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Sanoh Industrial Co., Ltd. (6584) AI Stock Analysis

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JP:6584

Sanoh Industrial Co., Ltd.

(TSE/TYO:6584)

Select Model
Rating:47Neutral
Price Target:JPY 692.00â–¼(-1.56% Downside)
Action:reiterated
Date:08/19/26

The score is held down primarily by weakened financial quality—compressed margins, higher leverage, and a sharp swing to negative operating and free cash flow—despite strong revenue growth. Technical signals are mixed/neutral, and valuation is pressured by a high P/E, partially offset by a moderate dividend yield.

Positive Factors
Strong Revenue GrowthTTM revenue growth of 157.9% indicates strong recent expansion in the company’s automotive component sales base. If sustained across vehicle programs, this scale can improve customer relevance and spread fixed manufacturing costs, providing a durable foundation for recovery in earnings even though current margins remain thin.
Negative Factors
Compressed ProfitabilityTTM net margin around 0.5% and EBIT margin around 2.9%, down from FY2024 levels, leave little buffer against cost or volume pressure. Thin profitability reduces internally generated funds for investment and makes earnings more sensitive to vehicle mix, production changes, and raw-material or energy costs.

Sanoh Industrial Co., Ltd. (6584) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%40%50%JP:6584-10.94%EWJ+14.42%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 24.74B
Dividend Yield
3.98%
Average Volume (3M)
339.28K
Price to Earnings (P/E)
29.8
Beta (1Y)
1.50
Revenue Growth
0.78%
EPS Growth
98.79%
Country
Japan
Employees
7,697
Sector
General
Sector Strength
55
Industry
Auto - Parts

Sanoh Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Sanoh Industrial Co., Ltd. operates worldwide as a producer and vendor of automotive components. The company's diverse portfolio encompasses a broad array of automotive tubing products, including specialized cluster tubes, robust brake lines, and ess...

How the Company Makes Money

Sanoh Industrial makes money primarily by manufacturing and selling automotive components—especially metal tubing, pipes, and processed/assembled tube products—to vehicle OEMs and Tier-1 suppliers. Revenue is generated through (1) mass-production sup...

Sanoh Industrial Co., Ltd. Financial Statement Overview

Summary

Despite very strong TTM revenue growth (+157.9%), profitability has compressed sharply (TTM net margin ~0.5%, EBIT margin ~2.9%), leverage has increased (debt-to-equity ~1.19), and cash generation has deteriorated (TTM operating cash flow slightly negative; free cash flow deeply negative at -9.5B). These factors signal elevated execution and funding risk near term.

Income Statement

56Neutral

Balance Sheet

50Neutral

Cash Flow

28Negative
Financial statement breakdown
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue161.90B159.39B159.54B156.81B137.69B113.66B
Gross Profit21.68B22.88B22.77B23.30B14.80B15.49B
EBITDA11.81B9.94B10.29B13.83B8.58B8.83B
Net Income835.00M1.52B737.00M4.22B-907.00M3.63B
Balance Sheet
Total Assets144.28B141.93B117.14B111.25B97.28B86.86B
Cash, Cash Equivalents and Short-Term Investments23.38B24.52B22.69B17.65B12.84B14.42B
Total Debt57.86B57.22B39.67B33.01B28.66B26.02B
Total Liabilities92.36B89.96B69.05B62.96B57.37B51.38B
Stockholders Equity48.45B48.00B44.27B44.68B36.53B32.72B
Cash Flow
Free Cash Flow-9.50B-8.61B-951.00M2.55B-575.00M4.43B
Operating Cash Flow-145.00M1.48B8.48B10.14B5.68B7.89B
Investing Cash Flow-12.70B-13.47B-8.12B-7.14B-4.45B-260.00M
Financing Cash Flow11.32B12.91B4.09B743.00M-2.91B-8.79B

Sanoh Industrial Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral
Last Price703.00

Price Trends

50DMA739.73Negative
100DMA800.50Negative
200DMA792.71Negative

Market Momentum

MACD-20.45Negative
RSI47.78Neutral
STOCH62.80Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6584, the sentiment is Neutral. The current price of 703.00 is above the 20-day moving average (MA) of 703.00, below the 50-day MA of 739.73, and below the 200-day MA of 792.71, indicating a neutral trend. The MACD of -20.45 indicates Negative momentum. The RSI at 47.78 is Neutral, neither overbought nor oversold. The STOCH value of 62.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6584.

Sanoh Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:6584 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:5162JP:516272OutperformJPY 3.32B21.86―2.80%4.21%―
JP:5985JP:598568NeutralJPY 49.34B9.01―2.05%-22.97%65.18%
JP:5161JP:516167NeutralJPY 129.02B11.46―5.16%3.24%236.26%
JP:5189JP:518961NeutralJPY 6.53B4.51―4.44%15.09%127.88%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:5988JP:598853NeutralJPY 37.80B5581.48―6.11%<0.01%-103.48%
JP:6584JP:658447NeutralJPY 24.79B29.82―3.98%0.78%98.79%

* General Sector Average

Performance Comparison

0%50%100%150%JP:6584JP:5161JP:5162JP:5189JP:5985JP:5988Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6584 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6584Sanoh Industrial Co., Ltd.703.00-149.89-17.57%
JP:5161Nishikawa Rubber Co., Ltd.3565.00701.3724.49%
JP:5162Asahi Rubber Inc.786.00132.3720.25%
JP:5189Sakura Rubber Co., Ltd.3375.001133.3450.56%
JP:5985SUNCALL CORPORATION1711.00667.1863.92%
JP:5988PIOLAX, Inc.1505.00-119.13-7.34%

Sanoh Industrial Co., Ltd. Corporate Events

Sanoh Industrial Second-Quarter Explanatory Material for Financial Year Ending March 31, 2027

Nov 12, 2026

Sanoh Industrial Co., Ltd., identified by Tokyo Stock Exchange ticker 6584 on the Prime market, provided explanatory material dated November 12, 2026, for the second quarter of the financial year ending March 31, 2027. The material covers consolidate...

Sanoh Industrial Reports Higher Sales, Lower Operating Income for Six Months

Nov 12, 2026

Sanoh Industrial Co., Ltd., listed on the Tokyo Stock Exchange under code 6584, reported consolidated net sales of ¥86,265 million for the six months ended September 30, 2026, up 9.9% year over year. Operating income fell 54.2% to ¥1,541 million, ord...

Sanoh Industrial Expands Share Trusts for Executive Stock Compensation

Oct 28, 2026

Sanoh Industrial Co., Ltd. has approved additional cash contributions to existing share delivery trusts that underpin its stock compensation plan for directors, officers and senior management employees. The trusts, first established in September 2020...

Sanoh Industrial Sees Q1 in Line with Plan as Regional Headwinds Mount and Data Center Bets Build

Sep 28, 2026

Sanoh Industrial reported that its first-quarter FY2026 results were broadly in line with expectations, with strong performance in Japan and continued growth in Asia, particularly India, while facing regional challenges in the Americas, Europe and Ch...

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 19, 2026