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

• Market Cap: ¥5.95B
• Dividend Yield: N/A
• Average Volume (3M): 159.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: 17.91%
• EPS Growth: 77.32%
• Country: JP
• Employees: 158
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 2.00
• Shares Outstanding: 27,666,900
• 10 Day Avg. Volume: 171,040
• 30 Day Avg. Volume: 159,673
• PEG Ratio: 0.28
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 1.17
• P/FCF Ratio: 127.16
• 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: 45 Neutral
• Price Target: ¥214.00 ▲(15.05% Upside)

The overall stock score of 45 reflects significant challenges in financial performance, particularly in profitability and cash flow management. Technical analysis indicates weak momentum, and valuation metrics are unattractive due to negative earnings. These factors collectively result in a low score, highlighting the need for substantial improvements in operational efficiency and financial health.

Positive Factors

Specialized product portfolio

A focused portfolio in high-precision diagnostics and lab automation creates a durable competitive edge. Serving hospitals, clinics and research institutions builds long-term institutional relationships and recurring service revenue, supporting stable demand and customer stickiness.

Recent revenue recovery

Meaningful revenue growth signals recovering product demand and market traction. If sustained, it supports scale benefits and reinvestment in R&D and service capacity, strengthening market position over the medium term amid structural healthcare diagnostics demand.

Positive free cash flow growth

Positive free cash flow growth enhances financial flexibility to fund R&D, maintenance services and selective expansion without heavy reliance on new debt. Coupled with moderate leverage, this supports durable operations and strategic investments over the coming quarters.

Negative Factors

Negative profitability metrics

Sustained negative net margins and negative ROE indicate the business has yet to convert revenue into shareholder returns. This undermines capital accumulation and limits capacity for organic investment, requiring structural margin improvement to restore long-term financial health.

Volatile operating cash flow

Inconsistent operating cash flow and weak conversion of earnings to cash create funding unpredictability for working capital and capex. This volatility increases reliance on external financing at adverse times and constrains consistent execution of long-term initiatives.

Operational inefficiencies

Persistent negative EBIT/EBITDA margins point to structural cost or pricing issues that impair competitiveness. Without operational restructuring or scale-driven margin expansion, profitability will remain weak, limiting reinvestment and longer-term growth prospects.

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

Company Description

Precision System Science Co., Ltd., together with its subsidiaries, develops, manufactures, and sells automated systems/instruments, other physicochemical instruments, software, and other products in Japan and internationally. The company manufactures and sells plastic consumables, which are used in automated systems/instruments, as well as reagents; and automated nucleic acid extraction and veterinary biochemical analysis systems. It also offers geneLEAD, an instrument for molecular testing; and engages in the research and development, and practical application of in vitro diagnosis testing market, including genetic and protein tests. Precision System Science Co., Ltd. was founded in 1985 and is headquartered in Matsudo, Japan.

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 challenges in profitability and cash flow management. Revenue recovery is evident, but operational inefficiencies and poor cash generation from operations remain concerns. The balance sheet shows moderate leverage, but profitability issues persist.

Income Statement

The company has experienced a decline in revenue over the past few years, with a slight recovery in the latest period. Gross profit margins have been inconsistent, and net profit margins have been negative, indicating ongoing profitability challenges. The EBIT and EBITDA margins have also been negative, reflecting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has been relatively stable, indicating moderate leverage. However, the return on equity has been negative in recent years, reflecting poor profitability. The equity ratio suggests a reasonable level of equity financing relative to total assets.

Cash Flow

Operating cash flow has been volatile, with recent improvements. Free cash flow growth has been positive, but the free cash flow to net income ratio indicates challenges in converting profits into cash. The operating cash flow to net income ratio has been inconsistent, reflecting cash flow management issues.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.69B	4.69B	5.28B	3.98B	7.43B	9.30B
Gross Profit	1.38B	1.38B	1.35B	950.38M	2.49B	3.10B
EBITDA	79.83M	10.06M	-594.05M	-661.75M	740.33M	1.16B
Net Income	-253.04M	-253.10M	-1.32B	-1.12B	45.34M	795.99M
Balance Sheet
Total Assets	4.94B	4.94B	9.76B	6.40B	11.41B	11.57B
Cash, Cash Equivalents and Short-Term Investments	1.04B	1.04B	2.45B	1.92B	2.76B	4.04B
Total Debt	564.21M	564.21M	3.87B	1.37B	4.02B	3.69B
Total Liabilities	1.18B	1.18B	4.54B	2.25B	4.90B	4.99B
Stockholders Equity	3.76B	3.76B	5.22B	4.14B	6.51B	6.58B
Cash Flow
Free Cash Flow	0.00	43.24M	-162.03M	-130.81M	-1.38B	-2.09B
Operating Cash Flow	0.00	95.83M	-6.75M	-106.80M	869.16M	-280.97M
Investing Cash Flow	0.00	-8.24M	-213.70M	2.06B	-2.29B	-1.81B
Financing Cash Flow	0.00	-910.82M	-154.05M	-2.51B	93.73M	4.00B

Precision System Science Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 186.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7707, the sentiment is Positive. The current price of 186 is below the 20-day moving average (MA) of 192.85, below the 50-day MA of 191.88, and below the 200-day MA of 197.06, indicating a bullish trend. The MACD of 7.27 indicates Negative momentum. The RSI at 71.22 is Negative, neither overbought nor oversold. The STOCH value of 85.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4570	72 Outperform	¥15.83B	49.61	―	―	12.91%	37.96%
6090	67 Neutral	¥4.00B	20.74	―	2.35%	-0.82%	-21.75%
3386	67 Neutral	¥7.63B	30.89	―	4.57%	6.49%	-32.16%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7707	45 Neutral	¥5.95B	-49.63	―	―	17.91%	77.32%
4582	42 Neutral	¥5.29B	-0.94	―	―	-50.27%	-3.33%