# Citizen Watch Co., Ltd.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第141期(2025/04/01－2026/03/31) (S100YGYK)
> Page: https://vizora.meequs.com/en/company/citizen-watch
> Retrieved: 2026-09-30T21:18:25.522Z

## Company

Citizen Watch, founded in 1930, is a company in Machine Tools listed on TSE Prime. It has 12,147 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Citizen Watch Co., Ltd. |
| Ticker | 7762 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/7762.T) |
| Listing | TSE Prime |
| Head office | 東京都西東京市田無町六丁目1番12号 |
| Representative (per filing) | 代表取締役社長 大治 良高 |
| Founded | May 1930 |
| Share capital | ¥32.6B |
| Employees (consolidated) | 12,147 |
| Average salary (parent only) | ¥7.9M |
| Fiscal year end | March |
| Website | www.citizen.co.jp (https://www.citizen.co.jp/) |
| Corporate number | 5012701004744 |
| EDINET | E02281 |
| Industries (Vizora) | Machine Tools, Electronic Components, Watches, Jewelry & Eyewear |

> Profile source: annual securities report (S100YGYK, filed 2026-06-23). As of filing

## Five-axis industry profile

Primary industry: Watches, Jewelry & Eyewear (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 57.5 | 20 |
| Profitability | 62.5 | 20 |
| Cash conversion | 65.8 | 19 |
| Efficiency | 26.2 | 21 |
| Financial strength | 62.5 | 4 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 57% of Citizen Watch's sales come from Watches and Clocks, with Machine tools and Devices and Components making up much of the rest.
- Out of every ¥100 of sales, about ¥9 is left as operating profit.
- Revenue changed +9.4% from the prior year, operating profit +46.9%.

## Company structure

- Segment revenue mix: Watches and Clocks 56.8%、Machine tools 24.9%、Devices and Components 18.3%
- Revenue → net income: ¥346808000000 → ¥31193000000
- Net income → operating cash flow: ¥31193000000 → ¥38822000000（difference ¥7629000000）
- Main uses of operating cash flow: CapEx ¥23843000000 / dividends ¥11236000000 / buybacks ¥2000000
- Change in cash: ¥11388000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥346.8B |  |
| Operating income | ¥30.3B | Margin 8.7% |
| Net income | ¥31.1B | Margin 9.0% |
| Free cash flow | ¥15B |  |
| Largest business | Watches and Clocks | of segment revenue 56.8% |
| Employees (consolidated) | 12,147 |  |
| EPS | ¥88.23 |  |
| Book value per share | ¥590.53 |  |
| Equity ratio | 62.6% |  |
| Shares outstanding | 246,000,000 |  |
| Treasury shares | 1,284,900 |  |
| Shareholders | 101,568 |  |
| Average salary (parent only) | ¥7.9M | Filing company only |
| Cash ratio | 22.2% | Net cash ¥47B · Cash ÷ revenue 30.0% |
| Vs. industry median margin | +2.1 pp | Watches, Jewelry & Eyewear |
| ROE | 14.6% | Derived from disclosed figures |
| ROA | 7.0% | Derived from disclosed figures |

## Notable figures

- FY2026, one segment accounts for 69% of positive segment profit
- FY2026, employees -2% while operating income rose 47%
- FY2026, parent-company salary changed +23% over five years

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥206641000000 | ¥346808000000 | +67.8% |
| Operating income | ¥-9551000000 | ¥30250000000 | — |
| Operating margin | -4.6% | 8.7% | +13.3 pp |
| Employees | 13,530 people | 12,147 people | -10.2% |
| Cash and equivalents | ¥99561000000 | ¥103986000000 | +4.4% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 時計事業 → 時計事業 | 46.3% |
| 工作機械事業 → 工作機械事業 | 22.6% |
| デバイス事業 → デバイス事業 | 18.3% |
| デバイス事業 → 事業再編・廃止 | 3.9% |
| 電子機器他事業 → 事業再編・廃止 | 8.9% |
| 新設・再編 → 時計事業 | 10.5% |
| 新設・再編 → 工作機械事業 | 2.3% |

