Seed Co., Ltd. (7743) AI Stock Analysis

• Market Cap: ¥17.10B
• Dividend Yield: 2.66%
• Average Volume (3M): 68.49K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.60
• Revenue Growth: 0.81%
• EPS Growth: -26.76%
• Country: JP
• Employees: 962
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 14.86
• Shares Outstanding: 30,265,923
• 10 Day Avg. Volume: 58,390
• 30 Day Avg. Volume: 68,493
• PEG Ratio: -0.25
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -8.65
• 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: 67 Neutral
• Price Target: ¥584.00 ▲(3.36% Upside)

The overall stock score of 67 reflects a stable financial performance with growth in revenue but concerns over declining net income and negative free cash flow. Technical indicators suggest a neutral to slightly bearish trend, while the valuation appears fair with a reasonable P/E ratio and attractive dividend yield. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for the company's products and effective market strategies, supporting long-term business stability.

Strong Gross Profit Margin

A strong gross profit margin reflects efficient production and pricing strategies, contributing to the company's ability to sustain profitability.

Stable Balance Sheet

A stable balance sheet with a consistent debt-to-equity ratio provides a solid foundation for financial health and future growth opportunities.

Negative Factors

Declining Net Income

A decline in net income can affect profitability and investor confidence, potentially limiting the company's ability to reinvest in growth initiatives.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, which could hinder the company's ability to fund operations and invest in future growth.

High Debt Levels

High debt levels can strain financial resources and limit flexibility, increasing the risk of financial distress in challenging market conditions.

Seed Co., Ltd. Business Overview & Revenue Model

Company Description

SEED Co.,Ltd. manufactures and supplies contact lenses, care products, spectacle frames, and other eye care products in Japan and internationally. The company offers SEED 1dayPure moisture daily disposable, SEED 1dayPure moisture multistage, SEED Eye coffret 1day UV, SEED 1dayPure EDOF, SEED PlusMode 1day Homme, and JILL STUART 1day UV contact lenses, as well as SEED 1dayPure moisture contact lenses for astigmatism. It also provides SEED 2weekPure moisture disposable contact lenses and SEED 2weekPure moisture multistage bifocal lenses, as well as SEED 2weekPure moisture contact lenses for astigmatism; SEED MonthlyFine UV and monthly color lens UV replacement contact lenses; rigid gas permeable contact lenses; and medical contact lenses. In addition, the company offers glass frames under the Vivid Moon, ViVi fleurs, and Plusmix brand names; and pharmaceutical products, such as Adeno Test AD, an adenovirus antigen detection agent, and other products for better vision. SEED Co., Ltd. was founded in 1957 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Seed Co., Ltd. generates revenue primarily through the sale of seeds, which includes hybrid and GMO varieties designed for different crops such as maize, soybeans, and cotton. The company also earns income from licensing its seed technology and intellectual property to other agricultural businesses, expanding its market reach. Additionally, Seed Co. engages in research and development partnerships with agricultural institutions and universities to innovate and improve seed varieties, which can lead to new products and revenue streams. The company's extensive distribution network and strong relationships with farmers further bolster its sales, as it provides not only seeds but also agronomic support and services, enhancing customer loyalty and driving repeat business.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.50B	33.23B	32.40B	30.59B	28.84B	28.62B
Gross Profit	14.72B	14.63B	14.18B	11.62B	12.01B	12.41B
EBITDA	5.17B	5.05B	5.12B	2.83B	4.45B	4.55B
Net Income	1.11B	1.09B	1.96B	-316.09M	1.15B	1.13B
Balance Sheet
Total Assets	51.99B	51.76B	49.57B	40.01B	41.79B	41.26B
Cash, Cash Equivalents and Short-Term Investments	6.11B	7.12B	9.89B	4.94B	3.88B	3.96B
Total Debt	26.09B	28.12B	24.30B	20.97B	22.09B	22.93B
Total Liabilities	33.77B	33.38B	31.92B	27.87B	29.25B	29.61B
Stockholders Equity	17.90B	18.06B	17.36B	11.86B	12.26B	11.49B
Cash Flow
Free Cash Flow	-1.81B	-1.70B	2.19B	2.79B	2.15B	1.52B
Operating Cash Flow	2.63B	2.98B	6.02B	3.35B	3.27B	3.69B
Investing Cash Flow	-4.80B	-4.57B	-3.76B	-440.73M	-881.61M	-1.66B
Financing Cash Flow	-1.27B	-1.13B	2.64B	-1.82B	-2.42B	-1.73B

Seed Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 565.00
• 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:7743, the sentiment is Neutral. The current price of 565 is below the 20-day moving average (MA) of 574.50, below the 50-day MA of 565.72, and above the 200-day MA of 507.52, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 44.25 is Neutral, neither overbought nor oversold. The STOCH value of 39.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7743.

Seed Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5889	79 Outperform	¥47.73B	11.30	―	3.31%	12.92%	29.48%
7980	75 Outperform	¥5.55B	9.76	―	1.92%	4.41%	-16.07%
7780	74 Outperform	¥120.12B	23.17	5.97%	1.78%	3.17%	7.07%
7743	67 Neutral	¥17.10B	12.43	―	2.66%	0.81%	-26.76%
7782	67 Neutral	¥3.32B	10.34	―	2.23%	12.03%	18.72%
3046	65 Neutral	¥129.77B	15.58	28.56%	1.97%	17.13%	78.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Seed Co., Ltd. Corporate Events

SEED Co., Ltd. Secures Subsidy to Boost Contact Lens Production

SEED Co., Ltd. has been awarded a subsidy under the ‘Large-Scale Growth Investment Subsidy for Labor-Saving Measures to Increase Wages at Medium-Sized and Small Enterprises’ by the Ministry of Economy, Trade and Industry. The subsidy will support SEED’s plan to expand production capacity, specifically for new material contact lenses, and is expected to result in a 5.50% salary increase for employees and a 5.00% increase for officers by the fiscal year ending March 2031. The financial impact on the current fiscal year is expected to be minor, with production facilities becoming operational by March 2028.

Seed Co., Ltd. Reports Strong Financial Growth and Expansion

Seed Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a notable increase in profits compared to the previous year. The company achieved a 1.9% increase in net sales, with significant growth in operating and ordinary profits by 29.4% and 47.1%, respectively. The profit attributable to owners of the parent rose by 51.6%, indicating strong operational performance. The company also expanded its consolidation scope by including five new companies, which may enhance its market positioning and operational capabilities.