Sun Capital Management Corp. (2134) AI Stock Analysis

• Market Cap: ¥30.12B
• Dividend Yield: N/A
• Average Volume (3M): 23.92M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: 59.21%
• EPS Growth: 3.41%
• 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: 23,874,259
• 30 Day Avg. Volume: 23,920,696
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• 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.

Positive Factors

High Gross Profit Margin

A high gross profit margin indicates strong pricing power and operational efficiency at the product level, which can be leveraged to improve overall profitability if operational costs are managed effectively.

Revenue Growth Potential

Significant revenue growth suggests potential market expansion and increased demand for the company's offerings, which could lead to improved financial performance if sustained over the long term.

Business Model Resilience

The company's business model of improving portfolio companies' performance is resilient, allowing it to generate returns through strategic management and operational enhancements, which can drive long-term value creation.

Negative Factors

High Leverage Risk

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities and weather economic downturns, posing a threat to long-term stability.

Negative Cash Flows

Persistent negative cash flows indicate liquidity constraints, challenging the company's ability to sustain operations without additional financing, which could hinder long-term growth and operational stability.

Profitability Challenges

Severe profitability issues, as evidenced by a negative net profit margin, highlight operational inefficiencies and the inability to cover expenses, which could undermine long-term financial health and investor confidence.

Sun Capital Management Corp. Business Overview & Revenue Model

Company Description

Sun 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 Money

Sun 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

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

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

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.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	342.79M	234.49M	381.43M	386.59M	473.47M	507.00M
Gross Profit	199.92M	178.49M	204.80M	217.73M	257.17M	224.00M
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 Assets	1.23B	1.22B	1.32B	1.79B	1.38B	1.83B
Cash, Cash Equivalents and Short-Term Investments	54.00M	62.67M	159.51M	75.93M	112.25M	94.08M
Total Debt	548.00M	734.26M	394.06M	348.89M	219.61M	560.55M
Total Liabilities	862.00M	1.06B	665.73M	906.55M	334.48M	749.70M
Stockholders Equity	366.00M	153.33M	655.60M	879.77M	1.05B	1.08B
Cash Flow
Free Cash Flow	0.00	-478.18M	-596.81M	-994.28M	-460.95M	-743.00M
Operating Cash Flow	0.00	-468.26M	-591.86M	-490.39M	-417.25M	-542.00M
Investing Cash Flow	0.00	99.19M	-1.58M	-680.89M	-38.84M	-509.00M
Financing Cash Flow	0.00	272.24M	677.01M	1.13B	420.25M	932.00M

Sun Capital Management Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 55.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 55 is below the 20-day moving average (MA) of 65.85, below the 50-day MA of 73.30, and above the 200-day MA of 36.24, indicating a neutral trend. The MACD of -4.34 indicates Positive momentum. The RSI at 35.06 is Neutral, neither overbought nor oversold. The STOCH value of 18.52 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
Sector *	68 Neutral	$18.10B	11.52	9.93%	3.73%	9.70%	1.14%
2134	43 Neutral	¥30.12B	―		―	59.21%	3.41%
JAN	―	€30.77M	63.89	1.20%	―	―	―
3266	―	¥3.81B	23.33		0.99%	―	―
7347	68 Neutral	¥16.29B	236.47		2.62%	11.20%	-93.41%
3454	61 Neutral	¥15.85B	10.84		5.93%	22.01%	26.92%
7162	50 Neutral	¥3.19B	4.57		2.83%	36.38%	-164.43%