Sun Capital Management Corp. (2134) AI Stock Analysis

• Market Cap: ¥16.98B
• Dividend Yield: N/A
• Average Volume (3M): 13.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• 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

High revenue growth

Sustained top-line expansion (104.68% year) indicates strong client demand or successful business scaling within asset management. Over 2–6 months this supports investment in operations and product distribution, improving odds that fixed costs leverage into future profitability if margins are addressed.

Improved leverage management

Meaningful reduction in leverage improves financial flexibility and lowers refinancing risk, strengthening ability to fund strategic initiatives or weather market cycles. Over the medium term, healthier leverage supports credit access and reduces interest burden volatility for the business model.

FCF-to-net-income efficiency

A positive free cash flow to net income ratio shows the company can convert reported earnings into cash relatively efficiently, a structural capability that aids operational resilience. If profitability trends improve, this conversion strength supports reinvestment and deleveraging over ensuing quarters.

Negative Factors

Negative profitability

Persistent negative EBIT and net margins indicate the core business is not yet profitable, limiting internal funding for growth or dividends. Structurally, this undermines capacity to build retained earnings and makes long-term viability dependent on sustained revenue improvement or cost restructuring.

Negative operating and free cash flow

Ongoing operating and free cash flow deficits erode liquidity and constrain strategic choices. Over a multi-month horizon, continued cash burn increases reliance on external financing, raising refinancing risk and potentially forcing asset sales or cutbacks that impair competitive position.

Historical leverage & negative ROE

Past high leverage and a negative ROE signal structural capital inefficiency and heightened financial risk. Even with recent improvement, legacy leverage and poor returns make restoring shareholder value harder and increase sensitivity to adverse interest or market shifts in the medium term.

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 below the 20-day moving average (MA) of 34.05, below the 50-day MA of 36.30, and below the 200-day MA of 47.03, indicating a bearish trend. The MACD of -1.63 indicates Positive momentum. The RSI at 38.11 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 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	¥61.43B	10.05	17.21%	4.27%	7.60%	7.20%
8616	72 Outperform	¥188.26B	7.61	7.40%	5.60%	3.10%	17.73%
3772	69 Neutral	¥20.23B	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	¥125.34B	8.60	5.11%	5.07%	-19.64%	-31.08%
2134	50 Neutral	¥16.98B	-12.65	―	―	-21.88%	17.12%
8518	46 Neutral	¥4.26B	-4.99	4.15%	―	-6.60%	―