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

• Market Cap: ¥189.50B
• Dividend Yield: 4.38%
• Average Volume (3M): 264.04K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 1.03
• Revenue Growth: 6.16%
• EPS Growth: -30.74%
• Country: JP
• Employees: 1,239
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 41.86
• Shares Outstanding: 107,438,920
• 10 Day Avg. Volume: 175,610
• 30 Day Avg. Volume: 264,040
• PEG Ratio: -0.24
• 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: ¥2,196.00
• Price Target Upside: 23.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: ¥1,912.00 ▲(7.84% Upside)

Noritsu Koki Co., Ltd. demonstrates strong valuation metrics and positive technical indicators, contributing to a favorable stock score. However, financial performance is slightly hampered by declining profit margins and cash flow issues, which are areas to watch.

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

Company Description

Noritsu Koki Co., Ltd. engages in manufacturing and healthcare businesses in Japan and internationally. The company provides DJ equipment; pen tips and brush bristles; medical database, remote image diagnosis, preventive medicine, and factoring services, as well as consulting for medical care and nursing care business providers; and systems to manage insurance pharmacies. It also offers its products through internet. The company was formerly known as Noritsu Optical Machinery Works Limited and changed its name to Noritsu Koki Co., Ltd. in 1961. Noritsu Koki Co., Ltd. was founded in 1951 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Noritsu generates revenue through multiple streams, primarily by selling imaging equipment and related services. Key revenue sources include the sale of photofinishing and digital printing machinery, which are used in retail environments and by professional photographers. Additionally, the company earns money through maintenance and support services for its equipment, as well as the sale of consumables like photographic paper and chemicals. Significant partnerships with retailers and photography service providers enhance its market reach and contribute to its earnings. The company's focus on innovation and adapting to digital trends further bolsters its revenue potential.

Noritsu Koki Co., Ltd. Financial Statement Overview

Summary

Noritsu Koki Co., Ltd. shows solid revenue growth and a strong balance sheet with a low debt-to-equity ratio. However, declining profit margins and cash flow challenges highlight areas for improvement.

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	109.59B	106.54B	90.05B	73.52B	54.48B	57.37B
Gross Profit	54.49B	52.66B	40.08B	29.53B	24.76B	29.78B
EBITDA	20.48B	26.50B	19.46B	10.99B	12.85B	10.82B
Net Income	11.89B	16.12B	10.20B	101.55B	5.12B	10.09B
Balance Sheet
Total Assets	293.34B	299.37B	279.47B	307.26B	264.32B	235.85B
Cash, Cash Equivalents and Short-Term Investments	92.95B	93.23B	70.57B	96.82B	38.67B	69.93B
Total Debt	35.75B	37.38B	42.58B	51.08B	104.45B	0.00
Total Liabilities	75.47B	76.41B	73.62B	114.39B	137.41B	116.66B
Stockholders Equity	217.33B	222.25B	205.38B	192.52B	111.21B	105.42B
Cash Flow
Free Cash Flow	12.55B	30.96B	-33.62B	9.78B	1.71B	5.37B
Operating Cash Flow	13.95B	32.59B	-31.59B	11.74B	3.91B	8.65B
Investing Cash Flow	552.00M	38.00M	20.01B	93.39B	-40.46B	-21.16B
Financing Cash Flow	-14.05B	-11.83B	-15.74B	-47.59B	4.28B	38.57B

Noritsu Koki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1773.00
• 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 1773 is above the 20-day moving average (MA) of 1749.00, above the 50-day MA of 1658.24, and above the 200-day MA of 1537.08, indicating a bullish trend. The MACD of 31.66 indicates Positive momentum. The RSI at 58.07 is Neutral, neither overbought nor oversold. The STOCH value of 30.59 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
6794	79 Outperform	52.16B	12.22	7.20%	2.56%	9.24%	23.83%
7744	77 Outperform	¥189.50B	15.91	―	4.38%	6.16%	-30.74%
6632	70 Outperform	179.18B	9.73	16.21%	1.26%	0.31%	23.47%
6952	69 Neutral	283.22B	50.55	3.68%	3.62%	-4.66%	-61.05%
6753	60 Neutral	558.29B	8.64	37.03%	―	-9.17%	―
6810	57 Neutral	93.60B	26.96	4.48%	2.30%	0.31%	-50.17%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%