Townnews-Sha Co., Ltd. (2481) AI Stock Analysis

• Market Cap: ¥3.84B
• Dividend Yield: 2.84%
• Average Volume (3M): 8.93K
• Price to Earnings (P/E): 9.9
• Beta (1Y): >-0.01
• Revenue Growth: -1.58%
• EPS Growth: -21.00%
• Country: JP
• Employees: 198
• Sector: Communication Services
• Sector Strength: 94
• Industry: Publishing
• EPS (TTM): -0.05
• Shares Outstanding: 5,575,320
• 10 Day Avg. Volume: 2,150
• 30 Day Avg. Volume: 8,926
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ―

Townnews-Sha Co., Ltd. shows strong financial performance with solid revenue growth, profitability, and a strong balance sheet. Technical indicators are mixed, showing bearish momentum but possible oversold conditions. Valuation metrics suggest the stock may be undervalued with a good dividend yield. Despite cash flow volatility, the company's overall financial health is robust.

Positive Factors

Strong Financial Health

A debt-free balance sheet with a high equity ratio indicates financial stability and low leverage risk, ensuring long-term resilience.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market reach and adapt to changing industry dynamics, supporting future profitability.

Profitability

High profit margins indicate effective cost management and operational efficiency, which are crucial for sustaining long-term profitability.

Negative Factors

Cash Flow Volatility

Volatile cash flow can impact the company's ability to invest in growth opportunities and manage operational expenses, posing a risk to financial stability.

Revenue Decline in TTM

A recent decline in revenue could indicate challenges in maintaining growth momentum, potentially affecting future earnings and market position.

Earnings Decline

A significant decline in earnings per share growth suggests potential issues in profitability, which could hinder the company's ability to deliver shareholder value.

Townnews-Sha Co., Ltd. Business Overview & Revenue Model

Company Description

Townnews-Sha Co.,Ltd. engages in the publishing business in Japan. It issues Town News, a local information paper. The company is also involved in the planning, production, and printing of various printed materials, such as postcards, business cards, and shop menu; and offers advertisement placement services. In addition, it publishes commemorative magazines and guidebooks; and plans and operates Websites, which include Political village, a database site introducing all politicians in Kanagawa prefecture and Rare A, a community-based event information site. Townnews-Sha Co.,Ltd. was founded in 1977 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Townnews-Sha Co., Ltd. generates revenue through multiple channels. The primary source of income is derived from the sale of advertising space in its publications and digital platforms, including websites and mobile apps. The company also earns revenue through subscription fees for its newspaper and digital content services. Additionally, Townnews-Sha may engage in partnerships with other media entities and organizations, providing content and media solutions that contribute to its financial earnings. These revenue streams are bolstered by the company's efforts to expand its digital presence and leverage technology to reach a broader audience.

Townnews-Sha Co., Ltd. Financial Statement Overview

Summary

Townnews-Sha Co., Ltd. demonstrates strong financial health with robust profitability and a debt-free balance sheet. The income statement shows strong revenue growth and effective cost management, while the balance sheet indicates financial stability with no debt. However, cash flow volatility in TTM is a minor concern.

Income Statement

Townnews-Sha Co., Ltd. shows strong revenue growth with a 14.74% increase from 2022 to 2023. The company maintains a solid gross profit margin of about 65.8% in TTM and a net profit margin of 12.1% in TTM, indicating efficient cost management. EBITDA margin stands at 16.2%, reflecting healthy operational performance. Despite a slight revenue decrease in TTM compared to the latest annual figure, overall profitability remains robust.

Balance Sheet

The company's balance sheet is exceptionally strong with no debt, resulting in a debt-to-equity ratio of zero. The equity ratio is high at 88.4% for TTM, indicating financial stability and low leverage risk. Return on equity is impressive at 9.1% in TTM, showcasing effective use of shareholders' funds.

Cash Flow

Free cash flow is volatile with no positive growth in TTM due to zero reported cash flow figures. However, previous periods show a positive operating cash flow to net income ratio, highlighting cash generation capabilities. The absence of significant debt and cash flow from financing activities contributes to a stable cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.63B	3.68B	3.74B	3.69B	3.25B	2.94B
Gross Profit	2.40B	2.43B	2.49B	2.40B	2.10B	1.86B
EBITDA	548.78M	623.32M	739.58M	666.26M	495.27M	280.55M
Net Income	406.46M	389.14M	492.58M	430.00M	310.96M	193.36M
Balance Sheet
Total Assets	5.77B	5.79B	5.44B	4.98B	4.54B	4.18B
Cash, Cash Equivalents and Short-Term Investments	2.13B	2.28B	2.03B	1.89B	1.95B	1.72B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	660.29M	683.92M	640.29M	625.28M	607.16M	500.19M
Stockholders Equity	5.11B	5.11B	4.80B	4.35B	3.93B	3.68B
Cash Flow
Free Cash Flow	0.00	387.08M	348.77M	395.19M	363.02M	230.63M
Operating Cash Flow	0.00	400.18M	428.76M	464.85M	411.30M	244.46M
Investing Cash Flow	0.00	235.99M	-361.89M	-418.56M	-222.47M	-24.24M
Financing Cash Flow	0.00	-104.89M	-93.85M	-82.81M	-77.29M	-66.25M

Townnews-Sha Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 696.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2481, the sentiment is Negative. The current price of 696 is below the 20-day moving average (MA) of 712.40, below the 50-day MA of 716.50, and below the 200-day MA of 705.56, indicating a bearish trend. The MACD of -5.52 indicates Positive momentum. The RSI at 45.23 is Neutral, neither overbought nor oversold. The STOCH value of 27.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2481.

Townnews-Sha Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2408	79 Outperform	¥4.77B	20.00		5.45%	4.93%	-28.92%
2481	72 Outperform	¥3.84B	9.87		2.84%	-1.58%	-21.00%
2376	67 Neutral	¥4.42B	21.61		1.90%	8.48%	-35.32%
Sector *	60 Neutral	$47.13B	4.38	-11.40%	4.21%	1.87%	-42.87%
2164	60 Neutral	¥2.51B	69.83		―	5.80%	230.98%
2341	58 Neutral	¥3.96B	147.74		2.98%	0.09%	-848.16%
4833	52 Neutral	¥9.64B	―		―	22.70%	-63.03%