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

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Sekido Co., Ltd.

(TSE/TYO:9878)

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Rating:37Underperform

Price Target:JPY 266.00▲(1.92% Upside)

Action:downgraded

Date:11/06/26

The stock scores at the absolute minimum of 37, reflecting a company in severe financial distress. The most significant factors are the rapidly declining revenue, persistent operating and net losses, and a dangerously leveraged balance sheet with equity nearly wiped out. This is compounded by consistently negative cash flows and a deeply bearish technical profile, with the price trading far below all major moving averages. The negative P/E ratio and lack of a dividend provide no valuation support. The company's viability is at significant risk.

Positive Factors

Dual-Channel Business ModelOperating through both retail and wholesale/distribution gives Sekido two routes to monetize its cosmetics portfolio. That channel breadth can support customer reach and product placement across direct and business buyers, providing a broader commercial platform as the company works to stabilize sales.

Negative Factors

Revenue and Profitability DeteriorationMaterial revenue contraction coincided with a sharp shift from modest 2024 profitability to sizeable losses in 2025 and deeper losses in 2026. This combination signals weakened operating economics: lower sales reduce fixed-cost absorption while negative margins constrain the path back to sustainable earnings.

Sekido Co., Ltd. (9878) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 872.97M
Dividend Yield: ―
Average Volume (3M): 10.77K
Price to Earnings (P/E): -0.6
Beta (1Y): 0.43
Revenue Growth: -18.86%
EPS Growth: -22.44%
Country: Japan
Employees: 61
Sector: General
Sector Strength: 55
Industry: Apparel - Retail

Sekido Co., Ltd. Business Overview & Revenue Model

Company Description

SEKIDO Co., Ltd. operates fashion stores. It provides rings, necklaces, earrings, and other jewelry; wristwatches, wall clocks, smoking accessories; and handbags, wallets, belts, glasses. The company also engages in beauty business, offers sheet mask...

How the Company Makes Money

Sekido makes money mainly by selling cosmetics and beauty-related products via two core routes: (1) retail sales and (2) wholesale/distribution. In retail, the company generates revenue from direct-to-consumer transactions at its stores and other sal...

Sekido Co., Ltd. Financial Statement Overview

Summary

Financial performance is critically weak. Revenue has declined sharply with a 44% drop in the latest year, gross margins are compressing, and the company has reported operating losses in three of the last four years. The balance sheet is highly leveraged with a debt-to-equity ratio of 33.1, and equity has been nearly wiped out. Cash flow is consistently negative, indicating the company is burning cash and faces significant solvency concerns.

Income Statement

15Very Negative

Balance Sheet

10Very Negative

Cash Flow

12Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	10.23B	5.76B	7.49B	8.48B	7.04B	7.73B
Gross Profit	3.12B	1.37B	2.17B	2.71B	2.30B	1.97B
EBITDA	10.72M	-969.48M	-353.27M	158.82M	124.76M	499.60M
Net Income	-174.76M	-1.10B	-545.38M	36.65M	-46.39M	485.60M
Balance Sheet
Total Assets	5.82B	4.43B	4.77B	5.35B	4.95B	4.27B
Cash, Cash Equivalents and Short-Term Investments	304.25M	1.02B	504.17M	409.32M	593.20M	724.47M
Total Debt	3.35B	2.96B	3.11B	2.76B	2.83B	1.82B
Total Liabilities	5.11B	4.34B	4.54B	4.56B	4.08B	3.25B
Stockholders Equity	704.97M	89.46M	233.41M	786.24M	870.57M	1.03B
Cash Flow
Free Cash Flow	0	-210.61M	-324.77M	-45.47M	-910.69M	-453.75M
Operating Cash Flow	0	-155.11M	-107.42M	8.42M	-842.77M	-374.96M
Investing Cash Flow	0	-382.51M	-144.23M	-54.53M	-99.04M	177.21M
Financing Cash Flow	0	723.38M	346.49M	-130.67M	810.51M	442.39M

Sekido Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price261.00

Price Trends

50DMA371.14Negative

100DMA394.17Negative

200DMA449.35Negative

Market Momentum

MACD-30.87Positive

RSI3.42Positive

STOCH0.85Positive

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 261.00 is below the 20-day moving average (MA) of 328.95, below the 50-day MA of 371.14, and below the 200-day MA of 449.35, indicating a bearish trend. The MACD of -30.87 indicates Positive momentum. The RSI at 3.42 is Positive, neither overbought nor oversold. The STOCH value of 0.85 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9878 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8219	79Outperform	JPY 114.46B	32.38	3.90%	5.91%	-1.25%	-27.12%
JP:2670	76Outperform	JPY 789.90B	16.41	12.02%	2.52%	4.50%	5.25%
JP:7606	73Outperform	JPY 72.25B	10.78	―	3.85%	6.76%	91.48%
JP:8214	71Outperform	JPY 142.30B	18.13	―	5.20%	0.03%	-7.35%
JP:8227	71Outperform	JPY 755.13B	16.04	9.11%	2.18%	5.20%	11.08%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:9878	37Underperform	JPY 869.63M	-0.61	―	―	-18.86%	-22.44%

* General Sector Average

Performance Comparison

JP:9878 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9878	Sekido Co., Ltd.	261.00	-342.00	-56.72%
JP:2670	ABC-MART	3177.00	582.78	22.46%
JP:8227	SHIMAMURA Co	3448.00	-36.88	-1.06%
JP:8219	AOYAMA TRADING Co., Ltd.	778.00	35.28	4.75%
JP:7606	UNITED ARROWS LTD.	2626.00	585.49	28.69%
JP:8214	AOKI Holdings, Inc.	1732.00	171.36	10.98%

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: Nov 06, 2026

Sekido Co., Ltd. AI Stock Analysis