Seven Industries Co., Ltd. (7896) AI Stock Analysis

• Market Cap: ¥2.37B
• Dividend Yield: 3.86%
• Average Volume (3M): 2.56K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.25
• Revenue Growth: 2.13%
• EPS Growth: 156.83%
• Country: JP
• Employees: 390
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): -4.79
• Shares Outstanding: 4,673,250
• 10 Day Avg. Volume: 1,750
• 30 Day Avg. Volume: 2,556
• PEG Ratio: -0.10
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -15.87
• 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: 60 Neutral
• Price Target: ¥537.00 ▲(3.47% Upside)

The overall stock score of 60 reflects a mixed outlook for Seven Industries Co., Ltd. The financial performance shows stability in equity but challenges in revenue and cash flow. Technical analysis indicates bearish trends, while valuation metrics suggest the stock is fairly valued with a good dividend yield. The absence of recent earnings call data and corporate events limits further insights.

Positive Factors

Strong Equity Position

A strong equity position indicates financial stability and resilience, providing a solid foundation for future growth and investment opportunities.

Strategic Partnerships

Strategic partnerships expand market presence and product offerings, fostering innovation and competitive advantage in the industry.

Government Contracts

Government contracts offer a reliable revenue stream, ensuring financial stability and supporting long-term business sustainability.

Negative Factors

Volatile Cash Flow

Volatile cash flow can hinder the company's ability to invest in growth opportunities and meet financial obligations, impacting long-term financial health.

Inconsistent Revenue Growth

Inconsistent revenue growth can limit the company's ability to scale operations and compete effectively, posing risks to future profitability.

Volatile Net Profit Margin

Volatile net profit margins indicate challenges in cost control and pricing strategy, potentially affecting long-term profitability and shareholder returns.

Seven Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Seven Industries Co., Ltd. manufactures and sells laminated wooden building materials primarily in Japan. The company offers stairs for various living spaces; and wood counters that are used as dining tables, face-to-face counters for kitchens, niche counters, and gallery counters, as well as desks for adults and children, etc. It also provides entrance work material for various interior design making; Japanese room members, such as a range of construction materials comprising tubular columns and pillars, and Japanese style building materials; and tree structures for housing and non-housing wooden buildings. The company was incorporated in 1961 and is headquartered in Minokamo, Japan.

How the Company Makes Money

Seven Industries Co., Ltd. generates revenue through several key streams. The primary source of income comes from the sale of industrial equipment and machinery to various sectors such as construction, manufacturing, and logistics. Additionally, the company earns revenue from its consumer electronics division, which includes smartphones, home appliances, and personal gadgets. Another significant revenue stream is derived from software solutions and automation services sold to businesses looking to enhance efficiency and productivity. The company has established strategic partnerships with suppliers and distributors, enabling broader market access and improved supply chain efficiencies. Furthermore, ongoing investment in R&D allows Seven Industries to innovate and adapt to market trends, ensuring sustained growth and profitability.

Seven Industries Co., Ltd. Financial Statement Overview

Summary

Seven Industries Co., Ltd. demonstrates a mixed financial performance. The company maintains a strong equity position and manageable leverage, but its income statement and cash flow metrics indicate volatility and potential liquidity challenges. Stabilizing revenue growth and improving cash flow generation are key areas for improvement.

Income Statement

The company has shown a moderate performance in its income statement. The gross profit margin has been relatively stable, indicating consistent cost management. However, the net profit margin has been volatile, with significant fluctuations in net income over the years. Revenue growth has been inconsistent, with a decline in recent years. The EBIT and EBITDA margins have also shown variability, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a favorable equity ratio, indicating financial stability. The debt-to-equity ratio is manageable, suggesting a balanced approach to leverage. However, the return on equity has been inconsistent, highlighting potential challenges in generating returns for shareholders.

Cash Flow

The cash flow statement reveals challenges in maintaining positive free cash flow, with significant fluctuations over the years. The operating cash flow to net income ratio indicates some inconsistency in cash generation relative to reported earnings. The free cash flow to net income ratio has been negative in recent periods, pointing to potential liquidity concerns.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.42B	15.26B	17.65B	16.02B	12.69B
Gross Profit	2.29B	2.13B	2.46B	2.55B	2.10B
EBITDA	331.00M	-593.00M	558.00M	773.00M	477.00M
Net Income	184.00M	-783.00M	231.00M	361.00M	275.00M
Balance Sheet
Total Assets	10.94B	10.56B	11.82B	11.98B	10.15B
Cash, Cash Equivalents and Short-Term Investments	1.20B	1.13B	775.00M	751.00M	792.00M
Total Debt	1.96B	1.51B	1.61B	1.49B	1.05B
Total Liabilities	4.63B	4.34B	4.74B	5.04B	3.50B
Stockholders Equity	6.31B	6.22B	7.09B	6.95B	6.65B
Cash Flow
Free Cash Flow	-144.00M	648.00M	26.00M	-509.00M	485.00M
Operating Cash Flow	328.00M	879.00M	281.00M	-332.00M	623.00M
Investing Cash Flow	-505.00M	-229.00M	-256.00M	-71.00M	-104.00M
Financing Cash Flow	243.00M	-297.00M	-2.00M	360.00M	-544.00M

Seven Industries Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 519.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7896, the sentiment is Positive. The current price of 519 is below the 20-day moving average (MA) of 520.25, above the 50-day MA of 513.56, and above the 200-day MA of 508.81, indicating a bullish trend. The MACD of 2.86 indicates Negative momentum. The RSI at 63.92 is Neutral, neither overbought nor oversold. The STOCH value of 61.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7896.

Seven Industries Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5287	67 Neutral	¥3.21B	13.05	―	2.00%	-3.03%	-14.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5380	62 Neutral	¥1.24B	27.78	―	2.30%	-0.62%	―
7896	60 Neutral	¥2.37B	20.94	―	3.86%	2.13%	156.83%
5271	54 Neutral	¥3.26B	30.28	―	3.85%	0.29%	-45.50%
5386	53 Neutral	¥3.12B	19.62	―	1.59%	-4.01%	-41.29%
5928	51 Neutral	¥2.81B	34.35	―	2.96%	-8.43%	135.83%