating solid cash management. The operating cash flow to net income ratio stands at 0.98, showing efficient conversion of profits to cash. The free cash flow to net income ratio is 0.92, which suggests adequate cash flow relative to net earnings, although there's a slight gap signaling potential for enhanced cash flow management.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	159.09B	144.90B	99.98B	72.62B	52.76B	41.07B
Gross Profit	121.30B	108.68B	72.12B	49.96B	33.87B	25.29B
EBITDA	44.54B	57.99B	30.78B	15.42B	6.81B	-694.00M
Net Income	45.62B	41.73B	17.58B	8.16B	3.42B	-3.96B
Balance Sheet
Total Assets	196.81B	202.41B	156.06B	100.70B	83.81B	85.04B
Cash, Cash Equivalents and Short-Term Investments	113.49B	118.98B	90.44B	52.01B	38.40B	36.88B
Total Debt	36.86B	46.38B	54.72B	23.47B	22.67B	30.96B
Total Liabilities	85.20B	94.79B	91.17B	44.41B	40.01B	47.76B
Stockholders Equity	110.99B	107.03B	64.61B	56.00B	43.64B	37.16B
Cash Flow
Free Cash Flow	0.00	38.36B	19.83B	10.52B	4.35B	-3.34B
Operating Cash Flow	0.00	40.82B	22.17B	11.53B	5.06B	-2.29B
Investing Cash Flow	0.00	8.28B	-3.46B	-2.08B	2.30B	7.01B
Financing Cash Flow	0.00	-16.85B	15.70B	-2.72B	-9.11B	-862.00M

Sanrio Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4644.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8136, the sentiment is Positive. The current price of 4644 is below the 20-day moving average (MA) of 5085.80, below the 50-day MA of 4984.50, and below the 200-day MA of 6229.97, indicating a neutral trend. The MACD of 150.83 indicates Negative momentum. The RSI at 56.92 is Neutral, neither overbought nor oversold. The STOCH value of 34.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8136.

Sanrio Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3560	78 Outperform	¥8.36B	13.96	―	2.66%	15.17%	12.30%
7552	74 Outperform	¥134.63B	11.79	―	2.23%	9.57%	33.85%
9997	71 Outperform	¥94.56B	8.41	6.96%	2.98%	1.15%	86.72%
2652	66 Neutral	¥12.63B	8.70	―	0.30%	5.03%	-17.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8136	61 Neutral	¥1.29T	24.35	43.16%	1.25%	42.84%	91.66%

Sanrio Company Corporate Events

Sanrio Adjusts Restricted Stock Grant After Partial Forfeiture of Rights

Sanrio has completed the disposal of a portion of its treasury shares under a restricted stock remuneration plan for executives and employees, originally approved in August 2025, with the final number of shares allotted reduced from 58,510 to 57,390 due to some eligible participants declining the grant. As a result of this partial forfeiture of rights by 25 individuals, the total disposal value decreased slightly to ¥444.5 million, but the company stated that the adjustment will not affect its earnings forecast for the fiscal year ending March 31, 2026, suggesting the move is a routine fine-tuning of its equity-based compensation program rather than a shift in financial or strategic outlook.

The most recent analyst rating on (JP:8136) stock is a Buy with a Yen6087.00 price target. To see the full list of analyst forecasts on Sanrio Company stock, see the JP:8136 Stock Forecast page.

Sanrio Nears ¥15 Billion Cap as It Completes Share Repurchase Program

Sanrio has completed a share repurchase program authorized by its board on November 20, 2025, buying back 2,216,400 common shares between December 1 and December 23, 2025 for a total of approximately ¥11.42 billion. Under the broader authorization, the company has so far repurchased 2,872,200 shares for about ¥14.99 billion via market purchases on the Tokyo Stock Exchange, nearly reaching the ¥15 billion cap, a move likely aimed at enhancing shareholder returns and optimizing capital structure, which may support earnings per share and signal management’s confidence in the company’s outlook.

The most recent analyst rating on (JP:8136) stock is a Hold with a Yen5748.00 price target. To see the full list of analyst forecasts on Sanrio Company stock, see the JP:8136 Stock Forecast page.

Sanrio Advances Share Repurchase Program

Sanrio Company, Ltd. has announced progress on its share repurchase program, which was approved by its Board of Directors on November 20, 2025. As of November 30, 2025, the company has repurchased 655,800 shares of common stock at a total cost of 3,576,832,300 yen. This move is part of a larger plan to repurchase up to 3,300,000 shares, with a maximum expenditure of 15 billion yen, through market purchases on the Tokyo Stock Exchange. The repurchase is expected to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (JP:8136) stock is a Hold with a Yen5748.00 price target. To see the full list of analyst forecasts on Sanrio Company stock, see the JP:8136 Stock Forecast page.

Sanrio Announces Strategic Share Repurchase Program

Sanrio Company, Ltd. has announced a share repurchase program as part of its strategy to enhance capital efficiency and shareholder value. The decision is driven by surplus funds, consistently strong performance, and a share price considered undervalued. The company aims to repurchase up to 3,300,000 shares, with a total repurchase price limit of 15 billion yen, during the period from November 21, 2025, to February 10, 2026. This move aligns with Sanrio’s long-term vision of sustainable growth and maintaining a robust financial position while exploring further investment opportunities.

The most recent analyst rating on (JP:8136) stock is a Hold with a Yen5748.00 price target. To see the full list of analyst forecasts on Sanrio Company stock, see the JP:8136 Stock Forecast page.