Sincere Co. LTD. (7782) AI Stock Analysis

• Market Cap: ¥3.79B
• Dividend Yield: 3.14%
• Average Volume (3M): 96.65K
• Price to Earnings (P/E): 10.9
• Beta (1Y): -0.10
• Revenue Growth: 11.46%
• EPS Growth: 42.37%
• Country: JP
• Employees: 55
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 13.81
• Shares Outstanding: 6,862,200
• 10 Day Avg. Volume: 54,210
• 30 Day Avg. Volume: 96,650
• PEG Ratio: 1.65
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥669.00 ▲(9.14%Upside)

Sincere Co. LTD. demonstrates strong financial health with robust revenue growth and cash flow generation, positioning the company well within the medical instruments industry. However, technical analysis indicates bearish momentum, with the stock trading below key moving averages. The valuation is reasonable with an attractive dividend yield, but the current market sentiment suggests caution.

Sincere Co. LTD. Business Overview & Revenue Model

Company Description

Sincere Co. LTD. (7782) is a diverse company engaged in retail and wholesale operations, primarily focusing on the sale and distribution of apparel, fashion accessories, and lifestyle products. The company operates through various segments and channels, including department stores and specialty shops, catering to a broad customer base with a wide range of products that meet contemporary consumer demands.

How the Company Makes Money

Sincere Co. LTD. generates revenue through the sale of apparel, accessories, and lifestyle products both in physical stores and through online platforms. The company operates a network of department stores and specialty shops that attract a diverse clientele. By leveraging its extensive distribution channels and strategic partnerships with various brands and suppliers, Sincere Co. LTD. capitalizes on market trends and consumer preferences to drive sales. Additionally, the company may engage in promotional activities and loyalty programs to enhance customer engagement and increase repeat purchases, further supporting its revenue growth.

Sincere Co. LTD. Financial Statement Overview

Summary

Sincere Co. LTD. demonstrates solid financial health with strong revenue growth and improved profitability margins. The balance sheet is stable with manageable leverage, and cash flow generation is robust, supporting future growth and investment. While profitability margins are improving, further enhancement could strengthen the company's financial position.

Income Statement

Sincere Co. LTD. shows strong performance with an increasing revenue trend, achieving a 9.68% growth from 2023 to 2024. The gross profit margin improved from 30.91% in 2023 to 32.06% in 2024, indicating effective cost management. The net profit margin is stable at around 4.6%, and both EBIT and EBITDA margins have improved, reflecting operational efficiency. However, the relatively modest net profit margin suggests room for improvement.

Balance Sheet

The company maintains a solid financial position with a debt-to-equity ratio of 0.76 in 2024, reflecting a balanced leverage approach. The equity ratio stands at 49.07%, indicating strong equity financing. Return on Equity is stable at 11.16%, demonstrating consistent returns to shareholders. The company's overall balance sheet health is sound, but there is a slight decrease in cash reserves, warranting attention.

Cash Flow

Cash flow generation is strong with a significant increase in free cash flow by 90.7% from 2023 to 2024. The operating cash flow to net income ratio of 1.45 indicates robust cash generation relative to profits. The free cash flow to net income ratio of 1.36 highlights effective cash management, supporting continued investment and debt servicing. The company shows resilience in generating cash, despite fluctuations in investing and financing activities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.54B	5.96B	5.59B	4.56B	4.19B
	Gross Profit
2.10B	1.84B	1.40B	1.38B	1.33B
	EBIT
484.85M	377.00M	150.52M	105.20M	209.97M
	EBITDA
565.19M	391.00M	129.00M	134.31M	232.66M
	Net Income Common Stockholders
301.75M	295.00M	66.07M	83.93M	142.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.89B	2.19B	1.13B	1.09B	1.16B
	Total Assets
5.50B	5.40B	3.58B	3.29B	2.90B
	Total Debt
2.05B	2.30B	1.10B	735.00M	395.00M
	Net Debt
161.00M	105.00M	-35.84M	-352.58M	-760.83M
	Total Liabilities
2.80B	2.92B	1.59B	1.25B	929.26M
	Stockholders Equity
2.70B	2.41B	1.99B	2.04B	1.97B
Cash Flow		Free Cash Flow
403.80M	215.00M	-313.83M	-456.71M	253.63M
	Operating Cash Flow
435.07M	246.00M	-307.99M	-423.60M	262.62M
	Investing Cash Flow
-421.47M	-376.00M	-28.57M	75.70M	-60.48M
	Financing Cash Flow
-332.69M	1.18B	330.52M	258.50M	-74.79M

Sincere Co. LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 613.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7782, the sentiment is Neutral. The current price of 613 is below the 20-day moving average (MA) of 655.10, below the 50-day MA of 637.80, and above the 200-day MA of 505.79, indicating a neutral trend. The MACD of -9.74 indicates Positive momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 26.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7782.

Sincere Co. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4556	84 Outperform	¥5.06B	8.10		2.83%	4.93%	-0.26%
7980	78 Outperform	¥5.78B	7.41		1.85%	8.60%	33.64%
7782	67 Neutral	¥3.79B	10.89		3.14%	11.46%	42.37%
7743	64 Neutral	¥13.44B	12.30		3.38%	2.58%	-53.08%
7813	63 Neutral	¥2.63B	38.13		1.89%	21.42%	-74.71%
Sector *	54 Neutral	$5.28B	3.29	-45.38%	2.80%	16.77%	-0.08%
7702	53 Neutral	¥10.36B	116.70		4.01%	6.83%	―