Saftec Co., Ltd. (7464) AI Stock Analysis

• Market Cap: ¥3.27B
• Dividend Yield: 5.23%
• Average Volume (3M): 806.00
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.16
• Revenue Growth: -1.35%
• EPS Growth: -17.35%
• Country: JP
• Employees: 387
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 77.47
• Shares Outstanding: 2,000,000
• 10 Day Avg. Volume: 490
• 30 Day Avg. Volume: 806
• PEG Ratio: -0.44
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 3.11
• 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: 76 Outperform
• Price Target: ¥1,881.00 ▲(15.61% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Saftec Co., Ltd. scores well due to its stable financial position and attractive valuation, particularly its high dividend yield. However, the score is tempered by technical indicators suggesting only mild bullish momentum and potential overbought conditions. The lack of earnings call data limits insights into future guidance and sentiment.

Positive Factors

Market Position

Saftec's leadership in safety and security positions it strongly in a growing industry, ensuring sustained demand for its products.

Cash Generation

Strong cash generation supports ongoing operations and investment in growth, enhancing long-term financial stability.

Financial Stability

A strong equity base reduces financial risk, providing a buffer against economic fluctuations and supporting strategic initiatives.

Negative Factors

Profitability Margins

Declining profitability margins indicate rising costs or inefficiencies, which could hinder long-term earnings growth if not addressed.

Return on Equity

A lower ROE suggests reduced profitability relative to shareholder equity, potentially impacting investor confidence and capital efficiency.

Earnings Growth

Negative EPS growth reflects challenges in maintaining profitability, which could affect the company's ability to reinvest and expand.

Saftec Co., Ltd. Business Overview & Revenue Model

Company Description

Saftec Co.,Ltd. provides safety products to the construction industry in Japan. It offers signs/signboards, including manga, arrow, SL, black, bulletin, and billboard, as well as traffic and electric signs; safety equipment, such as barricades, guard and color fences, construction gates, and wire protection tubes; and security warning signs comprising traffic, revolving, security, signal lights, color cones, cone bars, and cone weights. The company also provides safety disaster prevention supplies that include safety vest, safety shoes, safety net, fire extinguisher, rope, dust mask, and glasses; and electrical equipment, surveying instruments, paint, ladders, and temporary housing products. In addition, it is involved in rental of signs/sign boards, safety equipment, and security warning signs. The company was founded in 1952 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Saftec Co., Ltd. generates revenue through multiple streams, primarily from the sale of safety equipment and PPE to various industries, including construction, manufacturing, and healthcare. The company also offers consulting services related to safety management and compliance, which contribute to its earnings. Significant partnerships with industry leaders and government agencies enhance Saftec's market reach and credibility, leading to increased sales. Furthermore, Saftec invests in research and development to innovate new products that meet evolving safety standards, ensuring a steady demand and new revenue opportunities.

Saftec Co., Ltd. Financial Statement Overview

Summary

Saftec Co., Ltd. demonstrates stable financial health with strong cash flow metrics and a solid equity base. However, declining profitability margins and Return on Equity highlight potential operational inefficiencies that need addressing.

Income Statement

Saftec Co., Ltd. has shown moderate revenue growth with a slight increase in Total Revenue from 2024 to 2025. The Gross Profit Margin is healthy at 44.7%, indicating efficient cost management. However, Net Profit Margin has decreased significantly to 2.2%, which suggests rising expenses or reduced operational efficiency. The EBITDA Margin also dropped to 11.6%, highlighting potential profitability challenges.

Balance Sheet

The company's Debt-to-Equity Ratio remains manageable at 0.46, indicating a stable leverage position. Return on Equity dropped to 3.2%, reflecting lower profitability relative to shareholder equity. The Equity Ratio of 58.2% shows a strong equity position, suggesting financial stability and lower financial risk.

Cash Flow

Saftec exhibits a solid Free Cash Flow to Net Income Ratio of 4.59, indicating strong cash generation relative to net income. However, the Free Cash Flow Growth Rate is only 28.39%, which is a decline from previous periods. The Operating Cash Flow to Net Income Ratio is robust at 5.14, demonstrating effective cash conversion from operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.27B	10.31B	10.12B	9.97B	10.35B	10.11B
Gross Profit	4.64B	4.61B	4.68B	4.84B	5.06B	4.84B
EBITDA	1.16B	1.18B	1.34B	1.70B	2.06B	1.89B
Net Income	213.11M	229.98M	346.68M	575.59M	809.00M	666.86M
Balance Sheet
Total Assets	12.31B	12.42B	12.42B	12.28B	12.18B	11.84B
Cash, Cash Equivalents and Short-Term Investments	4.25B	4.45B	4.13B	4.26B	4.32B	3.64B
Total Debt	3.35B	3.35B	3.39B	3.35B	3.48B	3.73B
Total Liabilities	5.30B	5.20B	5.29B	5.23B	5.57B	5.91B
Stockholders Equity	7.01B	7.23B	7.13B	7.05B	6.61B	5.93B
Cash Flow
Free Cash Flow	0.00	1.06B	841.65M	699.97M	1.39B	1.30B
Operating Cash Flow	0.00	1.18B	849.59M	710.68M	1.42B	1.35B
Investing Cash Flow	0.00	-132.34M	6.90M	-86.26M	-35.76M	-96.42M
Financing Cash Flow	0.00	-723.14M	-991.10M	-685.55M	-701.76M	-856.84M

Saftec Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1627.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7464, the sentiment is Negative. The current price of 1627 is below the 20-day moving average (MA) of 1697.15, below the 50-day MA of 1672.80, and below the 200-day MA of 1642.83, indicating a neutral trend. The MACD of -11.09 indicates Positive momentum. The RSI at 43.56 is Neutral, neither overbought nor oversold. The STOCH value of 10.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7464.

Saftec Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7464	76 Outperform	¥3.27B	5.25	―	5.23%	-1.35%	-17.35%
6744	76 Outperform	¥271.97B	14.78	―	2.42%	9.55%	9.52%
9735	73 Outperform	¥2.72T	19.24	8.35%	1.77%	5.39%	4.89%
7734	73 Outperform	¥158.65B	14.99	―	1.39%	11.23%	16.49%
4264	66 Neutral	¥10.26B	24.07	―	―	5.80%	-43.56%
2331	64 Neutral	¥636.23B	16.50	―	2.14%	7.73%	30.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%