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

• Market Cap: ¥4.50B
• Dividend Yield: 5.52%
• Average Volume (3M): 5.98K
• Price to Earnings (P/E): 3.3
• Beta (1Y): 0.31
• Revenue Growth: 8.10%
• EPS Growth: 85.47%
• Country: JP
• Employees: 437
• Sector: Communication Services
• Sector Strength: 89
• Industry: Telecommunications Services
• EPS (TTM): 20.17
• Shares Outstanding: 10,956,500
• 10 Day Avg. Volume: 7,250
• 30 Day Avg. Volume: 5,976
• PEG Ratio: 0.06
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.25
• 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

• Rating: 71 Outperform
• Price Target: ¥477.00 ▲(9.66%Upside)

The overall stock score is primarily driven by strong valuation due to a low P/E ratio and high dividend yield, which are appealing for value investors. Financial performance is solid but tempered by leverage concerns. The technical analysis supports a stable outlook with no significant momentum indicators.

SAKAI Holdings CO.,LTD Business Overview & Revenue Model

Company Description

SAKAI Holdings CO.,LTD (9446) is a Japan-based company primarily engaged in the construction and real estate sectors. The company offers a wide range of services including the construction of residential, commercial, and industrial buildings. Additionally, SAKAI Holdings is involved in real estate sales and leasing, providing comprehensive solutions from development to management of properties.

How the Company Makes Money

SAKAI Holdings CO.,LTD generates revenue through its construction and real estate operations. The construction segment is a major source of income, where the company undertakes contracts for building projects and infrastructure development. Revenue is earned through the completion of these projects as well as ongoing maintenance services. In the real estate segment, the company makes money from the sale and leasing of residential and commercial properties. This includes income from property management services. Strategic partnerships with other construction firms and real estate developers, as well as favorable market conditions in the regions they operate, also play a significant role in driving their earnings.

SAKAI Holdings CO.,LTD Financial Statement Overview

Summary

SAKAI Holdings shows solid profitability and growth, driven by stable revenue and strong net income. The high leverage poses risks, but this is offset by a strong return on equity and adequate cash flow management. However, the lack of recent cash flow data is a limitation.

Income Statement

SAKAI Holdings has shown stable revenue growth with a TTM revenue increase of 4.8% compared to the previous year. The gross profit margin stands at a strong 35.8% TTM, indicating effective cost management. The net profit margin is robust at 8.1% TTM, reflecting solid profitability. However, EBIT margin has slightly declined to 8.9% TTM compared to the previous year. Overall, the company displays good profitability with potential for cost optimization.

Balance Sheet

The company's balance sheet indicates a high level of debt with a debt-to-equity ratio of 2.83 TTM, suggesting potential leverage risk. However, the equity ratio is fair at 22.9%, indicating a reasonable proportion of equity financing. Return on equity is impressive at 26.8% TTM, reflecting efficient use of shareholder funds. The balance sheet shows a stable but leveraged financial position with strong equity returns.

Cash Flow

Cash flow analysis is constrained by a lack of TTM cash flow data. However, on an annual basis, the operating cash flow to net income ratio is 1.23, showing that the company generates sufficient cash from operations relative to net income. The free cash flow to net income ratio of 0.69 suggests moderate free cash flow generation. The absence of recent cash flow data limits a comprehensive assessment, but historical figures indicate adequate cash flow management.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
15.54B	15.48B	14.85B	14.24B	15.17B	15.31B
	Gross Profit
5.51B	5.64B	5.67B	5.72B	6.06B	6.22B
	EBIT
1.39B	1.41B	1.34B	1.25B	1.32B	1.50B
	EBITDA
2.16B	3.02B	2.39B	2.11B	2.45B	2.49B
	Net Income Common Stockholders
1.26B	1.32B	815.15M	532.52M	740.98M	770.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.48B	2.80B	3.38B	3.55B	4.85B	5.00B
	Total Assets
21.72B	21.13B	22.41B	23.36B	26.24B	27.97B
	Total Debt
14.49B	13.70B	15.25B	17.18B	19.82B	21.43B
	Net Debt
12.00B	10.90B	11.88B	13.64B	14.97B	16.43B
	Total Liabilities
17.24B	16.39B	18.13B	19.74B	22.40B	24.22B
	Stockholders Equity
4.46B	4.67B	4.24B	3.60B	3.64B	3.39B
Cash Flow		Free Cash Flow
0.00	910.38M	2.06B	1.37B	1.60B	2.34B
	Operating Cash Flow
0.00	1.63B	2.14B	1.47B	1.73B	2.66B
	Investing Cash Flow
0.00	-98.15M	-42.36M	31.24M	-23.97M	-2.82B
	Financing Cash Flow
0.00	-2.11B	-2.27B	-2.78B	-1.86B	849.94M

SAKAI Holdings CO.,LTD Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 435.00
• 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:9446, the sentiment is Positive. The current price of 435 is above the 20-day moving average (MA) of 432.00, above the 50-day MA of 429.64, and below the 200-day MA of 444.18, indicating a neutral trend. The MACD of 1.59 indicates Negative momentum. The RSI at 56.28 is Neutral, neither overbought nor oversold. The STOCH value of 73.48 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
9419	71 Outperform	¥2.94B	10.44		―	-1.07%	6.60%
9446	71 Outperform	¥4.50B	3.31		5.52%	8.10%	85.47%
9445	69 Neutral	¥8.35B	11.38		4.02%	3.93%	1.66%
3776	68 Neutral	¥9.16B	24.00		1.34%	4.70%	35.62%
4395	67 Neutral	¥5.30B	47.75		0.71%	32.90%	―
Sector *	61 Neutral	$14.78B	5.89	-4.32%	3.67%	2.75%	-30.30%
9421	44 Neutral	¥2.96B	22.14		―	-13.42%	-195.53%