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SATO SHO-JI CORPORATION (8065) AI Stock Analysis

JP:8065

SATO SHO-JI CORPORATION

(TSE/TYO:8065)

Select Model
Rating:63Neutral
Price Target:JPY 2,839.00â–²(6.29% Upside)
Action:downgraded
Date:09/12/26

The overall score of 63 reflects a solid valuation profile and a sturdy balance sheet, counterbalanced by poor cash flow generation and bearish technical momentum. While the attractive P/E ratio of 10.19 and steady dividend yield offer a strong foundation for value investors, the persistent inability to efficiently convert profits into free cash flow and recent downward price trends remain the most significant risk factors.

Positive Factors
Revenue GrowthMeaningful revenue expansion indicates that the company has continued to grow its sales base across several years, rather than relying only on a single period. Continued gains provide a foundation for operating scale and can support future profit growth if margins remain stable.
Negative Factors
Weak Cash ConversionRecurring weak operating cash flow and negative free cash flow show that reported profits have not consistently converted into cash. This can reduce internally funded investment capacity, increase reliance on financing, and make earnings quality less dependable over the coming periods.

SATO SHO-JI CORPORATION (8065) vs. iShares MSCI Japan ETF (EWJ)

-20%0%20%40%60%80%100%JP:8065+30.14%EWJ+17.00%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 55.21B
Dividend Yield
3.53%
Average Volume (3M)
110.83K
Price to Earnings (P/E)
8.7
Beta (1Y)
1.12
Revenue Growth
4.78%
EPS Growth
7.27%
Country
Japan
Employees
1,075
Sector
General
Sector Strength
55
Industry
Industrial - Distribution

SATO SHO-JI CORPORATION Business Overview & Revenue Model

Company Description

Established in 1930 and headquartered in Tokyo, Japan, Sato Shoji Corporation is a multifaceted trading firm serving a wide array of industries and consumer markets across Japan. The company's extensive offerings include iron and steel products such...

SATO SHO-JI CORPORATION Financial Statement Overview

Summary

The company demonstrates reliable revenue growth and a highly conservative balance sheet with minimal reliance on debt (D/E ratio of 0.47). However, the score is heavily weighed down by weak operating cash flows and recurring negative free cash flows, indicating a poor ability to convert accounting profits into actual cash.

Income Statement

75Positive

Balance Sheet

82Very Positive

Cash Flow

42Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue292.19B292.19B284.55B273.98B275.01B236.16B
Gross Profit23.97B23.97B22.77B20.85B21.26B19.71B
EBITDA10.63B10.63B9.96B10.18B10.05B7.14B
Net Income6.57B6.57B6.02B6.48B6.20B4.02B
Balance Sheet
Total Assets181.21B181.21B171.14B172.87B163.74B152.09B
Cash, Cash Equivalents and Short-Term Investments5.98B5.98B3.91B3.17B3.35B2.94B
Total Debt36.50B36.50B32.20B28.82B32.80B31.98B
Total Liabilities104.26B104.26B102.69B107.66B107.64B101.15B
Stockholders Equity76.92B76.92B68.44B65.19B56.09B50.92B
Cash Flow
Free Cash Flow0-902.00M-2.16B3.37B-1.51B-12.92B
Operating Cash Flow01.39B2.14B8.23B869.00M-12.55B
Investing Cash Flow0-1.37B-3.00B-2.73B175.00M-1.51B
Financing Cash Flow01.77B1.29B-5.79B-876.00M14.42B

SATO SHO-JI CORPORATION Technical Analysis

Technical Analysis SentimentNegative
Last Price2671.00

Price Trends

50DMA3144.92Negative
100DMA3121.55Negative
200DMA2829.20Negative

Market Momentum

MACD-105.29Positive
RSI31.03Neutral
STOCH41.18Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8065, the sentiment is Negative. The current price of 2671.00 is below the 20-day moving average (MA) of 2851.95, below the 50-day MA of 3144.92, and below the 200-day MA of 2829.20, indicating a bearish trend. The MACD of -105.29 indicates Positive momentum. The RSI at 31.03 is Neutral, neither overbought nor oversold. The STOCH value of 41.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8065.

SATO SHO-JI CORPORATION Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:8065 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:8075JP:807571OutperformJPY 79.46B8.96―3.47%4.06%15.85%
JP:5463JP:546371OutperformJPY 407.63B13.64―2.85%-1.88%20.80%
JP:5410JP:541069NeutralJPY 38.44B10.20―4.57%-1.00%-66.17%
JP:5440JP:544063NeutralJPY 77.66B10.09―5.04%6.83%-31.05%
JP:8065JP:806563NeutralJPY 56.38B8.65―3.53%4.78%7.27%
JP:5423JP:542360NeutralJPY 190.24B19.014.29%2.58%-0.62%-39.61%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-25%0%25%50%75%JP:8065JP:5423JP:5410JP:5440JP:5463JP:8075Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:8065 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:8065SATO SHO-JI CORPORATION2666.00609.7129.65%
JP:5423Tokyo Steel Manufacturing Co 1742.00424.1932.19%
JP:5410Godo Steel,Ltd.2628.00-852.98-24.50%
JP:5440Kyoei Steel Ltd.1787.00-333.73-15.74%
JP:5463Maruichi Steel Tube Ltd.1699.00445.0135.49%
JP:8075Shinsho Corp.2990.00749.9133.48%
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: Sep 12, 2026