Graphite Design Inc. (7847) AI Stock Analysis

• Market Cap: ¥4.11B
• Dividend Yield: 4.78%
• Average Volume (3M): 5.52K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.42
• Revenue Growth: -11.24%
• EPS Growth: -48.52%
• Country: JP
• Employees: 119
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 18.65
• Shares Outstanding: 6,945,600
• 10 Day Avg. Volume: 2,890
• 30 Day Avg. Volume: 5,516
• PEG Ratio: 0.11
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 23.30
• 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): 33.9
• Revenue Forecast (FY): ¥2.90B

• Rating: 75 Outperform
• Price Target: ¥716.00 ▲(12.58% Upside)
• Action: Reiterated Date: 09/10/25
• Date: Action: Reiterated 09/10/25

Graphite Design Inc. scores well due to its strong financial performance, characterized by robust revenue growth and a solid balance sheet. The technical analysis presents a mixed picture, with potential for upward momentum. The valuation is attractive with a reasonable P/E ratio and a high dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand and market presence, supporting long-term business expansion and competitive positioning.

Balance Sheet Health

A strong balance sheet with low debt enhances financial stability, reducing risk and providing flexibility for future investments and growth.

Cash Generation

Robust cash generation supports operational efficiency and provides the company with the resources to invest in growth opportunities and innovation.

Negative Factors

EPS Growth Decline

A decline in EPS growth could indicate challenges in profitability or increased costs, potentially impacting shareholder returns and long-term financial performance.

Free Cash Flow Improvement Needed

While cash flow is strong, improving free cash flow relative to net income could enhance financial flexibility and support sustainable growth.

Profitability Concerns

Moderate return on equity suggests that there may be room for improvement in profitability, which could impact long-term shareholder value.

Graphite Design Inc. Business Overview & Revenue Model

Company Description

Graphite Design Inc. engages in the manufacture and sale of golf club shafts in Japan. The company also offers carbon fiber reinforced plastic material. In addition, it assembles and processes golf clubs; and manufactures and sells various pipe moldings with other carbon fiber. The company was incorporated in 1989 and is headquartered in Chichibu, Japan.

How the Company Makes Money

Graphite Design Inc. generates revenue primarily through the sale of its premium golf shafts. The company's revenue streams include direct sales to golf equipment manufacturers, distribution through retail partners, and aftermarket sales to individual consumers. The company benefits from strategic partnerships with leading golf brands, enhancing its market reach and brand credibility. Additionally, its focus on research and development allows it to introduce cutting-edge products that command premium pricing, thereby contributing to its revenue growth.

Graphite Design Inc. Financial Statement Overview

Summary

Graphite Design Inc. demonstrates financial robustness with strong revenue growth and profitability in the leisure industry. The company maintains an excellent balance sheet with minimal debt and substantial equity, ensuring long-term stability. Cash flow metrics indicate effective cash management, although further enhancement in free cash flow relative to net income could be beneficial. Overall, the company is well-positioned for future growth and stability.

Income Statement

Graphite Design Inc. has shown a solid revenue growth rate of 15.89% from 2024 to 2025, indicating strong demand and market presence. The gross profit margin stands at 57.24%, highlighting efficient production and sales. Net profit margin improved to 12.26%, reflecting effective cost management and increased profitability. EBIT and EBITDA margins are also healthy at 17.38% and 22.43%, respectively, showing robust operating efficiency.

Balance Sheet

The company maintains a strong balance sheet with an equity ratio of 74.34%, indicating financial stability and low reliance on debt. The debt-to-equity ratio is exceptionally low at 0.15, reducing financial risk. Return on equity is at 7.47%, showing moderate profitability from shareholders' equity. The high level of cash and cash equivalents further strengthens the company's financial position.

Cash Flow

Operating cash flow to net income ratio is 1.75, indicating strong cash generation relative to net income. Free cash flow grew by 74.28% from 2024 to 2025, suggesting improved cash management and operational efficiency. The free cash flow to net income ratio is 0.56, which is healthy, though there is room for improvement.

Breakdown	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	3.07B	2.65B	3.55B	3.33B	2.60B
Gross Profit	1.68B	1.31B	1.87B	1.65B	1.11B
EBITDA	660.82M	273.08M	877.78M	795.50M	284.88M
Net Income	376.83M	175.18M	614.78M	516.32M	126.60M
Balance Sheet
Total Assets	6.80B	6.06B	6.46B	6.03B	5.51B
Cash, Cash Equivalents and Short-Term Investments	3.97B	3.63B	3.81B	3.92B	3.34B
Total Debt	756.13M	392.83M	382.83M	302.83M	331.94M
Total Liabilities	1.76B	1.17B	1.37B	1.27B	1.14B
Stockholders Equity	5.04B	4.89B	5.09B	4.76B	4.37B
Cash Flow
Free Cash Flow	210.72M	127.02M	62.44M	726.78M	59.29M
Operating Cash Flow	659.49M	244.46M	362.71M	832.25M	97.25M
Investing Cash Flow	-453.84M	-98.98M	-307.32M	-123.86M	-48.88M
Financing Cash Flow	136.35M	-377.56M	-210.71M	-158.66M	-151.84M

Graphite Design Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 636.00
• 50DMA: Negative
• 100DMA: Positive
• 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:7847, the sentiment is Negative. The current price of 636 is below the 20-day moving average (MA) of 645.55, below the 50-day MA of 650.18, and above the 200-day MA of 622.52, indicating a neutral trend. The MACD of -4.99 indicates Positive momentum. The RSI at 40.21 is Neutral, neither overbought nor oversold. The STOCH value of 12.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7847.

Graphite Design Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8135	81 Outperform	¥9.20B	16.36	―	3.96%	7.77%	247.26%
7847	75 Outperform	¥4.11B	8.35	―	4.78%	-11.24%	-48.52%
7309	63 Neutral	¥1.41T	42.60	5.92%	1.93%	7.64%	22.13%
7841	62 Neutral	¥10.00B	17.30	―	3.31%	3.14%	-40.34%
7906	62 Neutral	¥282.14B	21.92	15.93%	0.72%	20.06%	17.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7990	61 Neutral	¥46.82B	11.29	―	3.94%	0.74%	41.25%