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Sakai Heavy Industries, Ltd. (6358) AI Stock Analysis

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JP:6358

Sakai Heavy Industries, Ltd.

(TSE/TYO:6358)

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Rating:66.25Neutral
Price Target:JPY 2,378.00â–²(18.43% Upside)
Action:reiterated
Date:08/17/26

The score is primarily held back by weakened cash flow generation and poor cash conversion despite reported profitability, even as the balance sheet remains conservative. Offsetting this, the stock’s technical setup is positive (price above key moving averages with supportive momentum) and valuation is appealing with a low P/E and strong dividend yield.

Positive Factors
Conservative Balance SheetLower leverage and a growing equity base provide financial flexibility through equipment-demand cycles. This supports continued investment, limits balance-sheet risk, and gives the company greater resilience if infrastructure spending or export demand weakens.
Negative Factors
Weakening Cash GenerationThe sharp decline in operating and free cash flow reduces the funds available for reinvestment, dividends, and balance-sheet strengthening. If this weakness persists, reported profitability may translate less effectively into durable shareholder cash returns.

Sakai Heavy Industries, Ltd. (6358) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:6358+3.53%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 17.22B
Dividend Yield
5.33%
Average Volume (3M)
25.81K
Price to Earnings (P/E)
10.4
Beta (1Y)
0.91
Revenue Growth
1.92%
EPS Growth
96.75%
Country
Japan
Employees
618
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

Sakai Heavy Industries, Ltd. Business Overview & Revenue Model

Company Description

Sakai Heavy Industries, Ltd. is an international manufacturer and supplier specializing in heavy construction and industrial machinery. Their product catalog features an extensive array of compaction equipment, ranging from various vibratory and stat...

How the Company Makes Money

Sakai Heavy Industries primarily makes money by selling road construction and compaction equipment, with revenue recognized from shipments of new machines (notably road rollers/compactors and related roadwork equipment) to construction contractors, r...

Sakai Heavy Industries, Ltd. Financial Statement Overview

Summary

Balance sheet strength (low and improving leverage; growing equity) is a clear positive, but operating results are uneven and cash flow quality has deteriorated sharply in the last two years. Free cash flow and operating cash flow fell materially versus 2022–2024 levels, and cash conversion is currently weak despite positive margins and a revenue rebound in 2026.

Income Statement

64Positive

Balance Sheet

78Positive

Cash Flow

34Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue27.41B27.54B27.85B33.02B31.46B26.60B
Gross Profit7.59B7.69B7.67B9.37B8.17B6.41B
EBITDA2.11B2.32B2.30B4.00B3.22B2.06B
Net Income1.66B1.76B1.44B2.44B1.69B1.43B
Balance Sheet
Total Assets43.35B43.94B42.62B44.24B40.80B37.86B
Cash, Cash Equivalents and Short-Term Investments5.99B6.55B7.67B8.38B7.48B7.99B
Total Debt4.45B5.21B5.58B5.05B5.12B6.04B
Total Liabilities11.56B12.26B12.49B15.07B15.51B14.70B
Stockholders Equity31.71B31.59B30.05B29.09B25.23B23.11B
Cash Flow
Free Cash Flow0322.98M74.82M2.20B1.53B2.10B
Operating Cash Flow0878.03M399.37M2.48B1.89B2.36B
Investing Cash Flow0-561.28M39.19M-353.70M-399.43M-263.60M
Financing Cash Flow0-1.52B-1.22B-1.42B-2.24B-1.23B

Sakai Heavy Industries, Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price2008.00

Price Trends

50DMA2084.20Negative
100DMA2078.93Negative
200DMA2071.97Negative

Market Momentum

MACD-23.94Positive
RSI39.27Neutral
STOCH20.21Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6358, the sentiment is Negative. The current price of 2008.00 is below the 20-day moving average (MA) of 2037.90, below the 50-day MA of 2084.20, and below the 200-day MA of 2071.97, indicating a bearish trend. The MACD of -23.94 indicates Positive momentum. The RSI at 39.27 is Neutral, neither overbought nor oversold. The STOCH value of 20.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6358.

Sakai Heavy Industries, Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:6358 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6432JP:643278OutperformJPY 364.32B12.03―3.02%11.87%12.20%
JP:6301JP:630170OutperformJPY 5.42T14.14―3.07%9.23%-2.66%
JP:6358JP:635866NeutralJPY 17.63B10.38―5.33%1.92%96.75%
JP:6390JP:639064NeutralJPY 14.33B2.69―5.72%-1.12%―
JP:6305JP:630562NeutralJPY 1.10T12.889.48%3.67%6.61%-2.27%
JP:6326JP:632662NeutralJPY 2.97T11.0710.13%1.95%12.54%57.90%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%20%40%60%JP:6358JP:6305JP:6326JP:6301JP:6390JP:6432Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:6358 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6358Sakai Heavy Industries, Ltd.2008.0054.112.77%
JP:6305Hitachi Construction Machinery Co 5175.00313.036.44%
JP:6326Kubota Corporation2611.00651.7233.26%
JP:6301Komatsu Ltd.6182.001156.7723.02%
JP:6390KATO WORKS CO., LTD.1223.00-96.71-7.33%
JP:6432Takeuchi Mfg.Co., Ltd.7640.001533.0225.10%

Sakai Heavy Industries, Ltd. Corporate Events

Sakai Heavy Industries Slips to Quarterly Loss but Sticks to Full-Year Growth and Higher Dividend

Aug 7, 2026

Sakai Heavy Industries reported net sales of ¥5.62 billion for the quarter ended June 30, 2026, down 2.2% year on year, and slipped to a small operating loss while posting a net loss attributable to shareholders, reversing a profit a year earlie...

Sakai Heavy Industries Sets 2031 Plan to Boost Growth and Capital Efficiency

Jul 31, 2026

Sakai Heavy Industries has unveiled its Medium-Term Management Plan 2031, covering fiscal years 2027 to 2031 and centered on expanding its presence in the global roller market through tailored strategies for Japan, North America, and ASEAN. The compa...

Sakai Heavy Industries Issues Restricted Stock to Align Management with Shareholders

Jun 26, 2026

Sakai Heavy Industries has approved the issuance of 44,800 new common shares as restricted stock compensation to its directors and executive officers, with a total value of about ¥92.6 million at an issue price of ¥2,066 per share. The shar...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026