Sagami Holdings Corp. (9900) AI Stock Analysis

• Market Cap: ¥57.51B
• Dividend Yield: 0.53%
• Average Volume (3M): 127.77K
• Price to Earnings (P/E): 38.7
• Beta (1Y): 0.36
• Revenue Growth: 13.01%
• EPS Growth: 33.56%
• Country: JP
• Employees: 534
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 7.65
• Shares Outstanding: 30,301,785
• 10 Day Avg. Volume: 60,600
• 30 Day Avg. Volume: 127,770
• PEG Ratio: 0.75
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 1.42
• P/FCF Ratio: -96.28
• 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: 67 Neutral
• Price Target: ¥2,196.00 ▲(15.70% Upside)
• Action: Reiterated Date: 10/02/25
• Date: Action: Reiterated 10/02/25

Sagami Holdings Corp. shows strong financial performance with consistent revenue growth and improved profitability, which is the most significant factor in its score. However, technical indicators suggest a short-term bearish trend, and the stock appears overvalued based on its P/E ratio. The low dividend yield offers limited income potential, further impacting the overall score.

Positive Factors

Consistent revenue growth

Sustained revenue growth indicates expanding customer traction and effective category positioning in casual dining. Over 2-6 months this supports scale benefits, funds reinvestment in stores and menus, and reduces per-store fixed cost pressure, strengthening long-term earnings power.

Improving profitability and margins

Rising gross, EBIT and net margins signal better cost controls and pricing power. Margin improvement is durable if driven by structural actions (menu mix, procurement, labor efficiency), enabling higher free cash generation and more predictable long-run profitability even with modest revenue swings.

Solid balance sheet, low leverage

Conservative leverage and a healthy equity ratio provide financial resilience and optionality. This supports capital allocation for remodels or selective expansion, lowers refinancing risk, and cushions against cyclical restaurant demand—advantages that persist across economic cycles.

Negative Factors

Free cash flow volatility

Volatile and recently declining free cash flow constrains the firm's ability to fund expansion, refurbishments, or returns to shareholders without tapping reserves or external financing. Over months this can slow strategic initiatives and heighten sensitivity to operating swings.

Room to improve operational efficiency

A gap at the EBITDA level implies the company could extract more operating leverage from sales. Without structural efficiency gains (labour, supply chain, store productivity), revenue growth may not fully translate to durable profit improvement, limiting cash generation and competitive flexibility.

Cash management needs attention

Despite low debt, declining cash balances highlight potential liquidity management issues. Persistent cash erosion reduces buffer for seasonal volatility or unexpected costs and may force delayed investments or emergency financing, weakening strategic agility over the medium term.

Sagami Holdings Corp. Business Overview & Revenue Model

Company Description

Sagami Holdings Corporation operates a chain of Japanese cuisine/noodle restaurants in Japan and internationally. It operates restaurants under the Sagami, Ajino-Mingei, Don Don An, Aiso-Ya, SUIZAN, Seimen-Daigaku, JINJIN, SAGAMI-Tei, Dela Pasta Kitchen, BINMUGI, HAMACHO, BUBUKA, KATSUTANI, and SAGAMI Milano Centrale names. The company also manufactures, processes, and sells noodles, cut vegetables, and beverages; manages franchise and overseas outlets; and manufactures, imports, exports, and sells food and restaurant related materials. In addition, the company is involved in the menu development. Sagami Holdings Corporation was founded in 1970 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Sagami Holdings Corp. generates revenue primarily through the sale of its core products, particularly condoms, which are sold under various brand names both domestically in Japan and internationally. The company utilizes a multi-channel distribution strategy, including direct sales, retail partnerships, and online platforms, to reach a broad customer base. Key revenue streams include wholesale distribution to pharmacies, convenience stores, and supermarkets, as well as exports to overseas markets. Additionally, Sagami Holdings engages in strategic partnerships and collaborations with other health and wellness companies, which can enhance its product offerings and market reach, further contributing to its overall earnings.

Sagami Holdings Corp. Financial Statement Overview

Summary

Sagami Holdings Corp. demonstrates a strong financial position with consistent revenue growth and improved profitability. The balance sheet is robust with low leverage, although cash management needs attention. Overall, the company is on a positive trajectory, but should focus on enhancing operational efficiency and stabilizing free cash flow.

