CSS Holdings, Ltd. (2304) AI Stock Analysis

• Market Cap: ¥4.82B
• Dividend Yield: 4.66%
• Average Volume (3M): 13.43K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.59
• Revenue Growth: 10.60%
• EPS Growth: 36.65%
• Country: JP
• Employees: 572
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 43.66
• Shares Outstanding: 5,285,600
• 10 Day Avg. Volume: 19,360
• 30 Day Avg. Volume: 13,433
• PEG Ratio: 0.11
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 8.15
• 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: 74 Outperform
• Price Target: ¥1,079.00 ▲(11.70% Upside)

CSS Holdings, Ltd. shows strong financial performance with robust revenue and profit growth, efficient cost management, and a stable financial structure. The stock's valuation is attractive with a reasonable P/E ratio and high dividend yield. Technical indicators suggest mixed signals with short-term weakness but longer-term strength. The absence of earnings call data and corporate events limits the analysis.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and successful product offerings, supporting long-term business sustainability.

Operational Efficiency

Improved margins reflect efficient operations and cost control, contributing to sustained profitability and competitive advantage.

Financial Stability

Low leverage enhances financial stability and flexibility, allowing the company to invest in growth opportunities without excessive risk.

Negative Factors

Incomplete Cash Flow Data

Incomplete cash flow data limits visibility into liquidity and cash management, posing potential risks to financial planning and stability.

Profit Margin Concerns

While improved, the net profit margin remains relatively low, which may limit reinvestment capacity and shareholder returns in the long term.

Lack of Earnings Call Data

Absence of earnings call data restricts insights into management's strategic direction and operational priorities, impacting investor confidence.

CSS Holdings, Ltd. Business Overview & Revenue Model

Company Description

CSS Holdings,Ltd. provides steward management services in Japan. The company also offers dishwashing and management services primarily for hotels and restaurants; and engages in contract management of cafeteria and restaurants, as well as restaurant business. It also designs, constructs, sells, and maintains video, sound, broadcasting, and security related space production services. The company was incorporated in 1984 and is headquartered in Tokyo, Japan.

How the Company Makes Money

CSS Holdings generates revenue through multiple streams, including the sale of technology solutions, software licensing, and consulting services. The company partners with other technology firms to create integrated solutions, which enables it to offer comprehensive packages to clients. Additionally, CSS Holdings invests in startups and emerging companies within the tech sector, earning returns through equity stakes and capital appreciation. Strategic collaborations with industry leaders further enhance its market presence and revenue potential.

CSS Holdings, Ltd. Financial Statement Overview

Summary

CSS Holdings, Ltd. demonstrates strong financial performance with significant revenue and profit growth, efficient cost management, and robust operational margins. The balance sheet reflects a stable financial structure with low debt levels and strong equity returns. While cash flow data is incomplete, historical trends indicate sound cash management practices.

Income Statement

The company shows a strong revenue growth trajectory with a 23% increase from 2023 to 2024. Gross profit margin improved to 16.5% for TTM, indicating effective cost management. Net profit margin also improved to 2.6% for TTM, reflecting enhanced profitability. EBIT and EBITDA margins are robust at 3.8% and 4.1% respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 42.3% for TTM, indicating financial stability. The debt-to-equity ratio is low at 0.36, suggesting manageable leverage. ROE stands at 17.3% for TTM, reflecting strong returns on equity. Overall, the balance sheet reflects a healthy financial position with minimal leverage risk.

Cash Flow

Cash flow metrics are not fully available for TTM, but historical data shows consistent free cash flow generation. The previous year's free cash flow to net income ratio was 1.2, indicating efficient cash conversion. Operating cash flow turned positive recently, suggesting improved liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.78B	17.63B	14.83B	10.88B	9.41B	11.96B
Gross Profit	3.00B	2.86B	2.42B	1.82B	1.28B	1.08B
EBITDA	727.94M	710.64M	390.24M	170.76M	-85.97M	234.83M
Net Income	403.85M	429.04M	230.16M	102.97M	-420.33M	23.49M
Balance Sheet
Total Assets	6.01B	5.93B	5.70B	5.10B	4.70B	5.60B
Cash, Cash Equivalents and Short-Term Investments	1.16B	906.59M	807.27M	713.92M	682.29M	1.20B
Total Debt	476.75M	479.49M	793.33M	1.05B	1.17B	1.31B
Total Liabilities	3.09B	3.26B	3.35B	2.93B	2.58B	3.03B
Stockholders Equity	2.92B	2.67B	2.35B	2.17B	2.12B	2.57B
Cash Flow
Free Cash Flow	0.00	519.25M	443.46M	249.09M	-374.55M	318.11M
Operating Cash Flow	0.00	605.32M	471.14M	285.00M	-360.02M	345.88M
Investing Cash Flow	0.00	-53.87M	-35.61M	-8.24M	8.99M	-71.49M
Financing Cash Flow	0.00	-420.16M	-373.52M	-197.71M	-166.24M	67.30M

CSS Holdings, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 966.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2304, the sentiment is Positive. The current price of 966 is above the 20-day moving average (MA) of 965.15, below the 50-day MA of 980.52, and above the 200-day MA of 912.12, indicating a neutral trend. The MACD of -2.89 indicates Negative momentum. The RSI at 51.94 is Neutral, neither overbought nor oversold. The STOCH value of 94.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2304.

CSS Holdings, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2304	74 Outperform	¥4.82B	8.12	―	4.66%	10.60%	36.65%
3958	70 Outperform	¥3.24B	13.01	―	3.23%	-3.41%	-24.95%
7914	69 Neutral	¥49.24B	10.64	―	4.00%	-0.04%	93.95%
7919	68 Neutral	¥3.28B	7.11	―	3.89%	0.62%	-24.08%
3948	65 Neutral	¥7.37B	36.41	―	3.15%	-2.81%	57.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.21B	9.59	―	2.77%	-1.30%	―