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

• Market Cap: ¥6.23B
• Dividend Yield: N/A
• Average Volume (3M): 159.67K
• Price to Earnings (P/E): 169.3
• Beta (1Y): 1.31
• Revenue Growth: 17.91%
• EPS Growth: 77.32%
• Country: JP
• Employees: 158
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): N/A
• 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: ¥219.00 ▲(17.74% Upside)
• Action: Reiterated Date: 10/02/25
• Date: Action: Reiterated 10/02/25

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

Revenue growth trend

Reported revenue growth of about 20.8% indicates demand recovery for the company’s lab automation products. Over a 2-6 month horizon, durable top-line momentum supports scaling of operations, better fixed cost absorption and a pathway to improved margin sustainability if trends persist.

Installed-base and recurring consumables

The business model includes equipment sales paired with consumables, accessories and support tied to an installed base. This creates durable, repeatable revenue streams and customer lock-in that support long-term cash generation and resilience despite cyclical equipment sales.

Positive free cash flow growth

The company reports positive free cash flow growth, signaling improving cash generation ability. Sustained FCF growth permits reinvestment in R&D, service capacity and working capital without relying solely on external financing, supporting longer-term operational stability.

Negative Factors

Negative profitability and margins

Persistently negative net and operating margins indicate the core business is not yet profitable on a sustained basis. Over the medium term this limits retained earnings, restrains reinvestment and increases reliance on cost reduction or structural sales growth to reach durable profitability.

Volatile operating cash flow / weak cash conversion

Inconsistent operating cash flow and a weak operating-cash-to-net-income conversion ratio show cash conversion risk. Volatility in cash generation complicates funding of working capital and capital expenditures, weakening the company’s ability to consistently execute strategic investments.

Negative return on equity

A negative ROE signals the company has not generated acceptable returns on shareholder capital, reflecting operational inefficiencies or unprofitable product mix. Over months this constrains access to equity financing and pressures management to improve margins or restructure operations.

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

null

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	4.69B	3.98B	5.28B	7.43B	9.30B
Gross Profit	1.38B	950.38M	1.35B	2.49B	3.10B
EBITDA	10.06M	-661.75M	-594.05M	740.33M	1.16B
Net Income	-253.10M	-1.12B	-1.32B	45.34M	795.99M
Balance Sheet
Total Assets	4.94B	6.40B	9.76B	11.41B	11.57B
Cash, Cash Equivalents and Short-Term Investments	1.04B	1.92B	2.45B	2.76B	4.04B
Total Debt	564.21M	1.37B	3.88B	4.03B	3.69B
Total Liabilities	1.18B	2.25B	4.54B	4.90B	4.99B
Stockholders Equity	3.76B	4.14B	5.22B	6.51B	6.58B
Cash Flow
Free Cash Flow	43.24M	-130.81M	-162.03M	-1.38B	-2.09B
Operating Cash Flow	95.83M	-106.80M	-6.75M	869.16M	-280.97M
Investing Cash Flow	-8.24M	2.06B	-213.70M	-2.29B	-1.81B
Financing Cash Flow	-910.82M	-2.51B	-154.05M	93.73M	4.00B

Precision System Science Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 186.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 186 is below the 20-day moving average (MA) of 226.30, below the 50-day MA of 228.10, and below the 200-day MA of 204.38, indicating a neutral trend. The MACD of -2.32 indicates Positive momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 59.13 is Neutral, 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	¥13.02B	41.40	―	―	12.91%	37.96%
3386	70 Outperform	¥7.59B	22.07	―	4.57%	6.49%	-32.16%
4978	56 Neutral	¥16.02B	120.78	―	―	1.24%	-33.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7776	49 Neutral	¥12.00B	-8.14	―	―	-42.49%	-2.37%
4892	48 Neutral	¥6.12B	-6.80	―	―	56.17%	-11.63%
7707	45 Neutral	¥6.23B	169.33	―	―	17.91%	77.32%