SDS HOLDINGS Co.Ltd. (1711) AI Stock Analysis

• Market Cap: ¥3.21B
• Dividend Yield: N/A
• Average Volume (3M): 228.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: -10.57%
• EPS Growth: -124.58%
• Country: JP
• Employees: 18
• Sector: Utilities
• Sector Strength: 56
• Industry: Renewable Utilities
• EPS (TTM): -1.44
• Shares Outstanding: 10,232,773
• 10 Day Avg. Volume: 203,460
• 30 Day Avg. Volume: 228,053
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥310.00
• Price Target Upside: -6.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ¥310.00 ▼(-6.91% Downside)

The overall stock score is primarily impacted by the company's financial performance challenges, including negative net income and high leverage. Despite strong technical momentum, the overbought indicators suggest caution. The lack of profitability and valuation concerns further weigh down the score.

SDS HOLDINGS Co.Ltd. Business Overview & Revenue Model

Company Description

SDS HOLDINGS Co., Ltd. (1711) is a Japanese company primarily engaged in the civil engineering and construction sectors. The company specializes in offering comprehensive construction services, including the development of infrastructure projects, residential and commercial building construction, and related engineering services. With a focus on quality and innovation, SDS HOLDINGS aims to contribute to the sustainable development of urban and rural areas through its construction capabilities.

How the Company Makes Money

SDS HOLDINGS Co., Ltd. generates revenue primarily through its construction projects and engineering services. The company earns income from contracts to build and develop infrastructure projects such as roads, bridges, and public facilities. Additionally, it undertakes residential and commercial building projects, offering services from planning and design to construction and maintenance. Revenue streams include project fees, government contracts, and partnerships with private developers. The company's financial performance is influenced by its ability to secure new contracts, maintain efficient project management, and adapt to market demands.

SDS HOLDINGS Co.Ltd. Financial Statement Overview

Summary

SDS HOLDINGS Co. Ltd. faces significant financial challenges with negative net income and cash flow issues. Although revenue has shown growth, profitability remains elusive due to high operational costs and interest expenses from substantial debt. The balance sheet shows high leverage, posing risks in a volatile industry environment. Overall, the company needs to focus on improving operational efficiency and managing its debt levels to stabilize its financial position.

Income Statement

The company's income statement shows a challenging financial trajectory. Gross profit margins have been relatively stable, but the net income has consistently been negative, indicating a lack of profitability. Revenue has grown over the years, but the recent decline in EBIT and EBITDA margins suggests operational inefficiencies and rising costs. The revenue growth rate has been inconsistent, with significant fluctuations across the years.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage. The equity ratio is low, reflecting a limited cushion to absorb potential losses. However, the return on equity remains negative due to persistent net losses, suggesting challenges in generating returns for shareholders. The company's assets have grown, but so have its liabilities, maintaining a high leverage position.

Cash Flow

The cash flow statement highlights significant cash flow challenges. Operating cash flow has been negative in several periods, indicating operational difficulties in generating cash. The free cash flow to net income ratio is unfavorable, showing that the company is struggling to convert profits to cash. The company's reliance on financing activities to support cash flows is evident, as seen in the high financing cash inflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.03B	4.04B	4.14B	3.40B	1.03B	844.45M
Gross Profit	521.99M	510.99M	547.84M	632.47M	173.33M	183.08M
EBITDA	26.30M	32.24M	48.31M	-174.27M	-332.33M	-343.81M
Net Income	-150.94M	-151.71M	-105.39M	-296.36M	-333.79M	-348.37M
Balance Sheet
Total Assets	4.71B	4.71B	3.79B	4.46B	921.66M	277.35M
Cash, Cash Equivalents and Short-Term Investments	499.64M	499.64M	656.75M	439.55M	469.08M	112.61M
Total Debt	3.52B	3.52B	2.60B	3.39B	0.00	0.00
Total Liabilities	3.97B	3.97B	3.01B	3.84B	325.05M	238.16M
Stockholders Equity	607.85M	607.85M	668.87M	521.26M	596.61M	39.18M
Cash Flow
Free Cash Flow	0.00	-858.10M	771.89M	-1.18B	-497.36M	-515.10M
Operating Cash Flow	0.00	-214.28M	924.63M	-717.61M	-485.25M	-515.00M
Investing Cash Flow	0.00	-973.33M	-150.12M	-657.52M	-13.17M	41.49M
Financing Cash Flow	0.00	1.00B	-552.80M	1.29B	854.89M	145.85M

SDS HOLDINGS Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 333.00
• 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:1711, the sentiment is Positive. The current price of 333 is above the 20-day moving average (MA) of 301.70, above the 50-day MA of 267.08, and above the 200-day MA of 272.33, indicating a bullish trend. The MACD of 14.76 indicates Negative momentum. The RSI at 68.34 is Neutral, neither overbought nor oversold. The STOCH value of 71.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1711.

SDS HOLDINGS Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$17.06B	17.77	5.60%	3.68%	6.63%	11.55%
1711	51 Neutral	¥3.21B	―		―	-10.57%	-124.58%
REOVF	―	$551.48M	14.35	3.54%	―	―	―
9514	71 Outperform	¥9.45B	13.14		1.86%	0.72%	153.87%
9517	55 Neutral	¥57.66B	156.89		1.49%	-21.43%	―
5074	54 Neutral	¥26.34B	129.28		2.07%	19.71%	-82.80%
2743	29 Underperform	¥15.00B	―		―	47.60%	25.72%