Sincere Co. LTD. (7782) AI Stock Analysis

• Market Cap: ¥3.64B
• Dividend Yield: 2.07%
• Average Volume (3M): 9.56K
• Price to Earnings (P/E): 9.9
• Beta (1Y): -0.16
• Revenue Growth: 16.73%
• EPS Growth: 66.79%
• Country: JP
• Employees: 55
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 12.52
• Shares Outstanding: 6,862,200
• 10 Day Avg. Volume: 5,310
• 30 Day Avg. Volume: 9,556
• 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: ¥650.00
• Price Target Upside: 12.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥650.00 ▲(12.07% Upside)

Sincere Co. LTD. scores well due to its strong financial performance, characterized by robust revenue growth and cash flow generation. The stock's valuation is attractive with a low P/E ratio and a reasonable dividend yield. However, technical analysis indicates a bearish trend, which slightly offsets the positive financial and valuation aspects.

Sincere Co. LTD. Business Overview & Revenue Model

Company Description

Sincere Co., LTD. manufactures and sells contact lens in Japan. The company was founded in 2008 and is headquartered in Tokyo, Japan.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.58B	6.54B	5.96B	5.59B	4.56B	4.19B
Gross Profit	2.19B	2.10B	1.84B	1.40B	1.38B	1.33B
EBITDA	626.84M	565.19M	469.65M	129.00M	134.31M	232.66M
Net Income	355.59M	301.75M	295.00M	66.07M	83.93M	142.33M
Balance Sheet
Total Assets	5.09B	5.50B	5.40B	3.58B	3.29B	2.90B
Cash, Cash Equivalents and Short-Term Investments	1.58B	1.89B	2.19B	1.13B	1.09B	1.16B
Total Debt	2.00B	2.05B	2.30B	1.10B	735.00M	395.00M
Total Liabilities	2.50B	2.80B	2.92B	1.59B	1.25B	929.26M
Stockholders Equity	2.59B	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: 580.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 580 is below the 20-day moving average (MA) of 585.15, below the 50-day MA of 588.38, and above the 200-day MA of 563.92, indicating a neutral trend. The MACD of -1.09 indicates Positive momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 16.94 is Positive, 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
4556	84 Outperform	¥5.26B	8.51	9.46%	2.49%	5.38%	-7.04%
7980	76 Outperform	¥5.76B	8.65	9.11%	1.85%	5.45%	0.23%
7782	74 Outperform	¥3.64B	9.88	―	2.07%	16.73%	66.79%
7813	70 Neutral	¥3.01B	15.61	6.23%	2.11%	31.86%	194.85%
7743	67 Neutral	¥16.53B	14.82	6.05%	2.75%	2.38%	-48.68%
7702	60 Neutral	¥11.19B	-40.36	0.22%	3.71%	3.36%	-310.49%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%