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

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Alpha Co., Ltd.

(TSE/TYO:4760)

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Rating:40Underperform

Price Target:JPY 1,151.00▲(2.40% Upside)

Action:downgraded

Date:10/10/26

The overall score of 40 reflects a high-risk profile. The most significant factor is the company's extremely poor financial performance, characterized by a critical inability to convert earnings into cash, which threatens its stability and the sustainability of its dividend. This is compounded by a strongly bearish technical trend across all timeframes. While the P/E ratio appears low and the dividend yield is high, these valuation metrics are likely traps given the deteriorating fundamentals.

Positive Factors

Stable gross marginStable gross margin indicates the core offering has retained its underlying economics despite volatile revenue and weak recent earnings. This provides a foundation for recovery if operating costs or non-core pressures ease, although current operating profitability remains thin.

Negative Factors

Inconsistent cash generationPersistent negative operating and free cash flow is the clearest fundamental weakness because accounting results have not translated consistently into internally generated funding. Continued outflows can increase reliance on external financing and restrict investment or shareholder-return flexibility.

Alpha Co., Ltd. (4760) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 906.15M
Dividend Yield: 6.23%
Average Volume (3M): 3,105
Price to Earnings (P/E): 28.0
Beta (1Y): 0.15
Revenue Growth: -0.01%
EPS Growth: -74.74%
Country: Japan
Employees: 334
Sector: Communication Services
Sector Strength: 60
Industry: Advertising Agencies

Alpha Co., Ltd. Business Overview & Revenue Model

Company Description

Alpha Co., Ltd. is a Japanese sales promotion firm whose operations are primarily focused within Japan. Its core business involves the design, manufacturing, and distribution of promotional products, in addition to the creation, editing, and sale of...

Alpha Co., Ltd. Financial Statement Overview

Summary

Financial health is critically weak. The income statement shows razor-thin and collapsing net margins (0.5% TTM) with volatile revenue. The balance sheet, while showing deleveraging, suffers from a near-zero ROE of 1.9%. Most concerning is the cash flow statement, which reveals persistent negative free cash flow and a massive divergence between reported earnings and operating cash flow, indicating poor cash generation.

Income Statement

35Negative

Balance Sheet

40Negative

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Aug 2026	Aug 2025	Aug 2024	Aug 2023	Aug 2022
Income Statement
Total Revenue	6.36B	6.36B	6.37B	6.12B	5.38B	5.62B
Gross Profit	2.48B	2.48B	2.50B	2.44B	2.02B	2.19B
EBITDA	190.61M	184.22M	252.39M	159.55M	-366.05M	-103.80M
Net Income	32.25M	32.25M	127.68M	133.28M	-393.58M	-133.83M
Balance Sheet
Total Assets	5.20B	5.20B	4.53B	4.27B	3.80B	3.52B
Cash, Cash Equivalents and Short-Term Investments	943.00M	943.00M	909.33M	1.04B	961.32M	1.12B
Total Debt	2.05B	2.05B	1.54B	1.57B	1.81B	1.56B
Total Liabilities	3.50B	3.50B	3.01B	2.89B	2.82B	2.39B
Stockholders Equity	1.71B	1.71B	1.52B	1.38B	979.21M	1.13B
Cash Flow
Free Cash Flow	0	-390.52M	-105.26M	149.32M	-361.00M	-166.03M
Operating Cash Flow	0	-350.63M	-100.38M	166.26M	-339.68M	-154.78M
Investing Cash Flow	0	-75.59M	34.61M	296.37M	-50.82M	-73.70M
Financing Cash Flow	0	459.89M	-68.80M	-240.06M	230.95M	74.21M

Alpha Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1124.00

Price Trends

50DMA1267.78Negative

100DMA1422.28Negative

200DMA1480.90Negative

Market Momentum

MACD-37.16Negative

RSI20.95Positive

STOCH4.60Positive

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 1124.00 is below the 20-day moving average (MA) of 1151.20, below the 50-day MA of 1267.78, and below the 200-day MA of 1480.90, indicating a bearish trend. The MACD of -37.16 indicates Negative momentum. The RSI at 20.95 is Positive, neither overbought nor oversold. The STOCH value of 4.60 is Positive, 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

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

JP:4760 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
JP:2156	53Neutral	JPY 1.12B	29.35	―	2.22%	7.99%	-59.90%
JP:9244	52Neutral	JPY 1.44B	12.40	―	―	-0.03%	―
JP:7067	49Neutral	JPY 1.63B	29.78	―	0.97%	-6.00%	-6.74%
JP:4760	40Underperform	JPY 903.88M	28.02	―	6.23%	-0.01%	-74.74%
JP:9254	38Underperform	JPY 1.29B	-17.55	―	―	19.78%	-24.13%
JP:6573	37Underperform	JPY 1.27B	-1.94	―	―	39.73%	4.39%

* Communication Services Sector Average

Performance Comparison

JP:4760 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4760	Alpha Co., Ltd.	1124.00	-432.75	-27.80%
JP:2156	Saylor Advertising Inc.	270.00	-35.86	-11.72%
JP:6573	Agile Media Network, Inc.	17.00	-69.00	-80.23%
JP:7067	Branding Technology, Inc.	1027.00	68.69	7.17%
JP:9244	DIGITALIFT Inc.	1012.00	38.00	3.90%
JP:9254	Lovable Marketing Group, Inc.	804.00	-482.00	-37.48%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 10, 2026

Alpha Co., Ltd. AI Stock Analysis