Sekido Co., Ltd. (9878) AI Stock Analysis

• Market Cap: ¥2.09B
• Dividend Yield: 1.39%
• Average Volume (3M): 268.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: -20.86%
• EPS Growth: -2441.42%
• Country: JP
• Employees: 61
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Apparel - Retail
• EPS (TTM): -69.91
• Shares Outstanding: 2,950,228
• 10 Day Avg. Volume: 175,740
• 30 Day Avg. Volume: 268,966
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥667.00
• Price Target Upside: -7.62% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 38 Underperform
• Price Target: ¥667.00 ▼(-7.62% Downside)

Sekido Co., Ltd. is facing severe financial challenges, with negative profitability and high leverage being the most significant concerns. Technical analysis indicates a strong bearish trend, and valuation metrics reflect the company's current unprofitability. Immediate strategic actions are needed to address these issues.

Sekido Co., Ltd. Business Overview & Revenue Model

Company Description

Sekido Co., Ltd. (9878) is a Japanese company primarily engaged in the manufacturing and distribution of high-quality industrial and consumer products. Operating in sectors such as electronics, telecommunications, and information technology, Sekido specializes in innovative solutions that enhance connectivity and efficiency. The company's core offerings include electronic components, telecommunications equipment, and software solutions designed to meet the evolving needs of its clients across various industries.

How the Company Makes Money

Sekido Co., Ltd. generates revenue through multiple key streams including the sale of electronic components and telecommunications equipment to businesses in various sectors, such as manufacturing and logistics. The company also earns income from software licensing and maintenance services, which provide ongoing support to its customers. Strategic partnerships with major technology firms and participation in industry collaborations further bolster its market presence, allowing Sekido to expand its reach and enhance its product offerings. Additionally, the company may benefit from government contracts or projects related to infrastructure development, contributing to stable revenue generation.

Sekido Co., Ltd. Financial Statement Overview

Summary

Sekido Co., Ltd. faces significant financial challenges, with declining revenue, profitability, and high leverage. The negative cash flows and substantial losses underscore potential liquidity issues.

Income Statement

The income statement reflects declining revenue and profitability. Gross profit margin decreased from 32.6% in 2024 to 30.1% in 2025. Net profit margin turned negative, dropping from 0.6% to -7.8%, indicating significant losses. Revenue decreased by 11.6% from 2024 to 2025, and negative EBIT and EBITDA margins of -3.7% and -4.7% respectively, highlight challenges in managing costs and generating profits.

Balance Sheet

The balance sheet shows increasing financial leverage and a weakened equity position. The debt-to-equity ratio rose significantly from 2.9 in 2024 to 15.8 in 2025, indicating high leverage. Return on equity turned negative at -295.4% due to substantial losses. The equity ratio fell from 17.6% to 4.1%, suggesting a reduced buffer against liabilities.

Cash Flow

The cash flow statement reveals deteriorating cash flow management. Free cash flow worsened from -58.8 million in 2024 to -324.8 million in 2025. The operating cash flow to net income ratio indicates inefficiencies as it remains negative. The free cash flow to net income ratio is also negative, reflecting a significant cash burn.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.03B	7.49B	8.48B	7.04B	7.73B	6.77B
Gross Profit	2.49B	2.25B	2.77B	2.33B	1.97B	1.73B
EBITDA	-77.41M	-353.27M	163.40M	124.76M	499.60M	166.16M
Net Income	-228.53M	-581.82M	47.65M	-46.39M	485.60M	117.37M
Balance Sheet
Total Assets	5.82B	4.77B	5.31B	4.95B	4.27B	3.60B
Cash, Cash Equivalents and Short-Term Investments	508.00M	504.17M	416.48M	593.20M	724.47M	483.82M
Total Debt	3.35B	3.11B	2.71B	2.80B	1.82B	1.45B
Total Liabilities	5.11B	4.57B	4.38B	4.07B	3.25B	3.09B
Stockholders Equity	704.00M	196.96M	935.09M	870.57M	1.03B	510.20M
Cash Flow
Free Cash Flow	0.00	-324.77M	-58.77M	-916.92M	-473.64M	-190.48M
Operating Cash Flow	0.00	-107.42M	8.42M	-842.77M	-374.96M	-183.24M
Investing Cash Flow	0.00	-144.23M	-54.53M	-99.04M	177.21M	-37.77M
Financing Cash Flow	0.00	346.49M	-130.67M	810.51M	442.39M	133.33M

Sekido Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 722.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9878, the sentiment is Negative. The current price of 722 is below the 20-day moving average (MA) of 851.05, below the 50-day MA of 976.28, and below the 200-day MA of 775.98, indicating a bearish trend. The MACD of -101.89 indicates Positive momentum. The RSI at 35.37 is Neutral, neither overbought nor oversold. The STOCH value of 22.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9878.

Sekido Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9271	73 Outperform	¥4.25B	10.43		―	37.51%	176.25%
Sector *	61 Neutral	$17.43B	12.62	-6.02%	3.11%	1.71%	-15.47%
2778	52 Neutral	¥1.75B	―		―	-6.82%	-146.83%
7615	52 Neutral	¥2.47B	―		6.32%	-14.14%	71.50%
8013	49 Neutral	¥2.28B	23.46		―	0.39%	-288.31%
7603	46 Neutral	¥9.75B	―		―	-10.95%	-19.17%
9878	38 Underperform	¥2.09B	―		1.39%	-20.86%	-2441.42%