Synclayer Inc. (1724) AI Stock Analysis

• Market Cap: ¥3.03B
• Dividend Yield: 4.28%
• Average Volume (3M): 3.44K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.22
• Revenue Growth: 11.03%
• EPS Growth: 4.03%
• Country: JP
• Employees: 267
• Sector: Technology
• Sector Strength: 84
• Industry: Communication Equipment
• EPS (TTM): 26.30
• Shares Outstanding: 4,943,780
• 10 Day Avg. Volume: 4,240
• 30 Day Avg. Volume: 3,443
• PEG Ratio: 0.12
• Price to Book (P/B): 0.48
• 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: 69 Neutral
• Price Target: ―

Synclayer Inc.'s strong revenue growth and improved profitability are key strengths, though liquidity challenges are notable. Technical indicators suggest mixed momentum, with some signs of being overbought. The stock is attractively valued with a low P/E ratio and high dividend yield, enhancing its appeal despite operational challenges.

Synclayer Inc. Business Overview & Revenue Model

Company Description

Synclayer Inc. (1724) is a technology company that operates in the telecommunications sector. The company specializes in developing advanced network infrastructure solutions, focusing on providing innovative software and hardware products that enhance network efficiency and reliability for telecom operators worldwide.

How the Company Makes Money

Synclayer Inc. generates revenue primarily through the sale of its network infrastructure products and services to telecommunications companies. Key revenue streams include licensing fees for its proprietary software solutions, sales of hardware components, and ongoing maintenance and support services. The company also benefits from strategic partnerships with major telecom operators, which help drive sales and expand its market reach. Additionally, Synclayer Inc. may engage in research and development collaborations that contribute to its earnings.

Synclayer Inc. Financial Statement Overview

Summary

Synclayer Inc. shows strong revenue growth and improved net profit margins, contributing to a solid income statement score. The balance sheet reflects a stable capital structure with moderate leverage and decent equity returns. However, the cash flow statement reveals liquidity pressures, with declining free cash flow and negative operating cash flow, highlighting areas for improvement in cash management.

Income Statement

Synclayer Inc. has demonstrated consistent revenue growth, with a notable increase of 12.15% from 2023 to 2024. Gross profit margin stands at 21.27%, and net profit margin improved to 4.67%, indicating better cost control and profitability. However, EBIT and EBITDA margins are moderate at 5.57% and 7.32%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio sits at 0.43, reflecting a moderate level of leverage. Return on equity is relatively modest at 8.90%, indicating average efficiency in generating returns on shareholders' equity. The equity ratio of 54.10% suggests a solid capital structure with a strong equity base.

Cash Flow

Free cash flow has declined significantly, with a negative growth rate from 2023 to 2024. The operating cash flow to net income ratio is negative, hinting at potential liquidity challenges. However, financing cash flow is positive, indicating reliance on external funding to support operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.71B	10.44B	9.96B	13.06B	10.89B
	Gross Profit
2.49B	2.17B	2.07B	2.98B	2.42B
	EBIT
653.00M	546.00M	414.00M	1.21B	765.00M
	EBITDA
952.00M	719.00M	635.00M	1.39B	943.00M
	Net Income Common Stockholders
547.00M	433.00M	294.00M	871.00M	529.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
948.00M	1.18B	1.59B	1.60B	996.00M
	Total Assets
11.35B	10.69B	11.33B	10.34B	9.38B
	Total Debt
2.62B	764.00M	2.99B	885.00M	1.57B
	Net Debt
1.67B	-415.00M	1.40B	-715.00M	572.00M
	Total Liabilities
5.21B	5.00B	6.00B	5.30B	6.08B
	Stockholders Equity
6.14B	5.68B	5.33B	5.04B	3.31B
Cash Flow		Free Cash Flow
-1.87B	1.85B	-1.96B	475.00M	773.00M
	Operating Cash Flow
-1.32B	2.16B	-1.70B	661.00M	1.07B
	Investing Cash Flow
-640.00M	-273.00M	-341.00M	-187.00M	-374.00M
	Financing Cash Flow
1.73B	-2.30B	2.02B	121.00M	-727.00M

Synclayer Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 654.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1724, the sentiment is Positive. The current price of 654 is above the 20-day moving average (MA) of 649.25, above the 50-day MA of 635.76, and above the 200-day MA of 625.48, indicating a bullish trend. The MACD of 5.57 indicates Positive momentum. The RSI at 54.46 is Neutral, neither overbought nor oversold. The STOCH value of 60.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1724.

Synclayer Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6822	79 Outperform	¥3.55B	3.42		―	3.30%	37.00%
1724	69 Neutral	¥3.03B	5.73		4.28%	11.03%	4.03%
6696	63 Neutral	¥2.67B	1,121.57		―	32.33%	―
4388	62 Neutral	¥3.07B	20.87		―	102.19%	-112.09%
Sector *	62 Neutral	$11.70B	10.39	-7.10%	2.92%	7.45%	-8.42%
6778	58 Neutral	¥5.88B	560.47		3.13%	-22.01%	―
6522	47 Neutral	¥3.22B	―		―	15.83%	38.72%