Aichi Tokei Denki Co., Ltd. (7723) AI Stock Analysis

• Market Cap: ¥43.46B
• Dividend Yield: 2.58%
• Average Volume (3M): 28.03K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.76
• Revenue Growth: 5.64%
• EPS Growth: 27.01%
• Country: JP
• Employees: 1,739
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 50.22
• Shares Outstanding: 15,420,000
• 10 Day Avg. Volume: 18,470
• 30 Day Avg. Volume: 28,030
• PEG Ratio: 0.77
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 126.92
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥3,163.00 ▲(8.88% Upside)

Aichi Tokei Denki Co., Ltd. demonstrates strong financial performance with robust revenue and profit growth, supported by a solid balance sheet. The technical indicators show positive momentum, and the stock is reasonably valued with an attractive dividend yield. These factors contribute to a favorable overall stock score.

Aichi Tokei Denki Co., Ltd. Business Overview & Revenue Model

Company Description

Aichi Tokei Denki Co., Ltd. (7723) is a Japanese company specializing in precision instruments and measurement technology. The company operates primarily in the sectors of industrial automation, measurement, and control equipment. Its core products include various types of industrial timers, counters, and measuring instruments that cater to a wide range of applications in manufacturing, automotive, and other industrial sectors.

How the Company Makes Money

Aichi Tokei Denki generates revenue through the sale of its precision instruments and measurement devices, which are essential for various industrial applications. The company has established key revenue streams from both domestic and international markets, capitalizing on demand for automation and precision measurement solutions. Significant partnerships with manufacturers and distributors enhance its market reach and contribute to sales. Additionally, the company may engage in service contracts and maintenance agreements, which provide a steady income stream as clients seek ongoing support for their equipment.

Aichi Tokei Denki Co., Ltd. Financial Statement Overview

Summary

Aichi Tokei Denki Co., Ltd. shows strong financial performance with robust revenue and profit growth. The company benefits from a solid balance sheet with low leverage and high equity, although cash flow generation has some areas for improvement.

Income Statement

Aichi Tokei Denki Co., Ltd. has demonstrated strong revenue growth with a consistent increase in total revenue over the past years, achieving a 5.98% growth from 2024 to 2025. The gross profit margin remains healthy at 22.81% for 2025, although slightly lower than previous years. Net profit margin has improved to 6.51% in 2025, showcasing enhanced profitability. The EBIT and EBITDA margins also indicate solid operational efficiency, with values of 7.26% and 10.72% respectively for 2025.

Balance Sheet

The company's balance sheet reflects robust financial health with a low debt-to-equity ratio of 0.02, indicating minimal leverage and a strong equity base. The return on equity (ROE) is 7.55% for 2025, reflecting decent profitability. The equity ratio stands at 74.58%, reinforcing strong financial stability and low financial risk.

Cash Flow

Cash flow analysis reveals a decline in free cash flow from the previous year, impacting the free cash flow growth rate. However, the operating cash flow remains positive, and the operating cash flow to net income ratio is 0.53, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.07, suggesting room for improvement in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.97B	54.29B	51.23B	50.16B	46.48B	46.23B
Gross Profit	12.81B	12.38B	11.99B	12.31B	11.58B	11.49B
EBITDA	5.70B	5.82B	5.37B	5.83B	4.43B	3.98B
Net Income	3.81B	3.53B	3.17B	3.46B	2.79B	2.99B
Balance Sheet
Total Assets	60.41B	62.72B	61.40B	56.32B	52.23B	57.17B
Cash, Cash Equivalents and Short-Term Investments	9.43B	10.27B	10.83B	11.30B	10.74B	13.84B
Total Debt	833.00M	957.00M	1.18B	1.25B	1.22B	6.09B
Total Liabilities	13.61B	15.93B	17.24B	17.92B	17.00B	22.81B
Stockholders Equity	46.80B	46.79B	44.16B	38.40B	35.23B	34.36B
Cash Flow
Free Cash Flow	919.50M	238.00M	506.00M	1.08B	2.53B	2.88B
Operating Cash Flow	1.31B	1.86B	1.74B	1.88B	3.12B	4.19B
Investing Cash Flow	-576.00M	738.00M	-1.09B	-683.00M	2.59B	-2.42B
Financing Cash Flow	-370.50M	-1.35B	-1.18B	-828.00M	-5.93B	-1.02B

Aichi Tokei Denki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2905.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7723, the sentiment is Positive. The current price of 2905 is above the 20-day moving average (MA) of 2775.10, above the 50-day MA of 2711.13, and above the 200-day MA of 2193.37, indicating a bullish trend. The MACD of 30.01 indicates Negative momentum. The RSI at 63.71 is Neutral, neither overbought nor oversold. The STOCH value of 87.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7723.

Aichi Tokei Denki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7715	80 Outperform	¥41.69B	7.41	―	2.01%	-0.10%	1.43%
7723	77 Outperform	¥43.46B	11.09	―	2.58%	5.64%	27.01%
6824	76 Outperform	¥47.82B	13.40	―	1.19%	9.96%	3.13%
6644	71 Outperform	¥57.60B	16.22	―	2.30%	2.83%	79.40%
6800	71 Outperform	¥36.25B	44.26	―	3.09%	4.30%	-66.03%
6817	70 Outperform	¥36.34B	20.10	―	4.68%	-3.69%	-22.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Aichi Tokei Denki Co., Ltd. Corporate Events

Aichi Tokei Denki Reports Strong Q1 2025 Financial Results and Dividend Increase

Aichi Tokei Denki Co., Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 5.8% and operating profit surging by 76.5% compared to the previous year. The company also announced a forecasted increase in annual dividends, reflecting confidence in continued growth and stability, which is likely to positively impact stakeholders and enhance its industry positioning.