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Unicafe Inc. (JP:2597)
:2597
Japanese Market

Unicafe Inc. (2597) AI Stock Analysis

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JP

Unicafe Inc.

(2597)

Rating:64Neutral
Price Target:
Unicafe Inc. shows strong financial performance with robust revenue and profitability growth, countered by concerns over declining free cash flow and historical volatility. Technical indicators reflect potential short-term weakness, while valuation metrics suggest the stock might be overvalued. Continued focus on operational efficiency and cash flow management is essential for maintaining growth and stability.

Unicafe Inc. (2597) vs. iShares MSCI Japan ETF (EWJ)

Unicafe Inc. Business Overview & Revenue Model

Company DescriptionUnicafe Inc. (2597) is a Japan-based company primarily engaged in the manufacture and sale of coffee products. The company operates in various sectors including the production and distribution of roasted coffee beans, instant coffee, and liquid coffee products. Unicafe is committed to delivering high-quality coffee solutions to its consumers and businesses, ensuring a rich coffee experience across its diverse product offerings.
How the Company Makes MoneyUnicafe Inc. generates revenue primarily through the sale of its coffee products, which include roasted coffee beans, instant coffee, and liquid coffee solutions. The company distributes its products through multiple channels including retail, wholesale, and direct sales to businesses such as cafes and restaurants. Additionally, Unicafe engages in strategic partnerships and collaborations with other businesses and distributors to expand its market reach and enhance its brand presence. These partnerships often involve co-branding initiatives, joint product development, and distribution agreements that help boost sales and revenue. Furthermore, the company's focus on maintaining quality and innovation in its product lines aids in retaining customer loyalty and attracting new customers, contributing to its financial success.

Unicafe Inc. Financial Statement Overview

Summary
Unicafe Inc. demonstrates robust financial health with revenue growth, improved profitability, and a stable balance sheet. The company effectively manages its debt with low leverage and high equity. However, declining free cash flow and past financial volatility require cautious optimism.
Income Statement
75
Positive
Unicafe Inc. shows a consistent growth trajectory with a revenue growth from 2023 to 2024 and improving profitability metrics. The Gross Profit Margin stands at 21.9%, and the Net Profit Margin is 3.5%. The EBIT Margin improved significantly to 4.2% from 3.1% the previous year, indicating enhanced operational efficiency. However, historical fluctuations in revenue and net income highlight potential volatility in performance.
Balance Sheet
70
Positive
The company maintains a strong equity position with a Debt-to-Equity Ratio of 0.28, indicating low leverage and financial stability. Return on Equity (ROE) improved to 7.0%, and the Equity Ratio is strong at 46%. While Unicafe Inc. shows financial stability, a high Debt-to-Equity ratio and liabilities in previous years suggest careful monitoring of leverage is needed.
Cash Flow
65
Positive
There is a notable decline in Free Cash Flow Growth Rate, with a decrease to $383M from $803M the previous year, suggesting reduced efficiency in generating cash flow. The Operating Cash Flow to Net Income Ratio is 1.62, highlighting good cash generation relative to net income. Nonetheless, the declining Free Cash Flow raises concerns about future liquidity and investment capacity.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
12.94B12.36B10.71B15.22B14.61B
Gross Profit
2.84B2.67B2.21B2.40B2.73B
EBIT
538.35M385.39M-49.33M54.03M-243.54M
EBITDA
991.39M916.43M341.30M384.44M-1.93B
Net Income Common Stockholders
457.77M442.89M-190.75M294.45M-2.23B
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.56B4.01B3.86B4.80B4.23B
Total Assets
14.17B13.92B13.91B14.70B14.55B
Total Debt
1.83B2.56B3.28B4.01B4.39B
Net Debt
-1.73B-1.45B-575.63M-791.77M159.85M
Total Liabilities
7.65B7.76B8.10B8.61B8.65B
Stockholders Equity
6.52B6.16B5.82B6.10B5.90B
Cash FlowFree Cash Flow
382.57M802.99M-62.56M-733.95M-95.60M
Operating Cash Flow
740.24M1.41B437.14M466.74M371.80M
Investing Cash Flow
-353.22M-426.78M-543.20M595.36M-111.87M
Financing Cash Flow
-832.19M-832.37M-835.08M-491.73M1.04B

Unicafe Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price916.00
Price Trends
50DMA
904.32
Positive
100DMA
901.78
Positive
200DMA
915.55
Positive
Market Momentum
MACD
2.61
Negative
RSI
66.53
Neutral
STOCH
88.89
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2597, the sentiment is Positive. The current price of 916 is above the 20-day moving average (MA) of 910.40, above the 50-day MA of 904.32, and above the 200-day MA of 915.55, indicating a bullish trend. The MACD of 2.61 indicates Negative momentum. The RSI at 66.53 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2597.

Unicafe Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥13.91B15.00
1.80%4.25%-18.59%
68
Neutral
¥13.87B14.80
2.22%5.15%-13.31%
65
Neutral
$8.89B15.014.75%203.76%3.54%-2.49%
64
Neutral
¥12.24B22.64
0.87%10.19%38.34%
60
Neutral
¥13.34B25.04
0.31%-2.04%
57
Neutral
¥13.36B38.02
2.43%1.59%-57.66%
55
Neutral
¥12.11B208.06
1.38%10.29%-52.95%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2597
Unicafe Inc.
916.00
6.68
0.73%
JP:2814
Sato Foods Industries Co., Ltd.
2,330.00
188.51
8.80%
JP:2818
Pietro Co., Ltd.
1,743.00
-34.85
-1.96%
JP:2901
Ishigaki Foods Co., Ltd.
637.00
467.49
275.79%
JP:2903
Shinobu Foods Products Co., Ltd.
1,214.00
320.50
35.87%
JP:2937
St.Cousair CO. LTD.
1,442.00
-661.06
-31.43%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.