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

• Market Cap: ¥5.42B
• Dividend Yield: 3.71%
• Average Volume (3M): 32.19K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.32
• Revenue Growth: 11.27%
• EPS Growth: 104.44%
• Country: JP
• Employees: 437
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 26.78
• Shares Outstanding: 10,956,500
• 10 Day Avg. Volume: 47,000
• 30 Day Avg. Volume: 32,190
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥477.00
• Price Target Upside: -11.50% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥477.00 ▼(-11.50% Downside)

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 telecommunications industry. The company offers a range of services including mobile communication, internet services, and various digital solutions. SAKAI Holdings focuses on providing comprehensive telecommunications services to both individual and corporate clients, leveraging advanced technology to deliver reliable and efficient connectivity solutions.

How the Company Makes Money

SAKAI Holdings makes money primarily through subscription fees for its mobile and internet services. The company generates revenue from a variety of telecommunications services, including voice and data plans, broadband internet subscriptions, and digital content delivery. Additionally, SAKAI Holdings may have partnerships with other technology and media companies, which enhance its service offerings and contribute to its earnings. The company might also earn from sales of telecommunications equipment or devices as part of its service packages.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.08B	15.48B	14.85B	14.24B	15.17B	15.31B
Gross Profit	5.86B	5.64B	5.67B	5.72B	6.06B	6.22B
EBITDA	2.47B	3.02B	2.39B	2.11B	2.45B	2.49B
Net Income	1.30B	1.32B	815.15M	532.52M	740.98M	831.00M
Balance Sheet
Total Assets	20.44B	21.13B	22.41B	23.36B	26.24B	27.97B
Cash, Cash Equivalents and Short-Term Investments	1.98B	2.80B	3.38B	3.55B	4.85B	5.00B
Total Debt	12.63B	13.70B	15.25B	17.18B	19.82B	21.43B
Total Liabilities	15.41B	16.39B	18.13B	19.74B	22.40B	24.22B
Stockholders Equity	4.97B	4.67B	4.24B	3.60B	3.21B	2.54B
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	-2.84B
Financing Cash Flow	0.00	-2.11B	-2.27B	-2.78B	-1.86B	849.94M

SAKAI Holdings CO.,LTD Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 539.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 539 is below the 20-day moving average (MA) of 555.25, above the 50-day MA of 513.06, and above the 200-day MA of 459.23, indicating a neutral trend. The MACD of 5.38 indicates Positive momentum. The RSI at 50.20 is Neutral, neither overbought nor oversold. The STOCH value of 22.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
4395	73 Outperform	¥7.29B	44.86	4.11%	0.50%	40.61%	―
9446	71 Outperform	¥5.42B	3.81	―	3.71%	11.27%	104.44%
3776	69 Neutral	¥10.20B	42.20	4.67%	1.20%	1.95%	-59.39%
9445	69 Neutral	¥9.48B	10.46	―	3.93%	8.17%	25.32%
9419	67 Neutral	¥3.08B	17.73	21.58%	―	-2.94%	-52.22%
9421	42 Neutral	¥3.18B	99.88	―	―	-6.09%	-88.41%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%