Delsole Corporation (2876) AI Stock Analysis

• Market Cap: ¥3.94B
• Dividend Yield: 3.55%
• Average Volume (3M): 3.93K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.28
• Revenue Growth: -13.61%
• EPS Growth: -218.40%
• Country: JP
• Employees: 302
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -1.07
• Shares Outstanding: 9,105,290
• 10 Day Avg. Volume: 1,420
• 30 Day Avg. Volume: 3,933
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ¥430.00 ▲(1.90% Upside)

Delsole Corporation's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and negative profitability. Technical analysis indicates a lack of upward momentum, while the valuation reflects poor earnings but offers a decent dividend yield. The absence of earnings call data and corporate events limits additional insights.

Delsole Corporation Business Overview & Revenue Model

Company Description

Delsole Corporation (2876) is a diversified company primarily engaged in the manufacturing and distribution of high-quality consumer products across various sectors, including electronics, home goods, and personal care. With a focus on innovation and sustainability, Delsole offers a range of products designed to enhance consumer convenience and lifestyle. The company operates both in retail and e-commerce channels, catering to a global market with a commitment to excellence and customer satisfaction.

How the Company Makes Money

Delsole Corporation generates revenue through multiple key channels. The primary revenue stream comes from the sale of its consumer products, which are marketed under several brand names in both brick-and-mortar stores and online platforms. The company also benefits from strategic partnerships with major retail chains, allowing for broader distribution and enhanced visibility of its products. Additionally, Delsole invests in research and development to create innovative solutions that meet changing consumer demands, thus driving sales growth. Seasonal promotions and marketing campaigns further contribute to revenue by attracting new customers and increasing brand loyalty among existing consumers.

Delsole Corporation Financial Statement Overview

Summary

Delsole Corporation faces significant challenges with declining revenues and profitability, as evidenced by negative net income and margins. Despite a strong equity position and low leverage, the company struggles with cash flow generation, impacting its financial flexibility. The company needs to address operational inefficiencies to improve profitability and cash flow.

Income Statement

The company has experienced a decline in total revenue over the past year, with a significant drop from 17.78 billion to 15.40 billion. Gross profit margin stands at 36.98%, which is relatively strong, but the net profit margin is negative at -2.75%, indicating a loss. EBIT margin is 3.64%, showing operational challenges. The EBITDA margin is negative, suggesting issues with core earnings before depreciation and amortization.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.02, indicating low leverage. The equity ratio is 59.74%, showing a strong equity base relative to total assets. However, the return on equity is negative at -6.91%, highlighting profitability concerns despite the strong equity position.

Cash Flow

Operating cash flow is positive, but there is a decline compared to the previous year. The free cash flow growth rate is negative, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is 2.14, suggesting good cash conversion, but the free cash flow to net income ratio is negative, reflecting cash flow issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.40B	17.78B	16.89B	15.46B	16.63B
Gross Profit	5.70B	6.78B	6.21B	6.17B	6.11B
EBITDA	-241.94M	1.32B	767.47M	1.48B	855.37M
Net Income	-422.80M	599.45M	302.97M	641.69M	251.36M
Balance Sheet
Total Assets	10.24B	10.74B	11.03B	10.63B	10.66B
Cash, Cash Equivalents and Short-Term Investments	2.74B	2.26B	1.65B	1.60B	974.39M
Total Debt	150.00M	210.00M	470.00M	550.00M	1.13B
Total Liabilities	4.12B	4.11B	4.95B	4.66B	5.24B
Stockholders Equity	6.12B	6.63B	6.08B	5.97B	5.42B
Cash Flow
Free Cash Flow	536.74M	797.12M	283.92M	1.26B	-91.14M
Operating Cash Flow	903.43M	1.11B	395.52M	1.64B	284.90M
Investing Cash Flow	-254.72M	-152.37M	-67.12M	-343.70M	-382.74M
Financing Cash Flow	-168.46M	-346.60M	-276.67M	-671.07M	-317.82M

Delsole Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 422.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2876, the sentiment is Negative. The current price of 422 is below the 20-day moving average (MA) of 431.05, below the 50-day MA of 435.96, and below the 200-day MA of 424.64, indicating a bearish trend. The MACD of -3.23 indicates Positive momentum. The RSI at 35.80 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2876.

Delsole Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2911	―	¥4.16B	16.29	―	1.54%	-1.29%	4.30%
2894	―	¥5.35B	15.07	―	1.27%	2.68%	11.55%
2877	―	¥9.01B	21.55	―	1.61%	3.62%	34.09%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2876	―	¥3.94B	8.31	―	3.55%	-13.61%	-218.40%
2291	―	¥2.26B	―	―	―	-2.18%	-1105.39%