Gendai Agency Inc. (2411) AI Stock Analysis

• Market Cap: ¥5.54B
• Dividend Yield: 4.65%
• Average Volume (3M): 90.34K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.35
• Revenue Growth: 5.94%
• EPS Growth: 617.63%
• Country: JP
• Employees: 215
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 10.96
• Shares Outstanding: 12,300,000
• 10 Day Avg. Volume: 42,950
• 30 Day Avg. Volume: 90,340
• PEG Ratio: 0.07
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 9.43
• 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: ¥478.00 ▲(1.06% Upside)

Gendai Agency Inc. scores well due to its strong financial performance, characterized by solid revenue growth, profitability, and cash flow generation. The technical analysis indicates bullish momentum, although caution is warranted due to overbought signals. The valuation is reasonable with an attractive dividend yield, making it a compelling investment in the advertising industry.

Positive Factors

Revenue Growth

Consistent revenue growth suggests Gendai Agency Inc. is effectively expanding its market presence, ensuring long-term business sustainability and client retention.

Cash Flow Management

Strong cash flow management with high free cash flow growth enhances Gendai's ability to reinvest in business operations and withstand economic fluctuations.

Balance Sheet Strength

A strong balance sheet with low leverage provides Gendai Agency Inc. with financial stability, enabling it to pursue growth opportunities without significant financial risk.

Negative Factors

Profit Margin

While profitability is improving, a relatively low net profit margin may limit Gendai's ability to generate significant returns, impacting long-term financial performance.

Industry Competition

High competition in digital marketing could pressure Gendai's pricing power and margins, challenging its ability to maintain market share and profitability over time.

Employee Base

A relatively small employee base may limit Gendai's capacity to scale operations quickly, potentially impacting its ability to meet growing client demands efficiently.

Gendai Agency Inc. Business Overview & Revenue Model

Company Description

Gendai Agency Inc. engages in planning and production of advertising and promotion services in Japan. The company provides advertising services, online and mass media advertising, newspaper flyers, and sales promotions. Its services include video and web content production; and research and development. The company also engages in the planning and management of store events; and real estate activities. The company was incorporated in 1995 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Gendai Agency generates revenue through multiple streams, primarily from its service offerings in digital marketing and media management. The company's core revenue model is based on project-based fees and retainer agreements with clients for ongoing services such as social media campaigns, content development, and digital strategy consulting. Additionally, Gendai Agency capitalizes on performance-based incentives that allow it to earn commissions based on the success of marketing campaigns. Significant partnerships with technology platforms and media outlets also contribute to its earnings by enabling better access to advertising space and advanced analytics tools, enhancing the effectiveness of client campaigns and fostering long-term client relationships.

Gendai Agency Inc. Financial Statement Overview

Summary

Gendai Agency Inc. presents a solid financial position with consistent revenue growth, improved profitability, and strong cash flow generation. The low leverage and high equity ratio provide financial stability, while the effective cash flow management supports operational resilience.

Income Statement

Gendai Agency Inc. has shown a consistent improvement in profitability with a gross profit margin of 31.5% and a net profit margin of 4.7% for the latest year. The revenue growth rate of 3.5% from the previous year indicates steady growth. EBIT and EBITDA margins have also improved, reflecting better operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.16, indicating low financial leverage. The return on equity stands at 8.5%, showing effective use of equity. The equity ratio of 73.1% suggests a solid equity base relative to total assets, enhancing financial stability.

Cash Flow

Gendai Agency Inc. demonstrates strong cash flow management with a significant free cash flow growth rate of 163.6%. The operating cash flow to net income ratio of 1.42 and a free cash flow to net income ratio of 1.35 highlight robust cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.78B	7.68B	7.42B	7.54B	7.43B	7.25B
Gross Profit	2.56B	2.42B	2.19B	2.28B	2.13B	1.75B
EBITDA	666.50M	514.00M	316.00M	458.00M	355.00M	-202.00M
Net Income	457.00M	358.00M	125.00M	369.00M	247.00M	-310.00M
Balance Sheet
Total Assets	5.17B	5.75B	5.43B	6.06B	6.25B	6.31B
Cash, Cash Equivalents and Short-Term Investments	3.22B	3.69B	3.44B	3.73B	3.98B	4.06B
Total Debt	537.00M	674.00M	562.00M	849.00M	937.00M	862.00M
Total Liabilities	1.29B	1.54B	1.34B	1.67B	1.78B	1.59B
Stockholders Equity	3.88B	4.20B	4.08B	4.39B	4.48B	4.72B
Cash Flow
Free Cash Flow	0.00	485.00M	184.00M	289.00M	314.00M	-165.00M
Operating Cash Flow	0.00	510.00M	260.00M	372.00M	359.00M	-114.00M
Investing Cash Flow	0.00	-132.00M	156.00M	-86.00M	224.00M	11.00M
Financing Cash Flow	0.00	-121.00M	-719.00M	-546.00M	-419.00M	-140.00M

Gendai Agency Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 473.00
• 50DMA: Positive
• 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:2411, the sentiment is Positive. The current price of 473 is above the 20-day moving average (MA) of 464.70, above the 50-day MA of 461.36, and above the 200-day MA of 411.05, indicating a bullish trend. The MACD of 3.57 indicates Negative momentum. The RSI at 66.60 is Neutral, neither overbought nor oversold. The STOCH value of 81.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2411.

Gendai Agency Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2411	74 Outperform	¥5.54B	10.96	―	4.65%	5.94%	617.63%
7370	73 Outperform	¥5.90B	11.63	―	5.56%	-9.76%	-24.52%
7036	66 Neutral	¥4.54B	29.38	―	3.02%	16.63%	324.42%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
7044	57 Neutral	¥4.46B	20.03	―	―	42.12%	―
7078	42 Neutral	¥3.38B	-2.58	―	―	-8.67%	-407.35%
7063	40 Underperform	¥3.73B	-2.92	―	―	-83.17%	91.97%