Marubeni Construction Material Lease Co., Ltd. (9763) AI Stock Analysis

• Market Cap: ¥11.17B
• Dividend Yield: 3.97%
• Average Volume (3M): 6.75K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.73
• Revenue Growth: 9.16%
• EPS Growth: 6.01%
• Country: JP
• Employees: 302
• Sector: Industrials
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 103.18
• Shares Outstanding: 3,429,440
• 10 Day Avg. Volume: 4,650
• 30 Day Avg. Volume: 6,753
• PEG Ratio: 1.59
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.42
• P/FCF Ratio: -82.58
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥3,713.00 ▲(11.84% Upside)

The stock's overall score is driven by strong valuation metrics and solid financial performance, despite recent cash flow challenges. Technical analysis indicates a bearish trend, but the stock's valuation and dividend yield present potential opportunities for investors.

Marubeni Construction Material Lease Co., Ltd. Business Overview & Revenue Model

Company Description

Marubeni Construction Material Lease Co., Ltd. (9763) is a prominent player in the construction and real estate sector in Japan, specializing in the leasing and rental of construction materials and equipment. The company provides a wide range of products and services that cater to the needs of construction firms, including heavy machinery, scaffolding, and other essential construction tools. By offering flexible leasing options, Marubeni Construction Material Lease supports various construction projects across multiple industries, enhancing operational efficiency and reducing upfront capital expenditures for its clients.

How the Company Makes Money

The company generates revenue primarily through the leasing of construction materials and equipment to contractors and construction firms. Its revenue model is based on long-term rental agreements and short-term leases, allowing clients to access necessary equipment without the burden of high purchase costs. Key revenue streams include monthly rental fees, maintenance services for leased equipment, and potential sales of used equipment as it is phased out of the rental fleet. Additionally, Marubeni may engage in partnerships with construction firms and suppliers, enhancing its service offerings and expanding its market reach, which contributes to its overall earnings.

Marubeni Construction Material Lease Co., Ltd. Financial Statement Overview

Summary

The company demonstrates solid revenue growth and profitability with a strong balance sheet, evidenced by a low debt-to-equity ratio and a healthy equity ratio. However, there are cash flow management challenges, as indicated by a decline in free cash flow and a low operating cash flow to net income ratio.

Income Statement

The company has shown a consistent increase in revenue over the years, with a substantial revenue growth rate of 6.95% in the most recent year. The gross profit margin stands at 18.95%, and the net profit margin is 5.34%, indicating stable profitability. The EBIT margin and EBITDA margin are 6.64% and 8.50%, respectively, reflecting efficient operational management and a strong capacity to generate earnings before interest and taxes.

Balance Sheet

The company maintains a strong balance sheet with a debt-to-equity ratio of 0.50. The return on equity is 7.24%, showing a fair return on shareholder investment. The equity ratio is 44.30%, indicating a healthy proportion of equity financing relative to total assets. However, the increase in total debt over the years may warrant monitoring for potential leverage risks.

Cash Flow

The company experienced a decline in free cash flow, moving from positive to negative in the most recent year, indicating potential cash flow management challenges. The operating cash flow to net income ratio is low, suggesting less cash generation relative to reported net income. The free cash flow to net income ratio has turned negative, highlighting cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.92B	22.81B	21.32B	20.10B	19.10B	20.03B
Gross Profit	4.52B	4.32B	3.89B	3.59B	3.35B	3.06B
EBITDA	1.91B	1.94B	1.77B	1.35B	1.61B	1.46B
Net Income	1.25B	1.22B	1.16B	1.11B	1.00B	911.00M
Balance Sheet
Total Assets	39.27B	37.96B	32.54B	31.82B	31.95B	32.59B
Cash, Cash Equivalents and Short-Term Investments	2.41B	2.00B	443.00M	736.00M	1.04B	2.40B
Total Debt	9.40B	8.40B	5.30B	5.41B	6.14B	8.13B
Total Liabilities	21.85B	20.49B	16.09B	16.57B	17.25B	17.60B
Stockholders Equity	16.82B	16.82B	15.84B	14.72B	14.19B	14.49B
Cash Flow
Free Cash Flow	0.00	-115.00M	167.00M	1.13B	894.00M	2.08B
Operating Cash Flow	0.00	24.00M	335.00M	1.25B	1.08B	2.35B
Investing Cash Flow	0.00	-829.00M	-171.00M	-115.00M	-191.00M	-1.01B
Financing Cash Flow	0.00	2.36B	-456.00M	-1.44B	-2.25B	-1.13B

Marubeni Construction Material Lease Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3320.00
• 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:9763, the sentiment is Positive. The current price of 3320 is below the 20-day moving average (MA) of 3371.00, below the 50-day MA of 3392.03, and above the 200-day MA of 3080.63, indicating a bullish trend. The MACD of 8.53 indicates Negative momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 52.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9763.

Marubeni Construction Material Lease Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9991	77 Outperform	¥46.72B	8.40	―	3.83%	-6.09%	31.18%
9763	72 Outperform	¥11.17B	8.48	―	3.97%	9.16%	6.01%
7081	72 Outperform	¥12.74B	7.12	―	3.46%	1.58%	28.43%
2445	68 Neutral	¥19.42B	18.49	―	3.37%	0.02%	-36.92%
7065	68 Neutral	¥5.38B	16.03	―	3.51%	-0.71%	-43.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9223	48 Neutral	¥7.36B	-64.24	―	0.33%	7.34%	-162.02%