Brass Corp. (2424) AI Stock Analysis

• Market Cap: ¥3.95B
• Dividend Yield: 1.14%
• Average Volume (3M): 7.08K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.54
• Revenue Growth: 1.35%
• EPS Growth: 17.94%
• Country: JP
• Employees: 563
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Personal Products & Services
• EPS (TTM): 32.71
• Shares Outstanding: 5,709,300
• 10 Day Avg. Volume: 10,150
• 30 Day Avg. Volume: 7,083
• PEG Ratio: 4.93
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.33
• 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: 74 Outperform
• Price Target: ¥750.00 ▲(7.14%Upside)

The stock's overall score is driven by strong technical indicators and attractive valuation metrics. However, financial performance concerns, particularly around profitability and cash flow, temper the outlook. Investors should remain cautious of potential overbought conditions due to high RSI.

Brass Corp. Business Overview & Revenue Model

Company Description

Brass Corp. (2424) is a diversified industrial company specializing in the manufacturing and distribution of brass products. The company operates primarily in the metals industry, supplying high-quality brass materials for various applications, including plumbing, electrical, and industrial machinery. Brass Corp. is recognized for its dedication to innovation, sustainability, and providing customizable solutions to meet the specific needs of its clients.

How the Company Makes Money

Brass Corp. generates revenue through the sale of brass products, including sheets, rods, and fittings, to a diverse customer base across multiple industries. The company capitalizes on long-term contracts with manufacturers and distributors, ensuring stable and recurring income streams. Additionally, Brass Corp. benefits from strategic partnerships with suppliers and technology firms, enhancing its production capabilities and competitive edge in the market. The company also leverages its commitment to sustainability, catering to eco-conscious clients and gaining access to green subsidies and incentives.

Brass Corp. Financial Statement Overview

Summary

Brass Corp. shows revenue growth but struggles with profitability and cash flow. The balance sheet is stable but high leverage poses risks.

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	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	12.69B	12.73B	13.26B	11.42B	9.34B	7.99B
Gross Profit	8.49B	8.52B	8.93B	7.67B	6.11B	5.09B
EBITDA	1.07B	1.24B	1.57B	1.67B	1.04B	-380.43M
Net Income	156.03M	275.05M	722.13M	734.76M	169.61M	-1.18B
Balance Sheet
Total Assets	11.53B	10.81B	11.14B	11.76B	11.68B	12.32B
Cash, Cash Equivalents and Short-Term Investments	2.44B	1.64B	2.35B	2.59B	2.39B	1.98B
Total Debt	4.28B	4.25B	4.21B	5.25B	5.60B	6.45B
Total Liabilities	7.73B	7.03B	7.51B	8.78B	9.19B	10.00B
Stockholders Equity	3.80B	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: 700.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 700 is above the 20-day moving average (MA) of 665.75, above the 50-day MA of 635.64, and above the 200-day MA of 582.31, indicating a bullish trend. The MACD of 18.84 indicates Negative momentum. The RSI at 73.65 is Negative, neither overbought nor oversold. The STOCH value of 76.30 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	¥22.83B	17.47		3.09%	-1.20%	-30.27%
2424	74 Outperform	¥3.95B	9.31		1.14%	1.35%	17.94%
9160	69 Neutral	¥7.82B	9.62		―	6.07%	-20.19%
2196	65 Neutral	¥2.99B	9.38		―	-1.73%	-0.91%
Sector *	62 Neutral	$16.85B	11.50	-7.38%	2.96%	1.59%	-23.36%
6181	48 Neutral	¥3.50B	278.94		―	5.55%	-24579.42%
2437	45 Neutral	¥3.27B	―		1.71%	-23.47%	-100.94%