Plant Co., Ltd. (7646) AI Stock Analysis

• Market Cap: ¥15.52B
• Dividend Yield: 4.01%
• Average Volume (3M): 11.77K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.47
• Revenue Growth: -0.83%
• EPS Growth: 367.39%
• Country: JP
• Employees: 685
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 32.40
• Shares Outstanding: 7,729,720
• 10 Day Avg. Volume: 4,420
• 30 Day Avg. Volume: 11,770
• PEG Ratio: 0.03
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -14.68
• 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: 73 Outperform
• Price Target: ¥2,342.00 ▲(20.78% Upside)

The stock score is driven by strong technical indicators and attractive valuation metrics, suggesting potential undervaluation and positive market momentum. However, concerns about profitability and cash flow sustainability slightly offset these strengths.

Positive Factors

Diversified revenue streams

Multiple product and service lines (inputs, equipment, and digital tools) create diversified revenue that reduces single-market exposure. This mix supports recurring revenue, cross-selling, and resilience against cyclical crop or input demand shifts over the next several months.

Improved leverage management

Lower debt-to-equity and a stable equity ratio reduce financial risk and increase balance-sheet flexibility. This positions the company to fund R&D, capex, or strategic initiatives with less refinancing risk and better resilience to industry headwinds over 2-6 months.

Stable gross margins with recent revenue gain

Sustained revenue growth combined with stable gross margins suggests consistent pricing power or cost control at the production level. This supports durable gross profitability and provides a platform to improve operating leverage as scale increases over the medium term.

Negative Factors

Very low net profit margin

A sub-2% net margin leaves little cushion for cost inflation or revenue dips and limits the company's capacity to self-fund investments or build reserves. Persistently thin bottom-line profitability constrains long-term strategic flexibility and shareholder returns.

Negative free cash flow

Negative FCF indicates the business is consuming cash after investments, increasing dependence on external financing or internal asset sales. With operating cash to net income below 1, reported earnings are not fully converting to cash, straining liquidity for growth or dividends.

Modest operating margins

Modest EBIT/EBITDA margins imply limited operational efficiency or pricing leverage. In an industry where scale and R&D drive competitive advantage, constrained operating profitability may hinder investment in product development and leave the company vulnerable to better-capitalized competitors.

Plant Co., Ltd. Business Overview & Revenue Model

Company Description

PLANT Co.,Ltd. operates retail stores in Japan. It engages in the retail sale of food items, such as bakery products, rice balls, side dishes, burgers, fresh juices, and pots. The company was founded in 1982 and is headquartered in Sakai, Japan.

How the Company Makes Money

Plant Co., Ltd. generates revenue through multiple key streams, primarily from the sale of agricultural products such as seeds, fertilizers, and crop protection solutions. The company also earns income from the provision of advanced farming equipment and technology solutions, including precision agriculture tools and software that assist farmers in optimizing their operations. Additionally, Plant Co., Ltd. may engage in partnerships with agricultural institutions and research organizations to develop new products, which can further enhance its revenue through collaborative projects and grants. The company also benefits from market trends focusing on sustainable farming practices, which align with its product offerings.

Plant Co., Ltd. Financial Statement Overview

Summary

Plant Co., Ltd. demonstrates strong revenue growth and improved leverage management, enhancing financial stability. However, low net profit margins and negative free cash flow raise concerns about profitability and cash flow sustainability.

Income Statement

Plant Co., Ltd. has shown a consistent revenue growth rate over the years, with a notable 10.2% increase in the most recent year. The gross profit margin remains stable at around 21-23%, indicating efficient cost management. However, the net profit margin is relatively low at 1.38%, suggesting challenges in converting revenue into profit. EBIT and EBITDA margins are modest, reflecting limited operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved over time, decreasing from 0.74 to 0.40, indicating better leverage management. Return on equity has increased to 8.78%, showing improved profitability from shareholders' equity. The equity ratio remains stable, suggesting a balanced capital structure. Overall, the balance sheet reflects a solid financial position with reduced financial risk.

Cash Flow

Operating cash flow has been positive, but free cash flow has been negative in the most recent year, indicating potential cash management issues. The operating cash flow to net income ratio is below 1, suggesting that cash generation from operations is not fully covering net income. The free cash flow to net income ratio is negative, highlighting concerns in cash flow sustainability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	97.66B	97.76B	98.58B	97.55B	95.33B	96.24B
Gross Profit	22.30B	21.03B	22.71B	21.99B	21.11B	20.43B
EBITDA	2.00B	3.48B	2.28B	2.21B	2.41B	3.21B
Net Income	275.00M	1.34B	365.00M	183.00M	324.00M	1.16B
Balance Sheet
Total Assets	36.17B	37.01B	38.38B	41.05B	40.29B	41.71B
Cash, Cash Equivalents and Short-Term Investments	2.90B	3.70B	5.62B	6.41B	6.23B	8.06B
Total Debt	5.76B	6.19B	6.80B	7.58B	8.85B	11.01B
Total Liabilities	21.02B	21.68B	24.00B	25.38B	24.48B	26.05B
Stockholders Equity	15.14B	15.32B	14.39B	15.67B	15.81B	15.66B
Cash Flow
Free Cash Flow	0.00	-757.00M	1.81B	1.71B	476.00M	55.00M
Operating Cash Flow	0.00	2.27B	2.50B	2.93B	2.32B	472.00M
Investing Cash Flow	0.00	-3.16B	-832.00M	-1.13B	-1.58B	836.00M
Financing Cash Flow	0.00	-1.03B	-2.44B	-1.61B	-2.32B	-1.23B

Plant Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1939.00
• 50DMA: Positive
• 100DMA: Positive
• 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:7646, the sentiment is Positive. The current price of 1939 is below the 20-day moving average (MA) of 2042.70, below the 50-day MA of 1940.54, and above the 200-day MA of 1649.53, indicating a neutral trend. The MACD of 30.36 indicates Positive momentum. The RSI at 52.06 is Neutral, neither overbought nor oversold. The STOCH value of 16.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7646.

Plant Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9890	73 Outperform	¥12.41B	8.03	―	2.30%	10.43%	12.10%
7646	73 Outperform	¥15.52B	11.36	―	4.01%	-0.83%	367.39%
9846	67 Neutral	¥11.11B	8.20	―	1.45%	-0.02%	-7.09%
8203	66 Neutral	¥26.06B	8.90	―	2.89%	6.70%	7.79%
3080	64 Neutral	¥10.35B	69.77	―	1.71%	-1.36%	-63.23%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Plant Co., Ltd. Corporate Events

Plant Co., Ltd. Reports Mixed Financial Results with Increased Dividends

Plant Co., Ltd. reported a slight decline in net sales and operating profit for the fiscal year ended September 20, 2025, with a notable increase in profit due to a significant rise in basic earnings per share. The company plans to increase dividends per share, indicating a positive outlook for stakeholders despite the mixed financial performance.

The most recent analyst rating on (JP:7646) stock is a Hold with a Yen1731.00 price target. To see the full list of analyst forecasts on Plant Co., Ltd. stock, see the JP:7646 Stock Forecast page.