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

• Market Cap: ¥5.67B
• Dividend Yield: 1.91%
• Average Volume (3M): 513.00
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.12
• Revenue Growth: 1.99%
• EPS Growth: 1.26%
• Country: JP
• Employees: 456
• Sector: Communication Services
• Sector Strength: 84
• Industry: Advertising Agencies
• EPS (TTM): 29.88
• Shares Outstanding: 4,508,000
• 10 Day Avg. Volume: 540
• 30 Day Avg. Volume: 513
• PEG Ratio: 0.41
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.84
• 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: 70 Outperform
• 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. Business Overview & Revenue Model

Company Description

Seki Co., Ltd. (7857) is a Japan-based company primarily engaged in the production and sale of various stationery products. The company operates in the consumer goods sector, offering a wide range of office supplies, writing instruments, and other related products to both domestic and international markets. With a focus on quality and innovation, Seki Co., Ltd. aims to meet the diverse needs of its customers, from individual consumers to large corporate clients.

How the Company Makes Money

Seki 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

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

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

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.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
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
EBITDA	642.35M	1.08B	1.20B	977.63M	866.69M	659.00M
Net Income	361.66M	365.31M	429.52M	323.89M	201.83M	171.00M
Balance Sheet
Total Assets	18.38B	18.58B	17.75B	17.44B	18.25B	16.75B
Cash, Cash Equivalents and Short-Term Investments	3.61B	4.47B	4.76B	4.08B	5.32B	100.06M
Total Debt	243.00M	270.00M	408.36M	482.35M	556.35M	587.00M
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 Price: 1359.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1359 is above the 20-day moving average (MA) of 1353.00, above the 50-day MA of 1350.82, and above the 200-day MA of 1334.74, indicating a bullish trend. The MACD of 2.80 indicates Negative momentum. The RSI at 55.36 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7912	77 Outperform	$1.07T	9.16	9.42%	2.02%	2.30%	8.07%
7911	72 Outperform	$1.05T	13.03	6.53%	1.24%	2.37%	29.23%
7857	70 Outperform	¥5.67B	20.20		1.91%	1.99%	1.26%
Sector *	66 Neutral	¥372.81B	13.63	2.32%	2.51%	5.41%	-17.67%
7952	51 Neutral	¥22.49B	55.56		3.63%	-9.07%	-85.45%
7872	49 Neutral	¥6.09B	―		4.71%	-1.35%	64.68%
7837	45 Neutral	¥1.59B	―		―	-9.49%	-126.08%