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

• Market Cap: ¥14.30B
• Dividend Yield: 4.01%
• Average Volume (3M): 11.77K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.45
• 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: ¥2,263.00 ▲(16.71% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

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

Improved leverage / balance sheet

A lower debt-to-equity ratio (0.74→0.40) reduces financial risk and interest burden, increasing resilience. This stronger balance sheet gives management flexibility to invest in R&D, CAPEX, or M&A and better absorb agricultural cyclicality over the next several months.

Stable gross margins and recent revenue gain

Stable gross margins (~21-23%) alongside a recent 10.2% revenue increase indicate durable product-level economics and effective cost control. That margin stability supports scalable profitability as sales grow and underpins reinvestment in product and digital offerings across seasons.

Diversified revenue streams & structural fit

Multiple revenue streams (inputs, equipment, digital services, partnerships) reduce concentration risk and align with long-term trends toward precision and sustainable agriculture. This diversification supports recurring revenues and cross-sell opportunities that remain relevant across crop cycles.

Negative Factors

Low net profit margin

A net margin of 1.38% shows weak conversion of gross profit to bottom-line earnings, limiting retained cash for reinvestment and cushioning. Persistently low net margins constrain the firm's ability to absorb commodity cost swings, invest in growth, or improve returns to shareholders.

Negative free cash flow

Negative free cash flow despite positive operating cash flow signals capex or working capital pressure. Persistent FCF deficits reduce internal funding for expansion or debt reduction, increasing reliance on external financing and raising execution risk for strategic initiatives.

Volatile / declining revenue growth metric

The cited RevenueGrowth metric (-0.7271) implies a steep contraction or measurement volatility in top-line performance. Such inconsistency with reported recent gains suggests uneven demand or timing effects, complicating forecasting and heightening exposure to agricultural cycle volatility.

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	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	97.76B	98.58B	97.55B	95.33B	96.24B
Gross Profit	21.03B	21.32B	20.46B	19.60B	19.06B
EBITDA	3.30B	3.53B	3.11B	2.97B	2.93B
Net Income	1.34B	365.00M	183.00M	324.00M	1.16B
Balance Sheet
Total Assets	38.08B	39.34B	42.05B	40.29B	41.71B
Cash, Cash Equivalents and Short-Term Investments	3.70B	5.62B	6.38B	6.20B	8.03B
Total Debt	6.19B	6.80B	7.58B	8.85B	11.01B
Total Liabilities	22.75B	24.95B	26.37B	24.48B	26.05B
Stockholders Equity	15.32B	14.39B	15.67B	15.81B	15.66B
Cash Flow
Free Cash Flow	-757.00M	1.81B	1.93B	588.00M	166.00M
Operating Cash Flow	2.27B	2.50B	2.93B	2.32B	472.00M
Investing Cash Flow	-3.16B	-832.00M	-1.13B	-1.58B	836.00M
Financing Cash Flow	-1.03B	-2.44B	-1.61B	-2.32B	-1.23B

Plant Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1939.00
• 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:7646, the sentiment is Negative. The current price of 1939 is above the 20-day moving average (MA) of 1924.22, below the 50-day MA of 1977.04, and above the 200-day MA of 1713.23, indicating a neutral trend. The MACD of -28.52 indicates Positive momentum. The RSI at 33.17 is Neutral, neither overbought nor oversold. The STOCH value of -6.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7646.

Plant Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7520	77 Outperform	¥29.93B	11.46	―	1.93%	6.11%	15.68%
2782	74 Outperform	¥305.10B	11.04	12.03%	1.96%	4.24%	13.79%
7646	73 Outperform	¥14.30B	15.01	―	4.01%	-0.83%	367.39%
7532	68 Neutral	¥3.11T	19.75	16.37%	0.73%	6.23%	16.45%
7596	66 Neutral	¥31.93B	14.62	―	2.22%	7.94%	-8.55%
8203	66 Neutral	¥24.76B	14.80	―	2.89%	6.70%	7.79%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Plant Co., Ltd. Corporate Events

PLANT Co. Posts Profit Decline but Maintains Outlook and Hikes Dividend Forecast

PLANT Co., Ltd. reported a slight 1.2% decline in net sales to ¥23.28 billion for the three months ended December 20, 2025, with operating profit down 33.6% to ¥289 million and profit falling 33.9% to ¥223 million, as margins weakened compared with the previous year. Despite the soft quarterly results and a marginal dip in the equity ratio to 40.9%, the company maintained its full-year forecast for fiscal 2026, projecting modest growth in sales and a near 14% increase in profit, and it plans to raise the annual dividend from ¥75.00 to ¥95.00 per share, signaling management’s confidence in earnings recovery and continued shareholder returns.

The most recent analyst rating on (JP:7646) stock is a Buy with a Yen2368.00 price target. To see the full list of analyst forecasts on Plant Co., Ltd. stock, see the JP:7646 Stock Forecast page.