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Souken Ace Co.,Ltd. (JP:1757)
:1757
Japanese Market

Souken Ace Co.,Ltd. (1757) AI Stock Analysis

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JP

Souken Ace Co.,Ltd.

(1757)

Rating:50Neutral
Price Target:
Souken Ace Co., Ltd.'s stock score is primarily impacted by its poor financial performance marked by declining revenues and operational losses. While technical analysis shows upward momentum, overbought indicators suggest caution. The negative valuation metrics further weigh down the score, highlighting the need for financial and strategic improvements.

Souken Ace Co.,Ltd. (1757) vs. iShares MSCI Japan ETF (EWJ)

Souken Ace Co.,Ltd. Business Overview & Revenue Model

Company DescriptionSmall and medium sized Enterprises Holdings,Inc. primarily engages in the construction business in Japan. The company constructs and sells ordered houses; renovates houses; and plans, designs, and constructs supply and drain pipes, and other facilities. It is also involved in the maintenance and rehabilitation construction, store development, advertisement, dining, and sanitary diagnosis businesses. In addition, the company sells housing equipment; develops, manufactures, and sells oil for automobiles and motorcycles; wholesales after-sales parts for automobiles; and provides consultancy, asset management, and operation and planning services. Further, it invests in real estate, securities, etc.; imports, exports, and wholesales goods; and manages, mediates, and sells real estates. Additionally, the company is involved in the urban development and cosmetic businesses. The company was formerly known as CREA HOLDINGS,Inc. and changed its name to Small and medium sized Enterprises Holdings,Inc. in April 2021. Small and medium sized Enterprises Holdings,Inc. was incorporated in 1965 and is based in Tokyo, Japan.
How the Company Makes MoneySouken Ace Co.,Ltd. makes money primarily through its construction and engineering services. The company's revenue model is based on securing contracts for civil engineering and building construction projects. Key revenue streams include fees and payments received from clients for successfully completed projects. The company may also engage in partnerships or collaborations with other construction firms or subcontractors to enhance project delivery and efficiency, contributing to its overall earnings. Additional factors influencing Souken Ace's revenue include market demand for construction services, economic conditions affecting the construction industry, and the company's ability to win competitive bids for large-scale projects.

Souken Ace Co.,Ltd. Financial Statement Overview

Summary
Souken Ace Co., Ltd. is facing financial instability with declining revenues, operational losses, and high leverage. The company has liquidity risks due to poor cash flow performance and declining equity, necessitating strategic improvements for future stability.
Income Statement
35
Negative
Souken Ace Co., Ltd. shows significant revenue volatility with a recent TTM (Trailing-Twelve-Months) revenue decline of 54.3% compared to the previous annual report. The net profit margin is negative, indicating ongoing losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. While there was a revenue spike in 2023, the company has struggled to maintain consistent growth and profitability.
Balance Sheet
40
Negative
The company's balance sheet reflects high leverage with a debt-to-equity ratio of 5.97 in the latest TTM data. Stockholders' equity has decreased substantially, impacting the equity ratio negatively. Return on equity is negative due to net losses. The financial position is weakened by high liabilities relative to equity, posing risks if revenues do not stabilize.
Cash Flow
30
Negative
Operating cash flow has been consistently negative, indicating cash generation issues. The absence of positive free cash flow growth highlights ongoing liquidity strains. Cash flow from operations has not supported net income, and the free cash flow to net income ratio is unfavorable, reflecting cash management challenges.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
2.79B1.58B4.30B2.85B1.33B2.27B
Gross Profit
375.28M113.39M752.52M117.54M147.57M1.05B
EBIT
-280.77M-1.49B296.25M-374.14M-1.02B-386.07M
EBITDA
-1.05B-1.47B369.71M-904.41M-1.23B-340.69M
Net Income Common Stockholders
-490.11M-1.51B299.36M-914.98M-1.31B-455.42M
Balance SheetCash, Cash Equivalents and Short-Term Investments
35.00M232.14M67.11M91.92M770.09M712.63M
Total Assets
3.17B1.27B1.50B1.77B1.48B2.55B
Total Debt
1.76B853.00M43.00M103.00M0.00911.82M
Net Debt
1.73B620.86M-24.11M11.08M-770.09M199.19M
Total Liabilities
2.88B1.04B425.65M981.49M214.43M1.64B
Stockholders Equity
295.00M222.34M1.08B792.31M1.26B906.24M
Cash FlowFree Cash Flow
0.00-1.26B45.57M-1.20B-639.43M-444.17M
Operating Cash Flow
0.00-804.30M57.57M-1.20B-545.03M-233.00M
Investing Cash Flow
0.00-497.80M-20.41M-14.18M-394.74M13.15M
Financing Cash Flow
0.001.47B-61.97M532.28M997.23M534.52M

Souken Ace Co.,Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price20.00
Price Trends
50DMA
21.52
Negative
100DMA
20.78
Negative
200DMA
22.36
Negative
Market Momentum
MACD
-0.45
Negative
RSI
43.67
Neutral
STOCH
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1757, the sentiment is Negative. The current price of 20 is below the 20-day moving average (MA) of 20.40, below the 50-day MA of 21.52, and below the 200-day MA of 22.36, indicating a bearish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 43.67 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1757.

Souken Ace Co.,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥9.75B6.94
2.27%18.93%77.54%
73
Outperform
¥7.92B5.44
4.08%25.30%548.48%
64
Neutral
¥15.00B27.94
0.93%101.05%<0.01%
61
Neutral
$2.86B10.960.41%6.08%5.73%-21.25%
50
Neutral
¥5.95B
-21.82%-93.99%
DE8A9
€35.67M7.304.51%5.09%
59
Neutral
¥5.71B8.30
4.49%4.11%-54.07%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1757
Souken Ace Co.,Ltd.
20.00
-10.00
-33.33%
DE:8A9
Azuma House Co., Ltd.
4.22
-0.01
-0.24%
JP:2981
Landix, Inc.
3,435.00
1,173.57
51.90%
JP:2983
Arr Planner Co., Ltd.
1,450.00
717.29
97.90%
JP:2984
Yamaichi Uniheim Real Estate Co.,Ltd
668.00
-146.46
-17.98%
JP:8887
Riberesute Corporation
333.00
-278.71
-45.56%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.