Abalance Corp (3856) AI Stock Analysis

• Market Cap: ¥10.63B
• Dividend Yield: 0.53%
• Average Volume (3M): 133.91K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 1.01
• Revenue Growth: -54.06%
• EPS Growth: -72.85%
• Country: JP
• Employees: 1,684
• Sector: Technology
• Sector Strength: 76
• Industry: Software - Application
• EPS (TTM): 34.28
• Shares Outstanding: 19,033,194
• 10 Day Avg. Volume: 98,170
• 30 Day Avg. Volume: 133,906
• PEG Ratio: -0.11
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

Abalance Corp scores 73.6, driven by strong financial performance and favorable valuation. Despite high leverage, the company's profitability and growth are strong points. Technical analysis suggests caution due to mixed signals, with the stock trading below key moving averages but showing neutral RSI levels. The valuation is appealing with a low P/E ratio, indicating potential undervaluation.

Abalance Corp Business Overview & Revenue Model

Company Description

Abalance Corporation, together with its subsidiaries, engages in information technology (IT), construction machine sales, and solar power generation businesses in Japan. It offers KnowledgeMarket, an information sharing/knowledge management tool; Robowiser Framework, a tool that realizes automation of tasks; and Nintex Workflow related products, as well as provides outsourcing and consulting services. The company also offers photovoltaic power generation systems; develops, designs, manufactures, and sells Maxar, a solar module; and Eco Smart View, a solar monitoring system for green energy facilities. In addition, it engages in the sale, lease, and rental of new and used construction and equipment. The company was formerly known as REALCOM Inc. and changed its name to Abalance Corporation in March 2017. Abalance Corporation was founded in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Abalance Corp generates revenue through multiple streams, primarily from its activities in the renewable energy sector. The company earns income from the sale of electricity generated by its solar power plants, as well as from engineering, procurement, and construction (EPC) contracts related to solar energy projects. In the IT sector, Abalance Corp derives revenue from providing software development, system integration, and IT consulting services. Additionally, the construction segment contributes to the company's earnings through the completion of residential and commercial building projects. Strategic partnerships and collaborations in these sectors further enhance its revenue potential.

Abalance Corp Financial Statement Overview

Summary

Abalance Corp demonstrates strong profitability and growth, with efficient operational margins. The balance sheet shows high leverage, which is a risk factor, but the company has maintained good ROE. Cash flow management appears strong in recent years, though TTM data raises potential concerns. Overall, the company is well-positioned in its industry, but careful monitoring of leverage and cash flow is advisable.

Income Statement

Abalance Corp has shown impressive growth in revenue from 2020 to the TTM of 2024. The gross profit margin for the TTM is approximately 23.9%, and the net profit margin is 4.3%, indicating a strong capacity to convert revenue into profit. The EBIT margin stands at 11.3%, while the EBITDA margin is 17.8%, reflecting solid operational efficiency. However, compared to the previous year, revenue has seen a slight decline in the annual report for 2024, signaling potential short-term challenges.

Balance Sheet

The balance sheet of Abalance Corp shows a high debt-to-equity ratio, indicating substantial leverage, which could pose risk in volatile markets. However, the company's return on equity (ROE) for the TTM is approximately 25.7%, showcasing effective use of equity to generate profit. The equity ratio is about 17.2%, suggesting a moderate level of financing through equity.

Cash Flow

The cash flow statement reveals a strong free cash flow for 2024's annual report, indicating good cash generation. However, the TTM data shows zero values for operating and free cash flow, which could be a data anomaly or indicate cash flow management issues. The free cash flow to net income ratio for 2024 is robust, reflecting effective cash conversion of profits.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
146.04B	208.97B	217.41B	92.44B	26.90B	6.68B
	Gross Profit
34.89B	44.57B	30.38B	9.71B	4.79B	1.76B
	EBIT
16.45B	23.35B	13.56B	1.70B	1.36B	361.58M
	EBITDA
25.93B	31.41B	15.10B	3.19B	2.08B	681.84M
	Net Income Common Stockholders
6.24B	9.53B	5.45B	867.00M	537.00M	211.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
49.13B	37.74B	20.62B	3.97B	4.72B	1.21B
	Total Assets
141.73B	150.17B	144.09B	85.18B	39.39B	14.76B
	Total Debt
42.46B	44.95B	52.03B	31.78B	13.77B	5.44B
	Net Debt
11.45B	7.21B	31.41B	27.82B	9.05B	4.23B
	Total Liabilities
97.69B	107.74B	120.78B	77.18B	34.61B	12.61B
	Stockholders Equity
24.33B	24.11B	13.40B	6.07B	4.02B	2.10B
Cash Flow		Free Cash Flow
0.00	33.94B	3.93B	-12.50B	-3.35B	-991.36M
	Operating Cash Flow
0.00	44.76B	19.27B	-6.35B	-608.00M	-861.84M
	Investing Cash Flow
0.00	-21.19B	-21.42B	-13.32B	-1.39B	-472.99M
	Financing Cash Flow
0.00	-5.45B	17.23B	17.75B	5.29B	1.47B

Abalance Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 561.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3856, the sentiment is Positive. The current price of 561 is above the 20-day moving average (MA) of 515.65, above the 50-day MA of 551.38, and below the 200-day MA of 797.46, indicating a neutral trend. The MACD of -1.88 indicates Negative momentum. The RSI at 59.75 is Neutral, neither overbought nor oversold. The STOCH value of 89.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3856.

Abalance Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3856	74 Outperform	¥10.63B	7.81		0.53%	-54.06%	-72.85%
6254	70 Neutral	¥91.34B	8.51		3.47%	-44.03%	-54.74%
9514	63 Neutral	¥7.25B	12.29		2.39%	1.41%	522.92%
Sector *	60 Neutral	$11.59B	10.39	-7.23%	2.94%	7.46%	-10.77%

Abalance Corp Corporate Events

Abalance Corp Reports Significant Financial Decline Amid Fiscal Transition

Abalance Corporation reported a significant decline in its financial performance for the six months ending December 31, 2024, with net sales dropping by 58% and profit attributable to owners of the parent decreasing by 90.4% compared to the previous year. The company is also undergoing a transitional period, planning to change its fiscal year-end from June 30 to March 31, which will result in a nine-month fiscal period for the year ending March 31, 2025.