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

Sigma Koki Co., Ltd.

(TSE/TYO:7713)

Select Model

Rating:75.9Outperform

Price Target:JPY 3,880.00▲(28.26% Upside)

Action:upgraded

Date:10/16/26

The score is driven primarily by strong financial strength (near-debt-free balance sheet) and a clear bullish technical setup with strong momentum above key moving averages. Offsetting factors are moderating profitability versus prior peaks, uneven cash-flow consistency, and a valuation that is only moderately attractive given a P/E around 22 and a modest dividend yield.

Positive Factors

Near-debt-free balance sheetExtremely low leverage gives Sigma Koki substantial financial flexibility and protection during weaker operating periods. The growing equity base supports resilience and preserves capacity to fund product development, capital investment, or other strategic priorities without relying heavily on debt.

Negative Factors

Net margin compressionThe substantial decline in net margin shows that earlier earnings power has not been fully sustained. Weaker pricing, product mix, or higher costs could continue to limit profit conversion, reducing the earnings contribution available for reinvestment and shareholder returns over coming periods.

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

Market Cap: JPY 21.32B
Dividend Yield: 1.40%
Average Volume (3M): 78.55K
Price to Earnings (P/E): 19.4
Beta (1Y): 1.06
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 solid, led by an exceptionally strong, near-debt-free balance sheet (very high balance sheet score). However, earnings power has normalized versus 2022–2023 with a notably lower net margin, and cash generation has 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 SentimentNeutral

Last Price3025.00

Price Trends

50DMA2669.56Positive

100DMA2398.50Positive

200DMA2143.01Positive

Market Momentum

MACD163.10Positive

RSI50.17Neutral

STOCH39.46Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7713, the sentiment is Neutral. The current price of 3025.00 is below the 20-day moving average (MA) of 3136.10, above the 50-day MA of 2669.56, and above the 200-day MA of 2143.01, indicating a neutral trend. The MACD of 163.10 indicates Positive momentum. The RSI at 50.17 is Neutral, neither overbought nor oversold. The STOCH value of 39.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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:7713	76Outperform	JPY 21.32B	19.44	―	1.40%	7.75%	15.59%
JP:6850	72Outperform	JPY 30.96B	14.32	―	2.86%	1.92%	9.05%
JP:7745	72Outperform	JPY 80.05B	14.40	―	2.05%	2.11%	-19.76%
JP:6853	71Outperform	JPY 18.86B	19.14	―	2.91%	2.51%	0.17%
JP:6874	69Neutral	JPY 19.05B	9.53	―	3.96%	-3.24%	-10.28%
JP:6858	66Neutral	JPY 8.30B	9.75	―	3.65%	15.62%	50.30%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* 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.	3010.00	1541.90	105.03%
JP:6850	Chino Corporation	1746.00	398.32	29.56%
JP:6853	Kyowa Electronic Instruments Co., Ltd.	739.00	71.89	10.78%
JP:6858	Ono Sokki Co., Ltd.	740.00	169.65	29.74%
JP:6874	Kyoritsu Electric Corporation	2270.00	-216.27	-8.70%
JP:7745	A&D HOLON Holdings Company. Limited	2923.00	940.41	47.43%

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: Oct 16, 2026

Sigma Koki Co., Ltd. AI Stock Analysis