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Sun Capital Management Corp. (JP:2134)
:2134
Japanese Market

Sun Capital Management Corp. (2134) AI Stock Analysis

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JP

Sun Capital Management Corp.

(2134)

Rating:43Neutral
Price Target:
Sun Capital Management Corp.'s overall score reflects severe financial challenges, characterized by negative profitability, high leverage, and liquidity issues. While technical indicators show some potential for positive momentum, the lack of earnings and dividend yield significantly undermines the stock's valuation. Strategic restructuring is vital for improving the company's financial health.

Sun Capital Management Corp. (2134) vs. iShares MSCI Japan ETF (EWJ)

Sun Capital Management Corp. Business Overview & Revenue Model

Company DescriptionSun Capital Management Corp. (2134) is a private equity firm that specializes in leveraged buyouts, equity, debt, and other investments. The company primarily targets sectors including business services, healthcare, industrial, and consumer products, aiming to enhance the operational and financial performance of its portfolio companies. With a focus on middle-market businesses, Sun Capital Management Corp. uses its expertise to drive growth and generate significant returns for its investors.
How the Company Makes MoneySun Capital Management Corp. makes money primarily through the acquisition, management, and eventual sale of portfolio companies. The firm raises capital from investors and uses this capital to acquire businesses. Revenue is generated through management fees, typically a percentage of the total assets under management, and carried interest, which is a share of the profits from the sale of portfolio companies. Additionally, Sun Capital may earn income through dividends or interest from its investments. The company's earnings are also influenced by its ability to improve the operational efficiency and profitability of its portfolio companies, ultimately leading to higher exit values. Significant partnerships with institutional investors and strategic alliances in various industries further contribute to its revenue streams.

Sun Capital Management Corp. Financial Statement Overview

Summary
Sun Capital Management Corp. faces significant financial challenges across all verticals. The persistent negative income and declining revenues highlight operational inefficiencies and profitability issues. The balance sheet shows high leverage and declining equity, raising solvency concerns. Additionally, negative cash flows indicate liquidity problems. The company needs strategic restructuring and cost management to improve its financial health.
Income Statement
30
Negative
Sun Capital Management Corp. has experienced declining revenues, with a significant drop from 2020 to 2024. The company has consistently reported negative EBIT and net income, indicating operational challenges and an inability to cover operating expenses. Gross profit margin remains high at 76.11% for 2024, yet it is insufficient to offset the substantial operating losses. The negative net profit margin of -208.57% in 2024 highlights severe profitability issues.
Balance Sheet
45
Neutral
The balance sheet reflects a significant increase in debt, with a debt-to-equity ratio rising to 4.79 in 2024, indicating a high leverage risk. Stockholders’ equity has drastically reduced over the years, suggesting potential solvency concerns. The equity ratio stands at 12.61%, showing a low proportion of equity financing compared to total assets. These factors present a challenging financial position for the company.
Cash Flow
25
Negative
The company has struggled with negative operating cash flows, indicating ongoing operational inefficiencies. The free cash flow remains negative, with a slight reduction in free cash flow deficit from 2023 to 2024. The operating cash flow to net income ratio is negative, further emphasizing cash flow challenges. These cash flow issues suggest liquidity constraints and potential difficulties in sustaining operations without additional financing.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue342.79M234.49M381.43M386.59M473.47M507.00M
Gross Profit199.92M178.49M204.80M217.73M257.17M224.00M
EBITDA-332.95M-334.58M-423.32M-509.96M-307.35M-1.56B
Net Income-519.25M-489.20M-904.22M-1.25B-757.50M-1.77B
Balance Sheet
Total Assets1.23B1.22B1.32B1.79B1.38B1.83B
Cash, Cash Equivalents and Short-Term Investments54.00M62.67M159.51M75.93M112.25M94.08M
Total Debt548.00M734.26M394.06M348.89M219.61M560.55M
Total Liabilities862.00M1.06B665.73M906.55M334.48M749.70M
Stockholders Equity366.00M153.33M655.60M879.77M1.05B1.08B
Cash Flow
Free Cash Flow0.00-478.18M-596.81M-994.28M-460.95M-743.00M
Operating Cash Flow0.00-468.26M-591.86M-490.39M-417.25M-542.00M
Investing Cash Flow0.0099.19M-1.58M-680.89M-38.84M-509.00M
Financing Cash Flow0.00272.24M677.01M1.13B420.25M932.00M

Sun Capital Management Corp. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price85.00
Price Trends
50DMA
36.00
Positive
100DMA
28.21
Positive
200DMA
24.14
Positive
Market Momentum
MACD
16.00
Negative
RSI
69.63
Neutral
STOCH
67.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2134, the sentiment is Positive. The current price of 85 is above the 20-day moving average (MA) of 55.95, above the 50-day MA of 36.00, and above the 200-day MA of 24.14, indicating a bullish trend. The MACD of 16.00 indicates Negative momentum. The RSI at 69.63 is Neutral, neither overbought nor oversold. The STOCH value of 67.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2134.

Sun Capital Management Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥149.39B11.73
4.42%-2.52%-10.44%
74
Outperform
¥1.35T9.079.63%3.15%7.11%28.65%
71
Outperform
$2.71T8.279.88%4.93%13.94%109.60%
71
Outperform
$1.53T25.1918.02%2.54%3.96%0.47%
67
Neutral
¥178.91B17.0613.61%5.17%-2.58%7.21%
67
Neutral
¥715.03B10.817.51%3.34%7.81%14.70%
43
Neutral
¥36.99B
133.46%0.03%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2134
Sun Capital Management Corp.
101.00
80.00
380.95%
JP:8609
Okasan Securities Group Inc.
676.00
-72.25
-9.66%
JP:8628
Matsui Securities Co
696.00
-108.34
-13.47%
JP:8604
Nomura Holdings
917.60
21.19
2.36%
JP:8601
Daiwa
997.00
-204.14
-17.00%
JP:8697
Japan Exchange Group
1,481.50
-451.82
-23.37%
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.Date of analysis: Apr 29, 2025