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

• Market Cap: ¥30.22B
• Dividend Yield: 3.84%
• Average Volume (3M): 49.91K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.84
• Revenue Growth: 2.74%
• EPS Growth: 4.90%
• Country: JP
• Employees: 580
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 39.69
• Shares Outstanding: 22,798,473
• 10 Day Avg. Volume: 61,630
• 30 Day Avg. Volume: 49,906
• PEG Ratio: 2.36
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 14.72
• 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: 71 Outperform
• Price Target: ¥1,569.00 ▲(10.49% Upside)

Overall score is driven primarily by strong financial safety from a zero-debt balance sheet and steady operating profitability, partially offset by uneven cash-flow conversion. Valuation is supportive with a moderate P/E and solid dividend yield, while technical indicators point to a weak trend and negative momentum that weighs on the score.

Positive Factors

Zero Debt Balance Sheet

A zero-debt balance sheet reduces financial risk and provides flexibility, allowing the company to invest in growth opportunities without the burden of interest obligations.

Revenue Growth

Consistent revenue growth indicates a stable demand for the company's products and services, supporting long-term business sustainability and market presence.

Entry into IT Consulting

Entering the IT consulting sector diversifies revenue streams and aligns with industry trends, potentially enhancing growth and competitiveness in the manufacturing industry.

Negative Factors

Thin Net Margins

Thin net margins limit profitability and buffer against cost increases, posing a challenge to sustaining earnings growth and financial health over time.

Uneven Cash Flow

Volatile cash flow can hinder the company's ability to fund operations and growth initiatives consistently, potentially impacting long-term financial stability.

Export Uncertainties

Export uncertainties and rising costs can pressure revenues and margins, affecting the company's ability to maintain its competitive position and financial performance.

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

Company Description

Sugimoto & Co., Ltd. engages in the sale, import, and export of machinery and equipment in Japan and internationally. The company offers machines and measuring equipment, and test machines; cutting tools and working equipment; pneumatic tools, hydraulic, and pneumatic equipment; electric tools, conduction equipment, and working tools; and pipe-working equipment and OA equipment. Sugimoto & Co., Ltd. was founded in 1921 and is headquartered in Osaka, Japan.

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

Strong balance sheet (zero debt) supports low financial risk and flexibility (Balance Sheet Score: 92). Income statement trends are steady with gradual revenue growth and stable distributor-level margins (Income Statement Score: 72), but net margin is thin and has softened. Cash flow is the main weakness due to volatility and uneven cash conversion despite improvement in the latest year (Cash Flow Score: 58).

Income Statement

Revenue has trended upward over the last several years, with low-single-digit growth in the most recent year. Profitability is steady for a distributor, with gross margin around ~19–20% and EBIT margin around ~6%, though net margin remains thin (~4%) and has softened versus the stronger 2023 level. Overall, the income statement shows consistent earnings power but limited margin expansion.

Balance Sheet

The balance sheet is very conservative with zero debt across the periods provided, which materially reduces financial risk and adds flexibility. Equity is sizable relative to assets, and return on equity has been stable in the mid-single-digits, indicating steady (if not high) efficiency in generating profits from the capital base. Key trade-off: the low leverage profile supports safety, but it can also cap return potential.

Cash Flow

Cash generation is mixed. Recent years show positive operating cash flow and free cash flow (including the latest year), but there has been notable volatility—most prominently 2023, when free cash flow turned slightly negative and operating cash flow was weak relative to net income. The latest year improved, yet cash conversion still looks uneven, which bears watching for working-capital swings typical in distribution businesses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.66B	49.47B	46.64B	45.56B	43.12B	40.37B
Gross Profit	9.51B	9.45B	9.29B	8.76B	8.34B	7.77B
EBITDA	3.14B	3.27B	3.15B	3.25B	2.93B	2.93B
Net Income	1.83B	1.92B	1.88B	2.10B	1.63B	1.72B
Balance Sheet
Total Assets	41.97B	42.41B	42.60B	39.72B	38.31B	37.82B
Cash, Cash Equivalents and Short-Term Investments	7.21B	7.32B	8.48B	7.82B	8.19B	9.40B
Total Debt	2.00B	0.00	0.00	0.00	0.00	0.00
Total Liabilities	7.84B	6.90B	6.64B	5.88B	6.05B	5.89B
Stockholders Equity	34.13B	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	-1.75B	-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: Neutral
• Last Price: 1420.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 1420 is below the 20-day moving average (MA) of 1428.90, below the 50-day MA of 1421.62, and below the 200-day MA of 1644.46, indicating a neutral trend. The MACD of -6.73 indicates Positive momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 58.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9932.

Sugimoto & Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8061	79 Outperform	¥81.81B	13.86	―	3.38%	10.74%	-26.50%
3176	78 Outperform	¥50.13B	10.90	―	3.87%	2.66%	-11.41%
8052	73 Outperform	¥54.59B	10.92	―	3.00%	16.06%	31.78%
9932	71 Outperform	¥30.22B	15.17	―	3.84%	2.74%	4.90%
3153	71 Outperform	¥67.30B	12.91	―	1.22%	14.41%	85.93%
7128	68 Neutral	¥52.75B	26.57	―	3.24%	-2.85%	-56.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Sugimoto & Co., Ltd. Corporate Events

Sugimoto & Co., Ltd. Enters IT Consulting to Boost Growth

Sugimoto & Co., Ltd. has announced its strategic entry into the IT consulting field as part of its growth strategy outlined in its medium-term management plan. This initiative aims to boost the company’s net sales while strengthening the competitiveness of Japan’s manufacturing industry by providing comprehensive IT solutions.

Sugimoto & Co. Reports Decline in Profits Amid Rising Comprehensive Income

Sugimoto & Co., Ltd. reported a decline in net sales and profits for the six months ended September 30, 2025, compared to the previous year. Despite a decrease in operating and ordinary profits, the company saw a significant increase in comprehensive income. The company’s equity-to-asset ratio decreased slightly, indicating a change in financial positioning.