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

• Market Cap: ¥5.28B
• Dividend Yield: 2.04%
• Average Volume (3M): 1.67K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.17
• Revenue Growth: 3.20%
• EPS Growth: 13.32%
• Country: JP
• Employees: 616
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Home Improvement
• EPS (TTM): 38.43
• Shares Outstanding: 5,586,150
• 10 Day Avg. Volume: 1,120
• 30 Day Avg. Volume: 1,670
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: ¥1,091.00
• Price Target Upside: 11.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥1,079.00 ▲(10.10%Upside)

Sekichu Co., Ltd. exhibits a solid financial foundation with a strong balance sheet but faces challenges in cash flow and revenue growth. Technical indicators suggest neutral momentum. The valuation is attractive with a low P/E ratio and decent dividend yield. Overall, the stock presents a balanced risk-reward profile, with valuation and technicals supporting the score.

Sekichu Co., Ltd. Business Overview & Revenue Model

Company Description

Sekichu Co., Ltd. (9976) is a Japanese company operating in the retail industry, primarily focusing on home improvement and hardware stores. The company caters to both individual consumers and professional contractors by offering a wide range of products such as tools, building materials, gardening supplies, and home improvement goods. Sekichu is committed to providing quality products and exceptional customer service, ensuring that customers have access to the necessary items for their home improvement needs.

How the Company Makes Money

Sekichu Co., Ltd. generates its revenue primarily through the sale of home improvement and hardware products. The company's key revenue streams include in-store sales to both individual customers and professional contractors, as well as online sales through its e-commerce platform. Sekichu may also benefit from strategic partnerships with suppliers and manufacturers, allowing them to offer a diverse range of products at competitive prices. Additionally, the company could engage in promotional events and loyalty programs to attract and retain customers, contributing to its overall earnings.

Sekichu Co., Ltd. Financial Statement Overview

Summary

Sekichu Co., Ltd. shows a generally stable financial performance. The balance sheet is strong with a favorable Equity Ratio and manageable leverage. However, the income statement reflects fluctuations in net profit margin and revenue growth. Cash flow concerns are evident with negative free cash flow and erratic cash generation, indicating areas that require attention.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	1.20B	1.05B	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: Neutral
• Last Price: 980.00
• 50DMA: Positive
• 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:9976, the sentiment is Neutral. The current price of 980 is below the 20-day moving average (MA) of 988.35, above the 50-day MA of 978.24, and below the 200-day MA of 1063.19, indicating a neutral trend. The MACD of -2.30 indicates Positive momentum. The RSI at 48.08 is Neutral, neither overbought nor oversold. The STOCH value of 24.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	68 Neutral	¥5.28B	10.54		2.04%	3.20%	13.32%
9903	63 Neutral	¥6.12B	14.65		2.27%	0.52%	―
8208	61 Neutral	¥7.70B	―		0.89%	-2.88%	88.38%
Sector *	57 Neutral	HK$24.54B	3.87	-2.03%	6.53%	-0.31%	-67.70%
9835	56 Neutral	¥3.99B	24.43		2.03%	-0.63%	-51.15%
7590	55 Neutral	¥7.38B	―		1.18%	6.82%	-80.98%
7450	46 Neutral	¥11.51B	―		0.47%	-1.67%	-1317.33%