Citizen Watch Co (7762) AI Stock Analysis

• Market Cap: €248.45B
• Dividend Yield: 4.41%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.85
• Revenue Growth: 0.08%
• EPS Growth: -2.80%
• Country: JP
• Employees: 11,935
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Conglomerates
• EPS (TTM): 37.67
• Shares Outstanding: 246,000,000
• 10 Day Avg. Volume: 840,300
• 30 Day Avg. Volume: 1,056,286
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €898.10
• Price Target Upside: -11.95% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥956.00 ▼(-6.27% Downside)

Citizen Watch Co's strong financial performance and attractive valuation are the most significant factors driving its score. The solid balance sheet and low P/E ratio suggest stability and potential undervaluation, while the technical analysis remains neutral. The lack of recent earnings call data and corporate events means these factors do not influence the score.

Citizen Watch Co Business Overview & Revenue Model

Company Description

Citizen Watch Co., Ltd. manufactures and sells watches and their components worldwide. It operates through four segments: Watches, Machine Tools, Devices and Components, and Electronic and Other Products. The company offers movements, system clocks, sliding headstock type CNC automatic lathes, fixed headstock type CNC automatic lathes, automotive components, compact switches, chip LEDs, LEDs for lighting, crystal devices, motors, digital photo printers, POS and barcode printers, electronic thermometers, and electronic blood pressure monitors. The company was formerly known as Citizen Holdings Co., Ltd., and changed its name to Citizen Watch Co., Ltd. in October 2016. Citizen Watch Co., Ltd. was founded in 1918 and is headquartered in Nishitokyo, Japan.

How the Company Makes Money

Citizen Watch Co. generates revenue primarily through the sale of its wristwatches and timekeeping products. The company's revenue streams are diversified across several segments including consumer watches, machine tools, and electronic devices. A significant portion of its income comes from the watch segment, where it sells products under various brands like Citizen, Bulova, and Alpina, catering to different market tiers from luxury to affordable timepieces. The company also benefits from strategic partnerships and collaborations that enhance its product offerings and expand its market reach. Additionally, Citizen's investment in research and development supports innovation in design and technology, contributing to sustained demand for its products.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	316.88B	312.83B	301.37B	281.42B	206.64B
Gross Profit	134.55B	131.38B	122.18B	106.84B	65.90B
EBITDA	43.45B	42.01B	39.77B	38.24B	-1.62B
Net Income	23.88B	22.96B	21.84B	22.14B	-25.17B
Balance Sheet
Total Assets	415.55B	415.44B	389.98B	394.96B	365.81B
Cash, Cash Equivalents and Short-Term Investments	93.75B	81.31B	82.49B	110.90B	101.82B
Total Debt	68.21B	70.00B	69.81B	66.18B	75.10B
Total Liabilities	151.40B	159.31B	157.21B	156.29B	152.95B
Stockholders Equity	255.92B	247.66B	224.18B	229.30B	203.99B
Cash Flow
Free Cash Flow	18.69B	16.70B	20.00M	23.01B	-4.64B
Operating Cash Flow	35.77B	34.56B	16.58B	34.69B	7.49B
Investing Cash Flow	-10.03B	-12.70B	-13.53B	-9.55B	-7.63B
Financing Cash Flow	-12.54B	-26.99B	-40.06B	-19.96B	18.34B

Citizen Watch Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1020.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1020 is above the 20-day moving average (MA) of 982.80, above the 50-day MA of 915.24, and above the 200-day MA of 882.02, indicating a bullish trend. The MACD of 30.63 indicates Positive momentum. The RSI at 80.09 is Negative, neither overbought nor oversold. The STOCH value of 89.22 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	76 Outperform	€248.45B	10.15	10.03%	4.41%	0.08%	-2.80%
Sector *	61 Neutral	$17.87B	13.25	-4.88%	3.05%	1.25%	-14.67%
NBO	―	€1.06B	13.35	5.13%	―	―	―
HW4	―	€1.50B	5.16	13.14%	―	―	―
8020	79 Outperform	¥257.90B	9.65		3.32%	3.81%	7.15%
8014	75 Outperform	¥95.61B	9.57		3.67%	-0.89%	-13.53%
9003	68 Neutral	¥256.70B	13.28		2.10%	-1.07%	-10.05%

Citizen Watch Co Corporate Events

Citizen Watch Reports Mixed Financial Results with Positive Dividend Forecast

Citizen Watch Co., Ltd. reported its consolidated financial results for the three months ending June 30, 2025, showing a slight decline in net sales by 0.8% to ¥75,282 million. Despite this, the company saw a modest increase in operating profit by 0.3% and a notable rise in profit attributable to owners of the parent by 7.5%. The company also announced a forecasted increase in annual dividends per share for the fiscal year ending March 31, 2026, indicating a positive outlook for shareholders.

Citizen Watch Board Opposes Shareholder Proposals

Citizen Watch Co., Ltd. announced its Board of Directors’ decision to oppose a series of shareholder proposals ahead of the 140th Ordinary General Meeting of Shareholders. The proposals, which include amendments to the Articles of Incorporation and the dismissal of an Audit & Supervisory Board Member, were rejected by the Board, citing reasons such as the adequacy of current corporate governance practices and the importance of maintaining a governance structure that enhances corporate value. The Board emphasized the role of independent Outside Directors and voluntary committees in ensuring transparency and effective decision-making.

Citizen Watch Co. Amends Stock Compensation Scheme for Directors

Citizen Watch Co., Ltd. has announced the continuation and partial amendment of its performance-linked stock compensation scheme for directors, which aims to align their compensation with the company’s stock value and financial performance. This move, subject to shareholder approval, is part of the company’s transition to a structure with an Audit & Supervisory Committee and is expected to enhance corporate value and financial results over the medium-to-long term.

Citizen Watch Co. Proposes Amendments to Strengthen Governance

Citizen Watch Co., Ltd. has announced a proposal to amend its Articles of Incorporation, aiming to strengthen its governance and improve management efficiency. The changes include transitioning to a company with an Audit & Supervisory Committee, which will enhance the audit and supervisory functions of the Board of Directors, and delegating more decision-making authority to directors. This move is expected to streamline operations and potentially improve the company’s strategic positioning in the market.