ValueCommerce Co., Ltd. (2491) AI Stock Analysis

• Market Cap: ¥26.27B
• Dividend Yield: 7.29%
• Average Volume (3M): 145.30K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.67
• Revenue Growth: 5.36%
• EPS Growth: 32.46%
• Country: JP
• Employees: 404
• Sector: Communication Services
• Sector Strength: 85
• Industry: Advertising Agencies
• EPS (TTM): 134.85
• Shares Outstanding: 34,471,000
• 10 Day Avg. Volume: 143,830
• 30 Day Avg. Volume: 145,296
• PEG Ratio: 0.13
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.12
• 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: 67 Neutral
• Price Target: ―

ValueCommerce Co., Ltd. exhibits a strong balance sheet with no debt and high equity ratios, contributing positively to its financial stability. However, challenges in revenue growth and a neutral to slightly bearish technical outlook weigh on the stock's performance. Despite these challenges, the stock's valuation is attractive with a low P/E ratio and high dividend yield, making it potentially appealing for income-focused investors.

ValueCommerce Co., Ltd. Business Overview & Revenue Model

Company Description

ValueCommerce Co., Ltd. provides marketing solutions in Japan and internationally. The company develops and offers affiliate marketing services, including pay-per-performance advertising services; and Value Point Club, a cash-back program that allows users to shop top brands and earn points for purchases. It also offers STORE's R8, a CRM tool for stores in online shopping malls; Storematch, a service that provides pay-per-click Internet advertising for stores in online shopping malls and manufacturers; and B-Space, an EC operation support tool for e-commerce operators. The company was formerly known as Transpacific Inc. and changed its name to ValueCommerce Co., Ltd. in November 1999. The company was incorporated in 1996 and is based in Tokyo, Japan. ValueCommerce Co., Ltd. operates as a subsidiary of Z Holdings Corporation.

How the Company Makes Money

ValueCommerce Co., Ltd. primarily generates revenue through its affiliate marketing services, which involve connecting advertisers with publishers. The company earns money by taking a commission on sales or actions generated through its network of affiliates. This performance-based model ensures that ValueCommerce profits proportionally with the success of the campaigns it facilitates. Additionally, the company may generate revenue through partnerships with major e-commerce platforms and retailers, further extending its reach and effectiveness in digital marketing. This diversified approach allows ValueCommerce to sustain its profitability by capitalizing on the growing demand for online marketing solutions.

ValueCommerce Co., Ltd. Financial Statement Overview

Summary

ValueCommerce Co., Ltd. has shown strong balance sheet health with no debt and high equity ratios, suggesting financial stability. The income statement indicates moderate profitability with challenges in revenue growth. The cash flow statement reflects efficient cash generation, though there is room for improvement in operational cash flow growth. Overall, the company is financially sound but faces revenue growth challenges.

Income Statement

ValueCommerce Co., Ltd. shows a mixed performance in terms of profitability and revenue growth. The gross profit margin for 2024 is 32.82%, and the net profit margin is 9.39%, indicating a moderate level of profitability. However, the revenue growth has been negative over the recent period, with a decline of 3.88% from 2023 to 2024, suggesting challenges in maintaining revenue momentum. The EBIT margin stands at 13.68%, and the EBITDA margin is 15.10%, reflecting decent operational efficiency but a decline from previous years.

Balance Sheet

The balance sheet of ValueCommerce Co., Ltd. is strong, characterized by zero debt, which results in a debt-to-equity ratio of 0.00. The company holds a high equity ratio of 65.48% for 2024, indicating a robust equity base relative to total assets. The return on equity (ROE) is 22.21%, showing effective use of shareholder capital. These factors contribute to a stable financial position with minimal leverage risk.

Cash Flow

The cash flow performance is solid, with a stable free cash flow of ¥3,371 million in 2024. Although the free cash flow growth rate is 9.66%, there has been a slight decrease in operating cash flow compared to 2023. The operating cash flow to net income ratio is 1.21, indicating that the company generates ample cash relative to its net income. The free cash flow to net income ratio stands at 1.18, underscoring efficient cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
30.94B	30.41B	29.40B	35.71B	33.56B	29.17B
	Gross Profit
9.77B	9.98B	10.15B	12.83B	12.88B	11.58B
	EBIT
3.90B	4.16B	5.23B	8.25B	7.91B	6.22B
	EBITDA
4.86B	4.59B	5.70B	8.72B	8.70B	7.32B
	Net Income Common Stockholders
3.00B	2.85B	3.40B	5.81B	3.26B	4.27B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.78B	11.78B	21.53B	20.18B	15.50B	11.42B
	Total Assets
19.99B	19.59B	28.35B	28.20B	23.94B	22.47B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-11.78B	-11.78B	-21.53B	-20.18B	-15.50B	-11.42B
	Total Liabilities
6.71B	6.73B	5.89B	7.38B	7.37B	7.80B
	Stockholders Equity
13.28B	12.86B	22.46B	20.82B	16.56B	14.68B
Cash Flow		Free Cash Flow
3.25B	3.37B	3.07B	6.43B	4.98B	5.16B
	Operating Cash Flow
3.42B	3.46B	3.50B	6.77B	5.40B	5.89B
	Investing Cash Flow
-1.30B	-708.00M	-404.00M	-367.00M	34.00M	-1.21B
	Financing Cash Flow
-12.30B	-12.51B	-1.75B	-1.72B	-1.35B	-1.13B

ValueCommerce Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 796.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2491, the sentiment is Negative. The current price of 796 is above the 20-day moving average (MA) of 793.65, above the 50-day MA of 782.98, and below the 200-day MA of 976.46, indicating a neutral trend. The MACD of 6.64 indicates Negative momentum. The RSI at 50.11 is Neutral, neither overbought nor oversold. The STOCH value of 61.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2491.

