Sincere Co. LTD. (7782) AI Stock Analysis

• Market Cap: ¥2.87B
• Dividend Yield: 2.23%
• Average Volume (3M): 8.77K
• Price to Earnings (P/E): 12.4
• Beta (1Y): -0.09
• Revenue Growth: 12.03%
• EPS Growth: 18.72%
• Country: JP
• Employees: 55
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 2.56
• Shares Outstanding: 6,862,200
• 10 Day Avg. Volume: 14,810
• 30 Day Avg. Volume: 8,766
• PEG Ratio: -0.91
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 9.00
• 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: 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: 65 Neutral
• Price Target: ¥520.00 ▲(2.77% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is led by improving financial fundamentals (revenue growth, profitability recovery, and stronger free cash flow), supported by reasonable valuation and a solid dividend yield. This is tempered by weak technicals, with the stock trading below key moving averages and bearish momentum indicators.

Positive Factors

Consistent revenue growth

Multi-year top-line growth indicates persistent demand for Sincere's medical instruments, supporting scale and revenue visibility. Steady sales expansion provides room to invest in product development and distribution, lowering execution risk and underpinning medium-term earnings resilience.

Free cash flow recovery

A strong improvement in free cash flow that closely tracks net income signals higher earnings quality and genuine cash conversion. Durable FCF supports dividends, capex and debt paydown capacity, enhancing financial flexibility and reducing reliance on external financing over the medium term.

Improved equity and lower leverage

Rising equity and a meaningful reduction in debt-to-equity strengthen the balance sheet and lower solvency risk. This improvement increases capacity for strategic investments and cushions operating cycles, improving the company's ability to fund growth and withstand industry downturns.

Negative Factors

Modest margins and 2025 profit dip

Thin operating margins and a recent decline in net income despite higher revenue point to margin pressure or rising costs. Persistently modest profitability limits retained earnings for reinvestment, reduces cushioning against margin shocks, and constrains long-term return-on-capital improvement.

Sizable remaining debt

Although leverage has improved, the outstanding debt stock remains significant relative to company size. This elevates interest expense sensitivity and refinancing risk, limiting strategic flexibility and increasing downside exposure if cash flows weaken or rates rise materially.

Operating cash flow volatility

A drop in operating cash flow year-over-year suggests variability in cash conversion and potential working-capital strain. Persistent volatility would undermine FCF predictability, complicate capital allocation decisions, and could force higher reliance on debt or cutbacks to dividends/capex.

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. 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

Steady revenue growth and a clear profitability rebound from 2022, alongside a return to positive free cash flow. Offsetting factors include modest margins, net income slipping in 2025 despite higher sales (margin pressure), and a higher debt load than earlier years.

Income Statement

Revenue has grown steadily over the last several years (up ~6.5% in 2025 vs. 2024, following ~9.7% growth in 2024), showing a generally healthy demand backdrop. Profitability is positive but not yet best-in-class: recent net profit is modest (about 4–5% in 2023–2024), and net income dipped in 2025 (down versus 2024) despite higher sales, signaling some margin pressure. The big improvement versus 2022 is notable, with earnings and operating profit rebounding strongly from a weak profitability year.

Balance Sheet

Leverage is moderate for the profile: debt-to-equity improved from ~1.0x in 2023 to ~0.76x in 2024, but total debt remains sizable. Equity has been building (up from ~¥2.41B in 2023 to ~¥2.70B in 2024), supporting balance-sheet resilience. Total assets were relatively stable in 2023–2024, but the step-up in debt from earlier years increases financial risk versus 2020–2021 levels when leverage was much lower.

Cash Flow

Cash generation has turned materially stronger versus 2021–2022 when operating cash flow and free cash flow were negative. In 2023–2024, free cash flow was solid and improved meaningfully (2024 free cash flow up ~88% year-over-year), and free cash flow tracked net income well (roughly 87% in 2023 and 93% in 2024), which supports earnings quality. A watch item is the decline in operating cash flow from 2024 to 2025 (while still positive), suggesting some working-capital or cash conversion volatility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.00B	7.46B	6.54B	5.96B	5.59B	4.56B
Gross Profit	2.31B	2.38B	2.10B	1.84B	1.40B	1.38B
EBITDA	649.32M	619.39M	565.19M	469.65M	129.00M	134.31M
Net Income	376.80M	264.35M	301.75M	295.00M	66.07M	83.93M
Balance Sheet
Total Assets	5.40B	5.38B	5.50B	5.48B	3.58B	3.29B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.81B	1.89B	2.19B	1.13B	1.16B
Total Debt	1.94B	1.83B	2.05B	2.30B	1.10B	735.00M
Total Liabilities	2.71B	2.56B	2.80B	3.00B	1.59B	1.25B
Stockholders Equity	2.69B	2.82B	2.70B	2.41B	1.99B	2.04B
Cash Flow
Free Cash Flow	0.00	364.75M	403.80M	215.00M	-313.83M	-456.71M
Operating Cash Flow	0.00	366.84M	435.07M	246.00M	-307.99M	-423.60M
Investing Cash Flow	0.00	-250.32M	-421.47M	-376.00M	-28.57M	75.70M
Financing Cash Flow	0.00	-338.53M	-332.69M	1.18B	330.52M	258.50M

Sincere Co. LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 506.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 506 is above the 20-day moving average (MA) of 467.25, above the 50-day MA of 482.68, and below the 200-day MA of 529.40, indicating a bearish trend. The MACD of -8.56 indicates Positive momentum. The RSI at 41.45 is Neutral, neither overbought nor oversold. The STOCH value of 34.79 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
7741	80 Outperform	¥9.39T	21.89	25.14%	1.01%	8.83%	8.63%
5889	78 Outperform	¥50.10B	12.81	―	3.22%	12.92%	29.48%
7780	74 Outperform	¥128.58B	9.26	7.81%	1.78%	3.17%	7.07%
7782	65 Neutral	¥2.87B	12.43	―	2.23%	12.03%	18.72%
3046	65 Neutral	¥122.77B	23.93	27.95%	1.97%	17.13%	78.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
7743	51 Neutral	¥17.28B	58.26	―	2.65%	0.81%	-26.76%