CSS Holdings, Ltd. (2304) AI Stock Analysis

• Market Cap: ¥4.48B
• Dividend Yield: 3.4%
• Average Volume (3M): 30.43K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.53
• Revenue Growth: 11.22%
• EPS Growth: 16.11%
• Country: JP
• Employees: 572
• Sector: Industrials
• Sector Strength: 87
• Industry: Specialty Business Services
• EPS (TTM): 30.19
• Shares Outstanding: 5,285,600
• 10 Day Avg. Volume: 22,660
• 30 Day Avg. Volume: 30,433
• PEG Ratio: 0.00
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.20
• 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: 77 Outperform
• Price Target: ¥999.00 ▲(12.63%Upside)

The overall score is driven primarily by the company's solid financial performance and attractive valuation. The stock's technical indicators show some bearish momentum, but the valuation metrics suggest it is undervalued, providing a good opportunity for investors. The strong financial position, along with a healthy dividend yield, further supports the stock's appeal for long-term investment.

CSS Holdings, Ltd. Business Overview & Revenue Model

Company Description

CSS Holdings, Ltd. (2304) is a diversified company operating primarily in the information technology and services sector. The company provides a wide range of IT solutions, including system integration, software development, and IT infrastructure management. CSS Holdings, Ltd. is known for its innovative approach to technology and its ability to deliver customized solutions that meet the unique needs of its clients across various industries.

How the Company Makes Money

CSS Holdings, Ltd. generates revenue through multiple streams, primarily from its IT services. The company earns money by offering system integration services, where they design and implement comprehensive IT systems for businesses. Additionally, software development is a significant revenue stream, with the company developing custom software applications tailored to client specifications. IT infrastructure management, including maintenance and support services, also contributes to their income. Strategic partnerships with technology vendors and clients enhance their service offerings and expand their market reach, further driving revenue growth.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
18.36B	17.63B	14.83B	10.88B	9.41B	11.96B
	Gross Profit
2.99B	2.86B	2.42B	1.82B	1.28B	1.08B
	EBIT
694.18M	595.97M	276.03M	-186.15M	-717.08M	-1.07B
	EBITDA
749.26M	710.64M	390.24M	170.76M	-85.97M	234.83M
	Net Income Common Stockholders
474.76M	429.04M	230.16M	102.97M	-420.33M	23.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.15B	906.59M	807.27M	713.92M	682.29M	1.20B
	Total Assets
6.49B	5.93B	5.70B	5.10B	4.70B	5.60B
	Total Debt
975.00M	479.49M	793.33M	1.05B	1.17B	1.31B
	Net Debt
-177.00M	-427.10M	-13.94M	340.63M	534.29M	157.12M
	Total Liabilities
3.75B	3.26B	3.35B	2.93B	2.58B	3.03B
	Stockholders Equity
2.74B	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: Negative
• Last Price: 887.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2304, the sentiment is Negative. The current price of 887 is above the 20-day moving average (MA) of 873.60, below the 50-day MA of 900.52, and above the 200-day MA of 850.29, indicating a neutral trend. The MACD of -3.89 indicates Negative momentum. The RSI at 47.30 is Neutral, neither overbought nor oversold. The STOCH value of 42.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2304.

CSS Holdings, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7914	79 Outperform	¥43.12B	11.33		3.04%	3.08%	130.74%
2304	77 Outperform	¥4.48B	10.81		3.40%	11.22%	16.11%
7919	74 Outperform	¥3.23B	5.91		2.66%	2.92%	-6.42%
3958	66 Neutral	¥3.11B	12.39		2.96%	-3.40%	-79.66%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
3948	64 Neutral	¥6.24B	60.15		3.68%	-15.74%	-80.43%
7916	62 Neutral	¥4.01B	56.87		3.82%	0.38%	24.47%

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.