Sigma Koki Co., Ltd. (7713) AI Stock Analysis

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Sigma Koki Co., Ltd.

(TSE/TYO:7713)

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Rating:64Neutral

Price Target:JPY 3,090.00▲(6.99% Upside)

Action:downgraded

Date:11/07/26

The score is anchored by strong financial resilience from a near-debt-free balance sheet, but is held back by clearly normalized profitability and uneven cash flow history. Technicals are a notable drag due to weak near-term trend and momentum, while valuation is supportive but only moderately attractive given the modest dividend yield.

Positive Factors

Near-debt-free balance sheetExtremely low leverage gives Sigma Koki resilience through weaker demand and preserves capacity to fund product development, working capital, or strategic investment internally. The steadily increasing equity base also supports a stable capital structure and reduces refinancing exposure.

Negative Factors

Revenue growth has cooledThe slowdown shows that recent expansion has not maintained its earlier pace, limiting operating leverage and reducing the speed at which the company can build earnings capacity. Persistently moderate growth would make future performance more dependent on margins and execution.

Sigma Koki Co., Ltd. (7713) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 17.95B
Dividend Yield: 1.45%
Average Volume (3M): 87.84K
Price to Earnings (P/E): 18.5
Beta (1Y): 1.24
Revenue Growth: 7.75%
EPS Growth: 15.59%
Country: Japan
Employees: 547
Sector: Technology
Sector Strength: 61
Industry: Hardware, Equipment & Parts

Sigma Koki Co., Ltd. Business Overview & Revenue Model

Company Description

Sigmakoki Co., Ltd., through its subsidiaries, is a Japanese supplier of diverse optical instruments and related products. The company's offerings span foundational opto-mechanical components and manual positioning equipment, such as stages, holders,...

How the Company Makes Money

Sigma Koki primarily makes money by selling photonics and precision-positioning products to customers that build or operate optical/laser-based equipment. Key revenue streams include (1) sales of standardized catalog products such as precision stages...

Sigma Koki Co., Ltd. Financial Statement Overview

Summary

Financial quality is supported by an exceptionally strong, near-debt-free balance sheet (debt-to-equity ~0.003) and generally healthy margins. Offsetting this strength, revenue growth has cooled and profitability has normalized materially (net margin down from ~13.1% in 2023 to ~7.3% in 2026), while cash flows have been uneven with a negative free-cash-flow year in 2025 despite a rebound in 2026.

Income Statement

66Positive

Balance Sheet

90Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	12.32B	11.44B	11.58B	11.21B	11.37B	10.35B
Gross Profit	4.89B	4.32B	4.33B	4.28B	4.44B	4.08B
EBITDA	2.14B	1.64B	1.81B	1.38B	2.55B	1.96B
Net Income	1.10B	831.18M	986.02M	687.22M	1.49B	1.17B
Balance Sheet
Total Assets	21.75B	21.21B	20.48B	21.11B	20.77B	18.67B
Cash, Cash Equivalents and Short-Term Investments	5.81B	5.77B	5.88B	6.50B	6.92B	5.73B
Total Debt	42.82M	58.88M	204.14M	508.19M	818.25M	410.55M
Total Liabilities	2.71B	2.47B	2.71B	3.97B	4.44B	3.70B
Stockholders Equity	18.92B	18.61B	17.67B	17.05B	16.24B	14.88B
Cash Flow
Free Cash Flow	663.69M	663.69M	-73.81M	129.14M	521.35M	786.58M
Operating Cash Flow	909.06M	909.06M	379.92M	1.41B	983.00M	942.75M
Investing Cash Flow	-248.45M	-248.45M	-418.34M	-1.46B	182.91M	-708.19M
Financing Cash Flow	-444.40M	-444.40M	-601.30M	-618.50M	-112.92M	-532.34M

Sigma Koki Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price2888.00

Price Trends

50DMA2751.40Positive

100DMA2438.82Positive

200DMA2185.44Positive

Market Momentum

MACD-22.17Positive

RSI49.50Neutral

STOCH35.39Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7713, the sentiment is Positive. The current price of 2888.00 is below the 20-day moving average (MA) of 3120.20, above the 50-day MA of 2751.40, and above the 200-day MA of 2185.44, indicating a neutral trend. The MACD of -22.17 indicates Positive momentum. The RSI at 49.50 is Neutral, neither overbought nor oversold. The STOCH value of 35.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7713.

Sigma Koki Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:7713 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6874	74Outperform	JPY 18.24B	9.19	―	4.16%	-3.24%	-10.28%
JP:7745	73Outperform	JPY 74.19B	13.32	―	2.23%	3.02%	-8.01%
JP:6850	72Outperform	JPY 29.72B	15.52	―	2.90%	6.98%	38.45%
JP:6858	65Neutral	JPY 8.08B	9.51	―	3.73%	15.62%	50.30%
JP:7713	64Neutral	JPY 19.79B	18.50	―	1.45%	7.75%	15.59%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:6853	60Neutral	JPY 17.92B	18.54	―	3.01%	2.51%	0.17%

* Technology Sector Average

Performance Comparison

JP:7713 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7713	Sigma Koki Co., Ltd.	2888.00	1404.27	94.65%
JP:6850	Chino Corporation	1722.00	362.69	26.68%
JP:6853	Kyowa Electronic Instruments Co., Ltd.	715.00	61.51	9.41%
JP:6858	Ono Sokki Co., Ltd.	724.00	142.07	24.41%
JP:6874	Kyoritsu Electric Corporation	2163.00	-283.65	-11.59%
JP:7745	A&D HOLON Holdings Company. Limited	2686.00	887.38	49.34%

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: Nov 07, 2026

Sigma Koki Co., Ltd. AI Stock Analysis