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

• Market Cap: ¥1.77B
• Dividend Yield: 1.63%
• Average Volume (3M): 38.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -25.92%
• EPS Growth: -1005.20%
• Country: JP
• Employees: 61
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -51.15
• Shares Outstanding: 2,950,228
• 10 Day Avg. Volume: 26,690
• 30 Day Avg. Volume: 38,273
• PEG Ratio: <0.01
• Price to Book (P/B): 7.24
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -4.39
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: ¥575.00 ▼(-6.20% Downside)

Sekido Co., Ltd. is currently facing significant financial and operational challenges. The most impactful factor is the poor financial performance, characterized by declining revenues, negative profitability, and high financial leverage. Technical analysis also indicates a bearish trend, with the stock trading below key moving averages. The valuation is unattractive due to a negative P/E ratio and low dividend yield. Immediate strategic actions are necessary to improve the company's financial health.

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 electronic components and systems. The company operates in various sectors including telecommunications, automotive, and consumer electronics, providing innovative solutions such as integrated circuits, sensors, and connectivity modules that cater to both industrial and commercial markets. With a focus on technology-driven products, Sekido aims to enhance connectivity and performance across multiple applications.

How the Company Makes Money

Sekido Co., Ltd. generates revenue through multiple key streams, primarily by selling its electronic components and systems to manufacturers in various industries, including telecommunications and automotive. The company benefits from long-term contracts with major clients, ensuring a steady flow of income. Additionally, Sekido invests in research and development to innovate new products, which helps maintain a competitive edge and opens up new market opportunities. Partnerships with technology firms and collaborations on projects further enhance its market presence and contribute to earnings. The company's revenue is also bolstered by after-sales services and maintenance contracts, providing ongoing support to clients and generating recurring revenue.

Sekido Co., Ltd. Financial Statement Overview

Summary

Sekido Co., Ltd. is facing significant financial challenges. The company has experienced declining revenues and profitability, with negative margins and high financial leverage. The balance sheet reflects increased debt levels and reduced equity, while cash flow issues further exacerbate the financial strain. Immediate strategic actions are needed to address these financial difficulties and stabilize the company's financial health.

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	36.65M	-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	409.32M	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: 613.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 613 is below the 20-day moving average (MA) of 625.10, below the 50-day MA of 670.92, and below the 200-day MA of 777.26, indicating a bearish trend. The MACD of -18.66 indicates Negative momentum. The RSI at 39.91 is Neutral, neither overbought nor oversold. The STOCH value of 48.94 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
9271	69 Neutral	¥6.71B	14.10	―	―	37.51%	176.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7615	55 Neutral	¥3.04B	-4.77	―	―	-14.14%	71.50%
8013	53 Neutral	¥2.29B	-112.18	―	―	0.58%	-2526.19%
2778	52 Neutral	¥1.67B	-42.24	―	―	-6.40%	-590.11%
9878	40 Underperform	¥1.77B	-1.68	―	1.63%	-25.92%	-1005.20%
7603	40 Underperform	¥4.41B	―	―	―	-7.88%	-11.22%