Seiryo Electric Corporation (4341) AI Stock Analysis

• Market Cap: ¥3.40B
• Dividend Yield: 2.91%
• Average Volume (3M): 1.26K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.28
• Revenue Growth: 5.02%
• EPS Growth: 320.32%
• Country: JP
• Employees: 622
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 51.50
• Shares Outstanding: 3,500,000
• 10 Day Avg. Volume: 1,450
• 30 Day Avg. Volume: 1,263
• PEG Ratio: -0.49
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 20.09
• 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: 67 Neutral
• Price Target: ¥1,051.00 ▲(33.72% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

The overall stock score is primarily influenced by a solid valuation, with a low P/E ratio and attractive dividend yield. Financial performance shows positive revenue growth and profitability improvements, though cash flow variability poses a risk. Technical analysis indicates bearish momentum, which tempers the overall score.

Positive Factors

Consistent revenue growth (2023-2025)

Revenue rose steadily from 2023–2025, indicating expanding end‑market demand and improving product/customer traction. Sustained top‑line growth enhances the company's ability to invest in R&D and sales capacity, supporting medium‑term cash generation and strategic scaling.

Improving leverage and solid equity base

An improved debt‑to‑equity ratio alongside a stable equity ratio reflects better leverage management and a stronger capital base. This durable balance‑sheet profile increases financial flexibility for capex, selective M&A or dividends and reduces refinancing risk across cycles.

Positive free cash flow trend

A positive free cash flow trend from 2023–2025 creates an internal funding source for reinvestment, debt reduction or shareholder distributions. Persistent FCF bolsters financial independence, enabling the company to fund strategic initiatives without excessive external financing over the medium term.

Negative Factors

Volatile operating cash flow

Large swings in operating cash flow weaken the reliability of reported profits as a funding source. This volatility can force reliance on external financing, delay capital projects or pressure dividends during down cycles, constraining consistent execution and resilience.

Operational margin pressure (EBIT/EBITDA)

Compressed EBIT and EBITDA margins indicate persistent operational inefficiencies or cost pressure. Sustained margin weakness limits retained earnings for reinvestment, reduces pricing flexibility versus competitors and impairs the company's ability to translate revenue growth into durable profitability.

Fluctuating return on equity

Variable ROE points to inconsistent returns on capital and potential execution or demand cyclicality. Persistent ROE volatility complicates long‑term capital allocation decisions, may elevate the company's effective cost of capital, and can undermine investor confidence in sustained performance.

Seiryo Electric Corporation Business Overview & Revenue Model

Company Description

Seiryo Electric Corporation operates in the information and communication field in Japan. It offers radio system and tracking management solutions comprising automatic vehicle monitoring, disaster prevention and administrative radio, airport vehicle positioning, cloud-based telemetry, IP radio, and golf irrigation management systems for local government and private sectors. The company also provides security and visual information solutions, such as closed-circuit television, digital signage, and intruder-monitoring security sensor systems; and tsunami alerting, river information, sluice gate control and management, road traffic and weather information, and sediment and weather condition notification systems, as well as road information systems for submergence to serve local government. In addition, it offers queue management systems for retail operations; and radio communication equipment, as well as consulting, designing, and operation of systems. The company was founded in 1966 and is headquartered in Osaka, Japan.

How the Company Makes Money

Seiryo Electric Corporation generates revenue through the sale of its electrical products and services, which are essential for both industrial and commercial applications. Key revenue streams include the sale of electrical components, maintenance services, and custom engineering solutions designed to meet the specific needs of clients. Additionally, the company may engage in long-term contracts with utility companies and large industrial clients, which provide a stable income source. Strategic partnerships with other technology firms and participation in government projects can also contribute to its earnings, as these collaborations often lead to larger contracts and increased market reach.

Seiryo Electric Corporation Financial Statement Overview

Summary

Seiryo Electric Corporation exhibits growth in revenue and improvement in profitability metrics, demonstrating a positive trajectory. The balance sheet reflects a stable leverage position and a strong equity base. However, cash flow variability presents a risk, indicating operational challenges that need addressing.

Income Statement

The company has shown a steady increase in total revenue from 2023 to 2025, indicating positive growth. The gross profit margin has remained relatively stable, and the net profit margin has improved significantly in 2025 compared to losses in 2023. However, the EBIT and EBITDA margins suggest the company is facing operational challenges.

Balance Sheet

The debt-to-equity ratio has improved, indicating better leverage management. The equity ratio has been relatively stable, suggesting a strong equity position. However, the return on equity is fluctuating, showing potential volatility in profitability.

Cash Flow

The free cash flow has shown a positive trend from 2023 to 2025, but the cash flow from operations has fluctuated significantly. The operating cash flow to net income ratio indicates variability, reflecting inconsistent cash generation relative to income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	19.64B	19.30B	18.49B	17.02B	17.22B	18.16B
Gross Profit	5.36B	5.18B	4.92B	4.62B	4.91B	5.02B
EBITDA	471.75M	337.00M	395.00M	182.00M	500.00M	543.00M
Net Income	241.00M	81.00M	284.00M	-326.00M	198.00M	232.00M
Balance Sheet
Total Assets	9.05B	12.14B	11.66B	10.68B	10.94B	11.29B
Cash, Cash Equivalents and Short-Term Investments	1.41B	905.00M	1.06B	975.00M	1.28B	929.00M
Total Debt	61.00M	900.00M	1.00B	1.00B	200.00M	600.00M
Total Liabilities	4.04B	6.70B	6.19B	5.52B	5.38B	5.84B
Stockholders Equity	5.00B	5.43B	5.47B	5.16B	5.56B	5.45B
Cash Flow
Free Cash Flow	0.00	140.00M	74.00M	-1.00B	871.00M	686.00M
Operating Cash Flow	0.00	241.00M	130.00M	-805.00M	1.04B	829.00M
Investing Cash Flow	0.00	-153.00M	-43.00M	-205.00M	-168.00M	-73.00M
Financing Cash Flow	0.00	-241.00M	-2.00M	707.00M	-520.00M	-920.00M

Seiryo Electric Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 786.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4341, the sentiment is Positive. The current price of 786 is below the 20-day moving average (MA) of 867.35, below the 50-day MA of 826.82, and below the 200-day MA of 809.59, indicating a bullish trend. The MACD of 39.24 indicates Negative momentum. The RSI at 75.20 is Negative, neither overbought nor oversold. The STOCH value of 85.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4341.

Seiryo Electric Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3834	80 Outperform	¥19.38B	12.60	―	3.53%	5.03%	-9.55%
9445	75 Outperform	¥9.65B	10.29	―	3.85%	1.75%	24.87%
4341	67 Neutral	¥3.40B	5.67	―	2.91%	5.02%	320.32%
9424	66 Neutral	¥23.19B	23.10	―	―	30.15%	31.28%
9450	64 Neutral	¥14.34B	10.97	―	4.02%	5.13%	-13.74%
3776	63 Neutral	¥14.14B	47.06	―	1.01%	17.19%	-43.91%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%