SAKAI Holdings CO.,LTD (9446) AI Stock Analysis

• Market Cap: ¥5.10B
• Dividend Yield: 3.76%
• Average Volume (3M): 34.50K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.35
• Revenue Growth: 9.89%
• EPS Growth: -19.75%
• Country: JP
• Employees: 437
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 48.34
• Shares Outstanding: 10,956,500
• 10 Day Avg. Volume: 19,360
• 30 Day Avg. Volume: 34,496
• PEG Ratio: -0.27
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 2.59
• 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: ¥767.00 ▲(48.93% Upside)

SAKAI Holdings benefits from strong technical momentum and attractive valuation, with a low P/E ratio and solid dividend yield. However, financial performance is tempered by declining profit margins and high leverage, requiring careful management to ensure stability.

Positive Factors

Revenue Growth

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

Cash Flow Management

Efficient cash flow management ensures liquidity and the ability to reinvest in growth opportunities, enhancing financial stability.

Gross Profit Margin

Improved gross profit margin reflects better cost management and pricing power, supporting profitability and competitive positioning.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, requiring careful debt management to maintain long-term stability.

Declining Net Profit Margin

A declining net profit margin suggests increased costs or pricing pressures, which could impact future profitability if not addressed.

Volatile Free Cash Flow Growth

Volatility in free cash flow growth can signal potential challenges in cash management, affecting investment capacity and financial planning.

SAKAI Holdings CO.,LTD Business Overview & Revenue Model

Company Description

SAKAI Holdings CO.,LTD, together with its subsidiaries, engages in the renewable energy business in Japan. The company operates through six segments: Renewable Energy Business, Mobile Communications Equipment Sales Related Business, Insurance Agency Business, Funeral Business, Real Estate Rental and Management Business, and Business Solutions Business. It also operates, maintains, manages, and inspects power generation activities. The company operates various power plants. In addition, the company engages in solar power generation business to sell power to electric power companies. Further, it sells mobile communication equipment for mobile communication services to corporate enterprises; and sells medical insurance, as well as provides after-care services, such as memorial services for the anniversary of the death; and rentals for real estate properties, such as parking lots. The company was incorporated in 1991 and is headquartered in Nagoya, Japan.

How the Company Makes Money

SAKAI Holdings generates revenue through multiple streams, primarily from its telecommunications services, which include voice, data, and broadband offerings. The company also earns income from IT consulting and managed services, providing customized solutions to businesses. In addition, the digital content delivery segment contributes to revenue through subscriptions and advertising partnerships. Strategic alliances with technology providers and content creators enhance its service offerings and customer reach, further bolstering its financial performance.

SAKAI Holdings CO.,LTD Financial Statement Overview

Summary

SAKAI Holdings shows solid revenue growth and efficient cash flow management. However, declining profit margins and high leverage are concerns. The company needs to address profitability pressures and manage its debt levels for long-term stability.

Income Statement

SAKAI Holdings has shown consistent revenue growth over the past few years, with a notable increase in gross profit margin from 36.4% to 37.6% in the latest year. However, the net profit margin has decreased from 8.5% to 5.8%, indicating some pressure on profitability. The EBIT and EBITDA margins have also declined, suggesting increased operational costs or other expenses impacting earnings.

Balance Sheet

The company has a high debt-to-equity ratio of 2.79, which is a decrease from previous years but still indicates significant leverage. Return on equity has decreased from 28.3% to 21.5%, reflecting reduced profitability relative to shareholder equity. The equity ratio remains stable, but the high leverage poses a potential risk if not managed carefully.

Cash Flow

Operating cash flow has improved, and the free cash flow to net income ratio is strong at 95.3%, indicating efficient cash generation relative to earnings. However, the free cash flow growth rate has been volatile, with a significant decline in the previous year, highlighting potential fluctuations in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.61B	17.02B	15.48B	14.85B	14.24B	15.17B
Gross Profit	6.20B	6.40B	5.64B	5.67B	5.72B	6.06B
EBITDA	2.58B	2.64B	2.99B	2.39B	2.11B	2.34B
Net Income	1.35B	987.09M	1.32B	815.15M	532.52M	740.98M
Balance Sheet
Total Assets	20.68B	20.40B	21.13B	22.41B	23.36B	25.91B
Cash, Cash Equivalents and Short-Term Investments	2.94B	2.86B	2.80B	3.38B	3.55B	4.85B
Total Debt	13.13B	12.83B	13.70B	15.25B	17.18B	19.82B
Total Liabilities	15.50B	15.72B	16.39B	18.13B	19.74B	22.68B
Stockholders Equity	5.12B	4.60B	4.67B	4.24B	3.60B	3.21B
Cash Flow
Free Cash Flow	0.00	1.88B	910.38M	2.06B	1.37B	1.60B
Operating Cash Flow	0.00	1.97B	1.63B	2.14B	1.47B	1.73B
Investing Cash Flow	0.00	76.01M	-98.15M	-42.36M	31.24M	-23.97M
Financing Cash Flow	0.00	-1.99B	-2.11B	-2.27B	-2.78B	-1.86B

SAKAI Holdings CO.,LTD Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 515.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9446, the sentiment is Positive. The current price of 515 is below the 20-day moving average (MA) of 674.30, below the 50-day MA of 581.04, and above the 200-day MA of 483.18, indicating a bullish trend. The MACD of 29.97 indicates Positive momentum. The RSI at 72.09 is Negative, neither overbought nor oversold. The STOCH value of 57.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9446.

SAKAI Holdings CO.,LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9446	77 Outperform	¥5.10B	6.39	―	3.76%	9.89%	-19.75%
9445	69 Neutral	¥9.50B	10.33	―	3.85%	1.75%	24.87%
4395	66 Neutral	¥7.28B	43.60	―	0.45%	17.63%	―
3776	66 Neutral	¥11.06B	26.24	―	1.13%	17.19%	-43.91%
9419	63 Neutral	¥2.91B	16.73	―	―	-3.76%	-67.98%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9421	45 Neutral	¥3.09B	58.84	―	―	4.84%	-54.50%