Sun Capital Management Corp. (2134) AI Stock Analysis

• Market Cap: ¥19.72B
• Dividend Yield: N/A
• Average Volume (3M): 13.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: -21.88%
• EPS Growth: 17.12%
• Country: JP
• Employees: 40
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -0.59
• Shares Outstanding: 547,691,000
• 10 Day Avg. Volume: 7,992,879
• 30 Day Avg. Volume: 13,031,256
• PEG Ratio: 0.42
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 7.17
• P/FCF Ratio: -2.86
• 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: 50 Neutral
• Price Target: ¥36.00 ▲(5.88% Upside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

The score is held down primarily by weak financial fundamentals—negative profitability and negative operating/free cash flow—despite strong revenue growth and improved leverage. Technicals are supportive with positive momentum and price strength versus short-term averages, but valuation remains pressured due to loss-making earnings (negative P/E).

Positive Factors

Strong Revenue Growth

104.68% revenue growth demonstrates rapid top-line expansion and a widening client/fee base that can create durable scale advantages. Sustained revenue growth gives managerial optionality to invest in margin restoration, product development, and operational leverage over months.

Improved Leverage Management

A materially improved debt-to-equity ratio lowers financial risk and interest burden, improving balance sheet flexibility. Better leverage management increases capacity for strategic actions (capex, hiring, M&A) and reduces refinancing vulnerability over the medium term.

Cash Conversion Efficiency

A positive free cash flow to net income ratio indicates the company converts reported earnings to cash relatively efficiently. This operational conversion trait supports a credible pathway to reduce cash burn if margins stabilize, aiding medium-term liquidity recovery.

Negative Factors

Negative Profitability

Negative net and EBIT margins and a negative ROE reflect persistent unprofitability and inability to generate returns on capital. Structural margin shortfalls limit internal reinvestment capacity and require sustained operational or pricing fixes before profitability becomes durable.

Severe Cash Flow Shortfall

Sustained negative operating and free cash flows denote ongoing cash burn that constrains discretionary spending and heightens financing needs. Over a multi-month horizon this pressure can force austerity, asset sales, or dilutive financing, reducing strategic flexibility.

Legacy Leverage Risk

Although leverage metrics have improved, a history of high leverage combined with current cash burn keeps financial strength low. Legacy debt and past leverage raise refinancing and coverage risk, making the balance sheet vulnerable if revenue or margins weaken.

Sun Capital Management Corp. Business Overview & Revenue Model

Company Description

Kitahama Capital Partners Co.,Ltd., formerly known as Sun Capital Management Corp., is private equity and venture capital firm specializing in venture, turnaround, and M&A investments. It prefers to invests in companies that develops, manufactures and sales ships, automobiles, fuel reduction equipment for boilers, and exhaust gas suppression devices. The firm prefers to invest in companies located in Kansai and western Japan. It is also involve in asset management consignment services, financial advisory services, brokerage services, financial advisories and consulting services. Kitahama Capital Partners Co.,Ltd. was founded on September 1992 and is based in Osaka, Japan, with an additional offices in Tokyo, Japan.

How the Company Makes Money

Sun Capital Management generates revenue primarily through management fees and performance fees associated with its private equity funds. The management fees are typically calculated as a percentage of committed capital or assets under management, providing a steady income stream. Performance fees, often referred to as 'carried interest,' are earned when the firm's investments exceed predetermined return thresholds, aligning the firm's incentives with those of its investors. The firm also benefits from co-investments in portfolio companies, which can yield significant returns upon exit through sales or public offerings. Strategic partnerships with financial institutions and co-investors further enhance its capital raising capabilities and investment opportunities, contributing to its overall earnings.

Sun Capital Management Corp. Financial Statement Overview

Summary

Despite very strong revenue growth (104.68%), profitability is weak with negative net and EBIT margins, and cash flow health is poor with negative operating and free cash flows. Leverage has improved, but negative ROE and persistent cash burn keep overall financial strength low.

Income Statement

Sun Capital Management Corp. shows a significant revenue growth rate of 104.68% in the latest year, indicating strong top-line expansion. However, the company struggles with profitability, as evidenced by negative net profit margins and EBIT margins, reflecting operational challenges. The gross profit margin has decreased from previous years, suggesting increased cost pressures.

Balance Sheet

The company's debt-to-equity ratio has improved significantly, indicating better leverage management, but remains a concern due to historical high leverage. Return on equity is negative, highlighting ongoing profitability issues. The equity ratio is relatively stable, suggesting a moderate level of financial stability.

Cash Flow

Sun Capital Management Corp. faces severe cash flow challenges, with negative operating and free cash flows. The free cash flow to net income ratio is positive, indicating some efficiency in converting income to cash, but overall cash flow health is poor, as shown by negative growth and coverage ratios.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	545.00M	701.61M	234.49M	381.43M	386.59M	473.47M
Gross Profit	184.00M	230.42M	178.49M	204.80M	217.73M	257.17M
EBITDA	-674.25M	-757.62M	-334.58M	-409.04M	-479.66M	-299.37M
Net Income	-963.00M	-835.21M	-489.20M	-904.22M	-1.25B	-757.50M
Balance Sheet
Total Assets	6.29B	2.69B	1.22B	1.32B	1.79B	1.38B
Cash, Cash Equivalents and Short-Term Investments	3.07B	256.47M	62.67M	159.51M	75.93M	112.25M
Total Debt	247.00M	256.40M	734.26M	394.06M	348.89M	219.61M
Total Liabilities	358.00M	646.32M	1.06B	665.73M	906.55M	334.48M
Stockholders Equity	5.93B	2.03B	153.33M	655.60M	879.77M	1.05B
Cash Flow
Free Cash Flow	0.00	-1.76B	-478.18M	-596.81M	-994.28M	-460.95M
Operating Cash Flow	0.00	-1.58B	-468.26M	-591.86M	-490.39M	-417.25M
Investing Cash Flow	0.00	-420.04M	99.19M	-1.58M	-680.89M	-38.84M
Financing Cash Flow	0.00	2.19B	272.24M	677.01M	1.13B	420.25M

Sun Capital Management Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2134, the sentiment is Negative. The current price of 34 is below the 20-day moving average (MA) of 39.15, below the 50-day MA of 35.66, and below the 200-day MA of 46.35, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 12.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2134.

Sun Capital Management Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8739	78 Outperform	¥64.69B	12.76	17.21%	4.27%	7.60%	7.20%
8616	72 Outperform	¥192.23B	14.38	6.79%	5.60%	3.10%	17.73%
3772	69 Neutral	¥20.45B	24.16	―	1.85%	-40.77%	-91.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8595	60 Neutral	¥128.00B	20.03	5.11%	5.07%	-19.64%	-31.08%
2134	50 Neutral	¥19.72B	-12.69	―	―	-21.88%	17.12%
8518	46 Neutral	¥4.53B	-6.80	4.15%	―	-6.60%	―