ValueCommerce Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6535	81 Outperform	¥35.15B	12.90		3.62%	14.35%	-5.35%
6045	77 Outperform	¥8.58B	12.64		2.14%	17.22%	96.65%
7068	74 Outperform	¥13.26B	15.11		1.89%	2.79%	194.48%
2491	67 Neutral	¥26.27B	5.90		7.29%	5.36%	32.46%
2389	64 Neutral	¥18.66B	8.32		5.17%	-9.56%	127.51%
2461	63 Neutral	¥27.96B	21.61		4.50%	-5.88%	15.11%
Sector *	61 Neutral	$14.55B	5.81	-3.99%	6.41%	2.71%	-31.56%

ValueCommerce Co., Ltd. Corporate Events

ValueCommerce Announces Absorption-Type Merger with BUZMA Inc.

ValueCommerce Co., Ltd. has announced a resolution to merge its wholly owned subsidiary, BUZMA Inc., into the parent company through an absorption-type merger effective July 1, 2025. This strategic move aims to expand ValueCommerce’s Marketing Solution Business by streamlining decision-making and resource allocation, thereby enhancing its position in the influencer marketing sector.

ValueCommerce Revises FY2025 Earnings Forecasts Amid Strategic Adjustments

ValueCommerce Co., Ltd. has revised its earnings forecasts for FY2025, reflecting a significant reduction in expected operating income and net sales. The adjustments are primarily due to changes in accounting for compensation and settlement payments related to a terminated transaction agreement with LY Corporation. This revision indicates a strategic shift in how the company records certain revenues, potentially impacting its financial performance and stakeholder expectations.

ValueCommerce Reports Q1 FY2025 Financial Results with Mixed Performance

ValueCommerce Co., Ltd. reported its consolidated financial results for Q1 of FY2025, highlighting a 6.9% increase in net sales compared to the previous year. Despite this growth, the company experienced a decline in operating and ordinary income by 19.8% and 20.8% respectively. However, net income attributable to owners of the parent rose by 15.3%. The company also revised its earnings forecast for the fiscal year ending December 31, 2025, indicating a significant decrease in operating and ordinary income, while projecting an increase in net income attributable to owners.

ValueCommerce Completes Treasury Stock Disposition

ValueCommerce Co., Ltd. announced the completion of payment for the disposition of treasury stock as restricted shares, a decision made by its Board of Directors. This move involves the allocation of 20,230 common shares at 873 yen per share, totaling 17,660,790 yen, to six directors, three executive officers, and five employees, potentially impacting the company’s equity structure and aligning stakeholder interests.

ValueCommerce Announces Treasury Stock Disposition for Incentive Alignment

ValueCommerce Co., Ltd. announced the disposition of 20,230 treasury shares as part of a restricted share-based remuneration plan for directors, executive officers, and employees. This move aims to align the interests of the company’s leadership with its performance goals and shareholder value, enhancing corporate value through incentivized performance.

ValueCommerce Announces Financial Statement Corrections Due to Accounting Error

ValueCommerce Co., Ltd. announced corrections to its financial statements due to an accounting error in accounts receivable, affecting the reported ‘total assets.’ This adjustment has implications for the company’s financial accuracy and integrity, although it does not significantly alter its overall financial performance metrics for the fiscal year ended December 31, 2024. The correction underscores the company’s commitment to accurate financial reporting, which is crucial for maintaining stakeholder trust.

ValueCommerce Announces Corrections to 2024 Financial Results

ValueCommerce Co., Ltd. has announced corrections to its consolidated financial results for the fiscal year ended December 31, 2024, due to discovered errors in the accounting treatment of accounts receivable. This correction impacts various financial metrics, including ‘notes and accounts receivable-trade’ and ‘current liabilities,’ potentially affecting stakeholders’ understanding of the company’s financial health and operational performance.

ValueCommerce Announces Board of Directors Changes

ValueCommerce Co., Ltd. has announced an upcoming change in its board of directors as decided in a recent board meeting. The final decision on the directors’ election will be made at the 29th Ordinary General Meeting of Shareholders scheduled for March 24, 2025. This move could impact the company’s leadership structure and future strategic decisions, potentially influencing its market position and stakeholder interests.

ValueCommerce Announces Changes in Relationship with LY Corporation

ValueCommerce Co., Ltd. announced changes involving its controlling shareholder, LY Corporation, which indirectly owns 28.18% of its voting rights. As LY Corporation shifts its business strategy to develop new services in-house, the existing transaction agreement for services like StoreMatch and STORE’s R ∞ will end in July 2025. ValueCommerce will support the transition to LY Corporation’s new services, while maintaining its independence and decision-making autonomy.