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Seed Co., Ltd. (7743) AI Stock Analysis

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JP:7743

Seed Co., Ltd.

(TSE/TYO:7743)

Select Model
Rating:54Neutral
Price Target:JPY 750.00▼(-4.58% Downside)
Action:reiterated
Date:08/29/26

The score is held back primarily by weakened financial quality—rising leverage and materially negative free cash flow—despite a return to profitability. Strong technical momentum supports the score, but extremely overbought indicators raise near-term risk. Valuation is broadly reasonable (P/E ~20) with a modest dividend yield (~2%), providing moderate support.

Positive Factors
Return to ProfitabilityA return to positive earnings indicates that the core contact-lens business remains viable after the prior loss year. This provides a stronger operating base, although the benefit is limited because profitability has since moderated.
Negative Factors
Higher LeverageThe sharp increase in debt relative to equity makes the balance sheet increasingly debt-funded. Higher leverage can raise financing sensitivity and reduce strategic flexibility, especially while returns on shareholder capital remain below the 2024 level.

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

-20%-10%0%10%20%30%40%50%JP:7743+41.53%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 23.79B
Dividend Yield
1.91%
Average Volume (3M)
260.94K
Price to Earnings (P/E)
21.8
Beta (1Y)
0.51
Revenue Growth
4.13%
EPS Growth
-39.39%
Country
Japan
Employees
1,048
Sector
Healthcare
Sector Strength
51
Industry
Medical - Instruments & Supplies

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 en...

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 lens...

Seed Co., Ltd. Financial Statement Overview

Summary

Income statement trends are mixed (return to profitability and solid mid-40% gross margins, but net margin has compressed to ~3% and profitability has moderated). Balance sheet risk has increased with sharply higher leverage (debt-to-equity ~2.1x). Cash flow is the largest concern: free cash flow turned negative and is deeply negative in TTM, reducing flexibility amid higher debt.

Income Statement

62Positive

Balance Sheet

46Neutral

Cash Flow

34Negative
Financial statement breakdown
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 SentimentPositive
Last Price786.00

Price Trends

50DMA785.20Positive
100DMA651.32Positive
200DMA598.99Positive

Market Momentum

MACD4.85Positive
RSI72.47Negative
STOCH33.33Neutral

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 786.00 is above the 20-day moving average (MA) of 785.75, above the 50-day MA of 785.20, and above the 200-day MA of 598.99, indicating a bullish trend. The MACD of 4.85 indicates Positive momentum. The RSI at 72.47 is Negative, neither overbought nor oversold. The STOCH value of 33.33 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

JP:7743 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7730JP:773079OutperformJPY 146.30B20.33―2.75%10.18%55.86%
JP:3360JP:336074OutperformJPY 218.10B16.879.49%2.34%6.47%-3.79%
JP:3046JP:304669NeutralJPY 154.98B20.4522.48%1.51%14.41%-6.42%
JP:5889JP:588969NeutralJPY 53.22B12.49―3.81%15.36%5.16%
JP:7780JP:778055NeutralJPY 145.48B19.997.70%1.45%5.05%50.43%
JP:7743JP:774354NeutralJPY 23.79B21.83―1.91%4.13%-39.39%
Sector *51Neutral$7.86B-0.30-43.30%2.27%22.53%-2.21%

* Healthcare Sector Average

Performance Comparison

-20%0%20%40%60%JP:7743JP:3046JP:7780JP:3360JP:5889JP:7730Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7743 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7743Seed Co., Ltd.786.00232.6142.03%
JP:3046JINS HOLDINGS 6880.00440.566.84%
JP:7780Menicon Co 1930.00724.2560.07%
JP:3360Ship Healthcare Holdings 2569.0054.902.18%
JP:5889Japan Eyewear Holdings Co.,Ltd.2233.00228.2911.39%
JP:7730Mani, Inc.1489.0064.464.52%

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 attributable to owners...

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 nee...

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 29, 2026