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

• Market Cap: ¥44.64B
• Dividend Yield: 3.31%
• Average Volume (3M): 28.03K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.79
• Revenue Growth: 7.99%
• EPS Growth: 50.13%
• Country: JP
• Employees: 1,739
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 42.86
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,950.00 ▲(14.79% Upside)

Aichi Tokei Denki Co., Ltd. demonstrates strong financial performance with robust revenue and profit growth, supported by a solid balance sheet. The technical analysis indicates mixed signals with short-term bearish momentum but longer-term bullish trends. The valuation is reasonable, with a fair P/E ratio and an attractive dividend yield. These factors collectively contribute to a solid overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, positioning the company for continued expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and resilience in downturns.

Profitability

Improved profitability reflects efficient operations and cost management, contributing to sustainable earnings growth and shareholder value.

Negative Factors

Cash Flow Weakness

Declining free cash flow may limit the company's ability to fund new projects or return capital to shareholders, potentially impacting long-term growth.

Gross Profit Margin Decline

A declining gross profit margin could indicate rising costs or pricing pressures, which may affect future profitability if not addressed.

Cash Generation

Low cash generation relative to net income may constrain the company's ability to invest in growth opportunities or manage financial obligations efficiently.

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

Aichi Tokei Denki Co., Ltd. exhibits strong revenue and profit growth with stable margins, supported by a solid balance sheet characterized by low leverage and high equity. While cash flow generation shows some weaknesses, overall financial health remains robust, positioning the company well for future growth and stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• Last Price: 2570.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7723, the sentiment is Negative. The current price of 2570 is below the 20-day moving average (MA) of 2601.00, below the 50-day MA of 2690.06, and above the 200-day MA of 2330.82, indicating a neutral trend. The MACD of -33.98 indicates Positive momentum. The RSI at 43.58 is Neutral, neither overbought nor oversold. The STOCH value of 22.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
7715	80 Outperform	¥44.85B	7.97	―	1.99%	-4.17%	-7.07%
6800	79 Outperform	¥52.59B	17.62	―	2.14%	4.75%	164.54%
6824	76 Outperform	¥54.13B	15.29	―	1.10%	14.84%	7.57%
7723	73 Outperform	¥44.64B	11.41	―	3.31%	7.99%	50.13%
6817	70 Outperform	¥37.20B	18.48	―	4.52%	-2.57%	3.43%
6644	67 Neutral	¥59.89B	16.26	―	2.39%	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 Reports Strong Financial Growth and Increased Dividends

Aichi Tokei Denki Co., Ltd. reported a significant improvement in its financial performance for the six months ended September 30, 2025, with net sales increasing by 7.6% year-on-year. The company’s operating profit rose by 20.4%, and ordinary profit increased by 31.9%, indicating strong operational efficiency and market demand. The company also announced a forecasted increase in annual dividends, reflecting confidence in its continued financial stability and growth prospects.