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

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Aichi Tokei Denki Co., Ltd.

(TSE/TYO:7723)

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Rating:71Outperform

Price Target:JPY 3,034.00▲(11.91% Upside)

Action:reiterated

Date:11/01/26

The score is driven primarily by strong financial health—especially a conservative, improving balance sheet and rising earnings—plus supportive valuation (moderate P/E and high dividend yield). These positives are tempered by weak cash-flow conversion/FCF volatility and bearish technical momentum (below major moving averages with negative MACD).

Positive Factors

Revenue and earnings growthA sustained revenue uptrend with renewed growth in 2026 indicates continuing demand for the company’s measurement products and systems. The concurrent increase in net income strengthens evidence that the business is expanding its earnings base, supporting reinvestment and resilience over the coming quarters.

Negative Factors

Weak cash conversionVolatile operating cash flow and consistently weaker free cash flow than earnings indicate that reported profits are not converting reliably into deployable cash. Working-capital movements or investment needs may continue to absorb resources, limiting flexibility for dividends, growth spending, or other shareholder returns.

Aichi Tokei Denki Co., Ltd. (7723) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 41.28B
Dividend Yield: 4.72%
Average Volume (3M): 27.53K
Price to Earnings (P/E): 11.2
Beta (1Y): 0.81
Revenue Growth: 8.79%
EPS Growth: -4.45%
Country: Japan
Employees: 1,719
Sector: Technology
Sector Strength: 61
Industry: Hardware, Equipment & Parts

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

Company Description

Aichi Tokei Denki Co., Ltd. engages in the provision of water and gas meters, and related equipment in Japan and internationally. The company offers liquid measurement products comprising electromagnetic water meters, residential water meters, portab...

How the Company Makes Money

Aichi Tokei Denki primarily makes money by selling measurement hardware and related systems to utility and industrial customers. Its main revenue streams include: (1) Product sales of utility meters and measurement devices (e.g., gas- and water-relat...

Aichi Tokei Denki Co., Ltd. Financial Statement Overview

Summary

Fundamentals are solid overall: revenue has a steady multi-year uptrend with re-accelerating growth in 2026, and net income rose meaningfully in 2026. The balance sheet is a major strength with very low and declining debt and steadily growing equity. The main offset is cash-flow quality—operating cash flow and free cash flow have been volatile and often lagged reported profits, raising uncertainty about cash conversion.

Income Statement

78Positive

Balance Sheet

90Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	60.38B	59.12B	54.29B	51.23B	50.16B	46.48B
Gross Profit	14.64B	14.72B	12.38B	11.99B	12.31B	11.58B
EBITDA	4.59B	5.80B	5.82B	5.37B	5.83B	4.43B
Net Income	3.63B	4.80B	3.53B	3.17B	3.46B	2.79B
Balance Sheet
Total Assets	66.53B	70.28B	66.66B	65.16B	58.78B	54.60B
Cash, Cash Equivalents and Short-Term Investments	9.55B	11.17B	10.27B	10.83B	11.30B	10.74B
Total Debt	700.00M	876.00M	957.00M	1.18B	1.25B	1.22B
Total Liabilities	15.54B	17.70B	19.87B	21.00B	20.38B	19.37B
Stockholders Equity	50.98B	52.58B	46.79B	44.16B	38.40B	35.23B
Cash Flow
Free Cash Flow	0	816.00M	238.00M	506.00M	1.08B	2.53B
Operating Cash Flow	0	2.82B	1.86B	1.74B	1.88B	3.12B
Investing Cash Flow	0	-2.37B	738.00M	-1.09B	-683.00M	2.59B
Financing Cash Flow	0	-1.58B	-1.35B	-1.18B	-828.00M	-5.93B

Aichi Tokei Denki Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2711.00

Price Trends

50DMA2806.43Negative

100DMA2839.68Negative

200DMA2872.30Negative

Market Momentum

MACD-37.74Positive

RSI43.93Neutral

STOCH63.26Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7723, the sentiment is Negative. The current price of 2711.00 is below the 20-day moving average (MA) of 2765.50, below the 50-day MA of 2806.43, and below the 200-day MA of 2872.30, indicating a bearish trend. The MACD of -37.74 indicates Positive momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 63.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7723.

Aichi Tokei Denki Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:7723 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
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:7500	71Outperform	JPY 35.02B	10.59	―	3.80%	13.98%	13.27%
JP:7723	71Outperform	JPY 42.01B	11.15	―	4.72%	8.79%	-4.45%
JP:7715	67Neutral	JPY 62.43B	11.33	―	1.58%	1.74%	5.31%
JP:6858	65Neutral	JPY 8.08B	9.51	―	3.73%	15.62%	50.30%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

JP:7723 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7723	Aichi Tokei Denki Co., Ltd.	2711.00	196.41	7.81%
JP:6850	Chino Corporation	1722.00	362.69	26.68%
JP:6858	Ono Sokki Co., Ltd.	724.00	142.07	24.41%
JP:7500	Nishikawa Keisoku Co., Ltd.	10250.00	-1542.94	-13.08%
JP:7715	Nagano Keiki Co., Ltd.	3545.00	1218.61	52.38%
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 01, 2026

Aichi Tokei Denki Co., Ltd. AI Stock Analysis