Sun Messe Co., Ltd. (7883) AI Stock Analysis

• Market Cap: ¥5.69B
• Dividend Yield: 2.5%
• Average Volume (3M): 17.22K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.25
• Revenue Growth: -0.82%
• EPS Growth: 29.25%
• Country: JP
• Employees: 682
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -7.12
• Shares Outstanding: 17,825,050
• 10 Day Avg. Volume: 7,480
• 30 Day Avg. Volume: 17,216
• PEG Ratio: 0.59
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 9.33
• 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: 71 Outperform
• Price Target: ¥380.00 ▲(4.40% Upside)

Sun Messe Co., Ltd. scores well on financial stability and valuation, with a strong equity position and reasonable P/E ratio. However, challenges in revenue growth and modest profitability margins, along with neutral technical indicators, moderate the overall score.

Positive Factors

Financial Stability

A strong equity position and low debt-to-equity ratio indicate financial stability, providing a solid foundation for long-term growth and resilience against economic fluctuations.

Cash Flow Generation

Consistent positive operating cash flow indicates efficient cash management and conversion, supporting ongoing operations and potential investments in growth opportunities.

Product Innovation

Focus on innovative product design and functionality strengthens market position and can drive long-term demand, catering to evolving consumer preferences and enhancing competitive advantage.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth and recent declines suggest challenges in maintaining top-line expansion, which could impact long-term market share and profitability if not addressed.

Modest Profitability Margins

Low net profit margins indicate limited bottom-line profitability, which may constrain reinvestment in growth initiatives and affect overall financial performance over time.

Free Cash Flow Volatility

Volatility in free cash flow growth can affect the company's ability to fund future investments consistently, potentially impacting long-term strategic initiatives and financial planning.

Sun Messe Co., Ltd. Business Overview & Revenue Model

Company Description

Sun Messe Co., Ltd. operates as a communication service center for printing, publishing, digital media, videos, and events businesses in Japan. It provides various commercial, publishing, package, and form printing products. The company also offers promotion solutions, such as catalogue promotion support, image database, manuscript submission, 3D computer graphics, inventory management, shipping agency, flyer production support system, digital flyer, POP advertising entry, and area marketing systems. In addition, it provides digital press services, including information processing, print on demand, continuous paper digital press, multi binding, automatic encapsulation and sealing, final inspection function, one-to-one printing, and original envelop processing services; and 3D package design and package CAD data creation systems, as well as sample cutters, in-store promotion, UV printers, Thomson machine, and box making machines. Further, the company offers support in the areas of website operation, social media, iBooks and eBook, digital signage, video content creation, augmented reality, application development, access analysis, membership management, and web promotion. Additionally, it provides silkscreen printing, clean assembly, noricle, UV printing, center RIP system, and printed electronics; carbon management; events and conventions; eco-friendly communication; and universal design. The company was founded in 1935 and is headquartered in Ogaki, Japan.

How the Company Makes Money

Sun Messe Co., Ltd. generates revenue through the sale of its office furniture and equipment to businesses and individual customers. The company's key revenue streams include direct sales to corporate clients, partnerships with retailers and distributors, and custom interior design projects. Significant factors contributing to its earnings include its strong brand reputation, a wide distribution network, and an emphasis on innovation in product design and functionality. Additionally, the company may engage in strategic partnerships with other firms to enhance its product offerings and market reach.

Sun Messe Co., Ltd. Financial Statement Overview

Summary

Sun Messe Co., Ltd. demonstrates financial stability with a strong equity position and consistent cash flow generation. However, modest profitability margins and revenue growth fluctuations pose challenges for sustained growth.

Income Statement

Sun Messe Co., Ltd. shows a stable gross profit margin around 21% over the years, indicating consistent cost control. However, the net profit margin is relatively low, averaging around 2%, suggesting limited bottom-line profitability. The revenue growth is inconsistent, with a decline in 2025 after previous fluctuations, reflecting potential challenges in maintaining top-line growth.

Balance Sheet

The company maintains a strong equity position with a high equity ratio above 58%, indicating financial stability. The debt-to-equity ratio is low, suggesting prudent leverage use. However, the return on equity is modest, around 2.8%, which could reflect opportunities for more efficient equity utilization.

Cash Flow

Sun Messe Co., Ltd. has shown resilience in generating positive operating cash flows consistently. The free cash flow to net income ratio is healthy, indicating efficient cash conversion. However, fluctuations in free cash flow growth highlight potential volatility in cash generation, which could affect future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.57B	16.44B	16.63B	17.15B	16.60B	14.93B
Gross Profit	3.60B	3.51B	3.46B	3.46B	3.57B	3.11B
EBITDA	1.17B	1.07B	1.04B	1.16B	922.92M	1.14B
Net Income	391.10M	332.27M	257.20M	327.88M	264.72M	304.85M
Balance Sheet
Total Assets	20.01B	19.71B	20.55B	19.55B	19.29B	19.11B
Cash, Cash Equivalents and Short-Term Investments	3.22B	3.01B	2.63B	1.97B	1.28B	2.34B
Total Debt	1.63B	1.58B	1.68B	1.75B	1.76B	1.91B
Total Liabilities	7.58B	7.77B	8.41B	8.55B	8.56B	8.50B
Stockholders Equity	12.32B	11.83B	12.04B	10.92B	10.64B	10.53B
Cash Flow
Free Cash Flow	0.00	619.85M	729.25M	748.00M	-630.67M	-299.88M
Operating Cash Flow	0.00	1.01B	1.04B	1.17B	944.15M	485.64M
Investing Cash Flow	0.00	-913.96M	-200.03M	-465.62M	-1.59B	-749.93M
Financing Cash Flow	0.00	-226.86M	-202.13M	-132.44M	-292.56M	-92.02M

Sun Messe Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 364.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7883, the sentiment is Positive. The current price of 364 is above the 20-day moving average (MA) of 362.90, above the 50-day MA of 356.86, and above the 200-day MA of 352.59, indicating a bullish trend. The MACD of 3.31 indicates Negative momentum. The RSI at 76.98 is Negative, neither overbought nor oversold. The STOCH value of 90.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7883.

Sun Messe Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	83 Outperform	¥17.78B	9.77	―	3.62%	7.07%	79.18%
7805	77 Outperform	¥3.42B	7.78	―	1.93%	-1.00%	105.56%
7883	71 Outperform	¥5.69B	16.24	―	2.50%	-0.82%	29.25%
7919	68 Neutral	¥3.68B	7.97	―	3.69%	0.62%	-24.08%
7893	65 Neutral	¥29.59B	-48.79	―	3.97%	4.10%	-121.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥6.05B	11.30	―	2.72%	-1.30%	―