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Seed Co., Ltd. (JP:7743)
:7743
Japanese Market
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Seed Co., Ltd. (7743) AI Stock Analysis

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JP:7743

Seed Co., Ltd.

(7743)

Rating:72Outperform
Price Target:
¥519.00
▲(9.26%Upside)
The stock score is primarily driven by strong valuation metrics, including a reasonable P/E ratio and an attractive dividend yield. Financial performance is stable, but attention to cash flow management is necessary due to declining net income and negative free cash flow. Technical analysis supports a positive outlook with upward momentum indicators.

Seed Co., Ltd. (7743) vs. iShares MSCI Japan ETF (EWJ)

Seed Co., Ltd. Business Overview & Revenue Model

Company DescriptionSeed Co., Ltd. (7743) is a prominent Japanese company specializing in the development, manufacturing, and sale of medical devices and optical products. The company operates primarily in the healthcare sector, offering a range of products such as contact lenses, lens care products, and other ophthalmic devices. Seed Co., Ltd. is committed to enhancing vision care and providing innovative solutions to meet the diverse needs of its customers.
How the Company Makes MoneySeed Co., Ltd. generates revenue primarily through the sale of its optical and medical products. The company's key revenue streams include the production and distribution of contact lenses and related lens care products, which are sold directly to consumers and through partnerships with healthcare providers and retailers. The company also collaborates with various opticians and eye care professionals to expand its market reach. Significant factors contributing to its earnings include continuous innovation in product development, strategic marketing efforts, and maintaining strong relationships with distribution partners.

Seed Co., Ltd. Financial Statement Overview

Summary
Seed Co., Ltd. shows growth in revenue and efficient operational management. However, declining net income and negative free cash flow pose concerns. The company's balance sheet remains stable, though high debt levels may require monitoring. Overall, the financial health is sound, but attention to cash flow management and profitability is needed.
Income Statement
75
Positive
The company has shown consistent revenue growth over the past years, with a revenue increase of 2.58% in the last fiscal year. The gross profit margin remains strong but has slightly decreased over time. The net profit margin showed a significant decline, primarily due to a substantial drop in net income. EBIT and EBITDA margins are stable, suggesting efficient operations despite the net income decline.
Balance Sheet
70
Positive
The balance sheet reveals a stable equity position with a debt-to-equity ratio that has remained relatively constant. The return on equity has been affected by the reduced net income, impacting overall profitability. The equity ratio remains healthy, indicating a solid foundation, but the high total debt level poses a risk.
Cash Flow
60
Neutral
Operating cash flow has decreased, reflecting the decline in net income. Free cash flow turned negative in the last fiscal year, highlighting cash management challenges. The operating cash flow to net income ratio suggests cash flow generation is still fair, but free cash flow to net income indicates potential liquidity issues.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue33.23B32.40B30.59B28.84B28.62B
Gross Profit14.63B14.18B11.62B12.01B12.41B
EBITDA5.05B4.88B2.83B4.45B4.55B
Net Income1.09B1.96B-316.09M1.15B1.13B
Balance Sheet
Total Assets51.76B49.57B40.01B41.79B41.26B
Cash, Cash Equivalents and Short-Term Investments7.12B9.89B4.94B3.88B3.96B
Total Debt26.26B24.30B20.97B22.09B22.93B
Total Liabilities33.38B31.92B27.87B29.25B29.61B
Stockholders Equity18.06B17.36B11.86B12.26B11.49B
Cash Flow
Free Cash Flow-1.70B2.19B2.79B2.15B1.52B
Operating Cash Flow2.98B6.02B3.35B3.27B3.69B
Investing Cash Flow-4.57B-3.76B-440.73M-881.61M-1.66B
Financing Cash Flow-1.13B2.64B-1.82B-2.42B-1.73B

Seed Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price475.00
Price Trends
50DMA
454.54
Positive
100DMA
466.74
Positive
200DMA
475.38
Negative
Market Momentum
MACD
3.57
Positive
RSI
54.98
Neutral
STOCH
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7743, the sentiment is Positive. The current price of 475 is above the 20-day moving average (MA) of 466.55, above the 50-day MA of 454.54, and below the 200-day MA of 475.38, indicating a neutral trend. The MACD of 3.57 indicates Positive momentum. The RSI at 54.98 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7743.