Segment revenue source references: 7 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Watches and Clocks | 5 years | +15.6% | ¥197061000000 | 12.7% | 2 |
| Machine tools | 5 years | +13.1% | ¥86292000000 | 9.0% | 2 |
| Devices and Components | 5 years | +6.7% | ¥63455000000 | 5.9% | 2 |

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 346,808 | 100.0% | S100YGYK |
| Cost of revenue | 197,277 | 56.9% | S100YGYK |
| Gross profit | 149,530 | 43.1% | S100YGYK |
| SG&A | 119,280 | 34.4% | S100YGYK |
| Operating income | 30,250 | 8.7% | S100YGYK |
| Ordinary income | 38,456 | 11.1% | S100YGYK |
| Pretax income | 36,127 | 10.4% | S100YGYK |
| Income tax | 4,933 | 1.4% | S100YGYK |
| Net income | 31,193 | 9.0% | S100YGYK |
| Net income attributable to owners | 31,100 | 9.0% | S100YGYK |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 57 |
| SG&A | 34 |
| Operating income | 9 |
| (Ref.) Net income | 9 |

### Margin funnel

Gross margin 43.1% → Operating margin 8.7% → Net margin 9.0%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +9.4%; Core profit growth: +46.9%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 4.97×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 316,885 | 346,808 | 29,923 | +9.4% |
| Gross profit | 134,550 | 149,530 | 14,980 | +11.1% |
| Operating income | 20,592 | 30,250 | 9,658 | +46.9% |
| Net income attributable to owners | 23,876 | 31,100 | 7,224 | +30.3% |
| Operating cash flow | 35,765 | 38,822 | 3,057 | +8.5% |
| Free cash flow | 16,142 | 14,979 | -1,163 | -7.2% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 278,531 | 6,136 | 2.2% | -16,667 | 17,347 | -1,758 | S100LRN8 |
| FY ending Mar 2021 | 206,641 | -9,551 | -4.6% | -25,173 | 7,489 | -4,643 | S100OHED |
| FY ending Mar 2022 | 281,417 | 22,273 | 7.9% | 22,140 | 34,693 | 23,010 | S100R82H |
| FY ending Mar 2023 | 301,366 | 23,708 | 7.9% | 21,836 | 16,576 | 20 | S100TSXQ |
| FY ending Mar 2024 | 312,830 | 25,068 | 8.0% | 22,958 | 34,564 | 16,703 | S100W634 |
| FY ending Mar 2025 | 316,885 | 20,592 | 6.5% | 23,876 | 35,765 | 16,142 | S100YGYK |
| FY ending Mar 2026 | 346,808 | 30,250 | 8.7% | 31,100 | 38,822 | 14,979 | S100YGYK |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥28.6M |
| Operating income per employee (consolidated) | ¥2.5M |
| Net income per employee (consolidated) | ¥2.6M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 12,549 | 12,256 | 11,935 | 12,373 | 12,147 |
| Average salary (parent company) | ¥6.4M | ¥7.1M | ¥7.5M | ¥7.7M | ¥7.9M |
| Average age (parent company) | 44.1 years | 43.4 years | 44.3 years | 44.0 years | 43.9 years |
| Average tenure (parent company) | 18.6 years | 18.8 years | 18.5 years | 18.1 years | 17.4 years |

Year over year: Employees (consolidated) -1.8% · Revenue (consolidated) +9.4%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Watches and Clocks | 197,061 | 56.8% | 25,072 | 12.7% |
| Machine tools | 86,292 | 24.9% | 7,736 | 9.0% |
| Devices and Components | 63,455 | 18.3% | 3,766 | 5.9% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Watches and Clocks | 56.8% | 68.6% | 11.7 | 12.7% |
| Machine tools | 24.9% | 21.2% | -3.7 | 9.0% |
| Devices and Components | 18.3% | 10.3% | -8.0 | 5.9% |

Segment → industry: Machine tools → Machine Tools / Devices and Components → Electronic Components / Watches and Clocks → Watches, Jewelry & Eyewear

