Aichi Tokei Denki Co., Ltd. (7723) AI Stock Analysis

• Market Cap: ¥51.47B
• Dividend Yield: 3.21%
• Average Volume (3M): 28.03K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.86
• Revenue Growth: 7.99%
• EPS Growth: 50.13%
• Country: JP
• Employees: 1,739
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 91.71
• Shares Outstanding: 15,420,000
• 10 Day Avg. Volume: 18,470
• 30 Day Avg. Volume: 28,030
• PEG Ratio: 0.77
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 126.92
• 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): 237.3
• Revenue Forecast (FY): ¥55.50B

• Rating: 80 Outperform
• Price Target: ¥3,577.00 ▲(32.97% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is driven primarily by strong financial performance (growth, improving margins, and very low leverage) and favorable valuation (low P/E with a solid dividend). Technicals are positive due to a strong uptrend, but the overbought RSI and weaker free cash flow generation temper the overall rating.

Positive Factors

Very low leverage

Extremely low leverage and a high equity ratio give the company durable financial flexibility, lowering default and refinancing risk. This balance-sheet strength supports sustained capital spending, dividend maintenance, and the ability to pursue selective investments over multiple quarters without stressing liquidity.

Consistent revenue and margin improvement

Continued top-line growth alongside improving gross and net margins indicates operational leverage and pricing or mix advantages. Sustained margin expansion increases internally generated funds, enabling medium-term reinvestment into product development and service offerings that reinforce competitive positioning.

Structural demand from utilities

Core exposure to public water and gas utilities creates steady, predictable demand driven by meter replacement cycles and infrastructure upgrades. This structural end-market stability supports recurring hardware demand and aftermarket component/system sales, reducing revenue volatility over a multi-quarter horizon.

Negative Factors

Weak free cash flow generation

Very low FCF relative to net income and a recent decline in free cash flow constrain the firm's ability to self-fund capex, R&D, or accelerated dividend increases. Over several quarters this can force reliance on operating improvements or balance-sheet actions to support growth and shareholder returns.

Limited revenue transparency / concentration risk

Absence of disclosed segment breakdowns or key customer details creates uncertainty about customer concentration and end-market exposure. Over a medium horizon, this opacity makes it harder to assess revenue risk from a few large contracts or regional procurement cycles, increasing forecasting risk.

Moderate returns on capital

ROE and net margins are modest for a capital-intensive hardware business, indicating only moderate capital efficiency. Over months this limits the pace at which retained earnings can fund growth or offset cyclicality, and may pressure strategic flexibility compared with higher‑return peers.

Aichi Tokei Denki Co., Ltd. Business Overview & Revenue Model

Company Description

Aichi Tokei Denki Co., Ltd. provides water and gas meters, and related equipment in Japan and internationally. Its products for liquid measurement include electromagnetic water meters, residential water meters, portable and electronic water meters, capacitive electromagnetic flow sensors, compact electromagnetic flow sensors, microflow sensors, micro stream sensors, flow sensors, instantaneous flow-rate/integrating flow volume flowmeters, small-size flow sensors, ultrasonic flow meters, and electromagnetic flow meters for agricultural applications. The company's products for gas measurement comprise ultrasonic flow meters for compressed air and nitrogen; ultrasonic flow meter for fuel gas; turbine gas meters for flow management; pressure-reducing valves; intelligent gas meters; digital manometers for town gas and LP gas; and systems, such as housing and building equipment and systems, instrumentations, and dies and other parts. Its products are used in infrastructure, healthcare, and energy industries, as well as houses and buildings. The company was formerly known as AICHI TOKEI MFG. CO., LTD. and changed its name to Aichi Tokei Denki Co., Ltd. in July 1912. Aichi Tokei Denki Co., Ltd. was founded in 1898 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Aichi Tokei Denki generates revenue through the sale of its precision instruments and measurement devices, which are essential for various industrial applications. The company has established key revenue streams from both domestic and international markets, capitalizing on demand for automation and precision measurement solutions. Significant partnerships with manufacturers and distributors enhance its market reach and contribute to sales. Additionally, the company may engage in service contracts and maintenance agreements, which provide a steady income stream as clients seek ongoing support for their equipment.

