AFC-HD AMS Life Science Co., Ltd. (2927) AI Stock Analysis

• Market Cap: ¥12.18B
• Dividend Yield: 3.91%
• Average Volume (3M): 29.68K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.52
• Revenue Growth: 11.47%
• EPS Growth: 29.21%
• Country: JP
• Employees: 994
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 37.77
• Shares Outstanding: 14,411,199
• 10 Day Avg. Volume: 31,380
• 30 Day Avg. Volume: 29,680
• PEG Ratio: 0.70
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.39
• P/FCF Ratio: -6.28
• 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: ¥970.00
• Price Target Upside: 11.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥970.00 ▲(11.62% Upside)

The company's strong financial performance, particularly in revenue growth and profitability, is a key strength. Valuation metrics suggest the stock is attractively priced, with a low P/E ratio and a solid dividend yield. However, technical indicators show weak momentum, which slightly offsets the positive financial and valuation aspects.

AFC-HD AMS Life Science Co., Ltd. Business Overview & Revenue Model

Company Description

AFC-HD AMS Life Science Co., Ltd. operates as an original equipment manufacturer of health foods and supplements. It plans, researches, develops, and processes, as well as completes dietary supplement and cosmetics. The company offers health foods in various forms, such as tablets, soft and hard capsules, granules, soft drinks, and jellies. Its cosmetic products include facial cleansing, lotions, milky lotions, makeup oils, cleansing creams, and liquid cosmetics.. The company also wholesales dietary supplements and cosmetics; collects health-related information; plans and produces TV commercials, TV shopping channels, and video packages; publishes health magazines; and operates day and night care center under the Hello House name, and prep school under the Hello Gakuen name. In addition, it sells dietary supplements and cosmetics through mail orders; operates Internet shops; offers Kanpou, a general practitioner medicine for medical care; and produces and sells health care merchandise. The company operates in Japan, rest of Asia, and internationally. The company was formerly known as AMS Life Science Co., Ltd. and changed its name to AFC-HD AMS Life Science Co., Ltd. in March 2010. AFC-HD AMS Life Science Co., Ltd. was founded in 1969 and is headquartered in Shizuoka, Japan.

How the Company Makes Money

AFC-HD AMS Life Science Co., Ltd. generates revenue through the sale of its health and beauty products. The company's key revenue streams include direct sales to consumers through various retail channels, including online platforms and physical stores. Additionally, it may engage in wholesale distribution to other retailers and businesses, expanding its market reach. Strategic partnerships with other companies in the health and beauty industry can also contribute to its revenue, enabling the company to tap into new markets or enhance product offerings. By focusing on research and development, the company ensures a continuous pipeline of innovative products that meet consumer demands, further driving sales and profitability.

AFC-HD AMS Life Science Co., Ltd. Financial Statement Overview

Summary

The company exhibits strong revenue growth and profitability, with a robust income statement. However, the balance sheet shows moderate leverage, and cash flow performance is mixed due to high capital expenditures impacting free cash flow.

Income Statement

The company has demonstrated strong revenue growth, with a 18.0% increase over the past year, indicating robust demand for its products. Gross profit margin stands at 34.8%, showcasing effective cost control in production. Net profit margin improved to 4.1%, reflecting enhanced operational efficiency. The EBIT margin at 6.3% and EBITDA margin at 10.3% also suggest solid profitability. Overall, the income statement highlights a favorable growth trajectory with stable margins.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.64, which is manageable but indicates some leverage risk. Return on equity (ROE) is healthy at 9.0%, reflecting good returns for shareholders. The equity ratio of 29.6% suggests a balanced capital structure, though there is room for improvement in equity financing. The balance sheet is stable, with sufficient equity and controlled leverage.

Cash Flow

Operating cash flow to net income ratio is 1.23, indicating strong cash generation relative to profits. However, the free cash flow is negative, impacted by significant capital expenditures, which could pose liquidity concerns if sustained. Free cash flow to net income ratio is -1.49, suggesting challenges in translating profits into cash. While cash flow from operations is solid, high capital expenditure impacts overall cash health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.58B	30.19B	25.58B	23.00B	22.37B	15.82B
Gross Profit	10.97B	10.49B	9.32B	8.58B	6.87B	4.55B
EBITDA	3.88B	3.10B	2.59B	2.30B	2.86B	1.55B
Net Income	1.74B	1.25B	1.10B	735.35M	1.50B	676.68M
Balance Sheet
Total Assets	48.80B	47.03B	41.07B	37.35B	35.75B	18.55B
Cash, Cash Equivalents and Short-Term Investments	11.34B	12.17B	11.18B	10.38B	9.22B	4.73B
Total Debt	24.29B	22.89B	19.54B	17.13B	14.68B	3.95B
Total Liabilities	33.73B	33.07B	27.91B	24.90B	23.09B	8.08B
Stockholders Equity	14.92B	13.93B	13.11B	12.44B	11.92B	10.46B
Cash Flow
Free Cash Flow	0.00	-1.87B	-1.07B	534.45M	2.09B	917.75M
Operating Cash Flow	0.00	1.54B	865.28M	1.49B	2.58B	1.30B
Investing Cash Flow	0.00	-2.76B	-1.95B	-1.08B	-274.97M	-458.72M
Financing Cash Flow	0.00	2.23B	1.88B	1.16B	2.19B	-574.94M

AFC-HD AMS Life Science Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 869.00
• 50DMA: Positive
• 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:2927, the sentiment is Positive. The current price of 869 is above the 20-day moving average (MA) of 866.85, above the 50-day MA of 867.47, and above the 200-day MA of 843.41, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 51.94 is Neutral, neither overbought nor oversold. The STOCH value of 61.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2927.

AFC-HD AMS Life Science Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2927	75 Outperform	¥12.18B	8.44	―	3.91%	11.47%	29.21%
2903	74 Outperform	¥19.70B	20.47	―	1.71%	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%
2935	62 Neutral	¥13.93B	11.08	―	2.59%	1.28%	18.81%
2818	56 Neutral	¥12.08B	108.84	―	1.38%	10.84%	-18.43%
2224	54 Neutral	¥11.45B	264.39	―	0.21%	-4.52%	-100.09%

AFC-HD AMS Life Science Co., Ltd. Corporate Events

AFC-HD AMS Life Science Reports Strong Quarterly Financial Results

AFC-HD AMS Life Science Co., Ltd. reported a significant increase in its quarterly financial results, with net sales rising by 10.7% and operating profit increasing by 23.9% compared to the previous year. The company’s strong financial performance reflects its robust market positioning and potential positive implications for stakeholders, as indicated by the 53.1% rise in profit attributable to owners of the parent.