Sun Capital Management Corp. (2134) AI Stock Analysis

• Market Cap: ¥16.43B
• Dividend Yield: N/A
• Average Volume (3M): 13.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• 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: ¥30.00 ▼(-11.76% Downside)
• 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

Revenue Growth

A >100% year-over-year top-line increase indicates strong client demand or successful product/service scaling in the asset management business. Durable revenue expansion enhances operating leverage potential and provides a base to invest in distribution and technology, supporting medium-term growth if margins recover.

Improved Leverage

An improving debt-to-equity ratio reduces financial risk and interest burden, increasing balance sheet flexibility. This structural improvement gives management more room to support operations, pursue selective investments or restructuring, and better withstand industry cycles over the next several months.

Scalable Asset-Management Model

A lean headcount in an asset-management business suggests a scalable fee-based model where incremental AUM drives revenue with limited fixed-cost increases. If revenue growth is sustained, this structural scalability can translate into margin recovery and higher returns without proportional rises in operating expenses.

Negative Factors

Weak Profitability

Negative operating and net margins indicate the company is not converting revenue into profits, limiting retained earnings and reinvestment capacity. Persistent margin deficits hinder sustainable growth, reduce competitive flexibility, and make the firm reliant on external funding or cost restructuring to reach financial stability.

Poor Cash Generation

Ongoing negative operating and free cash flows create a structural funding gap, forcing reliance on financing or asset sales. Poor cash generation undermines the firm's ability to fund growth initiatives, pay obligations, or build reserves, raising refinancing and liquidity risks across medium-term business cycles.

Negative ROE & Historical Leverage

Negative ROE signals the company is destroying shareholder capital, which can deter investors and limit access to new equity. Coupled with a history of high leverage, this constrains strategic options, increases vulnerability to rate or market shocks, and impairs the firm's ability to invest for durable competitive advantage.

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.

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: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 34 is above the 20-day moving average (MA) of 33.60, below the 50-day MA of 36.20, and below the 200-day MA of 47.06, indicating a bearish trend. The MACD of -1.72 indicates Positive momentum. The RSI at 35.56 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, 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	¥60.18B	10.05	17.21%	4.27%	7.60%	7.20%
8616	72 Outperform	¥185.78B	7.61	7.40%	5.60%	3.10%	17.73%
3772	69 Neutral	¥20.02B	169.87	―	1.85%	-40.77%	-91.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8595	60 Neutral	¥123.41B	8.60	5.11%	5.07%	-19.64%	-31.08%
2134	50 Neutral	¥16.43B	-12.65	―	―	-21.88%	17.12%
8518	46 Neutral	¥4.41B	-4.99	4.15%	―	-6.60%	―