Seed Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥3.87B11.12
1.94%11.46%42.37%
76
Outperform
¥5.75B7.36
1.85%8.60%33.64%
72
Outperform
¥14.38B12.97
3.16%2.58%-53.08%
70
Outperform
¥52.48B12.79
2.03%17.45%43.39%
69
Neutral
¥89.54B15.906.62%2.39%4.56%24.10%
68
Neutral
¥182.99B23.3929.03%1.16%18.75%179.55%
65
Neutral
¥355.44B11.10-2.99%2.49%11.76%-10.16%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7743
Seed Co., Ltd.
475.00
-66.18
-12.23%
JP:5889
Japan Eyewear Holdings Co.,Ltd.
2,148.00
-984.82
-31.44%
JP:7782
Sincere Co. LTD.
618.00
193.05
45.43%
JP:7980
Shigematsu Works Co., Ltd.
815.00
16.78
2.10%
JP:7780
Menicon Co
1,171.00
-183.09
-13.52%
JP:3046
JINS HOLDINGS
7,840.00
3,563.93
83.35%

Seed Co., Ltd. Corporate Events

Seed Co., Ltd. Addresses Prime Market Compliance Challenges
Jun 24, 2025

Seed Co., Ltd. announced that it is currently not in compliance with the Tokyo Stock Exchange Prime Market’s listing maintenance standards due to its tradable share market capitalization. The company has entered an improvement period until March 31, 2026, to meet these standards, failing which it may be delisted. As part of its medium-term management plan, Seed Co., Ltd. is working to boost its global contact lens market presence by increasing production capacity, meeting market needs, and promoting sustainable development goals.

SEED Co., Ltd. Updates Mid-Term Management Plan
May 20, 2025

SEED Co., Ltd. has updated its Mid-Term Management Plan, originally announced in January 2024, to reflect changes in the business environment and recent sales progress. The company remains committed to its original goals and has reviewed its priority issues to align with its purpose and management philosophy.

SEED Co., Ltd. Announces New Director Appointment
May 20, 2025

SEED Co., Ltd. has announced a planned change in its board of directors, with the appointment of Fujita Reiji as a new director. This strategic move is expected to be finalized at the upcoming Ordinary General Meeting of Shareholders, potentially impacting the company’s governance and strategic direction.

SEED Co., Ltd. Announces Dividend Payment for Fiscal Year 2025
May 20, 2025

SEED Co., Ltd. announced a decision to pay a dividend of 15 yen per share from retained earnings, with a record date of March 31, 2025. This move aligns with the company’s policy to provide stable returns to shareholders while maintaining a strong management foundation, and it will be proposed at the upcoming Ordinary General Meeting of Shareholders.

Seed Co., Ltd. Reports Decline in Profits Despite Sales Growth
May 12, 2025

Seed Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a slight increase in net sales by 2.6% to 33,231 million yen. However, the company experienced a significant decline in profits, with operating profit down by 23.8% and ordinary profit decreasing by 35.3%. The profit attributable to owners of the parent dropped by 44.4% compared to the previous year. Despite these challenges, the company forecasts a positive outlook for the fiscal year ending March 31, 2026, with expected growth in net sales and profits, indicating strategic adjustments to improve financial performance.

SEED Co., Ltd. Revises Full-Year Forecasts Amid Production Expansion
May 7, 2025

SEED Co., Ltd. has revised its full-year operating results forecast for the fiscal year ending March 31, 2025, due to increased production capacity and stabilization of operations. Despite initial setbacks caused by machinery issues, the company expects to exceed its previous forecasts, driven by improved production efficiency and tax benefits from overseas subsidiaries.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025