Brass Corp. (2424) AI Stock Analysis

• Market Cap: ¥3.90B
• Dividend Yield: 1.16%
• Average Volume (3M): 4.55K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.47
• Revenue Growth: 1.35%
• EPS Growth: 17.94%
• Country: JP
• Employees: 563
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Personal Products & Services
• EPS (TTM): 32.71
• Shares Outstanding: 5,709,300
• 10 Day Avg. Volume: 2,710
• 30 Day Avg. Volume: 4,553
• 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: ¥787.00
• Price Target Upside: 14.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥787.00 ▲(14.06% 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. faces mixed financial performance. Strong gross profit margin and stable balance sheet with moderate leverage are positives. However, declining revenue, profitability, and negative free cash flow pose significant challenges.

Income Statement

Brass Corp. has shown a decline in total revenue from 2023 to 2024, with a negative revenue growth rate of -4.03%. The gross profit margin for 2024 is 66.95%, which is strong, but the net profit margin has decreased to 2.16%, indicating reduced profitability. The EBIT margin also declined to 3.57%, and the EBITDA margin is 9.73%, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio for 2024 is 1.12, indicating a moderate level of leverage. The return on equity (ROE) is 7.26%, showing a reasonable return on shareholders' equity. The equity ratio is 35.02%, suggesting a stable capital structure with a decent proportion of equity financing.

Cash Flow

The free cash flow has turned negative in 2024, with a significant decline from the previous year, resulting in a free cash flow growth rate of -167.85%. The operating cash flow to net income ratio is 1.95, which is strong, but the free cash flow to net income ratio is negative, indicating cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.93B	12.73B	13.26B	11.42B	9.34B	7.99B
Gross Profit	8.66B	8.52B	8.93B	7.67B	6.11B	5.09B
EBITDA	1.25B	1.24B	1.57B	1.67B	1.04B	-380.43M
Net Income	275.31M	275.05M	722.13M	734.76M	169.61M	-1.18B
Balance Sheet
Total Assets	11.00B	10.81B	11.14B	11.76B	11.68B	12.32B
Cash, Cash Equivalents and Short-Term Investments	1.87B	1.64B	2.35B	2.59B	2.39B	1.98B
Total Debt	4.12B	4.25B	4.21B	5.25B	5.60B	6.45B
Total Liabilities	7.02B	7.03B	7.51B	8.78B	9.19B	10.00B
Stockholders Equity	3.98B	3.79B	3.63B	2.98B	2.49B	2.32B
Cash Flow
Free Cash Flow	0.00	-625.00M	921.16M	749.71M	1.30B	-173.97M
Operating Cash Flow	0.00	536.00M	1.33B	1.21B	1.46B	790.64M
Investing Cash Flow	0.00	-1.18B	-409.44M	-480.67M	-201.11M	-954.63M
Financing Cash Flow	0.00	-68.08M	-1.18B	-528.15M	-851.58M	1.35B

Brass Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 690.00
• 50DMA: Negative
• 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 690 is below the 20-day moving average (MA) of 690.90, below the 50-day MA of 690.22, and above the 200-day MA of 606.02, indicating a neutral trend. The MACD of 0.48 indicates Positive momentum. The RSI at 51.43 is Neutral, neither overbought nor oversold. The STOCH value of 24.51 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	¥23.68B	18.12		2.98%	-1.20%	-30.27%
9160	73 Outperform	¥8.25B	9.13		―	11.07%	5.85%
2424	72 Outperform	¥3.90B	9.18		1.16%	1.35%	17.94%
Sector *	61 Neutral	$17.92B	12.81	-3.11%	2.97%	1.30%	-14.28%
2196	60 Neutral	¥3.01B	23.79		―	-3.96%	-73.55%
2437	45 Neutral	¥4.02B	―		1.71%	6.32%	87.54%
6181	41 Neutral	¥4.08B	278.94		―	6.32%	-3428.60%