Alpha Co., Ltd. (4760) AI Stock Analysis

• Market Cap: ¥1.29B
• Dividend Yield: 3.73%
• Average Volume (3M): 4.97K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.69
• Revenue Growth: 3.93%
• EPS Growth: -4.20%
• Country: JP
• Employees: 350
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 13.70
• Shares Outstanding: 915,444
• 10 Day Avg. Volume: 11,050
• 30 Day Avg. Volume: 4,973
• PEG Ratio: -0.08
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 9.20
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥2,148.00 ▲(33.42% Upside)

The overall stock score of 61.5 reflects a balanced view of Alpha Co., Ltd.'s current position. The company's financial performance shows a positive recovery with improved profitability and cash management. However, technical indicators suggest a bearish trend, which could pose short-term challenges. The valuation is reasonable, with a fair P/E ratio and an attractive dividend yield, providing a stable investment opportunity.

Alpha Co., Ltd. Business Overview & Revenue Model

Company Description

Alpha Co., Ltd. operates as a sales promotion company primarily in Japan. The company is involved in the planning, production, and sale of promotional items. It also engages in planning, editing, and sale of information. The company serves manufacturers, supermarkets, home centers, and mass retailers of men's clothing and home appliances, as well as retailers of clothing, food, automobiles, etc.; and leisure-related services. Alpha Co., Ltd. was incorporated in 1974 and is based in Okayama, Japan.

How the Company Makes Money

Alpha Co., Ltd. generates revenue primarily through its IT solutions and services. The company earns money by developing custom software solutions, offering system integration services, and providing IT consulting to various industries. Key revenue streams include project-based software development fees, recurring revenue from maintenance and support contracts, and consulting fees. Additionally, the company may engage in strategic partnerships with other technology providers to enhance its service offerings and expand its market reach, contributing to its earnings.

Alpha Co., Ltd. Financial Statement Overview

Summary

Alpha Co., Ltd. has demonstrated a commendable recovery in its financial performance. The income statement shows a return to profitability with improved margins and revenue growth. The balance sheet reflects a stable financial position with a balanced debt-to-equity ratio and improved ROE. Cash flow metrics indicate enhanced cash management, although further improvement in cash conversion is desirable.

Income Statement

Alpha Co., Ltd. has shown a positive turnaround in its income statement metrics. The gross profit margin for the latest period is approximately 39.83%, indicating strong cost management. The net profit margin has improved significantly from negative to approximately 2.18%, reflecting a return to profitability. Revenue growth rate is approximately 13.85% from the previous year, showing a positive trajectory. EBIT and EBITDA margins are positive at 1.87% and 2.60%, respectively, marking a recovery from previous losses. However, the company has faced volatility in past years, which poses a risk.

Balance Sheet

The balance sheet of Alpha Co., Ltd. reflects moderate financial stability. The debt-to-equity ratio is approximately 1.14, indicating a balanced approach to leverage. Return on equity (ROE) has improved to approximately 9.63%, showcasing effective utilization of shareholder funds. The equity ratio stands at 32.37%, suggesting a solid equity base. Despite improvements, the company should continue to monitor its debt levels to maintain financial health.

Cash Flow

Alpha Co., Ltd. has shown improvement in cash flow metrics. Free cash flow has turned positive, with a growth rate of approximately 139.58% from the previous year, indicating better cash management. The operating cash flow to net income ratio is approximately 1.25, suggesting strong cash generation relative to net income. However, the free cash flow to net income ratio is approximately 1.12, indicating room for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.25B	6.12B	5.38B	5.62B	5.76B	6.13B
Gross Profit	2.46B	2.44B	2.02B	2.19B	2.47B	2.31B
EBITDA	196.45M	159.55M	-366.05M	-103.81M	-610.40M	-396.54M
Net Income	96.25M	133.28M	-393.58M	-133.83M	-690.26M	-610.62M
Balance Sheet
Total Assets	4.28B	4.27B	3.80B	3.52B	3.82B	4.25B
Cash, Cash Equivalents and Short-Term Investments	1.09B	1.04B	961.32M	1.12B	1.30B	1.10B
Total Debt	1.57B	1.57B	1.81B	1.56B	1.45B	1.30B
Total Liabilities	2.97B	2.89B	2.82B	2.39B	2.44B	2.33B
Stockholders Equity	1.31B	1.38B	979.21M	1.13B	1.39B	1.92B
Cash Flow
Free Cash Flow	0.00	149.32M	-377.26M	-204.19M	35.98M	-460.26M
Operating Cash Flow	0.00	166.26M	-339.68M	-154.78M	104.84M	-385.19M
Investing Cash Flow	0.00	296.37M	-50.82M	-73.70M	-83.24M	199.10M
Financing Cash Flow	0.00	-240.06M	230.95M	74.21M	114.91M	195.72M

Alpha Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1610.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4760, the sentiment is Negative. The current price of 1610 is below the 20-day moving average (MA) of 1701.15, below the 50-day MA of 1902.22, and below the 200-day MA of 1686.09, indicating a bearish trend. The MACD of -79.46 indicates Negative momentum. The RSI at 33.34 is Neutral, neither overbought nor oversold. The STOCH value of 25.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4760.

Alpha Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7067	63 Neutral	¥1.60B	27.82	―	0.98%	11.28%	275.99%
4760	62 Neutral	¥1.29B	10.14	―	3.73%	3.93%	-4.20%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2156	55 Neutral	¥1.31B	27.25	―	1.92%	3.51%	―
9241	48 Neutral	¥1.90B	67.21	―	―	1.95%	1077.12%
9244	46 Neutral	¥1.32B	-70.28	―	―	-0.32%	-515.21%