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Sincere Co. LTD. (JP:7782)
:7782
Japanese Market
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Sincere Co. LTD. (7782) AI Stock Analysis

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JP:7782

Sincere Co. LTD.

(7782)

Rating:77Outperform
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. (7782) vs. iShares MSCI Japan ETF (EWJ)

Sincere Co. LTD. Business Overview & Revenue Model

Company DescriptionSincere 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 MoneySincere 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
85
Very Positive
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
78
Positive
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
81
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.54B5.96B5.59B4.56B4.19B
Gross Profit2.10B1.84B1.40B1.38B1.33B
EBITDA565.19M391.00M129.00M134.31M232.66M
Net Income301.75M295.00M66.07M83.93M142.33M
Balance Sheet
Total Assets5.50B5.40B3.58B3.29B2.90B
Cash, Cash Equivalents and Short-Term Investments1.89B2.19B1.13B1.09B1.16B
Total Debt2.05B2.30B1.10B735.00M395.00M
Total Liabilities2.80B2.92B1.59B1.25B929.26M
Stockholders Equity2.70B2.41B1.99B2.04B1.97B
Cash Flow
Free Cash Flow403.80M215.00M-313.83M-456.71M253.63M
Operating Cash Flow435.07M246.00M-307.99M-423.60M262.62M
Investing Cash Flow-421.47M-376.00M-28.57M75.70M-60.48M
Financing Cash Flow-332.69M1.18B330.52M258.50M-74.79M

Sincere Co. LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price639.00
Price Trends
50DMA
596.38
Positive
100DMA
594.44
Positive
200DMA
535.58
Positive
Market Momentum
MACD
12.64
Negative
RSI
56.38
Neutral
STOCH
63.19
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

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
¥5.16B8.29
2.56%4.93%-0.26%
77
Outperform
¥3.72B10.69
1.98%11.46%42.37%
76
Outperform
¥5.75B7.36
1.85%8.60%33.64%
72
Outperform
¥14.38B12.97
3.16%2.58%-53.08%
61
Neutral
¥10.65B120.55
3.90%6.83%
54
Neutral
¥2.44B34.71
2.60%21.42%-74.71%
50
Neutral
AU$2.63B2.90-57.47%2.40%36.37%14.48%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7782
Sincere Co. LTD.
618.00
193.05
45.43%
JP:4556
Kainos Laboratories, Inc.
1,250.00
81.23
6.95%
JP:7702
JMS Co., Ltd.
435.00
-61.65
-12.41%
JP:7743
Seed Co., Ltd.
470.00
-71.18
-13.15%
JP:7813
PLATZ Co., Ltd.
693.00
-24.90
-3.47%
JP:7980
Shigematsu Works Co., Ltd.
815.00
16.78
2.10%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025