Aichi Tokei Denki Co., Ltd. Financial Statement Overview

Summary

Strong fundamentals supported by solid revenue growth and improving profitability (net margin 6.51% in 2025) plus a very conservative balance sheet (debt-to-equity 0.02; equity ratio 74.58%). Cash flow is the main drag, with weaker free cash flow and low FCF-to-net income (0.07).

Income Statement

Aichi Tokei Denki Co., Ltd. has demonstrated strong revenue growth with a consistent increase in total revenue over the past years, achieving a 5.98% growth from 2024 to 2025. The gross profit margin remains healthy at 22.81% for 2025, although slightly lower than previous years. Net profit margin has improved to 6.51% in 2025, showcasing enhanced profitability. The EBIT and EBITDA margins also indicate solid operational efficiency, with values of 7.26% and 10.72% respectively for 2025.

Balance Sheet

The company's balance sheet reflects robust financial health with a low debt-to-equity ratio of 0.02, indicating minimal leverage and a strong equity base. The return on equity (ROE) is 7.55% for 2025, reflecting decent profitability. The equity ratio stands at 74.58%, reinforcing strong financial stability and low financial risk.

Cash Flow

Cash flow analysis reveals a decline in free cash flow from the previous year, impacting the free cash flow growth rate. However, the operating cash flow remains positive, and the operating cash flow to net income ratio is 0.53, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.07, suggesting room for improvement in cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	54.97B	54.29B	51.23B	50.16B	46.48B	46.23B
Gross Profit	12.81B	12.38B	11.99B	12.31B	11.58B	11.49B
EBITDA	5.70B	5.82B	5.37B	5.83B	4.43B	3.98B
Net Income	3.81B	3.53B	3.17B	3.46B	2.79B	2.99B
Balance Sheet
Total Assets	60.41B	62.72B	61.40B	56.32B	52.23B	57.17B
Cash, Cash Equivalents and Short-Term Investments	9.43B	10.27B	10.83B	11.30B	10.74B	13.84B
Total Debt	833.00M	957.00M	1.18B	1.25B	1.22B	6.09B
Total Liabilities	13.61B	15.93B	17.24B	17.92B	17.00B	22.81B
Stockholders Equity	46.80B	46.79B	44.16B	38.40B	35.23B	34.36B
Cash Flow
Free Cash Flow	919.50M	238.00M	506.00M	1.08B	2.53B	2.88B
Operating Cash Flow	1.31B	1.86B	1.74B	1.88B	3.12B	4.19B
Investing Cash Flow	-576.00M	738.00M	-1.09B	-683.00M	2.59B	-2.42B
Financing Cash Flow	-370.50M	-1.35B	-1.18B	-828.00M	-5.93B	-1.02B

Aichi Tokei Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2690.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7723, the sentiment is Positive. The current price of 2690 is below the 20-day moving average (MA) of 3199.25, below the 50-day MA of 2930.82, and above the 200-day MA of 2599.35, indicating a bullish trend. The MACD of 90.95 indicates Positive momentum. The RSI at 70.74 is Negative, neither overbought nor oversold. The STOCH value of 82.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7723.

Aichi Tokei Denki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7723	80 Outperform	¥51.47B	11.75	―	3.21%	7.99%	50.13%
7715	79 Outperform	¥57.62B	11.67	―	1.94%	-4.17%	-7.07%
6824	77 Outperform	¥61.63B	13.52	―	1.12%	14.84%	7.57%
6800	74 Outperform	¥77.62B	38.22	―	2.20%	4.75%	164.54%
6817	70 Outperform	¥41.14B	11.44	―	4.53%	-2.57%	3.43%
6644	68 Neutral	¥81.56B	54.27	―	2.36%	2.78%	127.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Aichi Tokei Denki Co., Ltd. Corporate Events

Aichi Tokei Denki Overhauls Executive Lineup to Sharpen Operations and Sales

Aichi Tokei Denki Co., Ltd. has announced a comprehensive reshuffle of its executive officer lineup, effective April 1, 2026, following a resolution by its Board of Directors on February 27, 2026. The changes include new appointments, promotions, and transfers across production, R&D, technology, and nationwide sales functions, reflecting a broad refresh of its senior management structure.

