Sekido Co., Ltd. (9878) AI Stock Analysis

• Market Cap: ¥1.97B
• Dividend Yield: 1.47%
• Average Volume (3M): 68.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -20.86%
• EPS Growth: -2441.42%
• Country: JP
• Employees: 61
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -69.91
• Shares Outstanding: 2,950,228
• 10 Day Avg. Volume: 57,370
• 30 Day Avg. Volume: 68,416
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥667.00
• Price Target Upside: -0.30% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 38 Underperform
• Price Target: ¥667.00 ▼(-0.30% Downside)

Sekido Co., Ltd. is facing severe financial challenges, with negative profitability and high leverage being the most significant concerns. Technical analysis indicates a strong bearish trend, and valuation metrics reflect the company's current unprofitability. Immediate strategic actions are needed to address these issues.

Sekido Co., Ltd. Business Overview & Revenue Model

Company Description

Sekido Co., Ltd. (9878) is a Japanese company primarily engaged in the manufacturing and distribution of high-quality industrial and consumer products. Operating in sectors such as electronics, telecommunications, and information technology, Sekido specializes in innovative solutions that enhance connectivity and efficiency. The company's core offerings include electronic components, telecommunications equipment, and software solutions designed to meet the evolving needs of its clients across various industries.

How the Company Makes Money

Sekido Co., Ltd. generates revenue through multiple key streams including the sale of electronic components and telecommunications equipment to businesses in various sectors, such as manufacturing and logistics. The company also earns income from software licensing and maintenance services, which provide ongoing support to its customers. Strategic partnerships with major technology firms and participation in industry collaborations further bolster its market presence, allowing Sekido to expand its reach and enhance its product offerings. Additionally, the company may benefit from government contracts or projects related to infrastructure development, contributing to stable revenue generation.

Sekido Co., Ltd. Financial Statement Overview

Summary

Sekido Co., Ltd. is facing significant financial challenges with declining revenues, negative profitability margins, and high financial leverage. The balance sheet shows increased debt levels and reduced equity, while cash flow issues further exacerbate the financial strain.

Income Statement

Sekido Co., Ltd. has faced significant challenges in maintaining profitability. The gross profit margin has declined from 32.6% in 2024 to 30.1% in 2025. The net profit margin has turned negative, dropping from 0.6% in 2024 to -7.8% in 2025, indicating a substantial decrease in profitability. Revenue growth has been inconsistent, with a decline of 11.6% from 2024 to 2025. EBIT and EBITDA margins have also turned negative, reflecting operational difficulties.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 15.8 in 2025, up from 2.9 in 2024, indicating increased financial leverage and potential risk. Return on equity has turned negative, dropping from 5.1% in 2024 to -295.4% in 2025, reflecting poor profitability relative to shareholder equity. The equity ratio has decreased significantly, indicating a reduced proportion of equity financing.

Cash Flow

Sekido Co., Ltd. has experienced negative free cash flow growth, with free cash flow deteriorating from -58.8 million in 2024 to -324.8 million in 2025. The operating cash flow to net income ratio is negative, indicating challenges in converting income into cash. The free cash flow to net income ratio is also negative, highlighting cash flow difficulties.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.49B	8.48B	7.04B	7.73B	6.77B
Gross Profit	2.25B	2.77B	2.33B	1.97B	1.73B
EBITDA	-353.27M	163.40M	124.76M	499.60M	166.16M
Net Income	-581.82M	47.65M	-46.39M	485.60M	117.37M
Balance Sheet
Total Assets	4.77B	5.31B	4.95B	4.27B	3.60B
Cash, Cash Equivalents and Short-Term Investments	504.17M	416.48M	593.20M	724.47M	483.82M
Total Debt	3.11B	2.71B	2.80B	1.82B	1.45B
Total Liabilities	4.57B	4.38B	4.07B	3.25B	3.09B
Stockholders Equity	196.96M	935.09M	870.57M	1.03B	510.20M
Cash Flow
Free Cash Flow	-324.77M	-58.77M	-916.92M	-473.64M	-190.48M
Operating Cash Flow	-107.42M	8.42M	-842.77M	-374.96M	-183.24M
Investing Cash Flow	-144.23M	-54.53M	-99.04M	177.21M	-37.77M
Financing Cash Flow	346.49M	-130.67M	810.51M	442.39M	133.33M

Sekido Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 669.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9878, the sentiment is Negative. The current price of 669 is below the 20-day moving average (MA) of 733.25, below the 50-day MA of 854.92, and below the 200-day MA of 783.89, indicating a bearish trend. The MACD of -37.68 indicates Positive momentum. The RSI at 34.67 is Neutral, neither overbought nor oversold. The STOCH value of 8.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9878.

Sekido Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9271	73 Outperform	5.95B	12.47	72.77%	―	37.51%	176.25%
8013	59 Neutral	2.91B	-142.34	1.52%	―	0.58%	-2526.19%
7615	55 Neutral	2.98B	-5.01	-46.64%	―	-14.14%	71.50%
2778	52 Neutral	1.72B	-11.95	-3.01%	―	-6.82%	-146.83%
7603	40 Underperform	6.69B	-2.79	-119.29%	―	-10.95%	-19.17%
9878	38 Underperform	¥1.97B	―	―	1.47%	-20.86%	-2441.42%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%