Brass Corp. (2424) AI Stock Analysis

• Market Cap: ¥4.00B
• Dividend Yield: 1.13%
• Average Volume (3M): 12.24K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.53
• Revenue Growth: 1.35%
• EPS Growth: 17.94%
• Country: JP
• Employees: 563
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Personal Products & Services
• EPS (TTM): 32.71
• Shares Outstanding: 5,709,300
• 10 Day Avg. Volume: 14,830
• 30 Day Avg. Volume: 12,239
• PEG Ratio: 0.18
• Price to Book (P/B): 0.95
• 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: ¥750.00
• Price Target Upside: 6.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥750.00 ▲(6.69%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 leading manufacturer and distributor in the metals industry, specializing in the production and supply of high-quality brass products. The company operates across multiple sectors, including construction, automotive, and electronics, providing essential materials that meet the diverse needs of its clients. Brass Corp. prides itself on innovation and sustainability, ensuring that its products are not only durable but also environmentally friendly.

How the Company Makes Money

Brass Corp. generates revenue through the manufacturing and sale of brass products, which include sheets, rods, and fittings, catering to various industrial applications. The company capitalizes on long-term contracts and partnerships with construction firms, automotive manufacturers, and electronics companies to ensure a steady demand for its products. Brass Corp.'s revenue model is heavily reliant on efficient production processes and a well-established supply chain network, enabling them to offer competitive pricing. Additionally, the company invests in research and development to maintain product quality and introduce new, innovative solutions that align with market trends and customer needs.

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: 703.00
• 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 703 is above the 20-day moving average (MA) of 696.80, above the 50-day MA of 658.78, and above the 200-day MA of 590.69, indicating a bullish trend. The MACD of 13.42 indicates Positive momentum. The RSI at 64.96 is Neutral, neither overbought nor oversold. The STOCH value of 25.05 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	¥23.06B	17.67		3.06%	-1.20%	-30.27%
9160	74 Outperform	¥7.97B	9.90		―	6.07%	-20.19%
2424	74 Outperform	¥4.00B	9.35		1.13%	1.35%	17.94%
2196	71 Outperform	¥3.27B	10.32		―	-1.73%	-0.91%
Sector *	63 Neutral	$17.10B	10.79	-8.01%	2.94%	1.62%	-25.73%
2437	45 Neutral	¥3.22B	―		1.71%	-23.47%	-100.94%
6181	45 Neutral	¥3.50B	278.94		―	5.55%	-24579.42%