Noritsu Koki Co., Ltd. (7744) AI Stock Analysis

• Market Cap: ¥201.79B
• Dividend Yield: 4.07%
• Average Volume (3M): 257.03K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.00
• Revenue Growth: 9.35%
• EPS Growth: 8.92%
• Country: JP
• Employees: 1,239
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 57.18
• Shares Outstanding: 107,438,920
• 10 Day Avg. Volume: 338,570
• 30 Day Avg. Volume: 257,033
• PEG Ratio: 0.20
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 1.74
• P/FCF Ratio: 5.98
• 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: 82 Outperform
• Price Target: ¥2,187.00 ▲(15.78% Upside)

Noritsu Koki Co., Ltd. receives a strong overall stock score due to its robust financial performance, attractive valuation, and positive technical indicators. The company's low P/E ratio and high dividend yield make it an appealing investment, while its strong upward price trend further supports its potential for growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and effective product adoption, supporting long-term business sustainability.

Cash Generation

Strong cash generation enhances financial flexibility, enabling strategic investments and resilience against economic fluctuations.

Financial Stability

Low leverage reduces financial risk and enhances the company's ability to withstand economic downturns, supporting long-term stability.

Negative Factors

Operational Cost Pressures

Decreasing EBIT margins may indicate rising operational costs, which could impact profitability if not managed effectively.

Cash Conversion Challenges

Challenges in converting income into cash can strain liquidity, potentially affecting the company's ability to fund operations and growth.

Profitability Concerns

Moderate return on equity suggests limited efficiency in generating profits from shareholders' equity, which could affect investor confidence.

Noritsu Koki Co., Ltd. Business Overview & Revenue Model

Company Description

Noritsu Koki Co., Ltd. (7744) is a Japanese company primarily engaged in the manufacturing and sale of imaging equipment and related services. The company operates in several sectors, including photo imaging, printing solutions, and digital imaging technology. Noritsu is known for its innovative products such as digital minilabs, photo printers, and film processing machines, catering to both professional and consumer markets.

How the Company Makes Money

Noritsu Koki generates revenue through various streams, primarily by selling imaging equipment and systems to professional labs, retail outlets, and individual consumers. The company offers a range of products, including high-quality photo printers and digital minilab systems, which are essential for photo processing and printing services. Additionally, Noritsu earns revenue from the sale of consumables, such as printing paper and inks, that are used in conjunction with their imaging equipment. The company also provides maintenance services and software solutions, contributing to recurring revenue. Strategic partnerships with photography-related businesses and technology firms further enhance its market reach and profitability, while ongoing innovation in imaging technology helps to attract new customers and retain existing ones.

Noritsu Koki Co., Ltd. Financial Statement Overview

Summary

Noritsu Koki Co., Ltd. demonstrates a strong financial position with effective revenue growth and a solid balance sheet. However, declining profit margins and cash flow challenges in the TTM period highlight areas for improvement. The company should focus on enhancing operational efficiency and cash flow management to sustain its growth trajectory and financial stability.

Income Statement

Noritsu Koki Co., Ltd. shows a solid performance in its income statement with a consistent revenue growth rate of 2.59% in the TTM period. The gross profit margin is strong at 49.72%, indicating effective cost management. However, the net profit margin has decreased from 15.13% in 2024 to 10.85% in the TTM period, which may suggest rising expenses or other operational challenges. The EBIT and EBITDA margins have also declined, reflecting potential pressure on operating efficiency.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.16, indicating a conservative leverage approach. The return on equity is moderate at 5.49%, showing room for improvement in generating returns for shareholders. The equity ratio is healthy, suggesting a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a concerning decline in free cash flow growth by 47.49% in the TTM period, which could impact future investments and liquidity. The operating cash flow to net income ratio is 0.37, indicating a weaker conversion of income into cash. However, the free cash flow to net income ratio remains high at 0.90, suggesting that the company still generates substantial cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	114.36B	106.54B	90.05B	73.52B	54.48B	57.37B
Gross Profit	56.98B	52.66B	40.08B	29.53B	24.76B	29.78B
EBITDA	27.33B	26.50B	19.46B	10.99B	12.85B	10.82B
Net Income	16.54B	16.12B	10.20B	101.55B	5.12B	10.09B
Balance Sheet
Total Assets	296.93B	299.37B	279.47B	307.26B	264.32B	235.85B
Cash, Cash Equivalents and Short-Term Investments	90.25B	93.23B	70.57B	96.82B	38.67B	69.93B
Total Debt	35.77B	37.38B	42.58B	51.08B	104.45B	0.00
Total Liabilities	74.11B	76.41B	73.62B	114.39B	137.41B	116.66B
Stockholders Equity	222.70B	222.25B	205.38B	192.52B	111.21B	105.42B
Cash Flow
Free Cash Flow	15.81B	30.96B	-33.62B	9.78B	1.71B	5.37B
Operating Cash Flow	17.21B	32.59B	-31.59B	11.74B	3.91B	8.65B
Investing Cash Flow	-1.02B	38.00M	20.01B	93.39B	-40.46B	-21.16B
Financing Cash Flow	-15.18B	-11.83B	-15.74B	-47.59B	4.28B	38.57B

Noritsu Koki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1889.00
• 50DMA: Positive
• 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:7744, the sentiment is Positive. The current price of 1889 is above the 20-day moving average (MA) of 1857.75, above the 50-day MA of 1772.72, and above the 200-day MA of 1604.98, indicating a bullish trend. The MACD of 36.54 indicates Positive momentum. The RSI at 59.89 is Neutral, neither overbought nor oversold. The STOCH value of 55.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7744.

Noritsu Koki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7744	82 Outperform	¥201.79B	12.15	―	4.07%	9.35%	8.92%
6794	69 Neutral	¥58.46B	14.11	―	2.73%	6.41%	16.71%
6632	68 Neutral	¥180.24B	10.61	13.53%	1.34%	0.48%	-1.86%
6952	66 Neutral	¥287.43B	22.95	5.53%	3.55%	-5.43%	55.21%
6810	66 Neutral	¥104.58B	19.99	―	1.99%	3.71%	-3.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6753	60 Neutral	¥495.51B	8.45	―	―	-10.88%	―

Noritsu Koki Co., Ltd. Corporate Events

Noritsu Koki Reports Q3 Revenue Growth Amid Profitability Challenges

Noritsu Koki Co., Ltd. reported a 10% increase in revenue for the third quarter of fiscal year 2025, reaching 86,253 million yen. Despite this growth, the company’s total comprehensive income decreased by 24.4%, highlighting challenges in maintaining profitability. The company also implemented a 3-for-1 stock split and adjusted its financial forecasts to reflect changes in accounting policies, indicating a strategic shift to enhance shareholder value.