Autowave Co., Ltd. (2666) AI Stock Analysis

• Market Cap: ¥2.24B
• Dividend Yield: 1.92%
• Average Volume (3M): 63.26K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.35
• Revenue Growth: 11.96%
• EPS Growth: 30.75%
• Country: JP
• Employees: 201
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 3.38
• Shares Outstanding: 14,451,000
• 10 Day Avg. Volume: 64,400
• 30 Day Avg. Volume: 63,256
• PEG Ratio: 3.72
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 15.68
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥169.00 ▲(6.29% Upside)

The overall stock score is primarily driven by a strong valuation, indicating potential undervaluation with a low P/E ratio and reasonable dividend yield. Financial performance shows solid revenue growth and improved leverage, though profitability and cash flow efficiency could be enhanced. Technical analysis indicates bearish momentum, which slightly offsets the positive valuation and financial performance.

Autowave Co., Ltd. Business Overview & Revenue Model

Company Description

AUTOWAVE Co., Ltd. engages in the sales of automobile supplies and related services in Japan. The company offers tires and wheels, vehicle inspection/sheet metal, oil batteries, and other car supplies. It also offers car navigation, rear monitor, back camera, and terrestrial digital tuner. In addition, the company sells and installs speakers, woofers, and power amplifiers. Further, it provides body coat, car film, window glass water repellent coat, wheel coat, headlight coat, and safety products, as well as purchases and sells new and used cars. AUTOWAVE Co., Ltd. was incorporated in 1960 and is headquartered in Chiba, Japan.

How the Company Makes Money

Autowave Co., Ltd. generates revenue through multiple streams, primarily by selling automotive electronic components and software to automotive manufacturers and suppliers. The company has established key partnerships with major automotive OEMs (Original Equipment Manufacturers) and Tier 1 suppliers, allowing it to secure long-term contracts and consistent orders. Additionally, Autowave offers research and development services, which provide another revenue stream by creating tailored solutions for clients. The growing trend towards electric vehicles and autonomous driving technologies further contributes to its earnings, as demand for its innovative products continues to rise in response to industry advancements.

Autowave Co., Ltd. Financial Statement Overview

Summary

Autowave Co., Ltd. demonstrates solid revenue growth and improved leverage ratios. The company maintains operational efficiency with stable gross margins, though net profitability could be enhanced. The balance sheet shows a stronger equity position, reducing financial risk. Cash flow remains stable, though recent declines in Free Cash Flow suggest the need for improved cash efficiency.

Income Statement

Autowave Co., Ltd. has demonstrated steady revenue growth with an increase from 7,063 million to 8,871 million over the past five years. The Gross Profit Margin has been stable around 31-32%, indicating efficient cost management. However, the Net Profit Margin remains modest at approximately 3%, suggesting room for improvement in net profitability. EBIT and EBITDA margins are consistent, showing operational efficiency. The company shows a positive revenue growth trajectory, but profitability margins indicate potential areas for enhancement.

Balance Sheet

The company's Debt-to-Equity Ratio has improved over the years, moving from 0.88 to 0.38, indicating reduced leverage and financial risk. Return on Equity (ROE) is stable around 6-7%, reflecting moderate profitability for shareholders. The Equity Ratio has increased to about 55%, enhancing asset financing through equity rather than debt. While the balance sheet shows strengthened equity positions, there is still potential risk in terms of the overall low ROE.

Cash Flow

Operating Cash Flow has shown fluctuations but remains positive, indicating good cash generation from operations. Free Cash Flow has declined in the latest year, with a reduction in Free Cash Flow to Net Income Ratio from 1.74 to 0.51, suggesting decreased cash efficiency. The Operating Cash Flow to Net Income Ratio remains above 1, indicating solid cash flow relative to net income. The cash flow statement indicates stability with some room for improvement in Free Cash Flow generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.87B	8.42B	7.99B	7.42B	7.06B
Gross Profit	2.78B	2.60B	2.68B	2.41B	2.35B
EBITDA	623.33M	668.83M	645.61M	492.14M	454.16M
Net Income	268.75M	263.13M	259.57M	141.06M	142.04M
Balance Sheet
Total Assets	7.52B	7.40B	7.46B	7.57B	8.03B
Cash, Cash Equivalents and Short-Term Investments	529.69M	650.70M	606.74M	764.18M	1.13B
Total Debt	1.58B	1.78B	1.98B	2.23B	2.83B
Total Liabilities	3.38B	3.49B	3.78B	4.12B	4.68B
Stockholders Equity	4.14B	3.91B	3.68B	3.45B	3.35B
Cash Flow
Free Cash Flow	136.41M	396.95M	207.97M	367.55M	458.84M
Operating Cash Flow	325.10M	537.51M	367.75M	560.33M	571.10M
Investing Cash Flow	-203.26M	-260.97M	-245.65M	-292.09M	-186.81M
Financing Cash Flow	-242.84M	-232.58M	-279.55M	-628.46M	-265.00M

Autowave Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 159.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2666, the sentiment is Positive. The current price of 159 is above the 20-day moving average (MA) of 157.35, below the 50-day MA of 160.98, and above the 200-day MA of 146.36, indicating a neutral trend. The MACD of -1.43 indicates Negative momentum. The RSI at 51.91 is Neutral, neither overbought nor oversold. The STOCH value of 57.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2666.

Autowave Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9832	75 Outperform	¥118.93B	11.99	7.75%	3.81%	17.43%	248.12%
2674	74 Outperform	¥25.34B	11.58	―	4.12%	8.63%	-3.75%
2666	67 Neutral	¥2.24B	7.63	―	1.92%	11.96%	30.75%
2751	64 Neutral	¥40.96B	22.88	―	0.26%	18.32%	-18.02%
2681	64 Neutral	¥64.45B	18.77	―	2.12%	6.48%	-38.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3059	50 Neutral	¥4.07B	-4.79	―	2.39%	-3.69%	-11429.88%