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

• Market Cap: ¥17.28B
• Dividend Yield: 2.65%
• Average Volume (3M): 68.49K
• Price to Earnings (P/E): 58.3
• Beta (1Y): 0.59
• Revenue Growth: 0.81%
• EPS Growth: -26.76%
• Country: JP
• Employees: 962
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 2.47
• 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): 41.3
• Revenue Forecast (FY): ¥35.30B

• Rating: 51 Neutral
• Price Target: ¥595.00 ▲(3.48% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held back mainly by weakening cash generation (negative TTM free cash flow) and meaningful leverage, despite steady revenue growth and improved profitability versus the prior loss year. Technicals are moderately supportive due to the price being above key moving averages, but momentum indicators are mixed. Valuation is a headwind given the very high P/E, only partly offset by the dividend yield.

Positive Factors

Gross margin strength

A ~44.8% gross margin indicates strong product economics for Seed's contact lenses, giving the business a durable buffer versus input-cost swings. Healthy gross margins support reinvestment in R&D and marketing and underpin sustainable operating leverage as sales scale.

Revenue growth and recovery

Consistent TTM revenue growth (~5.9%) combined with recovery from a prior loss demonstrates resilient end-market demand and management execution. This steady top-line expansion supports longer-term product adoption and lessens reliance on one-time boosts to earnings.

Positive operating cash flow

Positive operating cash flow (~¥2.4B) that covers net income indicates the core business generates real cash, supporting working capital needs and servicing obligations. This cash generation provides a durable financial cushion even as free cash flow recently swung negative.

Negative Factors

High leverage

Debt-to-equity around 1.39 signals meaningful leverage that constrains strategic flexibility. Elevated debt raises interest and refinancing risk, limits capacity for M&A or aggressive capex, and increases vulnerability to demand or margin shocks over the next several quarters.

Negative free cash flow

A swing to slightly negative FCF (~-¥0.2B) and a ~-116% TTM FCF decline suggest heavier investment or working-capital strain, reducing financial flexibility. Persistent negative FCF would pressure the ability to pay down debt, sustain dividends, or fund growth internally.

Thin operating and net margins

Operating margin near 6% and net margin ~4.1% leave limited room to absorb cost increases or competitive price pressure. Such thin margins constrain free cash flow upside and make earnings sensitive to small cost or sales-volume shifts over the medium term.

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

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Seed Co., Ltd. Financial Statement Overview

Summary

Revenue is growing (~5.9% TTM) with a healthy gross margin (~44.8%), and profitability has improved versus the 2023 loss year. However, margins remain thin (EBIT ~6.0%, net ~4.1%), leverage is elevated (debt-to-equity ~1.39), and cash conversion has deteriorated with slightly negative TTM free cash flow (~-¥0.2B) after a strong 2024.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew ~5.9% with a solid gross margin (~44.8%), indicating healthy product economics. Profitability, however, is modest at the bottom line (net margin ~4.1%) and operating profit remains thin (EBIT margin ~6.0%), suggesting limited pricing power and/or a higher cost base. Results have improved markedly versus the 2023 loss year, but net income is still below the stronger 2024 level, pointing to some earnings volatility.

Balance Sheet

Leverage is meaningful with debt running above equity (TTM debt-to-equity ~1.39), which can constrain flexibility in a softer demand or margin environment. Equity has grown versus 2023 and return on equity has recovered to ~7.6% in TTM (positive and improving), but it remains moderate relative to the leverage being carried. Overall balance sheet is workable, though debt levels are a clear watch item.

Cash Flow

Cash generation has weakened: TTM operating cash flow is positive (~¥2.4B) but free cash flow is slightly negative (~-¥0.2B) after being strongly positive in 2024. The sharp decline in free cash flow (TTM growth -116%) suggests heavier investment and/or working-capital drag. While operating cash flow still covers net income, the swing to negative free cash flow reduces financial flexibility near-term.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.57B	33.23B	32.40B	30.59B	28.84B	28.62B
Gross Profit	15.14B	14.63B	14.18B	11.62B	12.01B	12.41B
EBITDA	5.18B	5.05B	5.12B	2.83B	4.45B	4.55B
Net Income	1.17B	1.09B	1.96B	-316.09M	1.15B	1.13B
Balance Sheet
Total Assets	53.02B	51.76B	49.57B	40.01B	41.79B	41.26B
Cash, Cash Equivalents and Short-Term Investments	5.17B	7.12B	9.89B	4.94B	3.88B	3.96B
Total Debt	25.64B	26.26B	24.18B	20.89B	22.04B	22.86B
Total Liabilities	34.13B	33.38B	31.92B	27.87B	29.25B	29.61B
Stockholders Equity	18.58B	18.06B	17.36B	11.86B	12.26B	11.49B
Cash Flow
Free Cash Flow	-206.19M	-1.70B	2.19B	2.79B	2.15B	1.52B
Operating Cash Flow	2.43B	2.98B	6.02B	3.35B	3.27B	3.69B
Investing Cash Flow	-3.19B	-4.57B	-3.76B	-440.73M	-881.61M	-1.66B
Financing Cash Flow	-2.46B	-1.13B	2.64B	-1.82B	-2.42B	-1.73B

Seed Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 575.00
• 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 575 is above the 20-day moving average (MA) of 555.65, above the 50-day MA of 565.50, and above the 200-day MA of 537.11, indicating a bullish trend. The MACD of 8.13 indicates Negative momentum. The RSI at 52.27 is Neutral, neither overbought nor oversold. The STOCH value of 47.34 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
5889	78 Outperform	¥50.10B	12.81	―	3.22%	12.92%	29.48%
3360	75 Outperform	¥207.66B	15.29	9.53%	2.19%	8.90%	-3.71%
7780	74 Outperform	¥128.58B	9.26	7.81%	1.78%	3.17%	7.07%
7730	71 Outperform	¥148.57B	18.72	―	2.73%	5.10%	-26.13%
3046	65 Neutral	¥122.77B	23.93	27.95%	1.97%	17.13%	78.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7743	51 Neutral	¥17.28B	58.26	―	2.65%	0.81%	-26.76%

Seed Co., Ltd. Corporate Events

Seed Co. Posts Higher Nine-Month Profit and Confirms Full-Year Outlook

Seed Co., Ltd. reported consolidated net sales of ¥25.52 billion for the nine months ended December 31, 2025, up 1.3% year on year, with operating profit rising 2.2% to ¥1.29 billion and profit attributable to owners of parent increasing 9.8% to ¥905 million. Earnings per share climbed to ¥29.93, while total assets reached ¥53.02 billion and the capital adequacy ratio held steady at 35.0%, signaling a modest strengthening of its financial base.

The company kept its full-year forecast unchanged, projecting ¥37.0 billion in net sales, a 28.0% rise in operating profit to ¥2.0 billion, and an annual dividend of ¥15 per share, suggesting confidence in sustaining earnings momentum. Seed also reported significant changes in its consolidation scope, adding five subsidiaries including SEED CONTACT LENS (M) SDN. BHD and removing one European unit, indicating a continued strategic realignment of its overseas operations to support growth and profitability in key markets.

The most recent analyst rating on (JP:7743) stock is a Hold with a Yen642.00 price target. To see the full list of analyst forecasts on Seed Co., Ltd. stock, see the JP:7743 Stock Forecast page.