Citizen Watch Co (7762) AI Stock Analysis

• Market Cap: €263.33B
• Dividend Yield: 3.5%
• Average Volume (3M): 3.11M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.82
• Revenue Growth: 1.01%
• EPS Growth: 7.42%
• Country: JP
• Employees: 11,935
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Conglomerates
• EPS (TTM): 11.03
• Shares Outstanding: 246,000,000
• 10 Day Avg. Volume: 1,719,280
• 30 Day Avg. Volume: 3,111,600
• PEG Ratio: 1.98
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 11.64
• 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: €1,252.04
• Price Target Upside: -4.64% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: ¥1,369.00 ▲(4.27% Upside)

Citizen Watch Co's stock is rated highly due to its strong financial performance and bullish technical indicators. The company's solid balance sheet and consistent revenue growth underpin its financial stability. Technical analysis shows strong upward momentum, although caution is advised due to the RSI indicating potential overbought conditions. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Balance Sheet Health

A strong balance sheet with a healthy equity ratio ensures financial resilience, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Cash Flow Performance

Robust operating cash flow exceeding net income highlights efficient cash management, providing the company with resources to fund operations and future investments.

Negative Factors

Decreasing Profitability Margins

Decreasing profitability margins may signal rising costs or operational inefficiencies, potentially impacting the company's ability to sustain profit levels long-term.

Opportunities to Enhance Cash Flow Efficiency

Opportunities to improve cash flow efficiency indicate potential challenges in converting profits into cash, which could affect liquidity and investment capacity.

EPS Growth Decline

A decline in EPS growth suggests challenges in profit generation, which could impact investor confidence and the company's ability to reinvest in growth initiatives.

Citizen Watch Co Business Overview & Revenue Model

Company Description

Citizen Watch Co., Ltd. (7762) is a leading Japanese manufacturer and global brand of watches, known for its innovative technology and high-quality craftsmanship. Established in 1918, the company operates primarily in the consumer electronics and luxury goods sectors. It offers a diverse range of timepieces, including analog, digital, and smartwatches, under various brands such as Citizen, Eco-Drive, and Promaster. Citizen is also recognized for its commitment to sustainability, particularly through its Eco-Drive technology that harnesses light to power watches, eliminating the need for battery replacements.

How the Company Makes Money

Citizen Watch Co. generates revenue through the sale of its watches, which includes both retail and wholesale channels. The company's primary revenue streams come from the sale of traditional quartz watches, Eco-Drive models, and smartwatches. Additionally, Citizen benefits from licensing agreements that allow third-party manufacturers to produce accessories and related products under its brand name. The company also collaborates with various retailers and e-commerce platforms to increase its market reach, contributing to its overall sales. Furthermore, Citizen invests in marketing and brand promotion, enhancing its global presence and brand recognition, which significantly drives consumer demand and revenue.

Citizen Watch Co Financial Statement Overview

Summary

Citizen Watch Co presents a strong financial position with consistent revenue growth and solid profitability margins. The balance sheet reflects financial stability with a healthy equity base and reasonable leverage. Cash flow performance is robust, supporting operational needs and potential future growth. However, there are signs of decreasing profitability margins and opportunities to enhance cash flow efficiency.

Income Statement

Citizen Watch Co has demonstrated consistent revenue growth over the past years, with a revenue increase from 2024 to 2025. The gross profit margin is strong, reflecting effective cost management. However, the decline in EBIT margin and net profit margin from the previous year indicates potential challenges in operational efficiency or increased expenses.

Balance Sheet

The company's balance sheet is solid, with a strong equity ratio indicating financial stability. The debt-to-equity ratio remains manageable, suggesting a balanced approach to leverage. Return on equity is robust, reflecting effective utilization of equity capital to generate profits.

