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

• Market Cap: ¥5.95B
• Dividend Yield: N/A
• Average Volume (3M): 827.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -21.82%
• EPS Growth: -93.99%
• Country: JP
• Employees: 39
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Development
• EPS (TTM): N/A
• Shares Outstanding: 297,651,760
• 10 Day Avg. Volume: 520,350
• 30 Day Avg. Volume: 827,130
• PEG Ratio: -0.23
• Price to Book (P/B): 8.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 198.34
• 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: 50 Neutral
• 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. Business Overview & Revenue Model

Company Description

Souken Ace Co.,Ltd. (1757) is a Japanese company engaged in the construction and engineering sector. The company specializes in providing construction services, including civil engineering, building construction, and related contracting services. Its core operations focus on delivering high-quality construction projects across various industries, leveraging its expertise and capabilities to meet client demands.

How the Company Makes Money

Souken 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

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

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

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
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.79B	1.58B	4.30B	2.85B	1.33B	2.27B
	Gross Profit
375.28M	113.39M	752.52M	117.54M	147.57M	1.05B
	EBIT
-280.77M	-1.49B	296.25M	-374.14M	-1.02B	-386.07M
	EBITDA
-1.05B	-1.47B	369.71M	-904.41M	-1.23B	-340.69M
	Net Income Common Stockholders
-490.11M	-1.51B	299.36M	-914.98M	-1.31B	-455.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.00M	232.14M	67.11M	91.92M	770.09M	712.63M
	Total Assets
3.17B	1.27B	1.50B	1.77B	1.48B	2.55B
	Total Debt
1.76B	853.00M	43.00M	103.00M	0.00	911.82M
	Net Debt
1.73B	620.86M	-24.11M	11.08M	-770.09M	199.19M
	Total Liabilities
2.88B	1.04B	425.65M	981.49M	214.43M	1.64B
	Stockholders Equity
295.00M	222.34M	1.08B	792.31M	1.26B	906.24M
Cash Flow		Free Cash Flow
0.00	-1.26B	45.57M	-1.20B	-639.43M	-444.17M
	Operating Cash Flow
0.00	-804.30M	57.57M	-1.20B	-545.03M	-233.00M
	Investing Cash Flow
0.00	-497.80M	-20.41M	-14.18M	-394.74M	13.15M
	Financing Cash Flow
0.00	1.47B	-61.97M	532.28M	997.23M	534.52M

Souken Ace Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 20.35, below the 50-day MA of 21.36, and below the 200-day MA of 22.35, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 43.67 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1802	78 Outperform	$1.56T	10.67	12.49%	0.02%	12.68%	94.75%
1812	77 Outperform	$1.77T	13.58	10.06%	0.02%	9.25%	11.64%
1801	76 Outperform	¥1.45T	11.59	13.61%	3.51%	22.05%	215.16%
1803	76 Outperform	$1.06T	16.72	7.47%	2.47%	-3.05%	301.87%
1820	70 Outperform	¥192.18B	10.98		4.93%	-8.67%	40.83%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
1757	50 Neutral	¥5.95B	―		―	-21.82%	-93.99%