The company has named Shinji Watanabe as Executive Officer overseeing the Okazaki Plant and Gas Equipment Manufacturing Division, while several executives, including Kazuhisa Mori, Osamu Hashimoto, Tomohiro Kawakami, and Kenji Takeda, have been promoted within the Sales Headquarters. In technology and development, responsibilities have been realigned among Yutaka Yoshida, Kazuki Watanabe, and Mitsuru Saito, signaling an effort to strengthen operational execution, regional sales leadership, and R&D governance to support the firm’s future business strategy.

The most recent analyst rating on (JP:7723) stock is a Buy with a Yen3580.00 price target. To see the full list of analyst forecasts on Aichi Tokei Denki Co., Ltd. stock, see the JP:7723 Stock Forecast page.

Aichi Tokei Denki Completes ¥167.9 Million Share Buyback

Aichi Tokei Denki has completed a share buyback program authorized by its Board of Directors, repurchasing 60,000 shares of its common stock on the Tokyo Stock Exchange between January 5 and January 30, 2026, for a total of ¥167.9 million. The repurchased amount corresponds to the full volume approved under the December 25, 2025 resolution, representing approximately 0.39% of outstanding shares (excluding treasury stock), and underscores the company’s ongoing capital policy efforts to manage its equity base and potentially enhance shareholder value through tighter share float and more efficient balance sheet utilization.

The most recent analyst rating on (JP:7723) stock is a Hold with a Yen2884.00 price target. To see the full list of analyst forecasts on Aichi Tokei Denki Co., Ltd. stock, see the JP:7723 Stock Forecast page.

Aichi Tokei Denki Lifts Earnings and Dividend Outlook on Share Sale Gain and Solid Demand

Aichi Tokei Denki has decided to sell a portion of its listed investment securities as part of a review of policy-held and cross-shareholdings to improve capital efficiency, expecting to book an extraordinary gain of about ¥1.2 billion from the February–March 2026 transaction. Reflecting stronger-than-planned domestic and overseas demand, a favorable product mix, and the anticipated gain on the sale, the company raised its full-year forecast for the fiscal year ending March 31, 2026, including a 1.3% increase in net sales and a roughly 26% jump in profit attributable to owners of parent versus its previous outlook, and upgraded its year-end dividend forecast from ¥45 to ¥68 per share, lifting the projected annual dividend to ¥113 as it moves toward a 40% payout ratio, signaling a more shareholder-friendly capital policy and improved earnings momentum.

The most recent analyst rating on (JP:7723) stock is a Hold with a Yen2831.00 price target. To see the full list of analyst forecasts on Aichi Tokei Denki Co., Ltd. stock, see the JP:7723 Stock Forecast page.

Aichi Tokei Denki Lifts Earnings and Dividend Outlook on Strong Nine-Month Results

Aichi Tokei Denki reported consolidated net sales of ¥41.6 billion for the nine months ended December 31, 2025, up 6.9% year on year, with operating profit surging 45.6% to ¥3.3 billion and profit attributable to owners of parent climbing 42.0% to ¥2.8 billion, reflecting a strong recovery in profitability. Total assets rose to ¥64.9 billion and the equity-to-asset ratio improved to 76.7%, underscoring a robust financial position, while the company revised its full-year forecast upward to ¥57.66 billion in sales and ¥4.62 billion in net profit, and lifted its annual dividend outlook to ¥113 per share, signaling growing shareholder returns backed by stronger earnings momentum.

The most recent analyst rating on (JP:7723) stock is a Hold with a Yen2831.00 price target. To see the full list of analyst forecasts on Aichi Tokei Denki Co., Ltd. stock, see the JP:7723 Stock Forecast page.

Aichi Tokei Denki Announces Modest Share Buyback for Restricted Stock Compensation

Aichi Tokei Denki’s board has approved a share buyback of up to 60,000 common shares, representing about 0.39% of its outstanding shares (excluding treasury stock), with a maximum acquisition cost of ¥180 million. The shares will be purchased on the Tokyo Stock Exchange between January 5 and January 30, 2026, and are intended to be used as treasury stock for future grants under the company’s restricted stock compensation program, signaling continued commitment to stock-based incentives while having only a modest impact on the overall capital structure given the company’s current treasury share holdings.

The most recent analyst rating on (JP:7723) stock is a Buy with a Yen2950.00 price target. To see the full list of analyst forecasts on Aichi Tokei Denki Co., Ltd. stock, see the JP:7723 Stock Forecast page.