Synclayer Inc. (1724) AI Stock Analysis

• Market Cap: ¥2.98B
• Dividend Yield: 3.1%
• Average Volume (3M): 6.96K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.21
• Revenue Growth: 11.03%
• EPS Growth: 4.03%
• Country: JP
• Employees: 267
• Sector: Technology
• Sector Strength: 91
• Industry: Communication Equipment
• EPS (TTM): 26.30
• Shares Outstanding: 4,943,780
• 10 Day Avg. Volume: 3,460
• 30 Day Avg. Volume: 6,963
• PEG Ratio: 0.00
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.58
• 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

• Rating: 67 Neutral
• Price Target: ¥690.00 ▲(7.31%Upside)

The overall score is driven by a strong valuation due to low P/E ratio and high dividend yield, despite challenges in liquidity and bearish technical indicators. Financial performance shows mixed results with strong revenue but liquidity concerns.

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 the sale of its network infrastructure products and services to telecommunications companies. Key revenue streams include licensing fees for its proprietary software solutions, sales of hardware components, and ongoing maintenance and support services. The company also benefits from strategic partnerships with major telecom operators, which help drive sales and expand its market reach. Additionally, Synclayer Inc. may engage in research and development collaborations that contribute to its earnings.

Synclayer Inc. Financial Statement Overview

Summary

Synclayer Inc. shows strong revenue growth and improved net profit margins, contributing to a solid income statement score. The balance sheet reflects a stable capital structure with moderate leverage and decent equity returns. However, the cash flow statement reveals liquidity pressures, with declining free cash flow and negative operating cash flow, highlighting areas for improvement in cash management.

Income Statement

Synclayer Inc. has demonstrated consistent revenue growth, with a notable increase of 12.15% from 2023 to 2024. Gross profit margin stands at 21.27%, and net profit margin improved to 4.67%, indicating better cost control and profitability. However, EBIT and EBITDA margins are moderate at 5.57% and 7.32%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio sits at 0.43, reflecting a moderate level of leverage. Return on equity is relatively modest at 8.90%, indicating average efficiency in generating returns on shareholders' equity. The equity ratio of 54.10% suggests a solid capital structure with a strong equity base.

Cash Flow

Free cash flow has declined significantly, with a negative growth rate from 2023 to 2024. The operating cash flow to net income ratio is negative, hinting at potential liquidity challenges. However, financing cash flow is positive, indicating reliance on external funding to support operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.71B	10.44B	9.96B	13.06B	10.89B
Gross Profit	2.49B	2.17B	2.07B	2.98B	2.42B
EBITDA	952.00M	719.00M	635.00M	1.39B	943.00M
Net Income	547.00M	433.00M	294.00M	871.00M	529.00M
Balance Sheet
Total Assets	11.35B	10.69B	11.33B	10.34B	9.38B
Cash, Cash Equivalents and Short-Term Investments	948.00M	1.18B	1.59B	1.60B	996.00M
Total Debt	2.62B	764.00M	2.99B	885.00M	1.57B
Total Liabilities	5.21B	5.00B	6.00B	5.30B	6.08B
Stockholders Equity	6.14B	5.68B	5.33B	5.04B	3.31B
Cash Flow
Free Cash Flow	-1.87B	1.85B	-1.96B	475.00M	773.00M
Operating Cash Flow	-1.32B	2.16B	-1.70B	661.00M	1.07B
Investing Cash Flow	-640.00M	-273.00M	-341.00M	-187.00M	-374.00M
Financing Cash Flow	1.73B	-2.30B	2.02B	121.00M	-727.00M

Synclayer Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 643.00
• 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:1724, the sentiment is Positive. The current price of 643 is above the 20-day moving average (MA) of 640.00, above the 50-day MA of 638.28, and above the 200-day MA of 621.11, indicating a bullish trend. The MACD of 2.11 indicates Negative momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 49.02 is Neutral, 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
6822	80 Outperform	¥4.30B	4.12		―	3.30%	36.77%
1724	67 Neutral	¥2.98B	5.60		3.10%	11.03%	4.03%
6696	65 Neutral	¥2.74B	141.84		―	48.14%	―
Sector *	63 Neutral	£507.87M	24.87	-8.56%	2.46%	4.03%	-28.20%
4388	61 Neutral	¥3.13B	20.87		―	102.19%	-122.72%
6778	58 Neutral	¥6.20B	29.20		2.99%	-1.17%	―
6522	45 Neutral	¥3.23B	―		―	15.83%	38.72%