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

• Market Cap: ¥5.56B
• Dividend Yield: 1.95%
• Average Volume (3M): 413.00
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.11
• Revenue Growth: 2.54%
• EPS Growth: -36.12%
• Country: JP
• Employees: 456
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -7.42
• Shares Outstanding: 4,508,000
• 10 Day Avg. Volume: 220
• 30 Day Avg. Volume: 413
• PEG Ratio: -0.85
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.45
• P/FCF Ratio: -431.07
• 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: ¥1,493.00
• Price Target Upside: 11.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,493.00 ▲(11.84% Upside)

Seki Co., Ltd. has a strong financial foundation with low debt and stable equity, contributing positively to its score. The technical analysis indicates a favorable market position with bullish momentum. However, the high P/E ratio suggests potential overvaluation, which, combined with concerns over declining net profit margin and free cash flow, slightly dampens the overall score.

Seki Co., Ltd. Business Overview & Revenue Model

Company Description

Seki 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 Money

Seki Co., Ltd. generates revenue through the sale of its industrial and consumer products. The company's key revenue streams include direct sales to businesses and retailers, as well as through strategic partnerships and distribution agreements. Additionally, Seki Co., Ltd. may engage in service contracts or maintenance agreements associated with its industrial equipment, contributing to its earnings. The company's ability to innovate and adapt its product offerings to market demands, as well as maintaining strong relationships with suppliers and distributors, are significant factors in its financial performance.

Seki Co., Ltd. Financial Statement Overview

Summary

Seki Co., Ltd. shows a solid financial position with strong equity and low debt, indicating stability. However, the decline in net profit margin and free cash flow raises concerns about profitability and liquidity. The company needs to enhance operational efficiencies and cash flow management.

Income Statement

Seki Co., Ltd. has demonstrated consistent revenue growth over the years, with a revenue increase of 2.61% in 2025. The gross profit margin has remained stable, indicating efficient cost management. However, the net profit margin decreased in 2025 due to lower net income, impacting overall profitability. EBIT and EBITDA margins show moderate profitability levels, suggesting room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet is strong, with a high equity ratio of 82.89% in 2025, indicating financial stability. The debt-to-equity ratio is low, reflecting minimal leverage and reduced financial risk. Return on equity decreased slightly, which could be a concern if this trend continues.

Cash Flow

Seki Co., Ltd. experienced a decline in free cash flow in 2025, raising concerns about liquidity and investment capacity. The operating cash flow to net income ratio improved, showing better cash generation relative to net income, but the negative free cash flow growth rate suggests challenges in capital allocation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.31B	12.30B	11.99B	11.91B	11.17B	11.62B
Gross Profit	2.87B	2.87B	2.84B	3.06B	2.72B	2.58B
EBITDA	678.34M	874.99M	1.08B	1.20B	977.63M	866.69M
Net Income	224.08M	280.42M	365.31M	429.52M	323.89M	201.83M
Balance Sheet
Total Assets	18.37B	18.74B	18.58B	17.75B	17.44B	18.25B
Cash, Cash Equivalents and Short-Term Investments	4.07B	4.26B	4.47B	4.76B	4.08B	5.32B
Total Debt	216.00M	216.00M	270.00M	408.36M	482.35M	556.35M
Total Liabilities	2.62B	2.96B	3.03B	3.02B	3.00B	4.05B
Stockholders Equity	15.51B	15.53B	15.10B	14.30B	14.03B	13.79B
Cash Flow
Free Cash Flow	0.00	-12.90M	151.65M	985.00M	-632.09M	1.33B
Operating Cash Flow	0.00	800.02M	464.01M	1.08B	-492.90M	1.52B
Investing Cash Flow	0.00	-788.38M	-567.33M	-234.50M	-566.73M	1.09B
Financing Cash Flow	0.00	-170.38M	-245.43M	-181.34M	-183.32M	-142.76M

Seki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1335.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7857, the sentiment is Neutral. The current price of 1335 is below the 20-day moving average (MA) of 1337.75, above the 50-day MA of 1333.83, and above the 200-day MA of 1328.03, indicating a neutral trend. The MACD of 1.60 indicates Positive momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 74.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7857.

Seki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7804	76 Outperform	¥6.22B	12.62	―	2.23%	23.93%	28.98%
7370	73 Outperform	¥6.12B	12.04	―	4.48%	-9.76%	-24.52%
7857	72 Outperform	¥5.56B	24.81	―	1.95%	2.54%	-36.12%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2122	57 Neutral	¥8.14B	73.82	―	2.44%	11.99%	-125.90%
9625	51 Neutral	¥5.97B	21.77	―	2.23%	48.94%	-205.25%
7078	48 Neutral	¥4.45B	―	―	―	-8.33%	-462.10%