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

• Market Cap: ¥246.62B
• Dividend Yield: 4.07%
• Average Volume (3M): 257.03K
• Price to Earnings (P/E): 14.5
• 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: 108,818,920
• 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: ¥2,604.00 ▲(37.85% 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

Free Cash Flow Growth

Sustained FCF growth near 26% supports durable capital allocation — funds for R&D, service expansion, buybacks or dividends. High FCF generation enhances resilience through cycles and funds reinvestment in imaging and software without relying on external financing.

Balance Sheet Strength

Very low leverage gives structural financial flexibility to weather downturns, invest in product development and pursue partnerships. A strong equity base lowers refinancing risk and enables strategic capex or M&A without stressing liquidity over the medium term.

Recurring Aftermarket Revenue

A business mix including consumables, maintenance and software creates recurring revenue and higher customer lifetime value. Aftermarket sales are margin-accretive and provide stable cash flow less correlated to new equipment cycles, supporting long-term profitability.

Negative Factors

Earnings-to-Cash Conversion

Subpar conversion of reported earnings into operating cash suggests working capital or non-cash items strain liquidity. Persistently low conversion can limit funding for growth initiatives and make results more sensitive to receivables, inventory or capex swings.

Margin Pressure

A declining EBIT margin indicates rising operating costs or pricing pressures in core imaging businesses. If structural, sustained margin erosion could reduce free cash flow and weaken the firm's ability to fund R&D or maintain aftermarket service levels over the medium term.

Moderate ROE

An ROE under double digits implies modest capital efficiency versus higher-return peers. Over time this can constrain shareholder value creation unless offset by strong growth or deleveraging; it suggests the company may need productivity gains to boost long-run returns.

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 strong financial performance with robust revenue growth and profitability. The balance sheet is stable with low leverage, and cash flow generation is strong despite some conversion challenges. Overall, the company is well-positioned in the consumer electronics industry with a solid financial foundation.

Income Statement

Noritsu Koki Co., Ltd. shows strong revenue growth with a TTM increase of 4.35% and a solid gross profit margin of 49.83%. The net profit margin is healthy at 14.46%, indicating efficient cost management. However, the EBIT margin has slightly decreased from the previous year, suggesting potential operational cost pressures.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.16, reflecting strong financial stability. The return on equity is moderate at 7.56%, indicating decent profitability. The equity ratio is robust, suggesting a strong asset base relative to liabilities.

Cash Flow

The free cash flow growth rate is impressive at 25.94%, showing strong cash generation capabilities. However, the operating cash flow to net income ratio is relatively low at 0.46, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is high, reflecting efficient cash management.

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: Negative
• RSI: Negative
• STOCH: Negative

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 below the 20-day moving average (MA) of 2049.00, below the 50-day MA of 1914.60, and above the 200-day MA of 1647.34, indicating a bullish trend. The MACD of 96.85 indicates Negative momentum. The RSI at 83.74 is Negative, neither overbought nor oversold. The STOCH value of 91.54 is Negative, 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	¥246.62B	14.47	―	4.07%	9.35%	8.92%
6952	74 Outperform	¥358.98B	18.77	5.53%	3.55%	-5.43%	55.21%
6794	69 Neutral	¥65.60B	15.42	―	2.73%	6.41%	16.71%
6632	68 Neutral	¥182.12B	9.85	13.53%	1.34%	0.48%	-1.86%
6810	66 Neutral	¥93.69B	18.88	―	1.99%	3.71%	-3.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6753	60 Neutral	¥463.18B	7.90	―	―	-10.88%	―

Noritsu Koki Co., Ltd. Corporate Events

Noritsu Koki Completes ¥80 Billion Acquisition of Building Materials Maker Senqcia

Noritsu Koki has completed the acquisition of all shares of SENQCIA CORPORATION, a Tokyo-based manufacturer and seller of building materials and equipment that also undertakes related construction work, converting it into a wholly owned subsidiary. The deal values SENQCIA’s enterprise at roughly ¥80 billion, funded through ¥30 billion in cash on hand and a ¥50 billion bridge loan, with plans to sell certain assets, shore up SENQCIA’s balance sheet, and refinance the bridge facility while also using warranty and indemnity insurance to mitigate unforeseen risks. SENQCIA, which generated ¥35.4 billion in net sales and ¥5.1 billion in operating income in the fiscal year ended March 2025, will be consolidated from the first quarter of the fiscal year ending December 2026, leaving Noritsu Koki’s 2025 results unchanged but likely providing a notable boost to scale and earnings that will be reflected in guidance to be announced on February 13.

The most recent analyst rating on (JP:7744) stock is a Buy with a Yen2547.00 price target. To see the full list of analyst forecasts on Noritsu Koki Co., Ltd. stock, see the JP:7744 Stock Forecast page.

Noritsu Koki Moves to Fully Acquire Construction Systems Leader SENQCIA

Noritsu Koki Co., Ltd. has released supplementary materials detailing its acquisition of SENQCIA CORPORATION and the move to convert the company into a wholly owned subsidiary, underscoring SENQCIA’s strategic value as a specialized provider of high‑quality construction and infrastructure solutions. By bringing Japan’s leading seismic reinforcement and building systems manufacturer fully under its control, Noritsu Koki is set to strengthen its presence in the construction and infrastructure markets, potentially enhancing its technological capabilities, expanding its product portfolio and deepening relationships with customers that prioritize safety and reliability in building and information infrastructure projects.

The most recent analyst rating on (JP:7744) stock is a Buy with a Yen2151.00 price target. To see the full list of analyst forecasts on Noritsu Koki Co., Ltd. stock, see the JP:7744 Stock Forecast page.

Noritsu Koki to Make Seismic Solutions Specialist SENQCIA a Wholly Owned Subsidiary

Noritsu Koki has resolved to acquire all shares of SENQCIA CORPORATION and convert it into a wholly owned subsidiary, positioning the deal as a strategic move to establish a new growth pillar and expand the peripheral domains of its Parts/Materials segment. SENQCIA, a pioneer in building structural components and raised flooring with industry-leading products such as free access floors, Racklock seismic anchoring systems, and advanced seismic reinforcement solutions, holds top market share in its niche and plays a key role in supporting infrastructure for data centers, offices, and modern buildings. Noritsu Koki expects the acquisition to accelerate group-wide growth, improve ROE targets set in its medium-term plan, enhance stable shareholder returns, and diversify business risk by strengthening its domestic portfolio amid ongoing global expansion.

The most recent analyst rating on (JP:7744) stock is a Buy with a Yen2151.00 price target. To see the full list of analyst forecasts on Noritsu Koki Co., Ltd. stock, see the JP:7744 Stock Forecast page.

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.

The most recent analyst rating on (JP:7744) stock is a Hold with a Yen1825.00 price target. To see the full list of analyst forecasts on Noritsu Koki Co., Ltd. stock, see the JP:7744 Stock Forecast page.