sanwacompany (3187) AI Stock Analysis

• Market Cap: $6.20B
• Dividend Yield: 3.01%
• Average Volume (3M): 33.97K
• Price to Earnings (P/E): 87.5
• Beta (1Y): 0.55
• Revenue Growth: 3.06%
• EPS Growth: -107.07%
• Country: JP
• Employees: 274
• Sector: Services
• Sector Strength: N/A
• Industry: Industrial - Distribution
• EPS (TTM): -3.12
• Shares Outstanding: 19,263,300
• 10 Day Avg. Volume: 36,130
• 30 Day Avg. Volume: 33,970
• 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: 1.43
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 1.55
• Enterprise Value/Ebitda: 39.66
• 1Y Price Target: $351.48
• Price Target Upside: 5.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: ¥352.00 ▲(6.02% Upside)

The overall stock score is primarily influenced by solid financial performance, with consistent revenue growth and reasonable profitability. However, concerns about cash flow management and a negative P/E ratio weigh on the score. Technical indicators suggest a neutral market outlook, with some potential for bullish momentum.

sanwacompany Business Overview & Revenue Model

Company Description

Sanwa Company Ltd. engages in the import, marketing, and installation of construction materials in Japan. It is also involved in the design and development of house equipment. It offers kitchen products, including system and compact kitchens, cupboards, combination kitchens, and range hoods, as well as kitchen equipment, appliances, accessories, storages, countertops, and panels; and washbasins, washbasin bowls, washstand, faucets, stopcock/drainage hardware, mirror boxes, mirrors, washbasin accessories, washstand storage products, indoor clothesline, and countertops. The company also provides bathroom/toilet products comprising system bus, bathtubs, shower booths, bathroom faucet/shower, bath accessories, tray, and chair, and toilet related products; doors/fittings, such as interior fittings and entrance doors; and storage products that include shoe box/entrance, wall, embedded, closet, kitchen, and washroom storage products. In addition, it offers floorings, such as laminated, solid, pet friendly floorings, and baseboard; tiles; natural stone/stone materials that comprise natural stone counter, top plate, frame, stone slab, sheet stone, and other stone materials; and wood decks consisting of resin made and natural wood decks, as well as hardware for decks. Further, the company provides panels/wall materials comprising kitchen, interior wood, and decorative panels, as well as painting/wall materials and functional wall material; interior/furniture; and iron products comprising decorative grills and gates. Additionally, it offers interior building materials, such as mat carpets, general merchandise, indoor clothesline, stairs, handrails, illuminations, PVC tile, and others; and exterior building materials. The company offers its products through showrooms in Tokyo, Osaka, Nagoya, Sendai, Yokahama, and Fukuoka; and online. The company was incorporated in 1979 and is based in Osaka, Japan.

How the Company Makes Money

Sanwa Holdings Corporation generates revenue primarily through the sale of its building materials and solutions. The company's key revenue streams include the production and distribution of doors, partitions, and shutters to both domestic and international markets. Sanwa Holdings leverages its extensive network of retail and wholesale distributors, as well as its direct sales force, to reach a broad customer base. Additionally, the company benefits from strategic partnerships with construction firms and real estate developers, enhancing its market presence and driving sales. The company's focus on innovation and quality allows it to maintain a competitive edge and secure consistent earnings in the construction and building materials industry.

sanwacompany Financial Statement Overview

Summary

Sanwacompany exhibits a solid growth trajectory with improving revenue and profitability metrics. However, operational efficiency needs improvement, and cash flow management poses a concern due to zero free cash flow in recent periods. The balance sheet reflects moderate leverage with a stable equity base.

Income Statement

The company showed consistent revenue growth over the past few years, with a significant increase in total revenue from previous years. The TTM Gross Profit Margin stands at 34.85% and the Net Profit Margin at 1.96%, indicating a reasonable level of profitability. However, the EBIT Margin of 2.22% and EBITDA Margin of 2.98% suggest room for operational efficiency improvements. Revenue growth is evident, with a 4.05% increase from 2023 to 2024.

Balance Sheet

The company's Debt-to-Equity Ratio is 1.25, indicating a moderate level of leverage. The Return on Equity (ROE) is 9.79%, which shows a decent return for shareholders. The Equity Ratio is 31.95%, reflecting a stable equity base but highlighting some reliance on debt financing.

Cash Flow

The cash flow analysis shows challenges, with operating cash flow and free cash flow both at zero for the TTM period. Historically, there has been variability in free cash flow, which suggests potential issues in cash flow management. The Free Cash Flow to Net Income Ratio is non-calculable for the current period due to zero free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.27B	16.12B	15.50B	13.26B	11.26B	10.47B
Gross Profit	5.71B	5.68B	5.54B	4.95B	4.04B	3.73B
EBITDA	223.73M	969.29M	1.09B	1.06B	176.12M	8.19M
Net Income	73.44M	635.33M	525.01M	606.24M	-50.90M	-168.82M
Balance Sheet
Total Assets	9.73B	9.36B	9.10B	7.64B	4.72B	4.39B
Cash, Cash Equivalents and Short-Term Investments	1.82B	2.04B	2.36B	1.39B	793.46M	821.33M
Total Debt	3.74B	3.13B	3.35B	2.06B	1.00B	780.00M
Total Liabilities	6.45B	5.78B	6.05B	4.84B	2.92B	2.42B
Stockholders Equity	3.27B	3.57B	3.05B	2.80B	1.80B	1.97B
Cash Flow
Free Cash Flow	0.00	181.30M	209.23M	369.72M	-107.58M	181.22M
Operating Cash Flow	0.00	536.76M	437.19M	714.99M	171.79M	307.15M
Investing Cash Flow	0.00	-419.88M	-443.31M	-325.51M	-301.75M	-175.87M
Financing Cash Flow	0.00	-400.99M	946.21M	203.92M	102.09M	-13.97M

sanwacompany Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 332.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3187, the sentiment is Negative. The current price of 332 is above the 20-day moving average (MA) of 331.70, below the 50-day MA of 333.84, and below the 200-day MA of 349.54, indicating a neutral trend. The MACD of 4.52 indicates Negative momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 55.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3187.

sanwacompany Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3138	77 Outperform	¥3.24B	52.42	7.17%	1.57%	1.26%	-74.85%
3181	77 Outperform	¥3.99B	12.19	10.72%	0.92%	21.20%	-14.32%
3542	75 Outperform	¥17.20B	26.22	―	0.68%	7.62%	18.02%
3093	72 Outperform	¥48.26B	16.95	26.02%	1.79%	19.76%	11.62%
2751	70 Outperform	¥41.44B	23.14	12.86%	0.26%	18.32%	-18.02%
3187	62 Neutral	$6.20B	87.48	-0.99%	3.01%	3.06%	-107.07%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%