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 38,822 | 11.2% | S100YGYK |
| Capital expenditure | 23,843 | 6.9% | S100YGYK |
| Free cash flow | 14,979 | 4.3% | 算出 |
| Investing cash flow | -15,478 | -4.5% | S100YGYK |
| Financing cash flow | -17,668 | -5.1% | S100YGYK |
| Dividends paid | 11,236 | 3.2% | S100YGYK |
| Share buyback | 2 | 0.0% | S100YGYK |
| Change in cash | 11,388 | 3.3% | S100YGYK |
| Cash and equivalents | 103,986 | 30.0% | S100YGYK |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 111,237 | 79,201 | 80,338 | 92,597 | 103,986 | S100TSXQ, S100W634, S100YGYK |
| Total assets | 394,962 | 389,982 | 415,445 | 415,552 | 468,303 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Net assets | 238,673 | 232,775 | 256,134 | 264,147 | 302,132 | S100TSXQ, S100W634, S100YGYK |
| Share capital | 32,648 | 32,648 | 32,648 | 32,648 | 32,648 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Trade receivables | 49,308 | 53,718 | 57,754 | 53,928 | 62,048 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Property, plant and equipment | 74,862 | 79,521 | 87,987 | 91,621 | 104,422 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Intangible assets excluding goodwill | 4,834 | 4,751 | 5,206 | 6,523 | 7,877 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Investment securities | 37,275 | 39,021 | 46,602 | 36,993 | 39,945 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Current assets | 270,139 | 259,642 | 267,741 | 271,950 | 305,011 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Current liabilities | 69,338 | 79,317 | 75,641 | 77,553 | 86,760 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Trade payables | 18,354 | 18,889 | 18,712 | 17,894 | 23,616 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Short-term borrowings | 4,773 | 3,787 | 10,077 | 15,180 | 10,011 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Long-term borrowings | 51,382 | 51,328 | 42,433 | 37,027 | 37,020 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Bonds | 10,000 | — | 10,000 | 10,000 | 10,000 | S100R82H, S100W634, S100YGYK |
| Interest-bearing debt | 66,155 | — | 62,510 | 62,207 | 57,031 | 算出 |
| Total liabilities | 156,289 | 157,206 | 159,310 | 151,405 | 166,171 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Non-controlling interests | 9,367 | 8,596 | 8,475 | 8,228 | 8,948 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Equity attributable to owners of parent | 204,076 | 188,290 | 189,156 | 202,688 | 223,391 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Retained earnings | 145,912 | 150,483 | 124,466 | 137,961 | 157,824 | S100R82H, S100TSXQ, S100W634, S100YGYK |
| Treasury stock | -8,225 | -28,581 | -1,698 | -1,669 | -1,780 | S100R82H, S100TSXQ, S100W634, S100YGYK |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 22% | S100YGYK |
| Receivables | 13% | S100YGYK |
| Property, plant and equipment | 22% | S100YGYK |
| Intangibles and goodwill | 2% | S100YGYK |
| Investment securities | 9% | S100YGYK |
| Other assets | 32% | S100YGYK |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 5% | S100YGYK |
| Interest-bearing debt | 12% | 算出 |
| Other liabilities | 18% | S100YGYK |
| Equity | 65% | S100YGYK |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 394,962 | 389,982 | 415,445 | 415,552 | 468,303 |
| Equity | 238,673 | 232,775 | 256,134 | 264,147 | 302,132 |
| Interest-bearing debt | 66,155 | — | 62,510 | 62,207 | 57,031 |
| Cash | 111,237 | 79,201 | 80,338 | 92,597 | 103,986 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 30.1% | S100YGYK |
| Fixed assets ÷ total assets | 22.3% | S100YGYK |
| Goodwill ÷ parent equity | — | —, S100YGYK |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 22.2% |
| Cash ÷ revenue | 30.0% |
| Net cash (cash − interest-bearing debt) | ¥47B |
| Net debt ÷ operating cash flow | -1.21× |
| Cash conversion (operating CF ÷ operating income) | 128.3% |
| Cash vs. profit gap | 7,722 JPY mn (of net income 24.8%) |
| Shareholder returns / net income | 36.1% |
| Shareholder returns / FCF | 75.0% |
| Shareholder payments — dividends / net income | 36.1% |
| Shareholder payments — dividends / FCF | 75.0% |
| CapEx intensity (capex ÷ revenue) | 6.9% |
| Investing CF relative to operating CF | 39.9% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 7.9% | 0.71× | 5.6% | 1.94× | 10.8% | S100R82H |
| 2023 | 7.2% | 0.77× | 5.6% | 2.00× | 11.1% | S100TSXQ |
| 2024 | 7.3% | 0.78× | 5.7% | 2.13× | 12.2% | S100W634 |
| 2025 | 7.5% | 0.76× | 5.7% | 2.12× | 12.2% | S100YGYK |
| 2026 | 9.0% | 0.78× | 7.0% | 2.07× | 14.6% | S100YGYK |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本マスタートラスト信託銀行株式会社 | Major shareholder | 13.8% | 2026-03-31 |
| 株式会社日本カストディ銀行 | Major shareholder | 9.2% | 2026-03-31 |
| 日本生命保険相互会社(常任代理人 日本マスタートラスト信託銀行株式会社) | Major shareholder | 4.9% | 2026-03-31 |
| BBH (LUX) FOR FIDELITY FUNDS -JAPAN ADVANTAGE POOL(常任代理人 株式会社三菱ＵＦＪ銀行) | Major shareholder | 4.2% | 2026-03-31 |
| 日亜化学工業株式会社 | Major shareholder | 4.1% | 2026-03-31 |
| 三菱ＵＦＪ信託銀行株式会社(常任代理人 日本マスタートラスト信託銀行株式会社) | Major shareholder | 1.9% | 2026-03-31 |
| 株式会社みずほ銀行 (常任代理人 株式会社日本カストディ銀行) | Major shareholder | 1.8% | 2026-03-31 |
| シチズングループ従業員持株会 | Major shareholder | 1.8% | 2026-03-31 |
| 清水建設株式会社(常任代理人 日本マスタートラスト信託銀行株式会社) | Major shareholder | 1.7% | 2026-03-31 |
| STATE STREET BANK AND TRUSTCOMPANY 505223(常任代理人 株式会社みずほ銀行決済営業部) | Major shareholder | 1.3% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for the FY ending Mar 2026 grew +9.4%, from ¥316.9B to ¥346.8B.
- Operating income rose much faster, up +46.9% from ¥20.6B to ¥30.3B, and net income climbed +30.3% to ¥31.1B.
- Free cash flow slipped -7.2%, from ¥16.1B to ¥15B.

