Sincere Co. LTD. (7782) AI Stock Analysis

• Market Cap: ¥3.72B
• Dividend Yield: 1.98%
• Average Volume (3M): 39.32K
• Price to Earnings (P/E): 10.7
• Beta (1Y): -0.11
• Revenue Growth: 11.46%
• EPS Growth: 42.37%
• Country: JP
• Employees: 55
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 13.81
• Shares Outstanding: 6,862,200
• 10 Day Avg. Volume: 85,860
• 30 Day Avg. Volume: 39,319
• PEG Ratio: 0.65
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥669.00
• Price Target Upside: 4.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥725.00 ▲(13.46%Upside)

Sincere Co. LTD. achieves a strong overall score driven primarily by its solid financial performance, characterized by robust revenue growth and improved profitability. Technical analysis indicates positive momentum, although caution is warranted due to potential overbought conditions. The valuation suggests the stock is reasonably priced, offering a good balance between growth and income potential.

Sincere Co. LTD. Business Overview & Revenue Model

Company Description

Sincere Co. LTD. (7782) is a Japan-based company primarily engaged in the retail sector. The company operates a chain of department stores offering a wide range of products including clothing, household goods, and electronics. It also provides real estate leasing services and operates food-related businesses, contributing to its diversified portfolio. Sincere Co. LTD. aims to deliver high-quality products and services to meet the diverse needs of its customers.

How the Company Makes Money

Sincere Co. LTD. generates revenue primarily through its retail operations, where it sells a variety of consumer goods across its department store chain. The company also earns income from its real estate segment by leasing commercial spaces to tenants. Additionally, its food-related businesses contribute to its overall revenue by offering ready-to-eat meals and other food products. The company's revenue model is supported by strategic partnerships with suppliers and a focus on enhancing customer experience through various marketing and promotional activities.

Sincere Co. LTD. Financial Statement Overview

Summary

Sincere Co. LTD. demonstrates solid financial health with strong revenue growth and improved profitability margins. The balance sheet is stable with manageable leverage, and cash flow generation is robust, supporting future growth and investment. While profitability margins are improving, further enhancement could strengthen the company's financial position.

Income Statement

Sincere Co. LTD. shows strong performance with an increasing revenue trend, achieving a 9.68% growth from 2023 to 2024. The gross profit margin improved from 30.91% in 2023 to 32.06% in 2024, indicating effective cost management. The net profit margin is stable at around 4.6%, and both EBIT and EBITDA margins have improved, reflecting operational efficiency. However, the relatively modest net profit margin suggests room for improvement.

Balance Sheet

The company maintains a solid financial position with a debt-to-equity ratio of 0.76 in 2024, reflecting a balanced leverage approach. The equity ratio stands at 49.07%, indicating strong equity financing. Return on Equity is stable at 11.16%, demonstrating consistent returns to shareholders. The company's overall balance sheet health is sound, but there is a slight decrease in cash reserves, warranting attention.

Cash Flow

Cash flow generation is strong with a significant increase in free cash flow by 90.7% from 2023 to 2024. The operating cash flow to net income ratio of 1.45 indicates robust cash generation relative to profits. The free cash flow to net income ratio of 1.36 highlights effective cash management, supporting continued investment and debt servicing. The company shows resilience in generating cash, despite fluctuations in investing and financing activities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.54B	5.96B	5.59B	4.56B	4.19B
Gross Profit	2.10B	1.84B	1.40B	1.38B	1.33B
EBITDA	565.19M	391.00M	129.00M	134.31M	232.66M
Net Income	301.75M	295.00M	66.07M	83.93M	142.33M
Balance Sheet
Total Assets	5.50B	5.40B	3.58B	3.29B	2.90B
Cash, Cash Equivalents and Short-Term Investments	1.89B	2.19B	1.13B	1.09B	1.16B
Total Debt	2.05B	2.30B	1.10B	735.00M	395.00M
Total Liabilities	2.80B	2.92B	1.59B	1.25B	929.26M
Stockholders Equity	2.70B	2.41B	1.99B	2.04B	1.97B
Cash Flow
Free Cash Flow	403.80M	215.00M	-313.83M	-456.71M	253.63M
Operating Cash Flow	435.07M	246.00M	-307.99M	-423.60M	262.62M
Investing Cash Flow	-421.47M	-376.00M	-28.57M	75.70M	-60.48M
Financing Cash Flow	-332.69M	1.18B	330.52M	258.50M	-74.79M

Sincere Co. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 639.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7782, the sentiment is Positive. The current price of 639 is above the 20-day moving average (MA) of 580.85, above the 50-day MA of 596.38, and above the 200-day MA of 535.58, indicating a bullish trend. The MACD of 12.64 indicates Negative momentum. The RSI at 56.38 is Neutral, neither overbought nor oversold. The STOCH value of 63.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7782.

Sincere Co. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4556	84 Outperform	¥5.16B	8.29		2.56%	4.93%	-0.26%
7782	77 Outperform	¥3.72B	10.69		1.98%	11.46%	42.37%
7980	76 Outperform	¥5.75B	7.36		1.85%	8.60%	33.64%
7743	72 Outperform	¥14.38B	12.97		3.16%	2.58%	-53.08%
7702	61 Neutral	¥10.65B	120.55		3.90%	6.83%	―
7813	54 Neutral	¥2.44B	34.71		2.60%	21.42%	-74.71%
Sector *	50 Neutral	AU$2.63B	2.90	-57.47%	2.40%	36.37%	14.48%