Sun Messe Co., Ltd. (7883) AI Stock Analysis

Sun Messe Co., Ltd.

(TSE/TYO:7883)

Select Model

Rating:62Neutral

Price Target:JPY 436.00▲(6.08% Upside)

Action:downgraded

Date:09/26/26

The company's strong balance sheet and improving profitability are the primary strengths, supporting a stable financial base. However, the stock's technical posture is extremely overbought, which significantly weighs on the overall score and presents a major near-term risk. The valuation is fair but not compelling enough to offset the technical headwinds.

Positive Factors

Conservative Balance SheetVery low leverage and a growing equity base provide financial flexibility for Sun Messe. This reduces balance-sheet pressure, supports resilience if operating conditions weaken, and leaves more capacity to fund operations or selective investment without relying heavily on debt.

Negative Factors

Thin Profit MarginsProfitability remains thin despite the FY2026 improvement, leaving limited protection against modest cost increases or weaker order volumes. This sensitivity can constrain earnings durability and makes sustained margin improvement important for strengthening the company’s long-term financial profile.

Sun Messe Co., Ltd. (7883) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.38B
Dividend Yield: 2.19%
Average Volume (3M): 44.38K
Price to Earnings (P/E): 16.0
Beta (1Y): 0.29
Revenue Growth: 2.55%
EPS Growth: 1.21%
Country: Japan
Employees: 643
Sector: Industrials
Sector Strength: 63
Industry: Specialty Business Services

Sun Messe Co., Ltd. Business Overview & Revenue Model

Company Description

Established in 1935 and based in Ogaki, Japan, Sun Messe Co., Ltd. functions as a full-spectrum communication services hub. The company's operations encompass traditional printing, publishing, digital media, video content creation, and event manageme...

How the Company Makes Money

Sun Messe primarily makes money by providing printing and related services to business and institutional customers. Its revenue model is largely project- and contract-based: customers pay for the planning, production, and delivery of printed material...

Sun Messe Co., Ltd. Financial Statement Overview

Summary

Solid financial foundation with a conservative balance sheet (D/E 0.10) and strong cash generation (OpCF 2x net income). Profitability is improving with net income up 38.7%, though net margin remains modest at 2.7% and ROE is low at 3.3%.

Income Statement

68Positive

Balance Sheet

85Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	17.13B	17.13B	16.44B	16.63B	17.15B	16.60B
Gross Profit	3.81B	3.81B	3.51B	3.46B	3.46B	3.57B
EBITDA	1.37B	1.37B	1.07B	1.04B	1.16B	922.92M
Net Income	460.94M	460.94M	332.27M	257.20M	327.88M	264.72M
Balance Sheet
Total Assets	22.58B	22.58B	20.48B	21.51B	20.12B	19.85B
Cash, Cash Equivalents and Short-Term Investments	3.59B	3.59B	3.01B	2.63B	1.97B	1.33B
Total Debt	1.43B	1.43B	1.58B	1.68B	1.76B	1.77B
Total Liabilities	8.40B	8.40B	8.55B	9.37B	9.11B	9.13B
Stockholders Equity	14.09B	14.09B	11.83B	12.04B	10.92B	10.64B
Cash Flow
Free Cash Flow	0	575.57M	619.85M	741.58M	775.84M	-607.93M
Operating Cash Flow	0	939.12M	1.01B	1.04B	1.17B	944.15M
Investing Cash Flow	0	-37.39M	-913.96M	-200.03M	-465.62M	-1.59B
Financing Cash Flow	0	-366.00M	-226.86M	-202.13M	-132.44M	-292.56M

Sun Messe Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price411.00

Price Trends

50DMA417.81Negative

100DMA402.44Positive

200DMA382.37Positive

Market Momentum

MACD-2.41Positive

RSI43.96Neutral

STOCH70.31Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7883, the sentiment is Negative. The current price of 411.00 is below the 20-day moving average (MA) of 427.70, below the 50-day MA of 417.81, and above the 200-day MA of 382.37, indicating a neutral trend. The MACD of -2.41 indicates Positive momentum. The RSI at 43.96 is Neutral, neither overbought nor oversold. The STOCH value of 70.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7883.

Sun Messe Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:7883 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:3948	63Neutral	JPY 6.73B	17.29	―	4.27%	1.99%	114.51%
JP:7883	62Neutral	JPY 6.37B	16.05	―	2.19%	2.55%	1.21%
JP:7916	57Neutral	JPY 5.60B	31.21	―	2.73%	-3.93%	11.47%
JP:7919	56Neutral	JPY 3.56B	5.37	―	3.72%	-1.46%	43.56%
JP:7805	54Neutral	JPY 3.24B	9.66	―	1.99%	-1.49%	-24.51%
JP:3958	53Neutral	JPY 3.18B	15.66	―	3.62%	-2.64%	-19.41%

* Industrials Sector Average

Performance Comparison

JP:7883 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7883	Sun Messe Co., Ltd.	411.00	60.59	17.29%
JP:3948	Hikari Business Form Co., Ltd.	1171.00	-55.72	-4.54%
JP:3958	Sasatoku Printing Co.,Ltd.	552.00	10.15	1.87%
JP:7805	PRINTNET INC.	653.00	18.49	2.91%
JP:7916	Mitsumura Printing Co., Ltd.	1829.00	359.06	24.43%
JP:7919	Nozaki Insatsu Shigyo Co., Ltd.	207.00	24.66	13.52%

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: Sep 26, 2026

Sun Messe Co., Ltd. AI Stock Analysis