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

• Market Cap: ¥14.38B
• Dividend Yield: 3.16%
• Average Volume (3M): 52.42K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.60
• Revenue Growth: 2.58%
• EPS Growth: -53.08%
• Country: JP
• Employees: 962
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 8.84
• Shares Outstanding: 30,265,923
• 10 Day Avg. Volume: 40,250
• 30 Day Avg. Volume: 52,423
• PEG Ratio: -0.38
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.38
• 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: ¥476.00
• Price Target Upside: 0.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• 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. Business Overview & Revenue Model

Company Description

Seed 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 Money

Seed 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.23B	32.40B	30.59B	28.84B	28.62B
Gross Profit	14.63B	14.18B	11.62B	12.01B	12.41B
EBITDA	5.05B	4.88B	2.83B	4.45B	4.55B
Net Income	1.09B	1.96B	-316.09M	1.15B	1.13B
Balance Sheet
Total Assets	51.76B	49.57B	40.01B	41.79B	41.26B
Cash, Cash Equivalents and Short-Term Investments	7.12B	9.89B	4.94B	3.88B	3.96B
Total Debt	26.26B	24.30B	20.97B	22.09B	22.93B
Total Liabilities	33.38B	31.92B	27.87B	29.25B	29.61B
Stockholders Equity	18.06B	17.36B	11.86B	12.26B	11.49B
Cash Flow
Free Cash Flow	-1.70B	2.19B	2.79B	2.15B	1.52B
Operating Cash Flow	2.98B	6.02B	3.35B	3.27B	3.69B
Investing Cash Flow	-4.57B	-3.76B	-440.73M	-881.61M	-1.66B
Financing Cash Flow	-1.13B	2.64B	-1.82B	-2.42B	-1.73B

Seed Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 475.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7782	77 Outperform	¥3.87B	11.12		1.94%	11.46%	42.37%
7980	76 Outperform	¥5.75B	7.36		1.85%	8.60%	33.64%
7743	72 Outperform	¥14.38B	12.97		3.16%	2.58%	-53.08%
5889	70 Outperform	¥52.48B	12.79		2.03%	17.45%	43.39%
7780	69 Neutral	¥89.54B	15.90	6.62%	2.39%	4.56%	24.10%
3046	68 Neutral	¥182.99B	23.39	29.03%	1.16%	18.75%	179.55%
Sector *	65 Neutral	¥355.44B	11.10	-2.99%	2.49%	11.76%	-10.16%

Seed Co., Ltd. Corporate Events

Seed Co., Ltd. Addresses Prime Market Compliance Challenges

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

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

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

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

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

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.