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Sougou Shouken Co., Ltd.
(7850)
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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)
Market Cap
¥2.44B
Dividend Yield2.34%
Average Volume (3M)1.30K
Price to Earnings (P/E)15.7
Beta (1Y)0.24
Revenue Growth-0.71%
EPS Growth-66.16%
CountryJP
Employees381
SectorGeneral
Sector StrengthN/A
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)51.65
Shares Outstanding3,060,110
10 Day Avg. Volume1,080
30 Day Avg. Volume1,303
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)0.84
Price to Sales (P/S)0.16
P/FCF Ratio4.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Income Statement
65
Positive
Balance Sheet
60
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.93B | 16.24B | 15.80B | 15.86B | 15.31B | 16.16B |
| Gross Profit | 5.01B | 5.02B | 4.74B | 4.49B | 4.21B | 4.58B |
| EBITDA | 561.96M | 837.90M | 893.33M | 812.12M | 825.14M | 900.65M |
| Net Income | 154.91M | 319.66M | 274.50M | 207.48M | 178.93M | 256.22M |
Balance Sheet | ||||||
| Total Assets | 8.01B | 8.02B | 7.71B | 8.37B | 8.98B | 9.42B |
| Cash, Cash Equivalents and Short-Term Investments | 1.27B | 1.30B | 1.18B | 1.34B | 1.53B | 1.65B |
| Total Debt | 2.13B | 2.83B | 3.10B | 4.11B | 4.76B | 4.98B |
| Total Liabilities | 4.36B | 4.85B | 4.82B | 5.76B | 6.50B | 7.02B |
| Stockholders Equity | 3.61B | 3.14B | 2.86B | 2.58B | 2.45B | 2.37B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 546.45M | 601.46M | 596.39M | 454.76M | 1.31B |
| Operating Cash Flow | 0.00 | 610.13M | 863.66M | 642.06M | 584.72M | 1.44B |
| Investing Cash Flow | 0.00 | -157.65M | 41.38M | -120.87M | -294.47M | -115.42M |
| Financing Cash Flow | 0.00 | -332.76M | -1.07B | -708.99M | -401.71M | -1.27B |
Sougou Shouken Co., Ltd. Technical Analysis
Negative
866.00
Price Trends
843.75
Negative
846.23
Negative
849.92
Negative
Market Momentum
-7.44
Negative
41.99
Neutral
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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ¥3.70B | 9.22 | ― | 1.70% | 1.54% | 0.12% | |
66 Neutral | ¥14.78B | 8.68 | ― | 3.79% | -2.31% | -25.42% | |
65 Neutral | ¥3.88B | 7.96 | ― | 3.69% | -3.57% | -2.36% | |
63 Neutral | ¥6.69B | 17.25 | ― | 4.39% | 1.99% | 114.51% | |
59 Neutral | ¥2.44B | 15.68 | ― | 2.31% | -0.71% | -66.16% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ¥5.88B | 32.42 | ― | 2.72% | -3.93% | 11.47% |
* General Sector Average
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.