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

• Market Cap: ¥13.62B
• Dividend Yield: 3.31%
• Average Volume (3M): 88.22K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.59
• Revenue Growth: 2.58%
• EPS Growth: -53.08%
• Country: JP
• Employees: 962
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 8.84
• Shares Outstanding: 30,265,923
• 10 Day Avg. Volume: 76,290
• 30 Day Avg. Volume: 88,223
• PEG Ratio: 0.34
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.90
• 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

• Rating: 64 Neutral
• Price Target: ¥476.00 ▲(5.08%Upside)

The stock score reflects a balance of moderate valuation and concerning technical indicators. The financial performance shows revenue growth and operational efficiency, yet cash flow management issues and declining net income raise risks. The attractive dividend yield supports the valuation score, but weak market momentum and technical signals suggest caution.

Seed Co., Ltd. Business Overview & Revenue Model

Company Description

Seed Co., Ltd. (7743) is a Japan-based company primarily engaged in the development, production, and sale of optical devices. The company specializes in the manufacture of contact lenses and related products, catering to both domestic and international markets. Seed Co. is known for its commitment to innovation and quality, offering a wide range of contact lenses that include daily, weekly, and monthly disposable lenses, as well as specialty lenses for specific vision corrections. In addition to lenses, the company also provides lens care products and related accessories, further enhancing its comprehensive product portfolio.

How the Company Makes Money

Seed Co., Ltd. makes money through the sale of its various optical products, primarily contact lenses. The company's revenue model is driven by the production and distribution of a broad range of contact lenses, which include daily disposable lenses, extended wear lenses, and specialty lenses designed for astigmatism and other vision impairments. Key revenue streams include retail sales through optical shops and partnerships with eye care professionals who recommend Seed's products to their patients. The company also benefits from its international sales operations, tapping into various markets outside Japan to expand its customer base. Additionally, Seed Co. generates revenue from its lens care products, which complement its contact lens offerings and encourage repeat purchases. Strategic partnerships and collaborations in research and development further bolster Seed Co.'s market position and revenue potential by ensuring a steady pipeline of innovative products.

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
	EBIT
1.56B	2.05B	629.92M	1.18B	1.20B
	EBITDA
5.05B	4.88B	2.83B	4.45B	4.55B
	Net Income Common Stockholders
1.09B	1.96B	-316.09M	1.15B	1.13B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.12B	9.89B	4.94B	3.88B	3.96B
	Total Assets
51.76B	49.57B	40.01B	41.79B	41.26B
	Total Debt
26.26B	24.30B	20.97B	22.09B	22.93B
	Net Debt
19.15B	14.41B	16.03B	18.22B	18.97B
	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: Negative
• Last Price: 453.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7743, the sentiment is Negative. The current price of 453 is above the 20-day moving average (MA) of 444.35, below the 50-day MA of 454.40, and below the 200-day MA of 480.57, indicating a neutral trend. The MACD of -3.33 indicates Negative momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 83.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	76 Outperform	¥5.66B	7.25		1.88%	8.60%	33.64%
3046	74 Outperform	$201.19B	29.16	26.63%	1.16%	17.06%	171.01%
5889	72 Outperform	¥59.32B	14.64		1.83%	17.45%	43.39%
7782	67 Neutral	¥3.69B	10.58		2.04%	11.46%	42.37%
7743	64 Neutral	¥13.62B	12.47		3.31%	2.58%	-53.08%
7780	61 Neutral	€80.32B	14.27	6.62%	2.96%	4.56%	24.11%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%

Seed Co., Ltd. Corporate Events

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.