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

• Market Cap: ¥2.61B
• Dividend Yield: 2.3%
• Average Volume (3M): 3.79K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.29
• Revenue Growth: 1.84%
• EPS Growth: 75.79%
• Country: JP
• Employees: 381
• Sector: Industrials
• Sector Strength: 89
• Industry: Specialty Business Services
• EPS (TTM): 241.08
• Shares Outstanding: 3,060,110
• 10 Day Avg. Volume: 5,010
• 30 Day Avg. Volume: 3,793
• PEG Ratio: 0.74
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.53
• 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

• Rating: 76 Outperform
• 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. Business Overview & Revenue Model

Company Description

Sougou 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 Money

Sougou 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

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

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

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.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	15.88B	15.80B	15.86B	15.31B	16.16B	15.98B
Gross Profit	4.80B	4.74B	4.49B	4.21B	4.58B	4.18B
EBITDA	740.68M	893.33M	812.12M	825.14M	900.65M	390.56M
Net Income	351.20M	274.50M	207.48M	178.93M	256.22M	-169.85M
Balance Sheet
Total Assets	12.41B	7.67B	8.35B	8.95B	9.39B	9.55B
Cash, Cash Equivalents and Short-Term Investments	1.49B	1.18B	1.34B	1.53B	1.65B	1.60B
Total Debt	6.59B	3.10B	4.11B	4.76B	4.98B	6.14B
Total Liabilities	9.51B	4.78B	5.74B	6.47B	6.99B	7.46B
Stockholders Equity	2.87B	2.86B	2.58B	2.45B	2.37B	2.09B
Cash Flow
Free Cash Flow	0.00	541.13M	539.05M	339.99M	1.27B	-437.14M
Operating Cash Flow	0.00	863.66M	642.06M	584.72M	1.44B	723.44M
Investing Cash Flow	0.00	41.38M	-120.87M	-294.47M	-183.57M	-1.16B
Financing Cash Flow	0.00	-1.07B	-708.99M	-401.71M	-1.20B	810.71M

Sougou Shouken Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 870.00
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7850	76 Outperform	¥2.61B	5.70		2.30%	1.84%	75.79%
7919	74 Outperform	¥3.18B	5.88		2.70%	2.92%	-6.49%
7805	74 Outperform	¥3.47B	8.79		1.88%	-7.15%	39.05%
7939	73 Outperform	¥1.95B	11.27		4.02%	-0.33%	-5.18%
7851	68 Neutral	¥1.18B	11.61		0.80%	9.17%	―
Sector *	67 Neutral	£2.80B	13.39	4.69%	218.68%	2.40%	-24.53%
7916	60 Neutral	¥4.12B	58.38		3.73%	0.38%	24.47%