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

• Market Cap: ¥1.79B
• Dividend Yield: N/A
• Average Volume (3M): 15.88M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: 85.50%
• EPS Growth: -38.27%
• Country: JP
• Employees: 39
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Development
• EPS (TTM): N/A
• Shares Outstanding: 297,651,760
• 10 Day Avg. Volume: 38,254,809
• 30 Day Avg. Volume: 15,878,483
• 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: ¥7.50
• Price Target Upside: 25.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ¥7.50 ▲(25.00% Upside)

The overall stock score is heavily impacted by the company's poor financial performance, characterized by declining revenues, high leverage, and negative profitability. Technical analysis further indicates bearish momentum, with all indicators suggesting a downward trend. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield.

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

Company Description

Small 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 Money

Souken Ace Co., Ltd. generates revenue through several key streams. Primarily, the company earns income by selling its textile products to clothing manufacturers, wholesalers, and retailers, capitalizing on the demand for quality fabrics in the fashion industry. Additionally, it engages in custom fabric production, which allows it to charge premium prices for specialized materials. The company also benefits from long-term partnerships with established brands, ensuring steady orders and repeat business. Furthermore, Souken Ace may explore opportunities in export markets, expanding its reach and enhancing revenue through international sales. By maintaining strong relationships with clients and adapting to market trends, the company effectively sustains its earnings.

Souken Ace Co.,Ltd. Financial Statement Overview

Summary

Souken Ace Co., Ltd. faces significant financial challenges, with declining revenues, high leverage, and negative profitability and cash flow metrics. The company's financial health is concerning, with risks associated with high debt levels and poor cash flow management.

Income Statement

The company has experienced significant revenue decline, with a negative revenue growth rate of -35.97% in the latest year. Profitability metrics are concerning, with negative net profit and EBIT margins, indicating operational challenges. The gross profit margin has improved slightly but remains low.

Balance Sheet

The debt-to-equity ratio has increased dramatically to 60.25, indicating high leverage and potential financial risk. The equity ratio is low, and the company has struggled with negative return on equity, reflecting poor financial health.

Cash Flow

The company has negative operating and free cash flows, with a free cash flow growth rate of -Infinity, indicating severe cash flow issues. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.79B	1.58B	4.30B	2.85B	1.33B
Gross Profit	365.05M	113.39M	752.52M	117.54M	147.57M
EBITDA	-765.18M	-1.47B	369.71M	-904.41M	-1.23B
Net Income	-897.18M	-1.51B	299.36M	-914.98M	-1.31B
Balance Sheet
Total Assets	2.95B	1.27B	1.50B	1.77B	1.48B
Cash, Cash Equivalents and Short-Term Investments	16.44M	232.14M	67.11M	91.92M	770.09M
Total Debt	1.75B	853.00M	43.00M	103.00M	0.00
Total Liabilities	2.92B	1.04B	425.65M	981.49M	214.43M
Stockholders Equity	29.10M	222.34M	1.08B	792.31M	1.26B
Cash Flow
Free Cash Flow	-1.09B	-1.26B	45.57M	-1.20B	-639.43M
Operating Cash Flow	-1.04B	-804.30M	57.57M	-1.20B	-545.03M
Investing Cash Flow	-76.95M	-497.80M	-20.41M	-14.18M	-394.74M
Financing Cash Flow	900.16M	1.47B	-61.97M	532.28M	997.23M

Souken Ace Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 6 is below the 20-day moving average (MA) of 10.10, below the 50-day MA of 13.60, and below the 200-day MA of 19.14, indicating a bearish trend. The MACD of -2.34 indicates Positive momentum. The RSI at 38.78 is Neutral, neither overbought nor oversold. The STOCH value of 44.24 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2981	84 Outperform	¥13.20B	6.63		3.31%	36.82%	236.52%
2983	73 Outperform	¥11.50B	6.59		2.86%	24.65%	361.83%
8887	63 Neutral	¥18.69B	27.94		0.78%	13.72%	-372.20%
Sector *	63 Neutral	$7.06B	14.07	-0.50%	6.96%	4.08%	-25.24%
1757	41 Neutral	¥1.79B	―		―	85.50%	-38.27%
8A9	―	€35.84M	7.89	4.41%	―	―	―
2984	63 Neutral	¥6.17B	12.12		4.20%	-4.49%	-67.82%