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Citizen Watch Co (7762) AI Stock Analysis

JP:7762

Citizen Watch Co

(TSE/TYO:7762)

Select Model
Rating:70Outperform
Price Target:JPY 2,402.00â–²(9.98% Upside)
Action:reiterated
Date:08/17/26

The score is driven primarily by solid financial performance (recovery in growth and profitability plus a conservative balance sheet), partially offset by weaker cash-flow conversion/volatility. Technicals are supportive due to a strong uptrend, but overbought signals add near-term risk. Valuation is a moderate headwind given the ~21.6 P/E and modest dividend yield.

Positive Factors
Revenue and Profitability RecoveryThe recovery in revenue and profitability indicates that Citizen has rebuilt earnings power after the FY2021 downturn. Improving gross and net margins provide a stronger base for reinvestment, brand support, and operating resilience over the next several quarters.
Negative Factors
Weak Cash ConversionModerate cash conversion means reported earnings are not translating fully into cash available for reinvestment, debt reduction, or shareholder returns. Working-capital swings and capital spending may continue to absorb cash, limiting the quality and flexibility of earnings.

Citizen Watch Co (7762) vs. iShares MSCI Japan ETF (EWJ)

-25%0%25%50%75%100%125%150%175%JP:7762+107.25%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 532.51B
Dividend Yield
2.29%
Average Volume (3M)
1.71M
Price to Earnings (P/E)
17.3
Beta (1Y)
1.52
Revenue Growth
16.88%
EPS Growth
25.69%
Country
Japan
Employees
12,147
Sector
Consumer Cyclical
Sector Strength
61
Industry
Apparel - Footwear & Accessories

Citizen Watch Co Business Overview & Revenue Model

Company Description

Citizen Watch Co., Ltd. operates as a global entity involved in the development and sale of a diverse range of timepieces and their integral components. Its business activities are organized into four key divisions: Watches, Machine Tools, Devices an...

How the Company Makes Money

Citizen primarily makes money by manufacturing and selling finished watches and related timekeeping products, generating revenue from (1) branded watch sales in domestic and overseas markets and (2) sales of watch movements and related components sup...

Citizen Watch Co Financial Statement Overview

Summary

Strong post-FY2021 recovery with solid FY2026 revenue growth (+9.7% YoY), improving gross margin (~43%), and expanding net margin (~9%). Balance sheet leverage is conservative and improving (debt/equity ~0.23) with solid ROE (~10.6%). Main drag is cash-flow quality: free cash flow conversion is only moderate (FCF well below net income) with historical volatility (notably FY2023).

Income Statement

78Positive

Balance Sheet

74Positive

Cash Flow

62Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue319.62B316.88B346.81B312.83B301.37B281.42B
Gross Profit135.87B129.33B149.53B126.70B117.90B102.58B
EBITDA41.85B43.48B51.02B42.00B39.77B38.24B
Net Income23.48B23.88B31.10B22.96B21.84B22.14B
Balance Sheet
Total Assets431.25B415.55B468.30B415.44B389.98B394.96B
Cash, Cash Equivalents and Short-Term Investments95.31B93.75B105.56B81.31B82.59B110.90B
Total Debt64.47B69.99B65.98B81.35B70.96B67.24B
Total Liabilities159.63B151.40B166.17B159.31B157.20B156.29B
Stockholders Equity263.47B255.92B293.18B247.66B224.18B229.31B
Cash Flow
Free Cash Flow018.69B17.60B18.65B1.49B25.13B
Operating Cash Flow035.77B38.82B34.56B16.58B34.69B
Investing Cash Flow0-10.03B-14.49B-12.70B-13.50B-9.55B
Financing Cash Flow0-12.54B-18.66B-26.99B-40.09B-19.96B

Citizen Watch Co Technical Analysis

Technical Analysis SentimentNegative
Last Price2184.00

Price Trends

50DMA2405.90Negative
100DMA2356.94Negative
200DMA2037.00Positive

Market Momentum

MACD-45.89Positive
RSI40.21Neutral
STOCH59.87Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7762, the sentiment is Negative. The current price of 2184.00 is below the 20-day moving average (MA) of 2309.55, below the 50-day MA of 2405.90, and above the 200-day MA of 2037.00, indicating a neutral trend. The MACD of -45.89 indicates Positive momentum. The RSI at 40.21 is Neutral, neither overbought nor oversold. The STOCH value of 59.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7762.

Citizen Watch Co Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:7762 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:8053JP:805379OutperformJPY 7.92T13.0013.18%2.38%2.61%3.34%
JP:7762JP:776270OutperformJPY 532.51B17.2810.88%2.29%16.88%25.69%
JP:8002JP:800270NeutralJPY 8.18T14.0413.68%2.33%10.23%13.04%
JP:8058JP:805867NeutralJPY 16.06T19.859.67%2.43%9.52%20.39%
JP:8001JP:800165NeutralJPY 18.10T17.9114.15%1.89%3.10%-3.40%
JP:8031JP:803163NeutralJPY 14.08T15.2510.95%2.80%6.52%16.70%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%

* Consumer Cyclical Sector Average

Performance Comparison

0%50%100%150%JP:7762JP:8001JP:8002JP:8031JP:8058JP:8053Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7762 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7762Citizen Watch Co 2184.001137.99108.79%
JP:8001Itochu Corporation2326.50576.8232.97%
JP:8002Marubeni Corporation4929.001211.7032.60%
JP:8031Mitsui & Co5006.001291.4034.77%
JP:8058Mitsubishi Corporation4805.001175.7432.40%
JP:8053Sumitomo Corporation1684.00589.8553.91%

Citizen Watch Co Corporate Events

Citizen Watch Raises FY2027 Dividend Forecast on Upgraded Earnings Outlook

Aug 14, 2026

Citizen Watch Co., Ltd. has revised its dividend forecast for the fiscal year ending March 31, 2027, raising the planned annual dividend from ¥50.00 to ¥53.00 per share, with interim and year-end payments each increased to ¥26.50. This...

Citizen Watch Lifts FY2027 Earnings Outlook on Broad-Based Demand Strength

Aug 14, 2026

Citizen Watch Co., Ltd. has sharply raised its forecasts for consolidated results for the first half and full year ending March 31, 2027, citing stronger-than-expected sales and profitability across its main businesses. The company now expects interi...

Citizen Watch Posts Strong Revenue Growth and Hikes Dividend Forecast

Aug 14, 2026

Citizen Watch reported a sharp rebound in business for the quarter ended June 30, 2026, with net sales up 30.3% year-on-year to ¥98.1 billion and operating profit more than doubling, though profit attributable to owners of the parent slipped 2.9...

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