Micreed Co., Ltd. (7687) AI Stock Analysis

• Market Cap: ¥3.24B
• Dividend Yield: 1.79%
• Average Volume (3M): 8.48K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.76
• Revenue Growth: 13.82%
• EPS Growth: 23.24%
• Country: JP
• Employees: 26
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 15.06
• Shares Outstanding: 6,614,600
• 10 Day Avg. Volume: 7,960
• 30 Day Avg. Volume: 8,476
• PEG Ratio: 0.78
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 16.50
• 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: 71 Outperform
• Price Target: ¥597.00 ▲(27.02% Upside)

The score is driven primarily by solid financial performance—especially the debt-free balance sheet and sustained profitability after a turnaround—tempered by weaker cash conversion. Valuation is supportive with a modest P/E and a dividend, while technical signals are mixed-to-soft with the stock below key longer-term moving averages and a negative MACD.

Positive Factors

Debt-free balance sheet

Near-zero debt materially reduces financial risk and interest burden, giving management durable flexibility to fund operations, invest in growth initiatives, or withstand downturns without relying on external borrowing. This structural strength supports long-term resilience and strategic optionality.

Sustained revenue growth and profitability turnaround

A sustained shift from losses to consistent profits across multiple years indicates the underlying business model and cost structure have been corrected. Durable revenue growth and recurring profitability create a more reliable earnings base for reinvestment, margin improvement, and shareholder returns.

Stable gross margins and improving ROE

Stable gross margins signal persistent pricing power or consistent cost control in core services, while mid-to-high teen ROE shows management is generating attractive returns on equity. Together these point to operational efficiency and effective capital use that should persist absent major structural shifts.

Negative Factors

Weak operating cash conversion

Low OCF-to-revenue weakens the link between reported earnings and cash generation, reducing the firm's ability to self-fund capex, build liquidity, or scale without external support. This persistent cash conversion gap raises structural vulnerability to working-capital swings and cyclical slowdowns.

Free cash flow lags net income

When free cash flow persistently trails net income, reported profits are not fully translating into spendable cash. That limits durable financial flexibility—constraining investments, dividends, or debt capacity—and increases sensitivity to any deterioration in revenue or receivables.

Modest net margins and easing EBITDA margin

Low single-digit net margins provide a narrow buffer against cost inflation or competitive pricing pressure. The recent EBITDA margin erosion suggests operating leverage is not yet secure; sustained margin pressure would limit free cash generation and constrain long-term reinvestment and profitability expansion.

Micreed Co., Ltd. Business Overview & Revenue Model

Company Description

MICREED Co.,Ltd. engages in the mail-order sale of commercial ingredients to small and medium restaurants in Japan. It offers meat, fish, vegetables, skewers, fried foods, and desserts. The company was founded in 1995 and is based in Tokyo, Japan.

How the Company Makes Money

Micreed Co., Ltd. generates revenue primarily through the wholesale distribution of lifestyle and miscellaneous goods. The company sources products from manufacturers and distributes them to retailers, ensuring a steady supply of consumer goods. Revenue streams are bolstered by strong relationships with retail partners, allowing for a broad market reach. Additionally, the company may engage in strategic partnerships with suppliers to negotiate favorable terms, enhancing profit margins. Factors such as market demand, consumer trends, and effective supply chain management significantly contribute to the company's earnings.

Micreed Co., Ltd. Financial Statement Overview

Summary

Strong multi-year revenue growth with a clear turnaround to consistent profitability in 2023–2025 and stable gross margins. Balance sheet is a major strength with essentially no debt and improving equity/ROE, but cash conversion is weaker (operating cash flow low vs. revenue and free cash flow below net income in 2024–2025).

Income Statement

Revenue has grown strongly over the last several years (from 2022 to 2025), with a sharp step-up in 2025 vs. 2024. Profitability has improved materially from losses in 2021–2022 to solid profits in 2023–2025, while gross margin has stayed stable around the mid-30% range. The main weakness is that net profit margin remains modest (~3–4%), and EBITDA margin eased slightly in 2025 vs. 2024, suggesting incremental cost pressure as the business scales.

Balance Sheet

The balance sheet is very conservatively positioned with essentially no debt (debt-to-equity at 0.0 in recent years), which lowers financial risk and improves flexibility. Equity has increased steadily from 2022 to 2025, and returns on equity are strong in 2023–2025 (roughly mid-to-high teens), reflecting the earnings recovery. A key limitation is that this strength is relatively recent, following negative returns in 2021–2022.

Cash Flow

Cash generation is positive and improving in absolute terms in 2024–2025, with free cash flow remaining positive each year since 2022. However, cash conversion is a clear weak spot: operating cash flow is low relative to revenue (about 3–6% in 2023–2025) and free cash flow covers only ~76–83% of net income in 2024–2025, implying earnings are not fully translating into cash consistently. The 2021 period of negative operating and free cash flow also highlights sensitivity during weaker operating environments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.99B	6.78B	5.94B	4.67B	3.03B	2.78B
Gross Profit	2.35B	2.27B	2.04B	1.59B	1.02B	940.00M
EBITDA	461.00M	426.00M	394.00M	268.00M	5.00M	-65.00M
Net Income	275.00M	258.00M	222.00M	134.00M	-37.00M	-85.00M
Balance Sheet
Total Assets	2.30B	2.33B	2.07B	1.69B	1.30B	1.25B
Cash, Cash Equivalents and Short-Term Investments	926.00M	918.00M	842.00M	601.00M	499.00M	476.00M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	859.00M	929.00M	884.00M	684.00M	437.00M	346.00M
Stockholders Equity	1.44B	1.39B	1.18B	1.00B	865.00M	902.00M
Cash Flow
Free Cash Flow	0.00	199.00M	312.00M	109.00M	30.00M	-131.00M
Operating Cash Flow	0.00	262.00M	378.00M	174.00M	66.00M	-102.00M
Investing Cash Flow	0.00	-139.00M	-94.00M	-72.00M	-43.00M	-36.00M
Financing Cash Flow	0.00	-47.00M	-42.00M	0.00	0.00	15.00M

Micreed Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 470.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7687, the sentiment is Negative. The current price of 470 is below the 20-day moving average (MA) of 508.00, below the 50-day MA of 485.78, and below the 200-day MA of 496.94, indicating a neutral trend. The MACD of 8.02 indicates Positive momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 23.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7687.

Micreed Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7687	71 Outperform	¥3.24B	11.32	―	1.79%	13.82%	23.24%
7538	69 Neutral	¥5.30B	4.56	―	1.67%	4.32%	24.60%
8030	68 Neutral	¥14.72B	4.88	―	3.17%	5.19%	11.04%
7114	67 Neutral	¥3.98B	45.62	―	―	10.69%	-59.77%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	61 Neutral	¥8.82B	20.39	―	0.95%	6.26%	67.81%
2683	47 Neutral	¥2.55B	65.44	―	1.01%	-1.44%	-61.28%