| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1100.72 | 48 |
| Intrinsic value (DCF) | 422.90 | -43 |
| Graham-Dodd Method | 1705.30 | 129 |
| Graham Formula | 301.69 | -59 |
Sanrin Co., Ltd. (7486.T) is a Japan-based energy company specializing in the manufacturing and distribution of fuel products, including briquette, bean coal, petroleum, and LP gas. Founded in 1934 and headquartered in Higashichikuma, Japan, Sanrin serves both household and industrial markets with a diversified product portfolio. The company supplies petroleum products (gasoline, kerosene, lubricants), LP gas for residential and commercial use, and industrial gases like oxygen and nitrogen. Additionally, Sanrin offers household appliances (heaters, water systems, kitchen equipment), automotive accessories, and solar power solutions. Operating in Japan's competitive energy sector, Sanrin combines traditional fuel distribution with modern energy-efficient technologies, positioning itself as a regional player in energy and home comfort solutions. With a market cap of ¥8.32 billion, the company maintains a stable but niche presence in Japan's Oil & Gas Refining & Marketing industry.
Sanrin Co., Ltd. presents a low-beta (0.08) investment with modest but stable financials, including ¥32.04 billion in revenue and ¥700 million net income (FY 2024). The company’s strong cash position (¥6.56 billion) and manageable debt (¥3.04 billion) suggest financial resilience, while its ¥2/share dividend offers a modest yield. However, its small market cap and regional focus limit growth scalability. The reliance on traditional fuel products exposes Sanrin to energy transition risks, though its diversification into solar and gas solutions provides some mitigation. Investors may value its steady cash flow (¥2 billion operating cash flow) and niche market positioning, but the lack of global reach and muted EPS growth (¥57.06 diluted) could deter growth-oriented portfolios.
Sanrin Co. operates in a highly competitive Japanese energy market dominated by larger integrated players. Its competitive advantage lies in regional distribution expertise and a diversified product mix spanning fuels, appliances, and renewable solutions. Unlike global oil majors, Sanrin’s hyper-localized operations allow for tailored customer service in household and small-business segments. However, its scale is dwarfed by national competitors like Idemitsu Kosan or Eneos, which benefit from refining economies and broader retail networks. Sanrin’s foray into solar and gas equipment (e.g., fuel cells) aligns with Japan’s energy transition but lacks the R&D budget of larger peers. The company’s strength in LP gas distribution is offset by vulnerability to commodity price swings and regulatory shifts away from fossil fuels. Its ¥8.32 billion market cap reflects a niche player status, reliant on steady demand in rural and semi-urban Japan rather than disruptive growth.