Gendai Agency Inc. (2411) AI Stock Analysis

• Market Cap: ¥5.05B
• Dividend Yield: 4.64%
• Average Volume (3M): 27.71K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.34
• Revenue Growth: 5.98%
• EPS Growth: 421.55%
• Country: JP
• Employees: 215
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 12,300,000
• 10 Day Avg. Volume: 22,440
• 30 Day Avg. Volume: 27,713
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥490.00
• Price Target Upside: 13.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥490.00 ▲(13.69% Upside)

Gendai Agency Inc. scores well due to its strong financial performance, characterized by robust cash flow and low leverage, which ensures financial stability. The technical analysis indicates positive momentum, though the RSI suggests caution as the stock approaches overbought levels. The valuation is attractive with a reasonable P/E ratio and a high dividend yield, making it appealing for income-focused investors.

Gendai Agency Inc. Business Overview & Revenue Model

Company Description

Gendai Agency Inc. engages in planning and production of advertising and promotion services in Japan. The company provides advertising services, online and mass media advertising, newspaper flyers, and sales promotions. Its services include video and web content production; and research and development. The company also engages in the planning and management of store events; and real estate activities. The company was incorporated in 1995 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Gendai Agency Inc. generates revenue through multiple streams, primarily by offering a variety of marketing services on a contractual basis to businesses in various industries. Key revenue streams include service fees for marketing campaigns, subscription models for ongoing digital marketing support, and performance-based incentives tied to campaign success. Additionally, the agency may establish significant partnerships with technology providers and media platforms, which can enhance its service offerings and create avenues for collaborative revenue generation. The company's focus on delivering measurable results for clients helps to foster long-term relationships, ensuring repeat business and a steady income flow.

Gendai Agency Inc. Financial Statement Overview

Summary

Gendai Agency Inc. presents a solid financial position with consistent revenue growth, improved profitability, and strong cash flow generation. The low leverage and high equity ratio provide financial stability, while effective cash flow management supports operational resilience.

Income Statement

Gendai Agency Inc. has shown a consistent improvement in profitability with a gross profit margin of 31.5% and a net profit margin of 4.7% for the latest year. The revenue growth rate of 3.5% from the previous year indicates steady growth. EBIT and EBITDA margins have also improved, reflecting better operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.16, indicating low financial leverage. The return on equity stands at 8.5%, showing effective use of equity. The equity ratio of 73.1% suggests a solid equity base relative to total assets, enhancing financial stability.

Cash Flow

Gendai Agency Inc. demonstrates strong cash flow management with a significant free cash flow growth rate of 163.6%. The operating cash flow to net income ratio of 1.42 and a free cash flow to net income ratio of 1.35 highlight robust cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.68B	7.68B	7.42B	7.54B	7.43B	7.25B
Gross Profit	2.42B	2.42B	2.19B	2.28B	2.13B	1.75B
EBITDA	514.00M	514.00M	316.00M	458.00M	371.00M	-202.00M
Net Income	358.00M	358.00M	125.00M	369.00M	247.00M	-310.00M
Balance Sheet
Total Assets	5.75B	5.75B	5.43B	6.06B	6.25B	6.31B
Cash, Cash Equivalents and Short-Term Investments	3.69B	3.69B	3.44B	3.73B	3.98B	4.06B
Total Debt	674.00M	674.00M	562.00M	849.00M	937.00M	862.00M
Total Liabilities	1.54B	1.54B	1.34B	1.67B	1.78B	1.59B
Stockholders Equity	4.20B	4.20B	4.08B	4.39B	4.48B	4.72B
Cash Flow
Free Cash Flow	0.00	485.00M	184.00M	289.00M	314.00M	-165.00M
Operating Cash Flow	0.00	510.00M	260.00M	372.00M	359.00M	-114.00M
Investing Cash Flow	0.00	-132.00M	156.00M	-86.00M	224.00M	11.00M
Financing Cash Flow	0.00	-121.00M	-719.00M	-546.00M	-419.00M	-140.00M

Gendai Agency Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 431.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2411, the sentiment is Neutral. The current price of 431 is below the 20-day moving average (MA) of 441.25, below the 50-day MA of 433.52, and above the 200-day MA of 384.02, indicating a neutral trend. The MACD of -1.40 indicates Positive momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 3.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2411.

Gendai Agency Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2411	79 Outperform	¥5.05B	11.37		4.64%	5.98%	421.55%
7370	73 Outperform	6.29B	11.13	0.00%	4.41%	-10.63%	-27.06%
7036	66 Neutral	3.97B	30.57	4.96%	3.15%	10.03%	236.86%
7044	53 Neutral	4.74B	20.84	-25.89%	―	57.85%	0.00%
7078	48 Neutral	4.93B	-4.15	-60.83%	―	-8.33%	-462.10%
7063	40 Underperform	5.28B	-3.36	-280.69%	―	-84.70%	86.28%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%