Precision System Science Co.,Ltd (7707) AI Stock Analysis

• Market Cap: ¥5.37B
• Dividend Yield: N/A
• Average Volume (3M): 40.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: 12.19%
• EPS Growth: 51.32%
• Country: JP
• Employees: 158
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -1.10
• Shares Outstanding: 27,666,900
• 10 Day Avg. Volume: 28,860
• 30 Day Avg. Volume: 40,650
• PEG Ratio: 0.45
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥203.00
• Price Target Upside: 3.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ¥203.00 ▲(3.05%Upside)

The overall stock score is significantly impacted by poor financial performance and valuation concerns. The company faces operational inefficiencies and liquidity challenges, while the negative P/E ratio highlights unprofitability. Technical analysis provides a more neutral outlook, but it does not offset the financial and valuation weaknesses.

Precision System Science Co.,Ltd Business Overview & Revenue Model

Company Description

Precision System Science Co., Ltd. (7707) is a Japanese company specializing in the development and manufacturing of automated systems for life sciences and diagnostics. The company focuses on creating innovative solutions that enhance the efficiency and accuracy of laboratory processes, primarily serving the healthcare and biotechnology sectors. Their core products include automated DNA extraction systems, sample preparation instruments, and related consumables.

How the Company Makes Money

Precision System Science Co., Ltd. generates revenue by designing, manufacturing, and selling automated laboratory systems and instruments. Key revenue streams include the sale of DNA extraction and sample preparation systems, which are integral to various diagnostic and research applications in the life sciences field. The company also earns from the sale of consumables and reagents, which are used in conjunction with their systems. Additionally, Precision System Science engages in strategic partnerships and collaborations with other companies and research institutions, enhancing their market reach and contributing to their earnings.

Precision System Science Co.,Ltd Financial Statement Overview

Summary

Precision System Science Co., Ltd faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. The income statement highlights operational inefficiencies, while the balance sheet shows moderate stability with manageable leverage. However, negative cash flows indicate liquidity issues, impacting the overall financial health.

Income Statement

Precision System Science Co., Ltd shows a concerning trend in their income statement with declining revenues and increasing net losses over recent periods. The TTM (Trailing-Twelve-Months) gross profit margin is 25.2%, indicating some cost control, but the negative EBIT and net profit margins highlight operational inefficiencies and the inability to cover operational costs. Revenue has decreased significantly from previous years, and the persistent negative EBITDA suggests ongoing financial challenges.

Balance Sheet

The company's balance sheet reflects a moderate level of stability with a debt-to-equity ratio of 0.31, indicating manageable leverage. However, the equity ratio of 66.8% suggests that a significant portion of assets is financed by equity, which could be a strength. The return on equity is negative due to net losses, highlighting profitability challenges. Overall, the balance sheet shows a mixed picture with some financial stability but underlying risks due to continuous losses.

Cash Flow

The cash flow analysis reveals significant challenges, with negative operating, free cash flows, and a zero free cash flow growth rate in the TTM period. The absence of positive free cash flow to net income ratio and operating cash flow indicates liquidity issues and the inability of operations to generate cash, putting the company at risk of financial distress if this trend continues.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	3.98B	5.28B	7.43B	9.30B	5.07B
Gross Profit	950.38M	1.35B	2.49B	3.10B	1.56B
EBITDA	-661.75M	-594.05M	740.33M	1.16B	18.83M
Net Income	-1.12B	-1.32B	45.34M	795.99M	-114.28M
Balance Sheet
Total Assets	6.40B	9.76B	11.41B	11.57B	6.44B
Cash, Cash Equivalents and Short-Term Investments	1.92B	2.45B	2.76B	4.04B	2.11B
Total Debt	1.37B	3.87B	4.02B	3.69B	1.01B
Total Liabilities	2.25B	4.54B	4.90B	4.99B	2.12B
Stockholders Equity	4.14B	5.22B	6.51B	6.58B	4.32B
Cash Flow
Free Cash Flow	-130.81M	-162.03M	-1.38B	-2.09B	-251.76M
Operating Cash Flow	-106.80M	-6.75M	869.16M	-280.97M	-21.45M
Investing Cash Flow	2.06B	-213.70M	-2.29B	-1.81B	-214.08M
Financing Cash Flow	-2.51B	-154.05M	93.73M	4.00B	510.79M

Precision System Science Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 197.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7707, the sentiment is Neutral. The current price of 197 is above the 20-day moving average (MA) of 195.05, below the 50-day MA of 200.44, and below the 200-day MA of 226.39, indicating a neutral trend. The MACD of -1.15 indicates Negative momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 67.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7707.

Precision System Science Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6090	72 Outperform	¥4.65B	14.43		1.94%	11.72%	12.72%
4570	71 Outperform	¥4.73B	19.00		―	18.71%	33.40%
Sector *	65 Neutral	¥354.97B	10.64	-2.99%	2.47%	11.68%	-10.27%
3386	64 Neutral	¥6.84B	27.77		5.20%	7.74%	-39.17%
4582	51 Neutral	¥7.60B	―		―	-56.12%	-73.82%
7707	46 Neutral	¥5.37B	―		―	12.19%	51.32%