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

• Market Cap: ¥5.69B
• Dividend Yield: 1.93%
• Average Volume (3M): 413.00
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.10
• Revenue Growth: -0.57%
• EPS Growth: -69.39%
• Country: JP
• Employees: 456
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 17.33
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥1,450.00 ▲(8.78% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

Seki Co., Ltd. has a stable financial foundation with strong equity and low debt, but faces challenges with declining net profit margins and free cash flow. Technical indicators show mixed signals, and the stock's valuation appears high relative to its earnings, limiting its attractiveness. The absence of recent earnings call data and corporate events leaves some uncertainty in the outlook.

Positive Factors

Strong Financial Stability

A high equity ratio indicates financial stability, providing Seki Co., Ltd. with resilience against economic downturns and flexibility for future investments.

Consistent Revenue Growth

Steady revenue growth reflects the company's ability to maintain its market position and adapt to industry demands, supporting long-term business sustainability.

Efficient Cost Management

Stable gross profit margins suggest effective cost control, which is crucial for maintaining profitability and competitive pricing in the market.

Negative Factors

Declining Net Profit Margin

A declining net profit margin can impact overall profitability, indicating potential challenges in managing expenses or pricing strategies effectively.

Free Cash Flow Concerns

Declining free cash flow raises concerns about liquidity and limits the company's ability to invest in growth opportunities or weather financial challenges.

Decreased Return on Equity

A decreasing return on equity suggests reduced efficiency in generating profits from shareholders' investments, potentially impacting investor confidence.

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 precision instruments and optical devices, which are used in various applications including industrial, scientific, and consumer markets. The company’s revenue model is built on both direct sales and partnerships with distributors and manufacturers in related sectors. Key revenue streams include the sale of high-precision measurement equipment, optical components, and electronic devices. Additionally, Seki Co., Ltd. benefits from long-term contracts and collaborations with major industry players, which not only provide steady income but also enhance its market position and brand reputation.

Seki Co., Ltd. Financial Statement Overview

Summary

Seki Co., Ltd. shows a solid financial position with strong equity and low debt, supporting stability. However, the decline in net profit margin and free cash flow raises concerns about profitability and liquidity. The company should focus on improving 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	219.71M	270.75M	410.80M	486.77M	564.89M
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: Positive
• Last Price: 1333.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1333 is below the 20-day moving average (MA) of 1352.75, below the 50-day MA of 1339.70, and below the 200-day MA of 1335.72, indicating a bullish trend. The MACD of 5.01 indicates Positive momentum. The RSI at 61.10 is Neutral, neither overbought nor oversold. The STOCH value of 47.29 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7068	75 Outperform	¥13.10B	11.18	―	1.27%	7.24%	215.65%
7857	67 Neutral	¥5.69B	19.33	―	1.93%	-0.57%	-69.39%
7354	65 Neutral	¥14.05B	10.92	―	1.51%	7.96%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2122	59 Neutral	¥8.96B	12.89	―	2.61%	11.84%	246.10%
2491	57 Neutral	¥13.93B	29.59	―	7.85%	-3.20%	34.08%
6094	50 Neutral	¥11.67B	2.40	―	―	-2.68%	91.68%