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

• Market Cap: ¥5.47B
• Dividend Yield: 3.92%
• Average Volume (3M): 37.28K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.33
• Revenue Growth: 9.89%
• EPS Growth: -19.75%
• Country: JP
• Employees: 437
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 16.98
• Shares Outstanding: 10,956,500
• 10 Day Avg. Volume: 19,930
• 30 Day Avg. Volume: 37,283
• 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: ¥856.00 ▲(66.21% Upside)
• Action: Upgraded Date: 12/11/25
• Date: Action: Upgraded 12/11/25

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

SAKAI has delivered consistent top-line growth (12.3% reported), indicating expanding customer demand or market share. Durable revenue growth supports reinvestment, spreads fixed costs, and provides a stable base for earnings recovery even if margins remain under pressure.

Cash Generation

Improved operating cash flow and a high free cash flow to net income conversion (95.3%) point to strong cash quality. Reliable cash conversion supports funding for capex, dividends, and debt servicing, giving the company flexibility to navigate cycles and execute strategic plans.

Gross Margin Resilience

An uptick in gross margin implies durable strength in core product pricing or cost of goods sold control. Higher gross profitability provides a buffer against rising operating expenses and can sustain gross cash generation even as net margins face headwinds.

Negative Factors

High Leverage

A debt-to-equity ratio near 2.8 denotes material leverage that constrains financial flexibility. High debt increases interest obligations, limits ability to invest or weather downturns, and raises refinancing risk, making capital allocation and growth plans more vulnerable to shocks.

Net Profit Margin Decline

A meaningful drop in net margin signals rising operating costs or nonoperating pressures reducing profitability. Persistent margin compression erodes retained earnings, limits capacity to fund growth internally, and can force tougher tradeoffs between dividends, capex, and debt reduction.

Return on Equity Compression

A declining ROE suggests lower efficiency in generating returns on shareholder capital, potentially from margin pressure or capital structure shifts. Reduced ROE can weaken investor returns and indicates management must improve profitability or capital allocation to restore long-term value creation.

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	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	17.02B	15.48B	14.85B	14.24B	15.17B
Gross Profit	6.40B	5.64B	5.67B	5.72B	6.06B
EBITDA	2.64B	2.99B	2.39B	2.11B	2.34B
Net Income	987.09M	1.32B	815.15M	532.52M	740.98M
Balance Sheet
Total Assets	20.40B	21.13B	22.41B	23.36B	25.91B
Cash, Cash Equivalents and Short-Term Investments	2.86B	2.80B	3.38B	3.55B	4.85B
Total Debt	12.83B	13.70B	15.25B	17.18B	19.82B
Total Liabilities	15.72B	16.39B	18.13B	19.74B	22.68B
Stockholders Equity	4.60B	4.67B	4.24B	3.60B	3.21B
Cash Flow
Free Cash Flow	1.88B	910.38M	2.06B	1.37B	1.60B
Operating Cash Flow	1.97B	1.63B	2.14B	1.47B	1.73B
Investing Cash Flow	76.01M	-98.15M	-42.36M	31.24M	-23.97M
Financing Cash Flow	-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: 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 515 is below the 20-day moving average (MA) of 715.65, below the 50-day MA of 697.60, and below the 200-day MA of 558.60, indicating a bullish trend. The MACD of 13.24 indicates Negative momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 58.22 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	¥5.47B	6.59	―	3.92%	9.89%	-19.75%
9445	75 Outperform	¥9.59B	10.29	―	3.85%	1.75%	24.87%
3776	63 Neutral	¥13.77B	47.06	―	1.01%	17.19%	-43.91%
9419	62 Neutral	¥3.51B	27.33	―	―	-3.76%	-67.98%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4395	58 Neutral	¥9.50B	26.16	―	0.38%	17.63%	―
9421	45 Neutral	¥3.49B	57.74	―	―	4.84%	-54.50%