Sugimoto & Co., Ltd. (9932) AI Stock Analysis

• Market Cap: ¥37.67B
• Dividend Yield: 3.08%
• Average Volume (3M): 53.40K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.85
• Revenue Growth: 6.07%
• EPS Growth: 6.17%
• Country: JP
• Employees: 580
• Sector: Industrials
• Sector Strength: 85
• Industry: Industrial - Distribution
• EPS (TTM): 98.85
• Shares Outstanding: 22,798,473
• 10 Day Avg. Volume: 40,090
• 30 Day Avg. Volume: 53,400
• PEG Ratio: -8.18
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 76 Outperform
• Price Target: ―

Sugimoto & Co., Ltd. exhibits strong financial health with robust profitability and a debt-free balance sheet, contributing to a high score. Technical indicators suggest an upward trend, but potential overvaluation risks are noted. The stock's valuation is reasonable, but inconsistent cash flow management remains a concern for long-term stability.

Sugimoto & Co., Ltd. Business Overview & Revenue Model

Company Description

Sugimoto & Co., Ltd. (9932) operates in the wholesale distribution sector, focusing primarily on the supply of various metal products. The company engages in the trade of steel, aluminum, and other metal materials, serving a diverse range of industries including construction, automotive, and manufacturing. Sugimoto & Co., Ltd. is dedicated to providing high-quality materials and reliable services to its clients, leveraging its extensive industry expertise and strategic market presence.

How the Company Makes Money

Sugimoto & Co., Ltd. generates revenue primarily through the wholesale distribution of metal products. The company's key revenue streams include the sale of steel, aluminum, and other metal materials to various industries such as construction, automotive, and manufacturing. Sugimoto & Co., Ltd. buys metals in bulk, allowing it to negotiate favorable pricing, which it then sells to its customers at a markup. The company may also engage in value-added services such as processing, cutting, or finishing metals to meet specific customer requirements, which can generate additional income. Strategic partnerships with metal producers and logistics companies enhance its supply chain efficiency and expand its market reach, contributing to its overall profitability.

Sugimoto & Co., Ltd. Financial Statement Overview

Summary

Sugimoto & Co., Ltd. has strong revenue growth and profitability margins, supported by a stable balance sheet with no debt. However, inconsistent cash flow management could challenge long-term financial health.

Income Statement

Sugimoto & Co., Ltd. has demonstrated strong revenue growth, with a TTM (Trailing-Twelve-Months) revenue increase of 3.75% compared to the previous annual period. The company maintains healthy gross and net profit margins at approximately 19.66% and 4.09% TTM, respectively. While EBIT and EBITDA margins are solid, there is room for improvement in operational efficiency. Overall, the company shows robust profitability and growth trends.

Balance Sheet

The company exhibits a strong balance sheet with no debt, resulting in a debt-to-equity ratio of 0. A high equity ratio of 81.45% TTM indicates financial stability and low leverage. Return on Equity (ROE) is strong at 5.60% TTM, reflecting efficient use of equity to generate profits. Overall, the company's balance sheet is highly stable and well-managed.

Cash Flow

Cash flow data shows a mixed picture with fluctuating free cash flow. The operating cash flow was sufficient in the last annual report but absent in the TTM period. The company maintains zero capital expenditure in the TTM period, suggesting potential cash conservation or strategic realignment. The lack of consistent free cash flow growth presents a moderate risk, impacting the overall cash flow stability.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
48.39B	49.47B	46.64B	45.56B	43.12B	40.37B
	Gross Profit
9.51B	9.45B	9.29B	8.76B	8.34B	7.77B
	EBIT
2.47B	2.40B	2.28B	2.18B	2.07B	2.07B
	EBITDA
3.05B	3.27B	3.15B	3.25B	2.93B	2.93B
	Net Income Common Stockholders
1.98B	1.92B	1.88B	2.10B	1.63B	1.72B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.48B	7.32B	8.48B	7.82B	8.19B	9.40B
	Total Assets
42.60B	42.41B	42.60B	39.72B	38.31B	37.82B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-8.41B	-7.32B	-8.48B	-7.82B	-8.19B	-9.40B
	Total Liabilities
6.64B	6.90B	6.64B	5.88B	6.05B	5.89B
	Stockholders Equity
35.96B	35.51B	35.96B	33.84B	32.27B	31.93B
Cash Flow		Free Cash Flow
0.00	1.67B	1.27B	-56.67M	231.75M	3.06B
	Operating Cash Flow
0.00	2.67B	2.52B	686.42M	1.02B	3.33B
	Investing Cash Flow
0.00	-1.73B	-1.11B	-445.56M	-880.96M	-225.54M
	Financing Cash Flow
0.00	-2.08B	-706.52M	-604.35M	-1.35B	-1.46B

Sugimoto & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1754.00
• 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:9932, the sentiment is Positive. The current price of 1754 is above the 20-day moving average (MA) of 1749.80, above the 50-day MA of 1535.26, and above the 200-day MA of 1390.88, indicating a bullish trend. The MACD of 38.57 indicates Positive momentum. The RSI at 58.66 is Neutral, neither overbought nor oversold. The STOCH value of 29.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9932.

Sugimoto & Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9932	76 Outperform	¥37.67B	17.86		3.08%	6.07%	6.17%
7649	74 Outperform	$585.40B	21.88	10.45%	1.29%	17.94%	18.31%
7532	74 Outperform	¥2.81T	30.34	16.35%	<0.01%	8.25%	6.55%
8233	74 Outperform	¥331.03B	8.60	8.38%	2.39%	6.94%	26.27%
3099	73 Outperform	$833.26B	16.03	8.71%	2.63%	3.56%	-2.39%
8273	71 Outperform	¥233.09B	19.57		2.76%	11.24%	-41.84%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%

Sugimoto & Co., Ltd. Corporate Events

Sugimoto & Co., Ltd. Invests in INDUSTRIAL-X to Boost DX Services

Sugimoto & Co., Ltd. has announced an investment in INDUSTRIAL-X Inc. to enhance its DX-related offerings and strengthen its partnership with the company. INDUSTRIAL-X provides DX Professional and Platform Services to support corporate digital transformation in Japan. The investment is part of Sugimoto’s strategy to reinforce its business foundation and pursue its vision of becoming a sustainable ‘200-year company.’ The financial impact of this investment is expected to be minimal for the current fiscal year.

Sugimoto & Co., Ltd. Announces Share Buyback Plan

Sugimoto & Co., Ltd. has announced a board resolution to acquire up to 2,500,000 of its own shares, representing 13.1% of issued shares, to enhance shareholder returns and improve capital efficiency. This move, with a budget of up to 3,000 million yen, is aimed at implementing flexible capital policies in response to future business environment changes, potentially impacting the company’s market positioning and shareholder value.

Sugimoto & Co., Ltd. Announces Auditor Changes

Sugimoto & Co., Ltd. announced the resignation of two external auditors, Junnosuke Ban and Sotoji Umeno, due to personal reasons. Their successors, Motoharu Iyomasa and Yoshitsugu Kawano, are set to be elected at the upcoming Annual Stockholders’ Meeting on June 18, 2025. This change in auditors is expected to maintain the company’s governance standards and ensure continuity in its auditing processes.