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): 3.8
• Beta (1Y): 0.29
• 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: ¥1,033.00 ▲(31.42% 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

Sustained revenue growth across 2023–2025 indicates expanding demand or market share in its telecommunications segments. Durable top-line expansion supports reinvestment, scale benefits and revenue diversification, improving the company's ability to fund capex and strategic initiatives over months.

Improving Profitability

A swing from losses to materially improved net margin by 2025 suggests the company has addressed prior cost or revenue mix issues. Lasting margin recovery enhances cash generation potential and resilience to cyclical pressures, supporting long-term earnings stability and stakeholder confidence.

Stronger Leverage Position

Improved debt-to-equity and a stable equity ratio point to better leverage management and a solid equity base. Lower leverage increases financial flexibility for strategic investments, reduces refinancing risk, and provides a buffer in downturns, strengthening balance-sheet durability.

Negative Factors

Cash Flow Variability

Material swings in operating cash flow versus reported income indicate inconsistent cash conversion and potential working-capital or collection issues. Persistent variability can constrain funding for capex, dividends, or debt service and raises execution risk for multi-month strategic plans.

Operational Margin Pressure

Weaker or pressured EBIT/EBITDA margins imply the company may have structural cost inefficiencies or limited pricing power within its market. If persistent, this reduces free cash generation and limits reinvestment capacity, making earnings more sensitive to revenue shocks over the medium term.

Volatile Return on Equity

Fluctuating ROE signals inconsistent capital efficiency and unpredictable return delivery to shareholders. Over several quarters this can reflect uneven operational execution or capital allocation, undermining long-term investor confidence and complicating planning for growth investments.

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: Neutral
• STOCH: Neutral

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 896.10, below the 50-day MA of 841.02, and below the 200-day MA of 812.92, indicating a bullish trend. The MACD of 38.32 indicates Negative momentum. The RSI at 64.68 is Neutral, neither overbought nor oversold. The STOCH value of 67.16 is Neutral, 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	¥19.18B	13.52	―	3.53%	5.03%	-9.55%
9445	75 Outperform	¥9.48B	12.83	―	3.85%	1.75%	24.87%
4341	67 Neutral	¥3.40B	3.81	―	2.91%	5.02%	320.32%
9424	66 Neutral	¥22.52B	23.11	―	―	30.15%	31.28%
9450	64 Neutral	¥14.06B	10.17	―	4.02%	5.13%	-13.74%
3776	63 Neutral	¥14.93B	37.44	―	1.01%	17.19%	-43.91%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%