Income Statement

Sagami Holdings Corp. has shown strong revenue growth, with a significant increase in total revenue over the past year. The gross profit margin is robust, indicating effective cost management. The net profit margin and EBIT margin have improved, reflecting enhanced profitability. However, the EBITDA margin suggests room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet is solid with a healthy equity ratio, signifying financial stability. The debt-to-equity ratio is low, indicating conservative leverage. Return on equity has improved, showcasing effective utilization of shareholder funds. However, the decrease in cash equivalents over time requires monitoring to ensure liquidity.

Cash Flow

Cash flow from operations has been positive and growing, supporting the company's ability to fund activities. Free cash flow has fluctuated, with a recent decline, indicating potential challenges in managing capital expenditures. The operating cash flow to net income ratio is strong, showing good cash generation from profits, but the free cash flow to net income ratio suggests volatility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	36.31B	35.03B	31.01B	26.42B	21.34B	20.34B
Gross Profit	24.76B	23.84B	20.94B	17.93B	14.69B	13.89B
EBITDA	2.67B	2.45B	1.80B	1.50B	2.05B	-1.80B
Net Income	1.47B	1.36B	909.59M	886.15M	1.19B	-2.48B
Balance Sheet
Total Assets	24.85B	25.30B	24.94B	24.16B	24.16B	20.90B
Cash, Cash Equivalents and Short-Term Investments	5.25B	6.34B	8.01B	10.73B	11.57B	7.88B
Total Debt	1.72B	1.91B	2.72B	3.87B	4.85B	5.92B
Total Liabilities	6.78B	7.47B	8.13B	8.22B	9.11B	9.50B
Stockholders Equity	18.07B	17.82B	16.82B	15.94B	15.06B	11.40B
Cash Flow
Free Cash Flow	0.00	-515.88M	582.09M	372.09M	2.37B	-1.82B
Operating Cash Flow	0.00	2.22B	2.46B	1.73B	3.01B	-1.16B
Investing Cash Flow	0.00	-2.67B	-3.83B	-1.41B	-708.77M	-465.62M
Financing Cash Flow	0.00	-1.23B	-1.35B	-1.17B	1.35B	5.02B

Sagami Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1898.00
• 50DMA: Negative
• 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:9900, the sentiment is Negative. The current price of 1898 is below the 20-day moving average (MA) of 1942.90, below the 50-day MA of 1917.32, and above the 200-day MA of 1816.05, indicating a neutral trend. The MACD of -6.56 indicates Positive momentum. The RSI at 44.06 is Neutral, neither overbought nor oversold. The STOCH value of 38.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9900.

Sagami Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3399	75 Outperform	¥80.26B	24.13	―	0.14%	24.70%	26.13%
3091	72 Outperform	¥63.55B	31.86	―	0.64%	12.90%	7.89%
9900	67 Neutral	¥57.51B	38.66	―	0.53%	13.01%	33.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3198	60 Neutral	¥49.87B	43.77	―	1.30%	2.90%	-26.37%
3395	57 Neutral	¥68.38B	27.01	―	1.95%	23.52%	-13.42%
8163	55 Neutral	¥52.52B	50.33	―	0.62%	17.12%	-58.47%

Sagami Holdings Corp. Corporate Events

Sagami Holdings Delivers Strong Nine-Month Earnings and Confirms Full-Year Growth Outlook

Sagami Holdings reported solid growth for the nine months ended Dec. 31, 2025, with net sales rising 12.7% year on year to ¥29.5 billion and operating profit jumping 40.6% to ¥2.47 billion. Ordinary profit climbed 38.3% to ¥2.52 billion, while profit attributable to owners of parent increased 9.9% to ¥1.42 billion, lifting basic earnings per share to ¥47.10.

The company’s financial position also strengthened, with total assets up to ¥26.96 billion and the equity ratio improving to 71.1%, underlining a solid balance sheet. Sagami maintained its dividend stance, paying nothing at the interim stage but planning a year-end dividend of ¥10 per share, and it forecasts full-year fiscal 2026 net sales of ¥37.8 billion and profit growth in the high teens, signaling continued earnings momentum for shareholders.

The most recent analyst rating on (JP:9900) stock is a Hold with a Yen2125.00 price target. To see the full list of analyst forecasts on Sagami Holdings Corp. stock, see the JP:9900 Stock Forecast page.