Seki Co., Ltd. (7857) AI Stock Analysis

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Seki Co., Ltd.

(7857)

Rating:70Outperform

Price Target:―

Seki Co., Ltd. achieves a solid overall stock score of 70 due to strong revenue growth and a stable financial foundation. While the stock shows positive technical indicators and fair valuation, challenges in cash flow management and operational efficiency hinder a higher score. The absence of significant earnings call data or corporate events further emphasizes the need for improvements in cash flow and profitability.

Seki Co., Ltd. (7857) vs. iShares MSCI Japan ETF (EWJ)

Market Cap

¥5.64B

Dividend Yield1.85%

Average Volume (3M)250.00

Price to Earnings (P/E)20.1

Beta (1Y)0.11

Revenue Growth1.99%

EPS Growth1.26%

CountryJP

Employees456

SectorCommunication Services

Sector Strength91

IndustryAdvertising Agencies

Share Statistics

EPS (TTM)29.88

Shares Outstanding4,508,000

10 Day Avg. Volume150

30 Day Avg. Volume250

Financial Highlights & Ratios

PEG Ratio-18.99

Price to Book (P/B)0.36

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Seki Co., Ltd. Business Overview & Revenue Model

Company DescriptionSeki Co., Ltd. operates in the printing and paper distribution industry in Japan. It offers general printing, packaging, publishing, advertisement planning and design production, event planning and operation, digital marketing system development, and post office advertising agency services, as well as website planning, production, and operation services. The company is also involved in the processing of paper containers; and catalog mail order business, commissioned operation of museum management, and worker dispatching works. Seki Co., Ltd. was founded in 1908 and is headquartered in Matsuyama, Japan.

How the Company Makes MoneySeki Co., Ltd. generates revenue through the manufacturing and sale of its stationery products. The company has established a robust distribution network that includes direct sales, partnerships with retailers, and online platforms to reach a broad customer base. Key revenue streams include sales of writing instruments, office supplies, and other stationery items. The company also engages in strategic partnerships with retailers and distributors to enhance its market presence and drive sales. Seki Co., Ltd. leverages its brand reputation and commitment to quality to maintain a competitive edge in the stationery market.

Seki Co., Ltd. Financial Statement Overview

Summary

Seki Co., Ltd. demonstrates strong revenue growth and a stable financial structure, with a robust balance sheet and low leverage. However, profitability is hindered by a low net profit margin, and there are challenges in cash flow management, with zero operating and free cash flow, indicating potential issues in liquidity.

Income Statement

Positive

Seki Co., Ltd. has demonstrated stable revenue growth with a TTM revenue of ¥12.36 billion, up from the previous year's ¥11.99 billion. The gross profit margin stands at 23.4% for TTM, indicating efficient cost management. However, the net profit margin is slightly below optimal at 2.93%, reflecting room for improvement in operational efficiency.

Balance Sheet

Positive

The company maintains a strong balance sheet with low leverage, evidenced by a debt-to-equity ratio of 0.0157. A robust equity ratio of 84.47% indicates a stable financial foundation. Return on equity is moderate at 2.33%, suggesting potential for better utilization of equity capital.

Cash Flow

Neutral

Cash flow analysis reveals challenges, with TTM operating and free cash flow at zero, indicating potential issues in cash management. Historically, cash flows have been inconsistent, with negative free cash flow in recent years, highlighting a need for better cash flow management.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
12.36B	11.99B	11.91B	11.17B	11.62B	12.42B
	Gross Profit
2.89B	2.84B	3.06B	2.72B	2.58B	2.79B
	EBIT
244.93M	259.91M	441.09M	189.54M	114.46M	145.00M
	EBITDA
642.35M	1.08B	1.20B	977.63M	866.69M	659.00M
	Net Income Common Stockholders
361.66M	365.31M	429.52M	323.89M	201.83M	171.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.61B	4.47B	4.76B	4.08B	5.32B	100.06M
	Total Assets
18.38B	18.58B	17.75B	17.44B	18.25B	16.75B
	Total Debt
243.00M	270.00M	408.36M	482.35M	556.35M	587.00M
	Net Debt
-3.37B	-4.20B	-4.11B	-3.50B	-4.77B	-3.40B
	Total Liabilities
2.61B	3.03B	3.02B	3.00B	4.05B	3.11B
	Stockholders Equity
15.52B	15.10B	14.30B	14.03B	13.79B	13.25B
Cash Flow		Free Cash Flow
0.00	151.65M	985.00M	-632.09M	1.33B	-728.00M
	Operating Cash Flow
0.00	464.01M	1.08B	-492.90M	1.52B	197.00M
	Investing Cash Flow
0.00	-567.33M	-234.50M	-566.73M	1.09B	-857.00M
	Financing Cash Flow
0.00	-245.43M	-181.34M	-183.32M	-142.76M	-1.22B

Seki Co., Ltd. Technical Analysis

Technical Analysis Sentiment

Positive

Last Price1353.00

Price Trends

50DMA

1341.30

Positive

100DMA

1335.02

Positive

200DMA

1332.79

Positive

Market Momentum

MACD

2.44

Positive

RSI

53.41

Neutral

STOCH

66.67

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7857, the sentiment is Positive. The current price of 1353 is above the 20-day moving average (MA) of 1350.50, above the 50-day MA of 1341.30, and above the 200-day MA of 1332.79, indicating a bullish trend. The MACD of 2.44 indicates Positive momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7857.

Seki Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7804	76 Outperform	¥5.48B	12.72		2.51%	11.34%	25.71%
7370	73 Outperform	¥5.29B	9.48		5.23%	-15.87%	-31.74%
7857	70 Outperform	¥5.64B	20.10		1.85%	1.99%	1.26%
Sector *	61 Neutral	$14.37B	5.86	-4.31%	3.69%	2.75%	-35.55%
2122	57 Neutral	¥6.43B	73.82		3.16%	11.85%	-80.65%
7078	54 Neutral	¥5.33B	12.72		―	-8.62%	-442.57%
9625	51 Neutral	¥5.78B	21.77		2.89%	52.55%	-187.67%

* Communication Services Sector Average

Performance Comparison

JP:7857

Seki Co., Ltd.

1,351.00

33.56

2.55%

JP:2122

Interspace Co., Ltd.

926.00

13.90

1.52%

JP:7078

Inclusive, Inc.

501.00

-151.00

-23.16%

JP:7370

Enjin Co.,Ltd.

744.00

-189.13

-20.27%

JP:7804

B&P Co., Ltd.

2,390.00

674.10

39.29%

JP:9625

CERESPO CO., LTD.

1,056.00

81.82

8.40%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.