Gendai Agency Inc. (2411) AI Stock Analysis

• Market Cap: ¥4.97B
• Dividend Yield: 4.65%
• Average Volume (3M): 67.25K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.39
• Revenue Growth: 5.98%
• EPS Growth: 421.55%
• Country: JP
• Employees: 215
• Sector: Communication Services
• Sector Strength: 71
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 12,300,000
• 10 Day Avg. Volume: 159,300
• 30 Day Avg. Volume: 67,246
• PEG Ratio: 0.25
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.04
• 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: 79 Outperform
• Price Target: ¥490.00 ▲(14.22%Upside)

Gendai Agency Inc. scores well due to its strong financial performance, characterized by robust cash flow and low leverage, which ensures financial stability. The technical analysis indicates positive momentum, though the RSI suggests caution as the stock approaches overbought levels. The valuation is attractive with a reasonable P/E ratio and a high dividend yield, making it appealing for income-focused investors.

Gendai Agency Inc. Business Overview & Revenue Model

Company Description

Gendai Agency Inc. (2411) is a dynamic company that operates primarily in the digital marketing and advertising sectors. It specializes in providing innovative marketing solutions, including social media management, content creation, and brand strategy development. By leveraging advanced technology and data analytics, Gendai Agency helps businesses enhance their online presence and engage effectively with their target audiences.

How the Company Makes Money

Gendai Agency Inc. generates revenue through multiple streams, primarily by offering a variety of marketing services on a contractual basis to businesses in various industries. Key revenue streams include service fees for marketing campaigns, subscription models for ongoing digital marketing support, and performance-based incentives tied to campaign success. Additionally, the agency may establish significant partnerships with technology providers and media platforms, which can enhance its service offerings and create avenues for collaborative revenue generation. The company's focus on delivering measurable results for clients helps to foster long-term relationships, ensuring repeat business and a steady income flow.

Gendai Agency Inc. Financial Statement Overview

Summary

Gendai Agency Inc. exhibits a strong financial profile with stable revenue growth, improved profitability, and robust cash flow generation. The company's low leverage and high equity ratio enhance its financial stability, while effective cost management and operational efficiency drive profitability. Strong cash flow metrics underscore the company's capacity to sustain operations and invest in growth opportunities. While the financial performance is commendable, maintaining these positive trends will be crucial for future success.

Income Statement

Gendai Agency Inc. has demonstrated solid revenue growth, with a notable increase from ¥7,419 million to ¥7,679 million in the latest fiscal year. The gross profit margin improved to 31.5% from 29.6%, indicating better cost management. The net profit margin also improved significantly to 4.7%, reflecting enhanced profitability. EBIT and EBITDA margins have increased to 5.5% and 6.7%, respectively, showing strength in operational efficiency.

Balance Sheet

The company maintains a strong financial position with a debt-to-equity ratio of 0.16, suggesting low financial leverage and risk. The return on equity (ROE) improved significantly to 8.5%, reflecting effective use of equity capital. The equity ratio stands robust at 73.1%, indicating a substantial equity buffer against liabilities, enhancing financial stability.

Cash Flow

Gendai Agency Inc. has demonstrated strong free cash flow generation, with a growth rate of 163.6% over the previous year. The operating cash flow to net income ratio is 1.42, highlighting effective conversion of earnings into cash. The free cash flow to net income ratio of 1.35 indicates strong cash flow relative to profits, supporting ongoing operational needs and potential investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.53B	7.68B	7.42B	7.54B	7.43B	7.25B
Gross Profit	2.29B	2.42B	2.19B	2.28B	2.13B	1.75B
EBITDA	384.50M	514.00M	316.00M	458.00M	355.00M	-202.00M
Net Income	225.00M	358.00M	125.00M	369.00M	247.00M	-310.00M
Balance Sheet
Total Assets	5.70B	5.75B	5.43B	6.06B	6.25B	6.31B
Cash, Cash Equivalents and Short-Term Investments	3.64B	3.69B	3.44B	3.73B	3.98B	4.06B
Total Debt	718.00M	674.00M	562.00M	849.00M	937.00M	862.00M
Total Liabilities	1.60B	1.54B	1.34B	1.67B	1.78B	1.59B
Stockholders Equity	4.11B	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: 429.00
• 50DMA: Positive
• 100DMA: Positive
• 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:2411, the sentiment is Positive. The current price of 429 is above the 20-day moving average (MA) of 410.85, above the 50-day MA of 397.42, and above the 200-day MA of 365.86, indicating a bullish trend. The MACD of 9.60 indicates Negative momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 53.41 is Neutral, 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	79 Outperform	¥4.97B	11.24		4.65%	5.98%	421.55%
Sector *	75 Outperform	€58.02B	17.27	30.72%	2.21%	7.95%	56.80%
7370	73 Outperform	¥6.07B	10.84		4.57%	-15.87%	-31.74%
7036	66 Neutral	¥3.99B	36.49		3.21%	6.89%	187.15%
7078	56 Neutral	¥5.40B	12.72		―	-8.62%	-440.78%
7044	53 Neutral	¥4.49B	47.36		―	59.48%	―
7063	48 Neutral	¥6.07B	―		―	-88.51%	-29.38%