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Sougou Shouken Co., Ltd. (JP:7850)
:7850
Japanese Market

Sougou Shouken Co., Ltd. (7850) AI Stock Analysis

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JP

Sougou Shouken Co., Ltd.

(7850)

Rating:76Outperform
Price Target:
¥994.00
▲(14.25%Upside)
Sougou Shouken Co., Ltd. scores well due to its robust financial performance and attractive valuation, despite some technical indicators being neutral. Strong cash flow and profitability improvements are positives, while the stock's low P/E ratio and dividend yield enhance its appeal. However, high leverage is a risk factor that needs monitoring.

Sougou Shouken Co., Ltd. (7850) vs. iShares MSCI Japan ETF (EWJ)

Sougou Shouken Co., Ltd. Business Overview & Revenue Model

Company DescriptionSougou Shouken Co., Ltd. (7850) is a Japan-based company engaged primarily in the manufacturing and sale of various printing and paper-related products. The company's portfolio includes a wide array of products such as commercial printing services, office supplies, and other related paper goods. It serves a diverse customer base, including businesses and individual clients, providing high-quality printed materials and stationery products.
How the Company Makes MoneySougou Shouken Co., Ltd. generates revenue through the sale of its printing and paper-related products. Its key revenue streams include commercial printing services, where the company offers customized printing solutions for businesses, and the sale of office supplies, which caters to both corporate clients and retail consumers. The company may also engage in strategic partnerships with other businesses to expand its market reach and enhance its product offerings, contributing to its overall earnings. Factors such as production efficiency, quality of materials, and customer service play significant roles in the company's profitability.

Sougou Shouken Co., Ltd. Financial Statement Overview

Summary
Sougou Shouken Co., Ltd. exhibits strong cash flow management and improving profitability metrics, despite some volatility in revenue and high leverage. The company's ability to generate cash and improve profitability presents a positive outlook, although careful management of debt levels remains crucial.
Income Statement
78
Positive
The company has shown a consistent gross profit margin, averaging around 30% over the past years, indicating stable cost management. Net profit margin improved significantly from negative to positive, reflecting enhanced profitability. Revenue growth was volatile, with fluctuations in different years, demonstrating inconsistency. EBIT and EBITDA margins improved, signaling better operational efficiency.
Balance Sheet
65
Positive
The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which could pose a risk if not managed well. However, the equity ratio improved slightly, showing a stronger equity base compared to liabilities. Return on Equity (ROE) has been positive, suggesting efficient use of equity to generate profits.
Cash Flow
82
Very Positive
The company has demonstrated strong free cash flow growth, which is a positive indicator of financial health. Operating cash flow to net income ratio is robust, suggesting efficient cash conversion from profits. The free cash flow to net income ratio is healthy, indicating a strong ability to generate cash relative to earnings.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue15.88B15.80B15.86B15.31B16.16B15.98B
Gross Profit4.80B4.74B4.49B4.21B4.58B4.18B
EBITDA740.68M893.33M812.12M825.14M900.65M390.56M
Net Income351.20M274.50M207.48M178.93M256.22M-169.85M
Balance Sheet
Total Assets12.41B7.67B8.35B8.95B9.39B9.55B
Cash, Cash Equivalents and Short-Term Investments1.49B1.18B1.34B1.53B1.65B1.60B
Total Debt6.59B3.10B4.11B4.76B4.98B6.14B
Total Liabilities9.51B4.78B5.74B6.47B6.99B7.46B
Stockholders Equity2.87B2.86B2.58B2.45B2.37B2.09B
Cash Flow
Free Cash Flow0.00541.13M539.05M339.99M1.27B-437.14M
Operating Cash Flow0.00863.66M642.06M584.72M1.44B723.44M
Investing Cash Flow0.0041.38M-120.87M-294.47M-183.57M-1.16B
Financing Cash Flow0.00-1.07B-708.99M-401.71M-1.20B810.71M

Sougou Shouken Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price870.00
Price Trends
50DMA
877.60
Negative
100DMA
898.69
Negative
200DMA
876.32
Negative
Market Momentum
MACD
-0.57
Positive
RSI
47.00
Neutral
STOCH
25.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7850, the sentiment is Negative. The current price of 870 is below the 20-day moving average (MA) of 882.00, below the 50-day MA of 877.60, and below the 200-day MA of 876.32, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 47.00 is Neutral, neither overbought nor oversold. The STOCH value of 25.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7850.

Sougou Shouken Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥2.61B5.70
2.30%1.84%75.79%
74
Outperform
¥3.18B5.88
2.70%2.92%-6.49%
74
Outperform
¥3.47B8.79
1.88%-7.15%39.05%
73
Outperform
¥1.95B11.27
4.02%-0.33%-5.18%
68
Neutral
¥1.18B11.61
0.80%9.17%
67
Neutral
£2.80B13.394.69%218.68%2.40%-24.53%
60
Neutral
¥4.12B58.38
3.73%0.38%24.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7850
Sougou Shouken Co., Ltd.
871.00
-16.86
-1.90%
JP:7805
PRINTNET INC.
708.00
84.20
13.50%
JP:7851
Kawase Computer Supplies Co., Ltd.
249.00
19.88
8.68%
JP:7916
Mitsumura Printing Co., Ltd.
1,345.00
-223.05
-14.22%
JP:7919
Nozaki Insatsu Shigyo Co., Ltd.
186.00
18.31
10.92%
JP:7939
Kensoh Co., Ltd.
522.00
-15.26
-2.84%
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 01, 2025