Seihyo Co., Ltd. (2872) AI Stock Analysis

• Market Cap: ¥3.24B
• Dividend Yield: 0.93%
• Average Volume (3M): 1.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 11.75%
• EPS Growth: -17.13%
• Country: JP
• Employees: 90
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -41.35
• Shares Outstanding: 1,620,993
• 10 Day Avg. Volume: 1,740
• 30 Day Avg. Volume: 1,740
• PEG Ratio: 0.21
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.66
• P/FCF Ratio: -70.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥2,028.00 ▲(4.21% Upside)
• Action: Reiterated Date: 11/13/25
• Date: Action: Reiterated 11/13/25

Seihyo Co., Ltd. has a stable financial performance with consistent revenue growth and profitability. However, technical indicators suggest bearish momentum, and the stock appears overvalued with a high P/E ratio and low dividend yield. These factors contribute to a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust demand for Seihyo's ice products, reflecting its strong market position and effective business model.

Profitability

Improved profitability suggests efficient operations and cost management, enhancing long-term financial health and shareholder value.

Market Position

A diverse customer base across multiple sectors strengthens Seihyo's market position, reducing reliance on any single market segment.

Negative Factors

Rising Debt Levels

Rising debt levels could strain financial resources and limit strategic flexibility, potentially impacting long-term growth and stability.

Cash Flow Challenges

Challenges in generating positive free cash flow indicate inefficiencies in operations, which could hinder investment in growth opportunities.

EBIT Margin

A low EBIT margin may reflect inefficiencies in cost management, potentially affecting profitability and competitive positioning.

Seihyo Co., Ltd. Business Overview & Revenue Model

Company Description

Seihyo Co., Ltd. (2872) is a Japanese company primarily engaged in the manufacture and sale of chemical products, including industrial chemicals, specialty chemicals, and materials for various applications. The company operates across multiple sectors, including automotive, electronics, and manufacturing, providing innovative solutions tailored to meet the evolving needs of its clients. Seihyo is known for its commitment to quality and sustainability, focusing on developing products that enhance performance while minimizing environmental impact.

How the Company Makes Money

Seihyo Co., Ltd. generates revenue through the sale of a diverse range of chemical products and materials to various industries. The company's primary revenue streams include the production and distribution of industrial chemicals and specialty chemicals that cater to the specific requirements of sectors such as automotive and electronics. Additionally, Seihyo may engage in long-term contracts and partnerships with key clients, ensuring a steady flow of income. The company also invests in research and development to innovate and expand its product offerings, which can lead to higher sales and profitability. By maintaining a strong focus on customer satisfaction and adapting to market trends, Seihyo continues to strengthen its financial performance.

Seihyo Co., Ltd. Financial Statement Overview

Summary

Seihyo Co., Ltd. shows a promising financial trajectory with consistent revenue growth and increasing profitability. However, the rising debt levels and challenges in cash flow management require careful monitoring.

Income Statement

Seihyo Co., Ltd. demonstrated strong revenue growth with a 5.37% increase from 2024 to 2025, and improved profitability metrics such as gross profit margin at 18.92% and net profit margin at 2.66% in 2025. The company's EBITDA margin has been stable, indicating efficient operations. However, the EBIT margin is relatively low, suggesting potential cost management issues.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 0.84 in 2025, indicating a balanced approach to leveraging. Stockholders' equity accounts for 42.41% of total assets, showing a solid equity ratio. Although the overall financial position seems stable, the increase in total debt over the years poses a potential risk if not managed carefully.

Cash Flow

Seihyo Co., Ltd. has faced challenges in generating positive free cash flow, with a negative free cash flow of -41.59 million in 2025. Operating cash flow is relatively low compared to net income, signaling inefficiencies in cash generation from operations. However, the company has improved its free cash flow position compared to previous years, indicating progress.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	4.70B	4.48B	4.26B	4.19B	3.96B	3.50B
Gross Profit	901.51M	848.61M	703.90M	578.12M	618.14M	547.41M
EBITDA	271.99M	260.01M	221.17M	171.46M	188.82M	163.47M
Net Income	126.71M	119.50M	61.41M	20.59M	63.48M	47.28M
Balance Sheet
Total Assets	3.80B	3.31B	2.93B	2.88B	2.09B	2.06B
Cash, Cash Equivalents and Short-Term Investments	441.96M	329.43M	215.12M	573.34M	213.76M	99.07M
Total Debt	1.48B	1.17B	912.49M	600.43M	524.00M	475.75M
Total Liabilities	2.38B	1.92B	1.65B	1.38B	992.95M	1.02B
Stockholders Equity	1.42B	1.40B	1.28B	1.50B	1.10B	1.05B
Cash Flow
Free Cash Flow	0.00	-41.59M	-354.97M	45.38M	163.71M	403.52M
Operating Cash Flow	0.00	34.69M	169.46M	210.00M	253.02M	486.11M
Investing Cash Flow	0.00	-80.53M	-531.54M	-178.05M	-89.72M	-63.15M
Financing Cash Flow	0.00	160.15M	3.85M	327.63M	-48.61M	-456.94M

Seihyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1946.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2872, the sentiment is Negative. The current price of 1946 is below the 20-day moving average (MA) of 2040.95, below the 50-day MA of 2036.08, and below the 200-day MA of 2091.51, indicating a bearish trend. The MACD of -3.17 indicates Positive momentum. The RSI at 47.53 is Neutral, neither overbought nor oversold. The STOCH value of 48.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2872.

Seihyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3392	78 Outperform	¥15.95B	12.33	―	1.43%	10.77%	131.68%
2918	73 Outperform	¥52.57B	8.14	―	3.20%	4.98%	-10.23%
2871	72 Outperform	¥500.52B	15.17	9.86%	2.58%	1.08%	2.71%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2922	62 Neutral	¥24.44B	5.73	―	1.32%	-0.24%	-45.01%
7475	61 Neutral	¥22.66B	11.96	―	2.65%	2.42%	15.75%
2872	59 Neutral	¥3.24B	-11.86	―	0.93%	11.75%	-17.13%