CANDEAL Co., Ltd. (1446) AI Stock Analysis

• Market Cap: ¥6.01B
• Dividend Yield: 1.43%
• Average Volume (3M): 7.53K
• Price to Earnings (P/E): 50.3
• Beta (1Y): 0.34
• Revenue Growth: 7.16%
• EPS Growth: -34.36%
• Country: JP
• Employees: 568
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): 14.93
• Shares Outstanding: 10,734,200
• 10 Day Avg. Volume: 13,100
• 30 Day Avg. Volume: 7,530
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥603.00
• Price Target Upside: 7.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥603.00 ▲(7.30% Upside)

The overall stock score is primarily influenced by strong financial performance, despite operational challenges. Technical analysis suggests neutral momentum with potential overbought conditions. High valuation relative to earnings is a concern, offsetting some of the financial strengths.

CANDEAL Co., Ltd. Business Overview & Revenue Model

Company Description

CANDEAL Co., Ltd. (1446) is a prominent player in the digital marketing and technology sector, specializing in providing innovative solutions that enhance online consumer engagement and optimize advertising strategies. The company focuses on developing advanced software and platforms that facilitate data-driven marketing, utilizing artificial intelligence and machine learning to deliver targeted advertising and improve overall marketing effectiveness. With a diverse portfolio of services, including programmatic advertising, analytics, and customer relationship management tools, CANDEAL aims to empower businesses to maximize their digital presence and drive growth.

How the Company Makes Money

CANDEAL Co., Ltd. generates revenue primarily through its suite of digital marketing services and software solutions. The company employs a subscription-based model for its software platforms, allowing clients to access advanced marketing tools and analytics on a recurring basis. Additionally, CANDEAL earns revenue from performance-based advertising, where it charges clients based on the results of their advertising campaigns, such as clicks or conversions. Key partnerships with major advertising networks and technology providers enhance its offerings and expand its client base, contributing significantly to its revenue streams. The company's focus on continuous innovation and adaptation to market trends also plays a crucial role in maintaining and increasing its earnings.

CANDEAL Co., Ltd. Financial Statement Overview

Summary

CANDEAL Co., Ltd. shows solid revenue growth and a healthy gross profit margin, indicating strong market demand. However, cash flow inconsistencies and increased debt levels require ongoing attention to improve financial health.

Income Statement

CANDEAL Co., Ltd. shows a positive trajectory in revenue growth, with a 19.27% increase from 2022 to 2023. Gross profit margin is healthy at 35.20% TTM, and the net profit margin at 1.15% indicates profitability, albeit with room for improvement. EBIT margin of 2.89% and EBITDA margin of 4.79% show operational efficiency, though the company could enhance its cost management strategies to boost margins further.

Balance Sheet

The company's debt-to-equity ratio is 0.48, indicating a balanced capital structure with moderate leverage. The return on equity (ROE) is 5.52% TTM, suggesting moderate efficiency in generating returns on shareholders' investments. The equity ratio stands at 47.28%, reflecting a solid equity base. However, a slight increase in debt levels could pose a risk if not managed carefully.

Cash Flow

Operating cash flow shows variability, with a significant dip in TTM. Free cash flow growth is negative, suggesting challenges in generating consistent cash flow from operations. The operating cash flow to net income ratio is low, indicating potential issues in converting income to cash. Ongoing attention to cash management is necessary to ensure liquidity and operational flexibility.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	13.22B	12.31B	11.27B	11.22B	12.26B
Gross Profit	4.69B	4.44B	4.10B	4.07B	4.44B
EBITDA	616.78M	708.35M	571.06M	306.06M	683.51M
Net Income	137.96M	224.55M	105.54M	-72.82M	191.70M
Balance Sheet
Total Assets	6.13B	6.23B	6.48B	7.37B	8.40B
Cash, Cash Equivalents and Short-Term Investments	1.62B	1.62B	1.89B	2.60B	3.46B
Total Debt	1.50B	1.74B	2.52B	2.81B	3.48B
Total Liabilities	3.33B	3.52B	3.96B	4.11B	5.01B
Stockholders Equity	2.80B	2.71B	2.52B	3.26B	3.40B
Cash Flow
Free Cash Flow	355.85M	554.37M	425.45M	-129.88M	385.14M
Operating Cash Flow	377.87M	595.46M	467.77M	-35.52M	449.67M
Investing Cash Flow	-74.18M	-41.22M	-33.74M	-93.73M	-106.12M
Financing Cash Flow	-303.61M	-830.42M	-1.14B	-725.82M	1.52B

CANDEAL Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 562.00
• 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:1446, the sentiment is Negative. The current price of 562 is below the 20-day moving average (MA) of 568.45, below the 50-day MA of 563.86, and above the 200-day MA of 559.33, indicating a neutral trend. The MACD of 3.42 indicates Negative momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of 77.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1446.

CANDEAL Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1718	81 Outperform	¥8.17B	8.37		3.55%	3.47%	38.85%
1438	76 Outperform	¥6.23B	16.61		1.72%	18.23%	1.32%
1434	74 Outperform	¥7.34B	10.90		2.82%	48.04%	24.48%
1897	71 Outperform	¥6.04B	37.70		1.79%	-32.43%	-64.26%
Sector *	71 Outperform	¥268.19B	14.78	8.32%	2.79%	6.24%	10.99%
2311	68 Neutral	¥6.67B	14.30		4.41%	13.11%	-8.17%
1446	64 Neutral	¥6.01B	50.32		1.43%	7.16%	-34.36%