Unicafe Inc. (2597) AI Stock Analysis

• Market Cap: ¥12.24B
• Dividend Yield: 0.87%
• Average Volume (3M): 3.02K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.07
• Revenue Growth: 10.19%
• EPS Growth: 38.34%
• Country: JP
• Employees: 200
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Packaged Foods
• EPS (TTM): 10.08
• Shares Outstanding: 13,869,200
• 10 Day Avg. Volume: 3,180
• 30 Day Avg. Volume: 3,023
• PEG Ratio: 1.24
• Price to Book (P/B): 1.87
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• 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. Business Overview & Revenue Model

Company Description

Unicafe 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 Money

Unicafe 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.94B	12.36B	10.71B	15.22B	14.61B
	Gross Profit
2.84B	2.67B	2.21B	2.40B	2.73B
	EBIT
538.35M	385.39M	-49.33M	54.03M	-243.54M
	EBITDA
991.39M	916.43M	341.30M	384.44M	-1.93B
	Net Income Common Stockholders
457.77M	442.89M	-190.75M	294.45M	-2.23B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.56B	4.01B	3.86B	4.80B	4.23B
	Total Assets
14.17B	13.92B	13.91B	14.70B	14.55B
	Total Debt
1.83B	2.56B	3.28B	4.01B	4.39B
	Net Debt
-1.73B	-1.45B	-575.63M	-791.77M	159.85M
	Total Liabilities
7.65B	7.76B	8.10B	8.61B	8.65B
	Stockholders Equity
6.52B	6.16B	5.82B	6.10B	5.90B
Cash Flow		Free Cash Flow
382.57M	802.99M	-62.56M	-733.95M	-95.60M
	Operating Cash Flow
740.24M	1.41B	437.14M	466.74M	371.80M
	Investing Cash Flow
-353.22M	-426.78M	-543.20M	595.36M	-111.87M
	Financing Cash Flow
-832.19M	-832.37M	-835.08M	-491.73M	1.04B

Unicafe Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 918.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 918 is above the 20-day moving average (MA) of 911.30, above the 50-day MA of 905.02, and above the 200-day MA of 915.62, indicating a bullish trend. The MACD of 3.02 indicates Negative momentum. The RSI at 66.33 is Neutral, neither overbought nor oversold. The STOCH value of 90.30 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2814	71 Outperform	¥13.91B	15.00		1.80%	4.25%	-18.59%
2903	68 Neutral	¥13.87B	14.80		2.17%	5.15%	-13.31%
Sector *	65 Neutral	$8.88B	15.05	4.75%	203.76%	3.54%	-2.50%
2597	64 Neutral	¥12.24B	22.64		0.87%	10.19%	38.34%
2818	58 Neutral	¥12.11B	208.06		1.38%	10.29%	-52.95%
2937	57 Neutral	¥13.36B	38.02		2.43%	1.59%	-57.66%
2901	56 Neutral	¥13.34B	25.04		0.31%	-2.04%	―