Sekichu Co., Ltd. (9976) AI Stock Analysis

• Market Cap: ¥5.81B
• Dividend Yield: 3.56%
• Average Volume (3M): 1.31K
• Price to Earnings (P/E): 33.9
• Beta (1Y): 0.19
• Revenue Growth: 4.17%
• EPS Growth: 10.59%
• Country: JP
• Employees: 616
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 7.41
• Shares Outstanding: 5,586,150
• 10 Day Avg. Volume: 1,240
• 30 Day Avg. Volume: 1,306
• PEG Ratio: -2.44
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -1.52
• 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: 65 Neutral
• Price Target: ¥1,131.00 ▼(-2.42% Downside)
• Action: Downgraded Date: 12/26/25
• Date: Action: Downgraded 12/26/25

Overall score reflects solid financial stability led by a strong balance sheet, tempered by cash flow weakness and slowing revenue growth. Technicals are broadly neutral with mild support from longer-term moving averages, and valuation is helped by a reasonable P/E and a healthy dividend yield.

Positive Factors

Strong Balance Sheet

A strong balance sheet with manageable leverage provides financial stability and flexibility, supporting long-term growth and resilience.

Operational Efficiency

Stable margins indicate effective cost management and operational efficiency, which are crucial for sustaining profitability over time.

Product Innovation

Continuous innovation in product development helps maintain competitive advantage and adapt to market changes, driving long-term success.

Negative Factors

Cash Flow Weakness

Negative free cash flow suggests potential liquidity issues, which could limit the company's ability to invest in growth opportunities.

Revenue Growth Slowdown

Slowing revenue growth may indicate challenges in market expansion or product demand, potentially impacting future earnings potential.

Erratic Cash Generation

Inconsistent cash generation can lead to financial instability, affecting the company's ability to fund operations and strategic initiatives.

Sekichu Co., Ltd. Business Overview & Revenue Model

Company Description

Sekichu Co., Ltd. operates home improvement stores. It also operates car supplies and bicycle specialty stores. The company was formerly known as Sekiguchi Mokuzai Co., Ltd. and changed its name to Sekichu Co., Ltd. in July 1977. Sekichu Co., Ltd. was incorporated in 1952 and is based in Takasaki, Japan.

How the Company Makes Money

Sekichu Co., Ltd. generates revenue primarily through the sale of home improvement and lifestyle products in its retail stores. The company's key revenue streams include the direct sales of hardware, gardening tools, home goods, and DIY supplies. Additionally, Sekichu may engage in strategic partnerships with manufacturers and suppliers to offer exclusive products or promotional deals, enhancing its competitive edge in the market. The company also benefits from its strong brand presence and customer loyalty, which contribute to consistent foot traffic and sales at its retail locations.

Sekichu Co., Ltd. Financial Statement Overview

Summary

Financials are steady but mixed: a solid balance sheet (strong equity base and manageable leverage) is offset by weaker cash generation (negative recent free cash flow and erratic operating cash flow vs. net income) and softer recent revenue growth.

Income Statement

The income statement shows a mixed performance. Gross Profit Margin is stable, and EBIT Margin is relatively healthy, indicating some operational efficiency. However, the Net Profit Margin has been fluctuating, and there's a recent decline in revenue growth. The EBITDA Margin is also showing a stable trend, which is positive for cash generation capabilities.

Balance Sheet

The balance sheet is solid with a favorable Equity Ratio, suggesting a strong capital foundation. The Debt-to-Equity Ratio is modest, indicating manageable leverage. ROE is stable, reflecting consistent shareholder returns. Overall, the company maintains a strong financial position, although the increase in debt levels needs monitoring.

Cash Flow

The cash flow statement reveals some concerns, particularly with Free Cash Flow being negative over recent periods, indicating cash constraints. The Operating Cash Flow to Net Income Ratio is erratic, showing inconsistencies in cash generation. However, the company's ability to finance its operations from cash flow remains positive.

Breakdown	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	31.48B	30.38B	30.94B	31.75B	32.52B
Gross Profit	9.18B	9.02B	9.20B	9.14B	9.53B
EBITDA	1.03B	1.11B	1.13B	992.38M	1.39B
Net Income	494.00M	510.95M	477.60M	183.75M	626.25M
Balance Sheet
Total Assets	23.71B	19.88B	18.49B	18.44B	18.23B
Cash, Cash Equivalents and Short-Term Investments	949.26M	884.16M	853.19M	1.11B	1.88B
Total Debt	4.41B	1.80B	900.00M	838.86M	272.20M
Total Liabilities	12.18B	8.80B	7.84B	8.14B	7.89B
Stockholders Equity	11.53B	11.07B	10.65B	10.30B	10.34B
Cash Flow
Free Cash Flow	-3.65B	-959.64M	-324.54M	-782.93M	1.79B
Operating Cash Flow	575.16M	8.02M	107.69M	177.05M	2.22B
Investing Cash Flow	-3.05B	-715.97M	-320.45M	-1.30B	-157.08M
Financing Cash Flow	2.54B	738.92M	-46.71M	351.17M	-1.39B

Sekichu Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1159.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9976, the sentiment is Positive. The current price of 1159 is above the 20-day moving average (MA) of 1046.50, above the 50-day MA of 1041.30, and above the 200-day MA of 1012.52, indicating a bullish trend. The MACD of 6.97 indicates Negative momentum. The RSI at 65.60 is Neutral, neither overbought nor oversold. The STOCH value of 92.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9976.

Sekichu Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3050	73 Outperform	¥218.71B	16.88	―	2.83%	1.49%	-21.76%
3191	68 Neutral	¥123.83B	8.26	―	3.43%	0.73%	-9.78%
8218	67 Neutral	¥171.25B	11.31	―	1.58%	1.69%	3.90%
7516	67 Neutral	¥128.67B	12.62	―	2.85%	3.83%	7.24%
9976	65 Neutral	¥5.81B	33.89	―	3.56%	4.17%	10.59%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2790	55 Neutral	¥63.15B	19.77	0.36%	2.78%	-6.21%	-29.75%