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Sekichu Co., Ltd.
(9976)
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Rating:61Neutral
Price Target:
¥1,266.00
▲(19.10% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by moderate financial performance: stable-to-improving revenue and a workable balance sheet are offset by thin margins and historically volatile cash flow (with only a recent 2026 free-cash-flow rebound). Valuation is supportive with a reasonable P/E and a ~2.8% dividend yield. Technical signals are mixed, with a modestly constructive longer-term trend but neutral near-term momentum.
Positive Factors
Solid equity base
An equity base of roughly ¥10–12B against ¥18–24B of assets provides a substantial capital cushion. Although debt rose after 2023, leverage remains manageable, supporting resilience and financial flexibility over the next several quarters.
Negative Factors
Thin profitability
Net margins of roughly 0.6%–1.9% and EBIT margins of about 1.1%–2.8% leave limited room for cost pressure or execution setbacks. Thin profitability can restrict reinvestment and make earnings more sensitive to changes in expenses and merchandise economics.
Read all positive and negative factors
Positive Factors
Negative Factors
Solid equity base
An equity base of roughly ¥10–12B against ¥18–24B of assets provides a substantial capital cushion. Although debt rose after 2023, leverage remains manageable, supporting resilience and financial flexibility over the next several quarters.
Read all positive factors
Sekichu Co., Ltd. (9976) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥6.46B
Dividend Yield2.5%
Average Volume (3M)1.28K
Price to Earnings (P/E)14.7
Beta (1Y)0.13
Revenue Growth1.94%
EPS Growth-12.42%
CountryJP
Employees616
SectorGeneral
Sector StrengthN/A
IndustryHome Improvement
Share Statistics
EPS (TTM)46.63
Shares Outstanding5,586,150
10 Day Avg. Volume2,630
30 Day Avg. Volume1,280
Financial Highlights & Ratios
PEG Ratio-0.74
Price to Book (P/B)0.48
Price to Sales (P/S)0.18
P/FCF Ratio12.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Sekichu Co., Ltd. Business Overview & Revenue Model
Company Description
Sekichu Co., Ltd. operates home improvement stores. It also operates car supplies and bicycle specialty stores, as well as offers tools. The company was formerly known as Sekiguchi Mokuzai Co., Ltd. and changed its name to Sekichu Co., Ltd. in Jul...
How the Company Makes Money
Sekichu makes money primarily through the sale of merchandise to consumers via its retail stores. Its revenue model is product-sales driven: (1) core retail sales from home improvement/DIY-related items (e.g., building/repair materials, tools, and...
Sekichu Co., Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
34
Negative
| Breakdown | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 31.87B | 31.48B | 30.38B | 30.94B | 31.75B |
| Gross Profit | 9.24B | 9.18B | 9.02B | 9.20B | 9.14B |
| EBITDA | 1.10B | 1.14B | 1.13B | 1.08B | 749.36M |
| Net Income | 400.09M | 494.00M | 510.95M | 477.60M | 183.75M |
Balance Sheet | |||||
| Total Assets | 23.44B | 23.71B | 19.88B | 18.49B | 18.44B |
| Cash, Cash Equivalents and Short-Term Investments | 785.69M | 949.26M | 884.16M | 853.19M | 1.11B |
| Total Debt | 3.88B | 4.41B | 1.80B | 900.00M | 838.86M |
| Total Liabilities | 11.59B | 12.18B | 8.80B | 7.84B | 8.14B |
| Stockholders Equity | 11.85B | 11.53B | 11.07B | 10.65B | 10.30B |
Cash Flow | |||||
| Free Cash Flow | 439.86M | -3.65B | -959.64M | -324.54M | -782.93M |
| Operating Cash Flow | 857.95M | 575.16M | 8.02M | 107.69M | 177.05M |
| Investing Cash Flow | -239.10M | -3.05B | -715.97M | -320.45M | -1.30B |
| Financing Cash Flow | -782.42M | 2.54B | 738.92M | -46.71M | 351.17M |
Sekichu Co., Ltd. Technical Analysis
Positive
1063.00
Price Trends
1071.12
Positive
1058.42
Positive
1045.18
Positive
Market Momentum
26.47
Negative
85.73
Negative
91.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9976, the sentiment is Positive. The current price of 1063 is below the 20-day moving average (MA) of 1090.25, below the 50-day MA of 1071.12, and above the 200-day MA of 1045.18, indicating a bullish trend. The MACD of 26.47 indicates Negative momentum. The RSI at 85.73 is Negative, neither overbought nor oversold. The STOCH value of 91.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9976.
Sekichu Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥137.32B | 15.40 | ― | 3.65% | 3.06% | 10.38% | |
70 Outperform | ¥193.11B | 12.33 | ― | 1.42% | 2.57% | 7.49% | |
63 Neutral | ¥143.91B | 8.88 | ― | 2.95% | 5.63% | 6.92% | |
61 Neutral | ¥6.46B | 14.74 | ― | 2.50% | 1.94% | -12.42% | |
59 Neutral | ¥220.76B | 12.28 | ― | 2.99% | 2.68% | 1.62% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
45 Neutral | ¥60.84B | 144.70 | 0.24% | 2.72% | -2.53% | ― |
* General Sector Average
JP:9976
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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.