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

• Market Cap: ¥1.43B
• Dividend Yield: 2.13%
• Average Volume (3M): 3.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: -11.63%
• EPS Growth: -1321.05%
• Country: JP
• Employees: 61
• Sector: Consumer Cyclical
• Sector Strength: 77
• Industry: Apparel - Retail
• EPS (TTM): -236.88
• Shares Outstanding: 2,040,928
• 10 Day Avg. Volume: 1,940
• 30 Day Avg. Volume: 3,496
• PEG Ratio: 0.03
• Price to Book (P/B): 2.01
• 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: 39 Underperform
• Price Target: ¥666.00 ▼(-5.40%Downside)

The overall stock score is significantly impacted by poor financial performance, which is the most critical factor. The weak technical indicators and negative valuation metrics further contribute to a low score, indicating substantial risks and challenges facing the company.

Sekido Co., Ltd. Business Overview & Revenue Model

Company Description

Sekido Co., Ltd. (9878) is a Japan-based company primarily engaged in the retail and wholesale of electrical appliances and related products. The company operates in sectors including consumer electronics, home appliances, and information technology equipment. Sekido Co., Ltd. offers a wide range of products including televisions, refrigerators, air conditioners, and personal computers, catering to both individual consumers and business clients.

How the Company Makes Money

Sekido Co., Ltd. generates revenue through a combination of retail and wholesale sales of electrical appliances and electronics. The company operates physical retail stores and an online platform, providing a broad range of consumer electronics and home appliances to individual customers. Additionally, Sekido Co., Ltd. engages in wholesale distribution, supplying products to various business entities and retailers. Significant partnerships with manufacturers and suppliers enhance its product offerings and competitive pricing, contributing to its earnings. Revenue is driven by sales volume, product diversification, and strategic pricing models.

Sekido Co., Ltd. Financial Statement Overview

Summary

Sekido Co., Ltd. displays strong revenue growth and improving gross margins. However, it faces challenges with profitability consistency and high leverage. Cash flow management needs improvement, suggesting cautious optimism contingent on operational and financial improvements.

Income Statement

Sekido Co., Ltd. shows a positive trend in revenue growth, increasing from 6.62 billion JPY in 2020 to 8.48 billion JPY in 2024. The gross profit margin improved from 20.64% in 2020 to 32.61% in 2024, reflecting better cost management. However, net profit margins have been volatile, with losses in 2020 and 2023 but a return to profitability in 2024 with a net profit margin of 0.56%. EBIT and EBITDA margins have fluctuated, but both have shown improvement in the latest year, indicating an upward trajectory in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio remains high, indicating significant leverage, with a ratio of 2.90 in 2024, posing financial risk. However, the equity ratio improved slightly to 17.59% in 2024, suggesting a marginal increase in financial stability. Return on equity has been inconsistent, reflecting profitability challenges, but ended positively in 2024 at 5.09%.

Cash Flow

Operating cash flow has been erratic, turning positive in 2024 after substantial deficits in previous years. Free cash flow remains negative, though the deficit reduced significantly from 2023 to 2024. The operating cash flow to net income ratio is weak, indicating challenges in converting net income to cash. Continued improvements in cash flow generation are critical for long-term sustainability.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
8.03B	8.48B	7.04B	7.73B	6.77B	6.62B
	Gross Profit
2.49B	2.77B	2.33B	1.97B	1.73B	1.37B
	EBIT
-90.90M	151.25M	109.41M	271.65M	180.89M	-379.08M
	EBITDA
-80.93M	163.40M	124.76M	499.60M	166.16M	-514.77M
	Net Income Common Stockholders
-228.53M	47.65M	-46.39M	485.60M	117.37M	-578.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
508.00M	416.48M	593.20M	724.47M	483.82M	567.46M
	Total Assets
5.82B	5.31B	4.95B	4.27B	3.60B	2.90B
	Total Debt
3.35B	2.71B	2.80B	1.82B	1.45B	1.42B
	Net Debt
3.04B	2.29B	2.21B	1.09B	964.78M	855.09M
	Total Liabilities
5.11B	4.38B	4.07B	3.25B	3.09B	16.00K
	Stockholders Equity
704.00M	935.09M	870.57M	1.03B	510.20M	257.42M
Cash Flow		Free Cash Flow
0.00	-58.77M	-916.92M	-473.64M	-190.48M	456.86M
	Operating Cash Flow
0.00	8.42M	-842.77M	-374.96M	-183.24M	529.66M
	Investing Cash Flow
0.00	-54.53M	-99.04M	177.21M	-37.77M	-85.45M
	Financing Cash Flow
0.00	-130.67M	810.51M	442.39M	133.33M	-398.00K

Sekido Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 704.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 704 is below the 20-day moving average (MA) of 710.25, below the 50-day MA of 704.96, and below the 200-day MA of 706.11, indicating a bearish trend. The MACD of -1.91 indicates Positive momentum. The RSI at 46.42 is Neutral, neither overbought nor oversold. The STOCH value of 36.61 is Neutral, 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
8013	65 Neutral	¥2.43B	23.70		―	1.08%	-8.75%
Sector *	62 Neutral	$6.90B	11.12	2.92%	3.89%	2.68%	-25.06%
2778	62 Neutral	¥1.84B	―		―	-5.65%	-111.57%
9271	61 Neutral	¥2.90B	7.03		―	49.09%	409.69%
7615	48 Neutral	¥1.32B	―		6.32%	-26.51%	37.62%
9878	39 Underperform	¥1.43B	―		2.13%	-11.63%	-1321.05%
7603	39 Underperform	¥1.99B	―		―	-14.86%	-27.89%