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Sailor Pen Co., Ltd. (JP:7992)
:7992
Japanese Market
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Sailor Pen Co., Ltd. (7992) AI Stock Analysis

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JP:7992

Sailor Pen Co., Ltd.

(7992)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
¥104.00
▼(-4.59% Downside)
Action:Reiterated
Date:08/07/26
The score is primarily held back by still-weak fundamentals—ongoing operating losses, negative free cash flow, and rising leverage despite improving margins and a narrowing net loss. Technical indicators add moderate support (positive MACD and price above short-term averages), but valuation is not supportive due to a negative P/E and no dividend yield data.
Positive Factors
Improving profitability and margins
The company narrowed losses sharply in 2025 and reported a stronger gross margin (~32.6%) and a net margin improvement to -5.2% from -24.5% and -33.1%. This indicates structural progress in cost control and product mix that can sustain margin recovery over several quarters.
Negative Factors
Persistent negative free cash flow
Despite a small operating cash flow improvement in 2025 (~¥35m), free cash flow remains negative (~-¥34m). Persistent FCF deficits limit internal funding for capex or marketing, force reliance on external financing, and constrain strategic investments over the coming 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and margins
The company narrowed losses sharply in 2025 and reported a stronger gross margin (~32.6%) and a net margin improvement to -5.2% from -24.5% and -33.1%. This indicates structural progress in cost control and product mix that can sustain margin recovery over several quarters.
Read all positive factors

Sailor Pen Co., Ltd. (7992) vs. iShares MSCI Japan ETF (EWJ)

Sailor Pen Co., Ltd. Business Overview & Revenue Model

Company Description
Sailor Pen Co., Ltd. (7992) is a Japan-based manufacturer in the writing instruments and stationery segment, best known for producing fountain pens, pen nibs, inks, and related accessories, as well as other pen and stationery products. The company...
How the Company Makes Money
Sailor Pen Co., Ltd. makes money primarily by selling writing instruments and related consumables under the Sailor brand. Its core revenue streams include: (1) Writing instruments: Sales of fountain pens and other pens (e.g., ballpoint or mechanic...

Sailor Pen Co., Ltd. Financial Statement Overview

Summary
Profitability is improving (2025 losses narrowed materially and gross margin strengthened), but the company is still operating at a loss, leverage has risen (debt-to-equity increased while equity declined), and free cash flow remains negative despite a small improvement in operating cash flow.
Income Statement
26
Negative
Balance Sheet
38
Negative
Cash Flow
22
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.47B4.30B4.68B4.56B5.03B5.39B
Gross Profit1.49B1.40B1.35B1.29B1.60B1.70B
EBITDA-70.37M-163.03M-947.09M-1.31B-39.09M183.60M
Net Income-156.86M-221.72M-1.15B-1.51B-193.93M53.62M
Balance Sheet
Total Assets4.28B4.33B4.76B5.55B7.22B7.18B
Cash, Cash Equivalents and Short-Term Investments667.02M534.07M579.83M656.09M1.18B2.47B
Total Debt1.92B1.91B1.93B1.53B1.22B3.02B
Total Liabilities3.19B3.28B3.50B3.16B3.30B5.07B
Stockholders Equity1.07B1.04B1.26B2.39B3.92B2.11B
Cash Flow
Free Cash Flow0.00-34.01M-480.80M-866.29M-1.46B-405.82M
Operating Cash Flow0.0034.67M-405.54M-435.97M-279.08M166.79M
Investing Cash Flow0.00-75.10M-68.75M-385.50M-1.18B-586.50M
Financing Cash Flow0.00-12.63M387.52M291.07M157.53M-11.25M

Sailor Pen Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥383.53B17.438.43%2.95%9.28%17.72%
77
Outperform
¥154.99B22.192.09%5.24%-2.53%
76
Outperform
¥243.70B14.942.56%6.53%13.54%
59
Neutral
¥23.26B22.901.88%-1.27%135.35%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
¥3.89B29.202.03%-1.38%-64.66%
48
Neutral
¥3.08B-21.92-4.74%86.23%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7992
Sailor Pen Co., Ltd.
105.00
-24.00
-18.60%
JP:7984
Kokuyo Co
909.40
24.01
2.71%
JP:7846
Pilot Corporation
2,036.00
553.26
37.31%
JP:7962
King Jim Co., Ltd.
814.00
-5.96
-0.73%
JP:7975
LIHIT LAB., INC.
1,148.00
9.53
0.84%
JP:7976
Mitsubishi Pencil Company, Limited
3,050.00
1,073.05
54.28%
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 07, 2026