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

• Market Cap: ¥39.93B
• Dividend Yield: 2.88%
• Average Volume (3M): 17.86K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.80
• Revenue Growth: 5.64%
• EPS Growth: 27.01%
• Country: JP
• Employees: 1,739
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 50.22
• Shares Outstanding: 15,420,000
• 10 Day Avg. Volume: 13,650
• 30 Day Avg. Volume: 17,856
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥2,723.00
• Price Target Upside: 4.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥2,723.00 ▲(4.65% Upside)

Aichi Tokei Denki Co., Ltd. has a robust financial performance with strong revenue and profit growth, supported by a solid balance sheet. The stock is showing strong technical indicators, though it may be overbought. It also has an attractive valuation with a low P/E ratio and a good dividend yield, making it a compelling investment option.

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

Company Description

Aichi Tokei Denki Co., Ltd. (7723) is a Japanese company primarily engaged in the manufacturing and sale of various measuring instruments. The company operates in several sectors, including industrial equipment, environmental systems, and information systems. It offers a range of products such as flow meters, gas meters, water meters, and other precision measuring devices used in various industries. Aichi Tokei Denki is known for its innovative approach to integrating advanced technology into its products, ensuring high accuracy and reliability.

How the Company Makes Money

Aichi Tokei Denki Co., Ltd. generates revenue through the sale of its measuring instruments and systems. The company's key revenue streams include the industrial sector, where it supplies flow meters and other precision instruments used in manufacturing processes, and the environmental sector, where its products are used for monitoring and controlling water and gas distribution. Revenue is also derived from the information systems sector, where the company provides integrated solutions for data collection and management. Strategic partnerships with utility companies and industrial clients are significant contributors to its earnings, allowing the company to maintain a steady demand for its products and services.

Aichi Tokei Denki Co., Ltd. Financial Statement Overview

Summary

Aichi Tokei Denki Co., Ltd. shows strong financial performance with robust revenue and profit growth. The company benefits from a solid balance sheet with low leverage and high equity, although cash flow generation has some areas for improvement.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	54.29B	51.23B	50.16B	46.48B	46.23B
Gross Profit	12.38B	11.99B	12.31B	11.58B	11.49B
EBITDA	5.82B	4.72B	5.01B	4.43B	3.98B
Net Income	3.53B	3.17B	3.46B	2.79B	2.99B
Balance Sheet
Total Assets	62.72B	61.40B	56.32B	52.23B	57.17B
Cash, Cash Equivalents and Short-Term Investments	10.27B	10.83B	11.30B	10.74B	13.84B
Total Debt	957.00M	1.18B	1.25B	1.22B	6.09B
Total Liabilities	15.93B	17.24B	17.92B	17.00B	22.81B
Stockholders Equity	46.79B	44.16B	38.40B	35.23B	34.36B
Cash Flow
Free Cash Flow	238.00M	506.00M	1.08B	2.53B	2.88B
Operating Cash Flow	1.86B	1.74B	1.88B	3.12B	4.19B
Investing Cash Flow	738.00M	-1.09B	-683.00M	2.59B	-2.42B
Financing Cash Flow	-1.35B	-1.18B	-828.00M	-5.93B	-1.02B

Aichi Tokei Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2602.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 2602 is above the 20-day moving average (MA) of 2489.40, above the 50-day MA of 2360.08, and above the 200-day MA of 2056.38, indicating a bullish trend. The MACD of 61.78 indicates Negative momentum. The RSI at 68.80 is Neutral, neither overbought nor oversold. The STOCH value of 79.57 is Neutral, 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
7715	80 Outperform	¥39.03B	7.03		2.15%	-0.10%	1.43%
7723	78 Outperform	¥39.93B	10.27		2.88%	5.64%	27.01%
6644	74 Outperform	¥63.69B	16.95		1.64%	2.83%	79.40%
6800	67 Neutral	¥33.55B	40.96		3.31%	4.30%	-66.03%
6817	63 Neutral	¥34.70B	19.50		5.02%	-3.69%	-22.95%
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%
6824	―	¥38.77B	10.28		1.59%	―	―

Aichi Tokei Denki Co., Ltd. Corporate Events

Aichi Tokei Denki Reports Strong Q1 2025 Financial Results and Dividend Increase

Aichi Tokei Denki Co., Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 5.8% and operating profit surging by 76.5% compared to the previous year. The company also announced a forecasted increase in annual dividends, reflecting confidence in continued growth and stability, which is likely to positively impact stakeholders and enhance its industry positioning.

Aichi Tokei Denki Completes Treasury Shares Disposal for Stock Compensation

Aichi Tokei Denki Co., Ltd. has completed the payment procedure for the disposal of 19,300 treasury shares as restricted stock compensation, a decision made at the Board of Directors meeting on June 25, 2025. This move is aimed at aligning the interests of the company’s directors and executive officers with those of its shareholders, potentially impacting the company’s governance and stakeholder relations positively.

Aichi Tokei Denki Announces Disposal of Treasury Shares as Restricted Stock Compensation

Aichi Tokei Denki Co., Ltd. has announced the disposal of 19,300 treasury shares as restricted stock compensation to align the interests of its directors and executive officers with shareholders. This move, approved by the Board of Directors, aims to enhance corporate value and ensure long-term value sharing, with specific conditions set for the transfer restrictions and potential organizational restructuring.

Aichi Tokei Denki Reports Strong Financial Growth and Increased Dividends for FY2025

Aichi Tokei Denki Co., Ltd. reported consolidated financial results for the fiscal year ending March 31, 2025, showing a 6% increase in net sales to ¥54,286 million and an 11.3% rise in profit attributable to owners of the parent. The company also announced an increase in dividends, reflecting a strong financial position and commitment to shareholder returns.

Aichi Tokei Denki Opposes Shareholder Proposal Amid Strategic Growth Plans

Aichi Tokei Denki Co., Ltd.’s Board of Directors has decided to oppose a shareholder proposal presented for the upcoming Annual General Meeting. The proposal includes agenda items like appropriation of surplus and amendments to the Articles of Incorporation related to cross-shareholdings. The Board argues that shareholder returns should align with the company’s medium to long-term business and financial strategies. The company’s Medium-Term Management Plan 2026 outlines significant investments in smart meter production and global expansion, with a focus on increasing efficiency and productivity to support future growth.