Forside Co., Ltd. (2330) AI Stock Analysis

• Market Cap: ¥9.39B
• Dividend Yield: N/A
• Average Volume (3M): 479.64K
• Price to Earnings (P/E): 29.0
• Beta (1Y): 1.54
• Revenue Growth: 46.52%
• EPS Growth: N/A
• Country: JP
• Employees: 55
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 2.70
• Shares Outstanding: 43,687,702
• 10 Day Avg. Volume: 303,820
• 30 Day Avg. Volume: 479,636
• PEG Ratio: -2.16
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 54.71
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥230.00 ▲(9.52% Upside)

Forside Co., Ltd. shows strong financial stability and growth potential, driven by solid revenue growth and efficient cash management. However, technical indicators present mixed signals, and the stock's high P/E ratio suggests it may be overvalued, limiting its attractiveness. The absence of dividend yield further impacts its valuation appeal.

Forside Co., Ltd. Business Overview & Revenue Model

Company Description

Forside Co., Ltd. (2330) is a dynamic company primarily engaged in the design, manufacturing, and distribution of electronic components and consumer electronics. Operating within the technology sector, Forside specializes in innovative solutions that cater to a wide range of industries, including telecommunications, automotive, and home automation. The company's core products include smart devices, integrated circuits, and modular components, which are designed to enhance connectivity and functionality in modern electronic applications.

How the Company Makes Money

Forside Co., Ltd. generates revenue through multiple streams, primarily by selling its electronic components and consumer electronics to both OEMs (Original Equipment Manufacturers) and end-users. The company benefits from strategic partnerships with major technology firms, which allows it to secure large-volume contracts and expand its market reach. Additionally, Forside invests in research and development to innovate and introduce new products that meet evolving consumer demands, thereby increasing sales. The company also explores licensing agreements for its patented technologies, contributing to a diversified revenue model that enhances its financial stability and growth potential.

Forside Co., Ltd. Financial Statement Overview

Summary

Forside Co., Ltd. demonstrates positive growth and stability across its financial statements. The company shows strong revenue growth and improved operational margins in the income statement, supported by a solid balance sheet with low leverage. Cash flow analysis reflects efficient cash generation and management, indicating overall financial health. However, there remains potential to enhance profitability and shareholder returns.

Income Statement

Forside Co., Ltd. shows a strong revenue growth rate of 10.83% from 2023 to 2024, indicating positive momentum in sales. The gross profit margin is healthy at approximately 34%, but the net profit margin is relatively low at 1.2%, suggesting operational challenges in translating sales into bottom-line profit. The positive EBIT and EBITDA margins reflect an improvement in operational efficiency compared to previous years, contributing to a positive outlook.

Balance Sheet

The company maintains a solid equity position with an equity ratio of 70.07%, indicating strong financial stability. With a low debt-to-equity ratio of 0.10, Forside Co., Ltd. demonstrates conservative leverage, reducing financial risk. The return on equity is modest at 2.56%, suggesting room for improvement in generating returns for shareholders.

Cash Flow

The operating cash flow to net income ratio is robust at 2.55, highlighting effective cash conversion from profits. Free cash flow has significantly improved to 137 million from the previous year's 45.43 million, indicating enhanced cash generation capabilities. However, the free cash flow to net income ratio of 2.14 suggests efficient cash management but also indicates the potential for better alignment with profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.90B	5.34B	4.82B	4.99B	4.89B	4.03B
Gross Profit	1.75B	1.82B	1.93B	1.82B	1.96B	1.68B
EBITDA	364.00M	157.78M	187.39M	-55.28M	151.50M	-275.64M
Net Income	311.45M	64.42M	113.58M	-107.82M	85.85M	-348.71M
Balance Sheet
Total Assets	5.45B	3.57B	4.45B	4.25B	4.43B	3.84B
Cash, Cash Equivalents and Short-Term Investments	2.28B	1.40B	1.19B	941.85M	1.26B	1.05B
Total Debt	740.57M	245.68M	497.81M	713.00M	831.05M	632.32M
Total Liabilities	2.65B	1.07B	2.87B	3.19B	3.26B	2.75B
Stockholders Equity	2.80B	2.50B	1.58B	1.06B	1.16B	1.10B
Cash Flow
Free Cash Flow	0.00	129.04M	45.43M	-333.05M	169.81M	102.69M
Operating Cash Flow	0.00	163.90M	115.17M	-329.26M	180.88M	112.50M
Investing Cash Flow	0.00	-596.92M	-61.64M	124.39M	-163.99M	187.24M
Financing Cash Flow	0.00	639.93M	192.47M	-120.04M	194.97M	282.47M

Forside Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 210.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2330, the sentiment is Negative. The current price of 210 is below the 20-day moving average (MA) of 214.60, below the 50-day MA of 227.20, and above the 200-day MA of 185.20, indicating a neutral trend. The MACD of -1.77 indicates Negative momentum. The RSI at 47.12 is Neutral, neither overbought nor oversold. The STOCH value of 28.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2330.

Forside Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7841	80 Outperform	¥10.49B	13.70	―	3.34%	3.14%	-40.34%
8135	78 Outperform	¥8.95B	3.14	―	3.94%	7.24%	216.11%
7847	75 Outperform	¥3.98B	20.50	―	4.89%	-11.24%	-48.52%
6570	73 Outperform	¥7.00B	7.33	―	1.89%	15.66%	57.34%
2330	63 Neutral	¥9.39B	28.99	―	―	46.52%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%