Sincere Co. LTD. (7782) AI Stock Analysis

• Market Cap: ¥3.26B
• Dividend Yield: 2.3%
• Average Volume (3M): 8.77K
• Price to Earnings (P/E): 10.2
• Beta (1Y): -0.14
• Revenue Growth: 12.03%
• EPS Growth: 18.72%
• Country: JP
• Employees: 55
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 11.83
• Shares Outstanding: 6,862,200
• 10 Day Avg. Volume: 14,810
• 30 Day Avg. Volume: 8,766
• PEG Ratio: 9.03
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 7.67
• 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: 67 Neutral
• Price Target: ¥561.00 ▲(7.68% Upside)

Sincere Co. LTD. shows strong financial performance with robust revenue growth and cash flow generation, which supports its overall stability. However, the technical analysis indicates bearish momentum, which could pose short-term risks. The stock's valuation appears attractive with a low P/E ratio and a reasonable dividend yield, offering potential value for long-term investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, enabling continued investment and debt servicing, crucial for long-term growth.

Profitability Margins

Improving profitability margins reflect effective cost management and operational efficiency, strengthening financial health over time.

Negative Factors

Net Profit Margin

A relatively modest net profit margin indicates potential challenges in cost control or pricing power, limiting profitability enhancement.

Cash Reserves

Decreasing cash reserves could constrain liquidity, affecting the company's ability to manage unforeseen expenses or invest in growth.

Leverage

While leverage is manageable, maintaining a balanced approach is crucial to avoid financial strain and ensure long-term stability.

Sincere Co. LTD. Business Overview & Revenue Model

Company Description

Sincere Co. LTD. (7782) is a diversified company primarily engaged in the manufacturing and distribution of consumer goods, with a focus on high-quality personal care products and household items. Operating in the consumer products sector, Sincere Co. combines innovation and sustainability to deliver a range of products that cater to the evolving needs of consumers. The company emphasizes research and development to enhance its product offerings and maintain a competitive edge in the market.

How the Company Makes Money

Sincere Co. generates revenue through multiple streams, including direct sales of its personal care and household products through retail channels and e-commerce platforms. Key revenue streams include wholesale distribution to supermarkets and specialty stores, as well as direct-to-consumer sales via its own online storefront. The company also explores strategic partnerships with retailers and e-commerce platforms to expand its market reach. Additionally, Sincere Co. invests in marketing and promotional campaigns to drive brand awareness and consumer engagement, further contributing to its earnings.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.00B	6.54B	5.96B	5.59B	4.56B	4.19B
Gross Profit	2.31B	2.10B	1.84B	1.40B	1.38B	1.33B
EBITDA	649.32M	565.19M	469.65M	129.00M	134.31M	232.66M
Net Income	376.80M	301.75M	295.00M	66.07M	83.93M	142.33M
Balance Sheet
Total Assets	5.40B	5.50B	5.40B	3.58B	3.29B	2.90B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.89B	2.19B	1.13B	1.09B	1.16B
Total Debt	1.94B	2.05B	2.30B	1.10B	735.00M	395.00M
Total Liabilities	2.71B	2.80B	2.92B	1.59B	1.25B	929.26M
Stockholders Equity	2.69B	2.70B	2.41B	1.99B	2.04B	1.97B
Cash Flow
Free Cash Flow	0.00	403.80M	215.00M	-313.83M	-456.71M	253.63M
Operating Cash Flow	0.00	435.07M	246.00M	-307.99M	-423.60M	262.62M
Investing Cash Flow	0.00	-421.47M	-376.00M	-28.57M	75.70M	-60.48M
Financing Cash Flow	0.00	-332.69M	1.18B	330.52M	258.50M	-74.79M

Sincere Co. LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 521.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 521 is below the 20-day moving average (MA) of 532.15, below the 50-day MA of 556.56, and below the 200-day MA of 575.82, indicating a bearish trend. The MACD of -11.15 indicates Negative momentum. The RSI at 36.15 is Neutral, neither overbought nor oversold. The STOCH value of 24.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7782.

Sincere Co. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7980	75 Outperform	¥5.64B	9.91	―	1.89%	4.41%	-16.07%
7813	69 Neutral	¥2.91B	19.67	―	2.18%	20.58%	221.52%
4556	69 Neutral	¥5.16B	8.86	―	2.63%	3.14%	-2.85%
7782	67 Neutral	¥3.26B	10.17	―	2.30%	12.03%	18.72%
7743	67 Neutral	¥17.71B	12.87	―	2.60%	0.81%	-26.76%
7702	54 Neutral	¥10.65B	68.18	―	3.99%	0.38%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%