CSS Holdings, Ltd. (2304) AI Stock Analysis

• Market Cap: ¥5.39B
• Dividend Yield: 3.28%
• Average Volume (3M): 15.74K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.57
• Revenue Growth: 9.08%
• EPS Growth: 3.33%
• Country: JP
• Employees: 572
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 13.23
• Shares Outstanding: 5,285,600
• 10 Day Avg. Volume: 14,160
• 30 Day Avg. Volume: 15,740
• 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: ¥1,031.00
• Price Target Upside: -3.28% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: ¥1,031.00 ▼(-3.28% Downside)

CSS Holdings, Ltd. scores highly due to its robust financial performance and attractive valuation. The company's strong revenue and profit growth, along with efficient cost management, bolster its financial health. The stock is potentially undervalued based on its P/E ratio, and the dividend yield enhances its appeal. Technical indicators suggest stability without significant bullish or bearish signals.

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, Ltd. generates revenue through multiple streams, primarily through its IT services and solutions offerings. The company earns income by providing consulting services, developing custom software solutions, and integrating complex IT systems for its clients. Additionally, CSS Holdings offers maintenance and support services for IT infrastructure, ensuring recurring revenue from long-term contracts. The company's strategic partnerships with leading technology providers enhance its service portfolio, contributing to its earnings by enabling the delivery of comprehensive and up-to-date IT solutions.

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	18.38B	17.63B	14.83B	10.88B	9.41B	11.96B
Gross Profit	2.97B	2.86B	2.42B	1.82B	1.28B	1.08B
EBITDA	713.19M	710.64M	390.24M	170.76M	-85.97M	234.83M
Net Income	408.38M	429.04M	230.16M	102.97M	-420.33M	23.49M
Balance Sheet
Total Assets	6.44B	5.93B	5.70B	5.10B	4.70B	5.60B
Cash, Cash Equivalents and Short-Term Investments	1.31B	906.59M	807.27M	713.92M	682.29M	1.20B
Total Debt	851.42M	479.49M	793.33M	1.05B	1.17B	1.31B
Total Liabilities	3.55B	3.26B	3.35B	2.93B	2.58B	3.03B
Stockholders Equity	2.90B	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	282.55M	-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: 1066.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 1066 is above the 20-day moving average (MA) of 1015.10, above the 50-day MA of 967.26, and above the 200-day MA of 892.77, indicating a bullish trend. The MACD of 23.54 indicates Negative momentum. The RSI at 70.07 is Negative, neither overbought nor oversold. The STOCH value of 82.01 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	81 Outperform	¥5.39B	13.21	―	3.28%	9.08%	3.33%
7914	76 Outperform	¥50.88B	11.00	6.36%	4.83%	1.93%	202.39%
3958	70 Outperform	¥3.31B	13.29	2.69%	3.13%	-3.07%	-37.00%
7919	68 Neutral	¥3.57B	7.12	11.85%	3.61%	2.39%	-8.65%
3948	66 Neutral	¥7.50B	41.25	1.73%	3.07%	-3.04%	-10.38%
7916	60 Neutral	¥4.78B	29.68	0.40%	3.20%	-0.55%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

CSS Holdings, Ltd. Corporate Events

CSS Holdings Reports Financial Results and Revises Earnings Forecast

CSS Holdings, Ltd. reported its consolidated financial results for the six months ended March 31, 2025, showing an increase in net sales by 8.2% year-on-year to ¥9,886 million. However, the profit attributable to owners of the parent decreased by 6.4% to ¥302 million. The company also announced a revision to its earnings forecast for the fiscal year ending September 30, 2025, projecting a 9.1% increase in net sales and a 17.9% rise in profit attributable to owners of the parent.