Brass Corp. (2424) AI Stock Analysis

• Market Cap: ¥3.87B
• Dividend Yield: 1.16%
• Average Volume (3M): 10.31K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.51
• Revenue Growth: 1.35%
• EPS Growth: 17.94%
• Country: JP
• Employees: 563
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Personal Products & Services
• EPS (TTM): 32.71
• Shares Outstanding: 5,709,300
• 10 Day Avg. Volume: 5,240
• 30 Day Avg. Volume: 10,306
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥787.00
• Price Target Upside: 14.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥787.00 ▲(14.89% Upside)

Brass Corp.'s stock score is driven by strong technical indicators and reasonable valuation, offset by mixed financial performance. The stock shows positive momentum with a favorable valuation, but financial challenges need addressing.

Brass Corp. Business Overview & Revenue Model

Company Description

Brass Corp. (2424) is a leading manufacturer and distributor in the brass products sector, specializing in high-quality brass fittings, valves, and custom components for various industries including plumbing, HVAC, and automotive. The company is committed to innovation and sustainability, providing durable and reliable products that meet the evolving needs of its customers. With a strong focus on quality control and customer service, Brass Corp. has established itself as a trusted partner in the brass manufacturing landscape.

How the Company Makes Money

Brass Corp. generates revenue primarily through the sale of its brass products to wholesalers, retailers, and direct consumers in various sectors. The company operates on a B2B model, where it supplies bulk orders of brass fittings and components to construction firms and industrial manufacturers. Key revenue streams include product sales, custom manufacturing services, and long-term supply contracts with major industry players. Additionally, Brass Corp. has formed strategic partnerships with distributors and trade organizations, enhancing its market reach and driving sales. The company also invests in research and development to innovate new products, which can lead to increased market demand and higher profit margins.

Brass Corp. Financial Statement Overview

Summary

Brass Corp. demonstrates growth in revenue but faces challenges in profitability and cash generation. While the balance sheet shows stability in equity, high leverage remains a risk. Cash flow concerns highlight the need for improved cash management to sustain operations and support growth.

Income Statement

Brass Corp. shows a volatile yet improving revenue trend, with a notable revenue growth rate from 2020 to 2023. The gross profit margin is strong, indicating efficient cost management, but the net profit margin has significantly declined in the latest year due to reduced net income, impacting profitability. The EBIT and EBITDA margins have also declined, reflecting operational challenges.

Balance Sheet

The balance sheet is relatively stable with a moderate equity ratio, indicating a balanced approach to financing. However, the debt-to-equity ratio remains high, suggesting potential risk from leverage. The return on equity has decreased due to reduced net income, but overall equity remains strong compared to total assets.

Cash Flow

Cash flow analysis reveals a concerning decline in free cash flow due to increased capital expenditures and reduced operating cash flow. The free cash flow to net income ratio is negative, indicating challenges in generating sufficient cash relative to earnings. Operating cash flow has also decreased, affecting liquidity.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	12.73B	13.26B	11.42B	9.34B	7.99B
Gross Profit	8.52B	8.93B	7.67B	6.11B	5.09B
EBITDA	1.24B	1.57B	1.67B	1.04B	-380.43M
Net Income	275.05M	722.13M	734.76M	169.61M	-1.18B
Balance Sheet
Total Assets	10.81B	11.14B	11.76B	11.68B	12.32B
Cash, Cash Equivalents and Short-Term Investments	1.64B	2.35B	2.59B	2.39B	1.98B
Total Debt	4.25B	4.21B	5.25B	5.60B	6.45B
Total Liabilities	7.03B	7.51B	8.78B	9.19B	10.00B
Stockholders Equity	3.79B	3.63B	2.98B	2.49B	2.32B
Cash Flow
Free Cash Flow	-625.00M	921.16M	749.71M	1.30B	-173.97M
Operating Cash Flow	536.00M	1.33B	1.21B	1.46B	790.64M
Investing Cash Flow	-1.18B	-409.44M	-480.67M	-201.11M	-954.63M
Financing Cash Flow	-68.08M	-1.18B	-528.15M	-851.58M	1.35B

Brass Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 685.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2424, the sentiment is Positive. The current price of 685 is below the 20-day moving average (MA) of 688.56, above the 50-day MA of 675.02, and above the 200-day MA of 593.83, indicating a neutral trend. The MACD of 1.26 indicates Positive momentum. The RSI at 51.62 is Neutral, neither overbought nor oversold. The STOCH value of 54.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2424.

Brass Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2198	76 Outperform	¥23.33B	17.85		3.02%	-1.20%	-30.27%
9160	74 Outperform	¥8.02B	8.88		―	6.07%	-20.19%
2424	72 Outperform	¥3.87B	9.11		1.16%	1.35%	17.94%
2196	71 Outperform	¥3.01B	23.79		―	-3.96%	-73.55%
Sector *	61 Neutral	$17.24B	11.48	-5.97%	3.08%	1.37%	-15.54%
2437	45 Neutral	¥3.13B	―		1.71%	6.32%	87.54%
6181	44 Neutral	¥3.42B	278.94		―	6.32%	-3428.60%