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

• Market Cap: ¥17.61B
• Dividend Yield: 2.6%
• Average Volume (3M): 56.76K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.67
• Revenue Growth: 2.38%
• EPS Growth: -48.68%
• 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: 68,190
• 30 Day Avg. Volume: 56,756
• 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 ▲(5.99% 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.

Seed Co., Ltd. Business Overview & Revenue Model

Company Description

Seed Co., Ltd. (7743) is a prominent player in the agricultural sector, specializing in the production and distribution of high-quality seeds for various crops. The company operates primarily in the seed industry, focusing on improving agricultural productivity through innovative seed technology. Seed Co. offers a diverse range of products, including hybrid seeds and genetically modified organisms (GMOs), catering to the needs of farmers and agricultural businesses to enhance crop yield and resilience.

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: Positive
• Last Price: 551.00
• 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:7743, the sentiment is Positive. The current price of 551 is below the 20-day moving average (MA) of 557.75, above the 50-day MA of 550.30, and above the 200-day MA of 495.05, indicating a bullish trend. The MACD of 9.05 indicates Negative momentum. The RSI at 56.37 is Neutral, neither overbought nor oversold. The STOCH value of 59.80 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7980	75 Outperform	¥5.61B	8.43	―	1.90%	5.45%	0.23%
5889	73 Outperform	¥48.89B	12.02	―	3.15%	12.18%	34.17%
7782	73 Outperform	¥3.40B	9.24	―	2.21%	16.73%	66.79%
7780	69 Neutral	€93.27B	19.20	6.01%	2.28%	3.13%	2.91%
7743	67 Neutral	¥17.61B	15.80	―	2.60%	2.38%	-48.68%
3046	64 Neutral	$173.65B	20.85	28.56%	1.62%	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. Expands Production Capacity with New Asset Acquisition

SEED Co., Ltd. announced its decision to acquire new fixed assets to enhance production capacity as part of its medium-term management plan. The expansion at the Kounosu Laboratory will increase production capacity by over 150% and support the introduction of next-generation silicone hydrogel lenses, positioning the company to better capture market growth.

Seed Co., Ltd. Reports Strong Growth in Q1 2025

Seed Co., Ltd. reported a 3.3% increase in net sales for the three months ending June 30, 2025, with significant growth in operating profit by 53.7% compared to the previous year. The company has expanded its consolidation scope by adding five new companies, indicating a strategic move to strengthen its market position. Despite a slight decrease in net assets and comprehensive income, the company maintains a positive outlook with an 11.3% projected increase in net sales for the fiscal year ending March 31, 2026.