Cash Flow

Citizen Watch Co shows a healthy operating cash flow, which exceeds net income, indicating good cash conversion. The free cash flow has grown steadily, although the free cash flow to net income ratio suggests room for improvement in translating profits into cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	316.28B	316.88B	312.83B	301.37B	281.42B	206.64B
Gross Profit	134.82B	134.55B	131.38B	122.18B	106.84B	65.90B
EBITDA	32.28B	43.45B	42.01B	39.77B	38.24B	-1.62B
Net Income	24.52B	23.88B	22.96B	21.84B	22.14B	-25.17B
Balance Sheet
Total Assets	418.97B	415.55B	415.44B	389.98B	394.96B	365.81B
Cash, Cash Equivalents and Short-Term Investments	98.99B	93.75B	81.31B	82.49B	110.90B	101.82B
Total Debt	68.26B	68.21B	70.00B	69.81B	66.18B	75.10B
Total Liabilities	156.43B	151.40B	159.31B	157.21B	156.29B	152.95B
Stockholders Equity	254.49B	255.92B	247.66B	224.18B	229.30B	203.99B
Cash Flow
Free Cash Flow	0.00	18.69B	16.70B	20.00M	23.01B	-4.64B
Operating Cash Flow	0.00	35.77B	34.56B	16.58B	34.69B	7.49B
Investing Cash Flow	0.00	-10.03B	-12.70B	-13.53B	-9.55B	-7.63B
Financing Cash Flow	0.00	-12.54B	-26.99B	-40.06B	-19.96B	18.34B

Citizen Watch Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1313.00
• 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:7762, the sentiment is Positive. The current price of 1313 is above the 20-day moving average (MA) of 1217.05, above the 50-day MA of 1120.37, and above the 200-day MA of 933.96, indicating a bullish trend. The MACD of 58.49 indicates Negative momentum. The RSI at 77.08 is Negative, neither overbought nor oversold. The STOCH value of 91.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7762.

Citizen Watch Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7762	82 Outperform	€263.33B	10.74	9.36%	3.50%	1.01%	7.42%
8020	79 Outperform	¥259.73B	9.10	―	3.29%	1.50%	9.82%
8078	79 Outperform	€262.52B	5.64	11.34%	3.52%	3.44%	6.97%
8014	73 Outperform	¥95.73B	9.85	―	3.76%	-2.33%	-16.42%
9003	72 Outperform	¥262.93B	13.04	―	2.42%	-1.88%	-9.94%
3105	70 Outperform	€193.03B	9.33	8.35%	2.86%	3.35%	810.44%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Citizen Watch Co Corporate Events

Citizen Watch Announces Treasury Stock Disposal to Enhance Director Incentives

Citizen Watch Co., Ltd. has announced the disposal of 449,126 shares of its treasury stock through a third-party allotment to The Master Trust Bank of Japan, Ltd. This move is part of a performance-linked stock compensation scheme aimed at incentivizing directors and officers to improve financial results and corporate value over the medium to long term. The disposal represents a small dilution of 0.18% of the total shares, indicating a strategic approach to align management interests with shareholder value without significantly impacting the market.

Citizen Watch Co. Exceeds Forecasts and Revises Financial Outlook

Citizen Watch Co., Ltd. announced a significant improvement in its consolidated operating results for the second quarter of fiscal year 2025, surpassing initial forecasts. The company’s strong performance was driven by robust sales in its mainstay Watches business, particularly in North America, and increased profitability from in-house e-commerce and higher unit selling prices. This led to a revision of the full-year financial forecasts, reflecting better-than-expected results and adjusted foreign exchange rates.

Citizen Watch Reports Increased Sales and Profit Amidst Dividend Hike

Citizen Watch Co., Ltd. reported a slight increase in net sales by 1.7% for the six months ending September 30, 2025, compared to the previous year. Despite a decline in profit attributable to owners of the parent by 3.3%, the company saw a substantial rise in ordinary profit by 32.0%, indicating improved operational efficiency. The company has announced an increase in dividends and revised its earnings forecast, reflecting a positive outlook for the fiscal year ending March 31, 2026.