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

• Market Cap: ¥2.50B
• Dividend Yield: 3.86%
• Average Volume (3M): 2.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: 2.13%
• EPS Growth: 156.83%
• Country: JP
• Employees: 390
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): -0.54
• 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: ¥601.00 ▲(15.80% Upside)
• Action: Downgraded Date: 10/30/25
• Date: Action: Downgraded 10/30/25

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 ratio and manageable debt-to-equity provide structural financial stability, lowering insolvency risk and preserving borrowing capacity. This durable balance-sheet strength supports investment, capital expenditure and resilience through cyclical construction-materials demand over the next several months.

Stable gross margin

Relatively stable gross margins signal persistent control of direct costs and pricing discipline in core products. Sustained margin stability underpins long-term operating profitability even if top-line growth is uneven, helping preserve cashflows and funding for operations and maintenance capex.

Positive top-line trend

Modest positive revenue growth indicates ongoing demand for the company’s products and provides a foundation for margin leverage if operational efficiency improves. Even slow, consistent top-line expansion supports longer-term recovery efforts and strategic planning in the construction materials market.

Negative Factors

Weak free cash flow

Negative free cash flow and fluctuating operating cash generation constrain the company’s ability to self-fund investments, dividends and debt service. Persistent weak cash conversion increases reliance on external financing and limits flexibility to weather industry downturns over the medium term.

Volatile profitability and ROE

Significant swings in net margins and inconsistent ROE reduce predictability of shareholder returns and complicate capital allocation. This volatility can reflect sensitive input costs or cyclical demand in construction materials, making earnings recovery and sustained investor returns uncertain over coming quarters.

Sharp EPS deterioration

A very large negative EPS growth rate indicates recent profit declines or one-time hits, undermining earnings quality. Such steep earnings deterioration can pressure retained earnings, constrain reinvestment, and signal operational issues that may take multiple quarters to resolve.

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. 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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 547.05, below the 50-day MA of 539.86, and below the 200-day MA of 519.07, indicating a bullish trend. The MACD of 6.92 indicates Negative momentum. The RSI at 58.56 is Neutral, neither overbought nor oversold. The STOCH value of 62.98 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
5233	67 Neutral	¥418.27B	-16.12	7.93%	2.32%	-2.26%	-10.86%
5900	64 Neutral	¥4.72B	56.66	―	2.05%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1994	63 Neutral	¥4.87B	21.80	―	3.79%	-14.22%	-92.98%
5232	61 Neutral	$127.25B	45.55	6.98%	3.13%	-2.13%	37.10%
7896	60 Neutral	¥2.50B	-289.58	―	3.86%	2.13%	156.83%
5269	49 Neutral	¥18.46B	743.26	―	3.24%	-3.73%	-143.19%