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Seed Co., Ltd. (JP:7743)
:7743
Japanese Market
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Seed Co., Ltd. (7743) AI Stock Analysis

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JP:7743

Seed Co., Ltd.

(7743)

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Neutral 53 (OpenAI - Gpt-5.6Sol)
Rating:53Neutral
Price Target:
¥645.00
▲(12.17% Upside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by weakening financial quality—rising leverage and materially negative free cash flow—despite remaining profitable. Technical indicators are moderately constructive in the near term, and valuation is reasonable (mid-teens P/E with a ~2.8% yield), but these positives are not enough to offset the balance-sheet and cash-generation risk.
Positive Factors
Restored Profitability
Returning to profitability provides a stronger base for reinvestment and balance-sheet repair. Sustained mid-40% gross margins also indicate that the contact-lens portfolio retains meaningful value after production costs, supporting resilience if pricing and mix remain disciplined.
Negative Factors
Rising Leverage
The sharp increase in debt dependence reduces financial flexibility and raises the consequences of weaker earnings or execution. Higher leverage may constrain investment choices and make balance-sheet repair a durable priority for management.
Read all positive and negative factors
Positive Factors
Negative Factors
Restored Profitability
Returning to profitability provides a stronger base for reinvestment and balance-sheet repair. Sustained mid-40% gross margins also indicate that the contact-lens portfolio retains meaningful value after production costs, supporting resilience if pricing and mix remain disciplined.
Read all positive factors

Seed Co., Ltd. (7743) vs. iShares MSCI Japan ETF (EWJ)

Seed Co., Ltd. Business Overview & Revenue Model

Company Description
SEED Co.,Ltd. is an international manufacturer and supplier specializing in a broad spectrum of ophthalmic products. The company's extensive range includes various contact lenses, lens care solutions, fashionable spectacle frames, and other vision...
How the Company Makes Money
Seed Co., Ltd. makes money mainly by selling contact lenses and related eye-care products. Revenue is generated from (1) sales of contact lenses (e.g., disposable and other lens types) and (2) sales of ancillary products associated with contact le...

Seed Co., Ltd. Financial Statement Overview

Summary
Despite returning to profitability and maintaining solid gross margins, financial quality has weakened: leverage has risen sharply (debt ~2.1x equity) and free cash flow has turned materially negative in recent periods (including TTM). Margin compression to low single-digit net margin and weaker cash conversion reduce financial flexibility and increase execution risk.
Income Statement
62
Positive
Balance Sheet
46
Neutral
Cash Flow
34
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue34.24B33.94B33.23B32.40B30.59B28.84B
Gross Profit15.53B15.22B14.63B14.18B11.62B12.01B
EBITDA5.36B4.76B5.05B5.12B2.83B4.45B
Net Income1.09B1.14B1.09B1.96B-316.09M1.15B
Balance Sheet
Total Assets66.13B62.50B51.76B49.57B40.01B41.79B
Cash, Cash Equivalents and Short-Term Investments5.85B4.21B7.12B9.89B4.94B3.88B
Total Debt39.57B28.47B26.26B24.18B20.89B22.04B
Total Liabilities47.05B42.90B33.38B31.92B27.87B29.25B
Stockholders Equity19.08B19.27B18.06B17.36B11.86B12.26B
Cash Flow
Free Cash Flow-6.78B-438.07M-1.70B2.19B2.79B2.15B
Operating Cash Flow2.95B2.69B2.98B6.02B3.35B3.27B
Investing Cash Flow-10.11B-3.84B-4.57B-3.76B-440.73M-881.61M
Financing Cash Flow6.74B-1.91B-1.13B2.64B-1.82B-2.42B

Seed Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price575.00
Price Trends
50DMA
520.40
Positive
100DMA
526.42
Positive
200DMA
542.94
Positive
Market Momentum
MACD
12.69
Negative
RSI
85.48
Negative
STOCH
77.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7743, the sentiment is Positive. The current price of 575 is above the 20-day moving average (MA) of 536.00, above the 50-day MA of 520.40, and above the 200-day MA of 542.94, indicating a bullish trend. The MACD of 12.69 indicates Negative momentum. The RSI at 85.48 is Negative, neither overbought nor oversold. The STOCH value of 77.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7743.

Seed Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥158.32B23.142.73%9.94%10.50%
75
Outperform
¥144.24B17.5024.90%1.53%15.46%6.44%
74
Outperform
¥63.04B15.543.22%13.57%0.34%
67
Neutral
¥207.09B16.119.09%2.32%6.54%-2.44%
62
Neutral
¥144.42B19.446.57%1.78%5.05%50.43%
53
Neutral
¥16.19B17.642.65%2.22%-2.17%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7743
Seed Co., Ltd.
635.00
103.08
19.38%
JP:3046
JINS HOLDINGS
6,210.00
-1,826.84
-22.73%
JP:7780
Menicon Co
1,871.00
650.48
53.30%
JP:3360
Ship Healthcare Holdings
2,346.50
175.68
8.09%
JP:5889
Japan Eyewear Holdings Co.,Ltd.
2,618.00
588.27
28.98%
JP:7730
Mani, Inc.
1,614.00
372.84
30.04%

Seed Co., Ltd. Corporate Events

Seed Co., Ltd. Delivers Modest Q1 Sales Growth Amid Profit Decline and Affirms Full-Year Outlook
Aug 12, 2026
Seed Co., Ltd. reported consolidated net sales of ¥8,848 million for the three months ended June 30, 2026, a 3.5% year-on-year increase, while operating profit dipped 2.0% to ¥618 million and ordinary profit fell 14.9%. Profit attributab...
Seed Co., Ltd. Scales Back Phase II Investment at Kounosu Contact Lens Plant
Jul 13, 2026
Seed Co., Ltd. has revised its Phase II investment plan for Building No. 4 at the Kounosu Laboratory as it continues to upgrade facilities to meet rising global demand for contact lenses. The company is pursuing production lines that reduce labor ...
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 17, 2026