Precision System Science Co.,Ltd (7707) AI Stock Analysis

Precision System Science Co.,Ltd

(TSE/TYO:7707)

Select Model

Rating:61Neutral

Price Target:JPY 225.00▲(13.64% Upside)

Action:reiterated

Date:08/19/26

The overall score of 61 reflects a company in the midst of a recovery. The most significant positive factor is the operational turnaround and a now-healthy balance sheet. The most significant risk, and the primary drag on the score, is the severe disconnect between reported profitability and actual cash generation, which raises concerns about the sustainability of the recovery. Technicals are mildly supportive, and the valuation is fair.

Positive Factors

Recurring consumables revenueConsumables and support revenue can create repeat business beyond one-time instrument sales. As the installed base expands, recurring purchases tied to testing activity may improve revenue visibility and strengthen customer retention.

Negative Factors

Weak cash conversionThe large gap between reported profit and operating cash flow raises quality-of-earnings risk. If working capital or investment continues to absorb cash, the company may need external funding even when its income statement appears profitable.

Precision System Science Co.,Ltd (7707) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.55B
Dividend Yield: 0.99%
Average Volume (3M): 137.30K
Price to Earnings (P/E): 14.0
Beta (1Y): 0.93
Revenue Growth: 11.17%
EPS Growth: ―
Country: Japan
Employees: 129
Sector: General
Sector Strength: 55
Industry: Medical - Diagnostics & Research

Precision System Science Co.,Ltd Business Overview & Revenue Model

Company Description

Precision System Science Co., Ltd. (PSS), along with its subsidiaries, specializes in the development, production, and global distribution of automated and physicochemical instruments, software, and various related goods, serving both the Japanese do...

How the Company Makes Money

Precision System Science generates revenue primarily by selling laboratory/clinical automation instruments and the recurring consumables used with those instruments, plus related services. Key revenue streams typically include: (1) Instrument/system...

Precision System Science Co.,Ltd Financial Statement Overview

Summary

The company has achieved a strong operational turnaround with revenue growth and a return to net profitability, while significantly de-risking its balance sheet by reducing debt. However, the financial health is undermined by extremely poor cash flow conversion, with negligible operating cash flow and negative free cash flow despite reported profits, indicating low earnings quality.

Income Statement

68Positive

Balance Sheet

72Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	5.22B	5.22B	4.69B	3.98B	5.28B	7.43B
Gross Profit	1.58B	1.58B	1.38B	950.38M	1.35B	2.49B
EBITDA	411.95M	409.05M	10.06M	-661.75M	-594.05M	740.33M
Net Income	394.87M	394.87M	-253.10M	-1.12B	-1.32B	45.34M
Balance Sheet
Total Assets	5.85B	5.85B	4.94B	6.40B	9.76B	11.41B
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.37B	1.04B	1.92B	2.45B	2.76B
Total Debt	1.03B	1.03B	564.21M	1.37B	3.88B	4.03B
Total Liabilities	1.76B	1.76B	1.18B	2.25B	4.54B	4.90B
Stockholders Equity	4.09B	4.09B	3.76B	4.14B	5.22B	6.51B
Cash Flow
Free Cash Flow	0	-50.57M	43.24M	-130.81M	-162.03M	-1.38B
Operating Cash Flow	0	51.41M	95.83M	-106.80M	-6.75M	869.16M
Investing Cash Flow	0	-98.03M	-8.24M	2.06B	-213.70M	-2.29B
Financing Cash Flow	0	460.79M	-910.82M	-2.51B	-154.05M	93.73M

Precision System Science Co.,Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price198.00

Price Trends

50DMA212.72Negative

100DMA207.36Negative

200DMA217.13Negative

Market Momentum

MACD-2.46Positive

RSI38.49Neutral

STOCH23.43Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7707, the sentiment is Negative. The current price of 198.00 is below the 20-day moving average (MA) of 213.50, below the 50-day MA of 212.72, and below the 200-day MA of 217.13, indicating a bearish trend. The MACD of -2.46 indicates Positive momentum. The RSI at 38.49 is Neutral, neither overbought nor oversold. The STOCH value of 23.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7707.

Precision System Science Co.,Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7707 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4570	78Outperform	JPY 9.56B	25.97	―	0.58%	13.46%	42.41%
JP:3386	69Neutral	JPY 7.16B	19.27	―	4.05%	9.39%	44.42%
JP:7707	61Neutral	JPY 5.59B	14.02	―	0.99%	11.17%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4892	50Neutral	JPY 5.64B	-6.87	―	―	364.72%	18.43%
JP:4978	45Neutral	JPY 13.03B	-26.58	―	―	-18.71%	-246.54%
JP:7776	37Underperform	JPY 7.43B	-6.49	―	―	-56.16%	3.12%

* General Sector Average

Performance Comparison

JP:7707 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7707	Precision System Science Co.,Ltd	202.00	17.00	9.19%
JP:3386	Cosmo Bio Co., Ltd.	1236.00	169.47	15.89%
JP:4570	Immuno-Biological Laboratories Co., Ltd.	1027.00	556.02	118.06%
JP:4892	Cyfuse Biomedical K.K.	559.00	-26.00	-4.44%
JP:4978	ReproCELL Inc.	122.00	-51.00	-29.48%
JP:7776	CellSeed Inc.	188.00	-249.00	-56.98%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 19, 2026

Precision System Science Co.,Ltd AI Stock Analysis