Unicafe Inc. (2597) AI Stock Analysis

• Market Cap: ¥13.49B
• Dividend Yield: 0.79%
• Average Volume (3M): 8.04K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.04
• Revenue Growth: 18.53%
• EPS Growth: 42.79%
• Country: JP
• Employees: 200
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 16.29
• Shares Outstanding: 13,869,200
• 10 Day Avg. Volume: 7,630
• 30 Day Avg. Volume: 8,036
• PEG Ratio: 8.47
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 31.82
• 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: 64 Neutral
• Price Target: ―

Unicafe Inc. shows strong financial performance with robust revenue and profitability growth, countered by concerns over declining free cash flow and historical volatility. Technical indicators reflect potential short-term weakness, while valuation metrics suggest the stock might be overvalued. Continued focus on operational efficiency and cash flow management is essential for maintaining growth and stability.

Unicafe Inc. Business Overview & Revenue Model

Company Description

Unicafe Inc. engages in the manufacture and sale of regular coffee and processed coffee products in Japan. It provides commercial coffee to various channels, such as restaurants, cafe shops, office coffee, and coffee vending machines; and industrial coffee that is used as a basic ingredient for coffee related products to beverage and flavor companies. The company also offers Keurig, a capsule coffee system that offers professional drip coffee and tea through one machine. The company was incorporated in 1972 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Unicafe Inc. generates revenue through multiple streams, primarily from the sale of coffee products. These products are sold directly to consumers through retail outlets and online platforms, as well as to businesses such as cafes, restaurants, and hospitality venues. The company also engages in wholesale distribution, providing coffee products to third-party retailers and distributors. Additionally, Unicafe Inc. may have strategic partnerships with coffee growers and suppliers to secure high-quality raw materials at competitive prices, enhancing their profit margins. The company's commitment to sustainability and quality helps in building brand loyalty and attracting a consumer base willing to pay a premium for its products.

Unicafe Inc. Financial Statement Overview

Summary

Unicafe Inc. demonstrates robust financial health with revenue growth, improved profitability, and a stable balance sheet. The company effectively manages its debt with low leverage and high equity. However, declining free cash flow and past financial volatility require cautious optimism.

Income Statement

Unicafe Inc. shows a consistent growth trajectory with a revenue growth from 2023 to 2024 and improving profitability metrics. The Gross Profit Margin stands at 21.9%, and the Net Profit Margin is 3.5%. The EBIT Margin improved significantly to 4.2% from 3.1% the previous year, indicating enhanced operational efficiency. However, historical fluctuations in revenue and net income highlight potential volatility in performance.

Balance Sheet

The company maintains a strong equity position with a Debt-to-Equity Ratio of 0.28, indicating low leverage and financial stability. Return on Equity (ROE) improved to 7.0%, and the Equity Ratio is strong at 46%. While Unicafe Inc. shows financial stability, a high Debt-to-Equity ratio and liabilities in previous years suggest careful monitoring of leverage is needed.

Cash Flow

There is a notable decline in Free Cash Flow Growth Rate, with a decrease to $383M from $803M the previous year, suggesting reduced efficiency in generating cash flow. The Operating Cash Flow to Net Income Ratio is 1.62, highlighting good cash generation relative to net income. Nonetheless, the declining Free Cash Flow raises concerns about future liquidity and investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.61B	12.94B	12.36B	10.71B	15.22B	14.61B
Gross Profit	3.08B	2.84B	2.67B	2.21B	2.40B	2.73B
EBITDA	1.25B	991.39M	916.43M	341.30M	384.44M	-1.93B
Net Income	631.81M	457.77M	442.89M	-190.75M	294.45M	-2.09B
Balance Sheet
Total Assets	14.69B	14.17B	13.92B	13.91B	14.70B	14.55B
Cash, Cash Equivalents and Short-Term Investments	3.63B	3.56B	4.01B	3.86B	4.80B	4.23B
Total Debt	1.47B	1.83B	2.56B	3.28B	4.01B	4.39B
Total Liabilities	7.92B	7.65B	7.76B	8.10B	8.61B	8.65B
Stockholders Equity	6.77B	6.52B	6.16B	5.82B	6.10B	5.90B
Cash Flow
Free Cash Flow	0.00	382.57M	802.99M	-62.56M	-733.95M	-95.60M
Operating Cash Flow	0.00	740.24M	1.41B	437.14M	466.74M	371.80M
Investing Cash Flow	0.00	-353.22M	-426.78M	-543.20M	595.36M	-111.87M
Financing Cash Flow	0.00	-832.19M	-832.37M	-835.08M	-491.73M	1.04B

Unicafe Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1011.00
• 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:2597, the sentiment is Positive. The current price of 1011 is above the 20-day moving average (MA) of 1000.50, above the 50-day MA of 975.86, and above the 200-day MA of 925.63, indicating a bullish trend. The MACD of 10.19 indicates Positive momentum. The RSI at 65.77 is Neutral, neither overbought nor oversold. The STOCH value of 52.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2597.

Unicafe Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2814	75 Outperform	¥10.52B	17.48	―	1.27%	6.74%	-10.71%
2903	74 Outperform	¥19.70B	20.47	―	1.80%	6.40%	-11.56%
2597	64 Neutral	¥13.49B	21.37	―	0.79%	18.53%	42.79%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2901	61 Neutral	¥14.68B	27.79	―	0.52%	4.28%	―
2818	56 Neutral	¥12.08B	108.84	―	1.38%	10.84%	-18.43%
2937	54 Neutral	¥16.22B	54.11	―	2.02%	3.68%	-44.35%