Sanrio Company (8136) AI Stock Analysis

• Market Cap: $1.62T
• Dividend Yield: 1.03%
• Average Volume (3M): 20.79M
• Price to Earnings (P/E): 37.3
• Beta (1Y): 1.01
• Revenue Growth: 44.93%
• EPS Growth: 142.72%
• Country: JP
• Employees: 1,300
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Specialty Retail
• EPS (TTM): 33.55
• Shares Outstanding: 255,408,310
• 10 Day Avg. Volume: 21,724,210
• 30 Day Avg. Volume: 20,785,530
• PEG Ratio: 0.45
• Price to Book (P/B): 9.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 48.23
• 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: $8,300.28
• Price Target Upside: 30.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥7,248.00 ▲(13.55%Upside)

Sanrio Company's stock demonstrates strong financial performance with robust revenue growth and profitability. The positive technical indicators support a favorable market view, though the stock's high P/E ratio suggests it may be overvalued. The modest dividend yield offers some downside protection. Overall, the stock is well-positioned but investors should consider valuation risk.

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 Company generates revenue through multiple channels, primarily by licensing its intellectual property rights for its beloved characters to other companies. This licensing allows third parties to produce and sell a wide range of products, from fashion and accessories to home goods and consumer electronics, featuring Sanrio's characters. A significant portion of Sanrio's income also comes from direct retail sales in its own stores and online platforms, where it offers an exclusive range of branded merchandise. Additionally, Sanrio partners with entertainment companies to produce films, television shows, and other media, further expanding its brand visibility and generating royalties. These partnerships, along with strategic collaborations with global brands and retailers, significantly contribute to the company's earnings.

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 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	132.34B	144.90B	99.98B	72.62B	52.76B	41.07B
Gross Profit	100.30B	108.68B	72.12B	49.96B	33.87B	25.29B
EBITDA	48.78B	57.99B	30.78B	15.42B	6.81B	-694.00M
Net Income	35.24B	41.73B	17.58B	8.16B	3.42B	-3.96B
Balance Sheet
Total Assets	180.26B	202.41B	156.06B	100.70B	83.81B	85.04B
Cash, Cash Equivalents and Short-Term Investments	103.99B	118.98B	90.44B	52.01B	38.40B	36.88B
Total Debt	44.60B	45.32B	54.72B	23.47B	22.67B	30.96B
Total Liabilities	90.13B	94.79B	91.17B	44.41B	40.01B	47.76B
Stockholders Equity	89.72B	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: Negative
• Last Price: 6383.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8136, the sentiment is Negative. The current price of 6383 is below the 20-day moving average (MA) of 6784.35, below the 50-day MA of 6389.74, and above the 200-day MA of 5548.15, indicating a neutral trend. The MACD of 35.71 indicates Positive momentum. The RSI at 42.12 is Neutral, neither overbought nor oversold. The STOCH value of 4.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8136.

Sanrio Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8136	78 Outperform	$1.62T	37.25	47.88%	1.03%	44.93%	142.72%
Sector *	67 Neutral	¥253.35B	13.25	6.57%	2.78%	5.06%	-11.55%
ASKLF		$1.03B	15.99	11.70%	2.41%	―	―
MRCIF		$2.92B	27.28	21.33%	―	―	―
SATLF		$9.42B	31.97	48.74%	2.25%	―	―
7545	73 Outperform	¥129.35B	15.49		1.50%	4.06%	-2.33%
7552	73 Outperform	¥121.27B	17.96		3.81%	7.11%	6.64%

Sanrio Company Corporate Events

Sanrio Proposes Governance Structure Overhaul

Sanrio Company, Ltd. announced a proposal to amend its Articles of Incorporation to transition to a company with an Audit and Supervisory Committee. This change aims to enhance governance by delegating critical business decisions to executive directors, thereby improving decision-making speed and business execution. The amendments, subject to shareholder approval, will abolish the current Audit Committee and corporate auditors, aligning with the company’s strategy to strengthen its audit and supervisory functions.

The most recent analyst rating on (JP:8136) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Sanrio Company stock, see the JP:8136 Stock Forecast page.

Sanrio Plans to Enhance Stock Accessibility

Sanrio Company, Ltd. announced its intention to reduce the minimum trading unit of its stock to broaden its investor base and enhance trading liquidity. The company executed a three-for-one stock split on April 1, 2024, and is considering future adjustments based on market conditions and shareholder composition, although no specific measures have been decided yet.

The most recent analyst rating on (JP:8136) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Sanrio Company stock, see the JP:8136 Stock Forecast page.

Sanrio Adjusts Convertible Bond Conversion Price Following Dividend Resolution

Sanrio Company, Ltd. announced an adjustment to the conversion price of its Zero Coupon Convertible Bonds due 2028, reducing the price from ¥2,558.8 to ¥2,545.2 effective April 1, 2025. This adjustment follows a board resolution to pay a year-end dividend of 33 yen, aligning with the conversion price adjustment clauses for the bonds, potentially impacting investor returns and company financial strategies.

The most recent analyst rating on (JP:8136) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Sanrio Company stock, see the JP:8136 Stock Forecast page.

Sanrio Reports Strong FY2024 Financial Results Amid Character Licensing Surge

Sanrio Company reported a robust financial performance for the fiscal year ending March 31, 2025, with significant increases in net sales and profits driven by a surge in foreign tourists and domestic customers, particularly from Generation Z. The company’s strategy of leveraging its popular character portfolio has resulted in substantial growth in both product sales and licensing, positioning Sanrio favorably in the market.

The most recent analyst rating on (JP:8136) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Sanrio Company stock, see the JP:8136 Stock Forecast page.

Sanrio Announces Increased Year-End Dividend Amid Strong Financial Performance

Sanrio Company, Ltd. has announced a year-end dividend payment from retained earnings, with the Board of Directors approving a dividend of 33.0 yen per share, slightly higher than the previous forecast. This decision aligns with Sanrio’s commitment to returning profits to shareholders, as outlined in their Medium-Term Management Plan, and reflects the company’s strong financial performance with a net profit of 41.7 billion yen for the fiscal year ended March 31, 2025.

The most recent analyst rating on (JP:8136) stock is a Buy with a Yen4500.00 price target. To see the full list of analyst forecasts on Sanrio Company stock, see the JP:8136 Stock Forecast page.