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

• Market Cap: ¥2.56B
• Dividend Yield: N/A
• Average Volume (3M): 140.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: 3.63%
• EPS Growth: 7.60%
• Country: JP
• Employees: 18
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): -2.95
• Shares Outstanding: 10,432,773
• 10 Day Avg. Volume: 60,020
• 30 Day Avg. Volume: 140,210
• PEG Ratio: -0.60
• Price to Book (P/B): 4.38
• Price to Sales (P/S): 0.66
• P/FCF Ratio: -3.10
• 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: 44 Neutral
• Price Target: ¥229.00 ▼(-8.76% Downside)

The score is primarily weighed down by weak financial performance (ongoing losses, high leverage, and stressed cash flows). Technicals add further pressure given the price is below key moving averages with negative MACD. Valuation provides limited offset because the negative P/E reflects unprofitable operations and no dividend yield data is available.

Positive Factors

Revenue Growth

Despite challenges, SDS HOLDINGS has shown revenue growth, indicating potential market expansion and product demand, which is crucial for long-term sustainability.

Market Diversification

SDS HOLDINGS' diversified operations across construction, real estate, and manufacturing provide multiple revenue streams, reducing dependency on a single market.

Innovation and Sustainability

The company's focus on innovation and sustainability aligns with regulatory trends and emerging markets, supporting long-term growth and competitive advantage.

Negative Factors

High Leverage

High leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term financial health.

Negative Cash Flow

Persistent negative cash flow indicates operational challenges in generating cash, which can hinder investment in growth and sustainability.

Profitability Challenges

Ongoing profitability issues suggest operational inefficiencies and rising costs, which can undermine long-term business viability and shareholder returns.

SDS HOLDINGS Co.Ltd. Business Overview & Revenue Model

Company Description

SDS HOLDINGS Co.,Ltd. engages in renewable energy, energy saving, and facility solution businesses in Japan. The company's renewable energy includes wind power, solar power, geothermal power, small and medium-sized hydropower, biomass, etc. It also engages in the survey, design, estimate, contract, and renovation works, including lighting and air conditioning, heat sources, power equipment, production equipment, waste processing equipment, equipment operation, maintenance, etc. for various facilities, such as food factories, hospitals and welfare facilities, and commercial facilities, as well as hotels, inns, accommodations. In addition, the company provides business continuity plan and hygiene management solutions. Further, it offers hazard analysis and critical control point, disappearing garbage disposal machine, disaster bulk, and disaster storage battery services. The company was formerly known as Shodensya Co., Ltd. and changed its name to SDS HOLDINGS Co.,Ltd. in June 2017. SDS HOLDINGS Co.,Ltd. was incorporated in 1986 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SDS HOLDINGS generates revenue through multiple streams, primarily by selling construction materials like cement and concrete to contractors and builders in the construction industry. The company also earns income from its real estate development projects, where it develops residential and commercial properties for sale or lease. Additionally, SDS HOLDINGS may engage in strategic partnerships with construction firms and local governments, which can provide consistent contracts and projects, further enhancing its revenue. The company's focus on innovation and sustainability allows it to tap into emerging markets and align with regulatory trends, contributing to its financial performance.

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	4.00B	4.04B	4.14B	3.40B	1.03B	844.45M
Gross Profit	558.37M	510.99M	547.84M	632.47M	173.33M	183.08M
EBITDA	55.64M	32.24M	48.31M	-174.27M	-332.33M	-343.81M
Net Income	-133.63M	-151.71M	-105.39M	-296.36M	-333.79M	-348.37M
Balance Sheet
Total Assets	4.82B	4.71B	3.79B	4.46B	921.66M	277.35M
Cash, Cash Equivalents and Short-Term Investments	209.82M	499.64M	656.75M	439.55M	469.08M	112.61M
Total Debt	3.74B	3.52B	2.60B	3.39B	0.00	0.00
Total Liabilities	4.09B	3.97B	3.01B	3.84B	325.05M	238.16M
Stockholders Equity	593.17M	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: Neutral
• Last Price: 251.00
• 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:1711, the sentiment is Neutral. The current price of 251 is above the 20-day moving average (MA) of 244.00, below the 50-day MA of 262.12, and below the 200-day MA of 258.85, indicating a neutral trend. The MACD of -7.82 indicates Negative momentum. The RSI at 47.05 is Neutral, neither overbought nor oversold. The STOCH value of 64.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9514	60 Neutral	¥7.88B	13.41	―	2.29%	4.05%	38.64%
9519	58 Neutral	¥60.67B	9.84	6.76%	―	28.85%	-9.70%
9517	55 Neutral	¥48.84B	22.68	―	1.79%	-15.80%	―
5074	48 Neutral	¥26.97B	-59.36	―	1.46%	25.53%	-128.67%
1711	44 Neutral	¥2.56B	-15.52	―	―	3.63%	7.60%
2743	41 Neutral	¥432.61M	-0.20	―	―	47.60%	25.72%