### Drivers

- Watch sales were strong in North America, helped by global sub-brands, Bulova, growing online direct sales and higher average prices.
- Machine tools benefited from strong semiconductor-related demand in China and steady medical-sector orders in the Americas and Europe.
- Net income absorbed charges for prior-year tariffs, but gains on selling investment securities and a review of deferred tax assets offset them.

### Risks

- The low-priced analog quartz market is shrinking, and competition from Chinese makers is pushing down movement prices.
- Machine tool sales depend on business investment cycles and raw material costs.
- Most sales come from outside Japan, so regional economies and exchange rates affect results.

Cited: Annual securities report (141st fiscal period) (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析); Annual securities report (141st fiscal period) (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第141期(2025/04/01－2026/03/31) | S100YGYK | 2026-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YGYK,, |
| 有価証券報告書－第140期(2024/04/01－2025/03/31) | S100W634 | 2025-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W634,, |
| 有価証券報告書－第139期(2023/04/01－2024/03/31) | S100TSXQ | 2024-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TSXQ,, |
| 有価証券報告書－第138期(2022/04/01－2023/03/31) | S100R82H | 2023-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R82H,, |
| 有価証券報告書－第137期(令和3年4月1日－令和4年3月31日) | S100OHED | 2022-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OHED,, |
| 有価証券報告書－第136期(令和2年4月1日－令和3年3月31日) | S100LRN8 | 2021-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LRN8,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).