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

• Market Cap: ¥27.66B
• Dividend Yield: 3.84%
• Average Volume (3M): 49.91K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.83
• 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: 2.35
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 14.71
• 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)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

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 materially reduces financial risk and preserves strategic optionality. Over 2–6 months this durability supports capital allocation for dividends, selective capex or opportunistic M&A, and provides a buffer through demand slowdowns versus peers with leverage.

Steady distributor margins and revenue trend

Consistent top-line growth and stable distributor-level margins indicate a resilient wholesale distribution model with recurring sales of consumables and production supplies. This structural stability underpins predictable operating performance and supports mid-term earnings visibility.

Meaningful dividend income

A roughly 3.8% dividend yield signals shareholder-focused capital allocation and provides steady cash returns to investors. Over months this attracts income-oriented holders, disciplines management on cash use, and offsets modest operating volatility for long-term holders.

Negative Factors

Volatile cash conversion

Uneven operating and free cash flow driven by working-capital swings reduces predictability of funds available for dividends, reinvestment, or opportunistic uses. For a distributor, persistent volatility raises execution and liquidity risk over the medium term.

Thin and softened net margins

Net margins near 4% limit the firm's ability to absorb cost inflation or aggressive price competition. Persistent margin pressure constrains retained earnings and ROI, reducing flexibility to invest in growth or improve ROE over the coming months.

Conservative capital structure limits returns

While a conservative balance sheet reduces risk, limited use of leverage can cap return-on-equity and slow growth funding. Over a 2–6 month horizon this structural conservatism may restrain faster expansion or value-enhancing buybacks that improve shareholder returns.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	49.66B	49.47B	46.64B	45.56B	43.12B	40.37B
Gross Profit	9.44B	9.45B	9.02B	8.44B	8.00B	7.42B
EBITDA	2.76B	2.79B	2.61B	2.56B	2.47B	2.48B
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	6.92B	6.64B	5.88B	6.05B	5.89B
Stockholders Equity	34.13B	35.49B	35.96B	33.84B	32.27B	31.93B
Cash Flow
Free Cash Flow	0.00	1.67B	1.52B	-56.67M	335.60M	3.17B
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: Negative
• Last Price: 1420.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9932, the sentiment is Negative. The current price of 1420 is above the 20-day moving average (MA) of 1363.70, above the 50-day MA of 1405.92, and below the 200-day MA of 1616.95, indicating a bearish trend. The MACD of -31.12 indicates Positive momentum. The RSI at 33.58 is Neutral, neither overbought nor oversold. The STOCH value of 18.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9932.

Sugimoto & Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3176	78 Outperform	¥47.63B	5.27	―	3.87%	2.66%	-11.41%
8052	73 Outperform	¥54.03B	13.47	―	3.00%	16.06%	31.78%
9932	71 Outperform	¥27.66B	8.61	―	3.84%	2.74%	4.90%
7628	66 Neutral	¥28.21B	12.14	―	2.98%	-2.82%	48.74%
9902	64 Neutral	¥71.23B	15.26	―	3.17%	5.95%	23.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9830	61 Neutral	¥151.54B	9.98	―	2.42%	9.74%	6.48%

Sugimoto & Co., Ltd. Corporate Events

Sugimoto & Co. Restructures Executive Leadership to Consolidate Strategy and Compliance

Sugimoto & Co., Ltd. has announced a key executive personnel change approved by its Board of Directors, effective April 1, 2026. Naohiko Kagawa will assume the role of Managing Executive Officer while simultaneously serving as Deputy Manager of the Corporate Strategy Division, Manager of the Solution Services Division, and Compliance Office Manager.

The consolidation of these roles under Kagawa signals a move to integrate corporate strategy, service solutions, and compliance functions more tightly within the management structure. This restructuring may strengthen strategic execution and governance oversight, potentially improving operational coordination and aligning the company’s solution services more closely with its long-term corporate objectives.

The most recent analyst rating on (JP:9932) stock is a Hold with a Yen1438.00 price target. To see the full list of analyst forecasts on Sugimoto & Co., Ltd. stock, see the JP:9932 Stock Forecast page.

Sugimoto & Co. Tightens Board Governance After External Effectiveness Review

Sugimoto & Co., Ltd. has completed an external evaluation of the effectiveness of its Board of Directors as part of efforts to reinforce corporate governance and increase corporate value over the medium to long term. The review covered board composition, operations, agenda setting, support structures and dialogue with shareholders, and concluded that the board’s effectiveness is generally secured.

The company refined its survey methodology this fiscal year with more granular response options and quantitative analysis to better identify areas needing improvement. As a result, it highlighted three key issues: the need to formalize and potentially strengthen a Board secretariat, deepen and systematize discussions on sustainability and related strategic topics, and narrow perception gaps between internal members and Outside Directors through closer communication.

Sugimoto plans to use these findings to further improve board processes and ensure each director can fully perform their role, aiming to support sustainable growth. The initiative underscores a continued commitment to aligning governance practices with market expectations and addressing emerging priorities such as sustainability and capital efficiency.

The most recent analyst rating on (JP:9932) stock is a Hold with a Yen1594.00 price target. To see the full list of analyst forecasts on Sugimoto & Co., Ltd. stock, see the JP:9932 Stock Forecast page.

Sugimoto & Co. Nine-Month Profit Declines but Full-Year Outlook and Dividends Kept Intact

Sugimoto & Co. reported consolidated results for the nine months ended December 31, 2025, with net sales slipping 2.3% year-on-year to ¥36.28 billion and operating profit falling 22.5% to ¥1.60 billion, while profit attributable to owners of parent decreased 14.5% to ¥1.37 billion, reflecting pressure on profitability despite steady sales levels. The balance sheet remains solid with total assets of ¥43.80 billion and an equity ratio of 76.2%, and the company kept its full-year forecast unchanged, targeting a 4.7% rise in net sales to ¥51.8 billion and essentially flat operating profit, alongside annual dividends of ¥54 per share after an October 2024 two-for-one stock split, underscoring a commitment to stable shareholder returns amid softer earnings.

The most recent analyst rating on (JP:9932) stock is a Hold with a Yen1594.00 price target. To see the full list of analyst forecasts on Sugimoto & Co., Ltd. stock, see the JP:9932 Stock Forecast page.

Sugimoto & Co. Restructures Organization to Bolster IT Solution Services

Sugimoto & Co., Ltd. has announced a set of organizational and personnel changes effective April 1, 2026, centered on strengthening its solutions and IT-related capabilities. The company will establish a new Solution Services Division under the Corporate Strategy Division, along with a dedicated IT Solution Sales Department within this new unit, and will realign executive responsibilities by appointing Executive Officer Keisuke Haze as Manager of the IT Solution Sales Department and moving Takashi Kadowaki from President’s Office Manager to Manager of the Corporate Planning Department. These changes suggest a strategic push to expand solution-based offerings and enhance IT-focused sales operations, while reinforcing corporate planning functions, which could improve operational alignment with the company’s growth strategy and sharpen its competitive positioning in solution services for corporate customers.

The most recent analyst rating on (JP:9932) stock is a Hold with a Yen1594.00 price target. To see the full list of analyst forecasts on Sugimoto & Co., Ltd. stock, see the JP:9932 Stock Forecast page.