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

• Market Cap: ¥5.58B
• Dividend Yield: 3.86%
• Average Volume (3M): 1.31K
• Price to Earnings (P/E): 12.0
• 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): 21.65
• Shares Outstanding: 5,586,150
• 10 Day Avg. Volume: 1,240
• 30 Day Avg. Volume: 1,306
• PEG Ratio: -3.16
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -1.51
• 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: 72 Outperform
• Price Target: ¥1,274.00 ▲(24.54% Upside)

Sekichu Co., Ltd. has a strong technical outlook with bullish momentum and a solid valuation, making it an attractive investment. However, financial performance is mixed due to cash flow challenges and revenue growth concerns, which slightly dampen the overall score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a favorable equity ratio indicates a solid capital foundation, providing financial stability and flexibility for future growth.

Stable Gross Profit Margin

Stable gross profit margins suggest consistent operational efficiency, which supports the company's ability to maintain profitability over the long term.

Customer Loyalty

Customer loyalty and strong brand presence ensure steady revenue streams and competitive advantage, vital for sustained business success.

Negative Factors

Cash Flow Challenges

Negative free cash flow suggests cash constraints, potentially limiting the company's ability to invest in growth opportunities and manage financial obligations.

Revenue Growth Concerns

Declining revenue growth can hinder the company's ability to expand its market share and sustain long-term profitability, requiring strategic adjustments.

Increased Debt Levels

Rising debt levels may strain financial resources and increase risk, necessitating careful management to avoid impacting financial health.

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

Sekichu Co., Ltd. demonstrates a generally stable financial performance with strong balance sheet fundamentals. However, challenges in cash flow and revenue growth require attention. The company should focus on improving operational efficiencies and managing its free cash flow to support future 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.48B	30.38B	30.94B	31.75B	32.52B
Gross Profit	9.18B	9.39B	9.58B	9.56B	9.96B
EBITDA	1.12B	1.13B	1.08B	747.89M	1.33B
Net Income	494.00M	510.95M	477.60M	183.75M	626.25M
Balance Sheet
Total Assets	23.52B	19.72B	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	11.98B	8.64B	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	-1.08B	-409.25M	-805.34M	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: Negative
• Last Price: 1023.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9976, the sentiment is Negative. The current price of 1023 is below the 20-day moving average (MA) of 1026.25, below the 50-day MA of 1039.08, and above the 200-day MA of 1011.63, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.81 is Neutral, neither overbought nor oversold. The STOCH value of 18.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9976.

Sekichu Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9976	72 Outperform	¥5.58B	11.98	―	3.86%	4.17%	10.59%
9835	62 Neutral	¥3.94B	23.65	―	2.05%	-0.69%	-64.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8208	61 Neutral	―	―	―	―	-3.21%	56.44%
9903	55 Neutral	¥5.92B	12.25	―	2.32%	-1.54%	―
7450	48 Neutral	¥10.71B	-5.06	―	0.50%	-0.60%	-386.40%
7590	46 Neutral	¥7.96B	―	―	1.19%	6.36%	96.61%