Sun Capital Management Corp. (2134) AI Stock Analysis

• Market Cap: ¥44.91B
• Dividend Yield: N/A
• Average Volume (3M): 81.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: 133.46%
• EPS Growth: 0.03%
• Country: JP
• Employees: 40
• Sector: Financial
• Sector Strength: 73
• Industry: Asset Management
• EPS (TTM): -0.74
• Shares Outstanding: 547,691,000
• 10 Day Avg. Volume: 71,209,298
• 30 Day Avg. Volume: 81,153,872
• PEG Ratio: 4.70
• Price to Book (P/B): 26.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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.

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 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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	234.49M	381.43M	386.59M	473.47M	507.00M
Gross Profit	178.49M	204.80M	217.73M	257.17M	224.00M
EBITDA	-334.58M	-423.32M	-509.96M	-307.35M	-1.56B
Net Income	-489.20M	-904.22M	-1.25B	-757.50M	-1.77B
Balance Sheet
Total Assets	1.22B	1.32B	1.79B	1.38B	1.83B
Cash, Cash Equivalents and Short-Term Investments	62.67M	159.51M	75.93M	112.25M	94.08M
Total Debt	734.26M	394.06M	348.89M	219.61M	560.55M
Total Liabilities	1.06B	665.73M	906.55M	334.48M	749.70M
Stockholders Equity	153.33M	655.60M	879.77M	1.05B	1.08B
Cash Flow
Free Cash Flow	-478.18M	-596.81M	-994.28M	-460.95M	-743.00M
Operating Cash Flow	-468.26M	-591.86M	-490.39M	-417.25M	-542.00M
Investing Cash Flow	99.19M	-1.58M	-680.89M	-38.84M	-509.00M
Financing Cash Flow	272.24M	677.01M	1.13B	420.25M	932.00M

Sun Capital Management Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 82 is above the 20-day moving average (MA) of 78.85, above the 50-day MA of 53.84, and above the 200-day MA of 28.63, indicating a bullish trend. The MACD of 4.46 indicates Positive momentum. The RSI at 56.72 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	$17.09B	11.28	9.28%	3.81%	11.08%	-4.02%
2134	43 Neutral	¥44.91B	―		―	133.46%	0.03%
JAN	―	€30.58M	11.07	6.36%	―	―	―
3266	―	¥3.13B	19.17		1.20%	―	―
7347	68 Neutral	¥15.81B	32.31		2.73%	-4.73%	-51.89%
3454	61 Neutral	¥15.00B	10.27		6.26%	22.01%	26.92%
7162	55 Neutral	¥3.46B	4.57		2.60%	40.13%	-133.64%