Synclayer Inc. (1724) AI Stock Analysis

• Market Cap: ¥3.30B
• Dividend Yield: 3.94%
• Average Volume (3M): 7.78K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.22
• Revenue Growth: -2.32%
• EPS Growth: 54.00%
• Country: JP
• Employees: 267
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 17.68
• Shares Outstanding: 4,943,780
• 10 Day Avg. Volume: 6,910
• 30 Day Avg. Volume: 7,776
• PEG Ratio: 0.21
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -1.58
• 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: 77 Outperform
• Price Target: ¥790.00 ▲(13.02% Upside)

The overall stock score is driven by strong technical indicators and attractive valuation metrics. While financial performance shows revenue growth and stability, challenges in profitability and cash flow generation need attention. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong market demand and effective business strategies, supporting long-term expansion and stability.

Financial Stability

A strong equity ratio indicates robust financial health, providing a buffer against economic fluctuations and supporting sustainable operations.

Leverage Management

Low leverage reduces financial risk, enhancing the company's ability to manage debt obligations and invest in growth opportunities.

Negative Factors

Cash Flow Challenges

Negative free cash flow highlights liquidity constraints, which could impede the company's ability to invest in growth or weather financial downturns.

Profitability Margins

Low net profit margins indicate challenges in cost management and pricing power, potentially affecting long-term profitability and competitiveness.

Cash Conversion Efficiency

Inefficient cash conversion from income can limit financial flexibility and the ability to fund operations or strategic initiatives.

Synclayer Inc. Business Overview & Revenue Model

Company Description

Synclayer Inc. provides system integration services for CATV network in Japan. Its services include system design, engineering, equipment procurement, network management, etc. The company also offers turn-key project construction for cable plant from headend to customer premise; and cable TV Internet solutions, including sales and support for CMTS and cable modems. In addition, it provides cable-networking for convention hall, office, MDU, and campus LAN applications. Further, the company offers ultra-high-speed data transfer and voice over Internet protocol services, as well as digital video transmission capacity for approximately 300 channels. Additionally, it provides fiber-to-the-home solution that offers gigabit data transfer, full streaming video, and RF multi-channel video broadcasting; and fiber-to-the-office solutions. The company was formerly known as Aichi Electronics Co., Ltd. and changed its name to Synclayer Inc. in July 2002. Synclayer Inc. was incorporated in 1962 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Synclayer Inc. generates revenue primarily through subscription-based models for its software services, offering tiered pricing plans that cater to businesses of different sizes and needs. The company also earns income from consulting services related to the implementation and optimization of its data synchronization solutions. Key revenue streams include monthly and annual subscriptions, one-time service fees for consulting, and maintenance contracts. Significant partnerships with cloud service providers and technology integrators further enhance its market reach and contribute to its earnings by tapping into broader customer bases.

Synclayer Inc. Financial Statement Overview

Summary

Synclayer Inc. shows strong revenue growth and stable financial health, supported by a solid equity base and low leverage. However, profitability margins and cash flow generation present challenges that need addressing to enhance overall financial performance.

Income Statement

Synclayer Inc. has demonstrated solid revenue growth with a 12.15% increase from the previous year, indicating strong market demand. The gross profit margin stands at 21.27%, reflecting efficient cost management. However, the net profit margin of 4.67% suggests room for improvement in profitability. The EBIT margin of 5.57% and EBITDA margin of 8.13% indicate moderate operational efficiency.

Balance Sheet

The company maintains a healthy equity ratio of 54.12%, showcasing financial stability. The debt-to-equity ratio of 0.43 indicates a conservative leverage approach, reducing financial risk. However, the return on equity (ROE) of 8.90% suggests moderate efficiency in generating returns from equity.

Cash Flow

The cash flow analysis reveals challenges, with a significant negative free cash flow of -1,870 million, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. The free cash flow to net income ratio is also negative, highlighting cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.57B	11.71B	10.44B	9.96B	13.06B	10.89B
Gross Profit	2.51B	2.49B	2.23B	2.07B	2.98B	2.42B
EBITDA	899.00M	952.00M	719.00M	635.00M	1.39B	943.00M
Net Income	486.00M	547.00M	433.00M	294.00M	871.00M	529.00M
Balance Sheet
Total Assets	9.71B	11.35B	10.69B	11.33B	10.34B	9.38B
Cash, Cash Equivalents and Short-Term Investments	1.18B	948.00M	1.18B	1.59B	1.60B	996.00M
Total Debt	1.12B	2.62B	764.00M	2.99B	885.00M	1.57B
Total Liabilities	3.61B	5.21B	5.00B	6.00B	5.30B	6.08B
Stockholders Equity	6.09B	6.14B	5.68B	5.33B	5.04B	3.31B
Cash Flow
Free Cash Flow	0.00	-1.87B	1.85B	-1.96B	475.00M	773.00M
Operating Cash Flow	0.00	-1.32B	2.16B	-1.70B	661.00M	1.07B
Investing Cash Flow	0.00	-640.00M	-273.00M	-341.00M	-187.00M	-374.00M
Financing Cash Flow	0.00	1.73B	-2.30B	2.02B	121.00M	-727.00M

Synclayer Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 699.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1724, the sentiment is Positive. The current price of 699 is above the 20-day moving average (MA) of 698.57, above the 50-day MA of 691.50, and above the 200-day MA of 648.42, indicating a bullish trend. The MACD of 7.86 indicates Negative momentum. The RSI at 72.56 is Negative, neither overbought nor oversold. The STOCH value of 98.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1724.

Synclayer Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1724	77 Outperform	¥3.30B	5.85	―	3.94%	-2.32%	54.00%
6822	64 Neutral	¥5.12B	3.93	―	0.53%	4.93%	23.92%
6778	63 Neutral	¥5.56B	29.76	―	3.54%	19.28%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4388	58 Neutral	¥2.98B	-123.85	―	―	126.85%	-114.79%
6696	52 Neutral	¥1.49B	-36.45	―	―	10.83%	-1827.49%
6522	48 Neutral	¥3.06B	-16.19	―	―	5.57%	56.29%