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Sougou Shouken Co., Ltd. (JP:7850)
:7850
Japanese Market
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Sougou Shouken Co., Ltd. (7850) AI Stock Analysis

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JP:7850

Sougou Shouken Co., Ltd.

(7850)

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Neutral 59 (OpenAI - 5.2)
Rating:59Neutral
Price Target:
¥839.00
▼(-3.12% Downside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by steady financial performance (revenue growth, improving margins, and strong cash generation) and a reasonable valuation (moderate P/E with a 2.46% dividend). These positives are tempered by weak technicals, with the stock trading below major moving averages and negative MACD alongside oversold momentum signals.
Positive Factors
Strong operating cash flow / FCF conversion
A 0.90 free-cash-flow-to-net-income ratio indicates the company converts reported earnings into cash at a high rate. That durable cash generation supports capex, dividends, and debt repayment, increasing financial flexibility and resilience over the medium term.
Negative Factors
Very low net profit margin
A net margin under 2% shows the business struggles to convert revenue into bottom-line profit. Persistently thin net profitability limits retained earnings, constrains reinvestment and makes the company sensitive to cost inflation or small revenue declines over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating cash flow / FCF conversion
A 0.90 free-cash-flow-to-net-income ratio indicates the company converts reported earnings into cash at a high rate. That durable cash generation supports capex, dividends, and debt repayment, increasing financial flexibility and resilience over the medium term.
Read all positive factors

Sougou Shouken Co., Ltd. (7850) vs. iShares MSCI Japan ETF (EWJ)

Sougou Shouken Co., Ltd. Business Overview & Revenue Model

Company Description
Sougou Shouken Co., Ltd. engages in the business of commercial printing and advertising services. The company operates through the Information Communication segment which provides sales promotion services through events planning in print media, te...
How the Company Makes Money
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Sougou Shouken Co., Ltd. Financial Statement Overview

Summary
Moderately positive fundamentals: revenue grew 3.34% and gross margin improved to 30.95%, supported by strong operating cash flow and a solid free-cash-flow-to-net-income ratio (0.90). Offsetting this, net margin is low (1.96%) and balance sheet strength is only fair despite improved leverage (debt-to-equity 0.90).
Income Statement
65
Positive
Balance Sheet
60
Neutral
Cash Flow
70
Positive
BreakdownTTMJul 2025Jul 2024Jul 2023Jul 2022Jul 2021
Income Statement
Total Revenue15.93B16.24B15.80B15.86B15.31B16.16B
Gross Profit5.01B5.02B4.74B4.49B4.21B4.58B
EBITDA561.96M837.90M893.33M812.12M825.14M900.65M
Net Income154.91M319.66M274.50M207.48M178.93M256.22M
Balance Sheet
Total Assets8.01B8.02B7.71B8.37B8.98B9.42B
Cash, Cash Equivalents and Short-Term Investments1.27B1.30B1.18B1.34B1.53B1.65B
Total Debt2.13B2.83B3.10B4.11B4.76B4.98B
Total Liabilities4.36B4.85B4.82B5.76B6.50B7.02B
Stockholders Equity3.61B3.14B2.86B2.58B2.45B2.37B
Cash Flow
Free Cash Flow0.00546.45M601.46M596.39M454.76M1.31B
Operating Cash Flow0.00610.13M863.66M642.06M584.72M1.44B
Investing Cash Flow0.00-157.65M41.38M-120.87M-294.47M-115.42M
Financing Cash Flow0.00-332.76M-1.07B-708.99M-401.71M-1.27B

Sougou Shouken Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price866.00
Price Trends
50DMA
843.75
Negative
100DMA
846.23
Negative
200DMA
849.92
Negative
Market Momentum
MACD
-7.44
Negative
RSI
41.99
Neutral
STOCH
60.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7850, the sentiment is Negative. The current price of 866 is above the 20-day moving average (MA) of 816.85, above the 50-day MA of 843.75, and above the 200-day MA of 849.92, indicating a bearish trend. The MACD of -7.44 indicates Negative momentum. The RSI at 41.99 is Neutral, neither overbought nor oversold. The STOCH value of 60.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7850.

Sougou Shouken Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
¥3.70B9.221.70%1.54%0.12%
66
Neutral
¥14.78B8.683.79%-2.31%-25.42%
65
Neutral
¥3.88B7.963.69%-3.57%-2.36%
63
Neutral
¥6.69B17.254.39%1.99%114.51%
59
Neutral
¥2.44B15.682.31%-0.71%-66.16%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
¥5.88B32.422.72%-3.93%11.47%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7850
Sougou Shouken Co., Ltd.
810.00
-89.16
-9.92%
JP:3948
Hikari Business Form Co., Ltd.
1,168.00
-40.50
-3.35%
JP:7805
PRINTNET INC.
731.00
18.00
2.52%
JP:7916
Mitsumura Printing Co., Ltd.
1,900.00
473.84
33.22%
JP:7919
Nozaki Insatsu Shigyo Co., Ltd.
227.00
39.90
21.32%
JP:7987
Nakabayashi Co., Ltd.
571.00
19.54
3.54%
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 06, 2026