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

• Market Cap: ¥2.37B
• Dividend Yield: 1.83%
• Average Volume (3M): 54.21K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.39
• Revenue Growth: 9.21%
• EPS Growth: 24.86%
• 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: 40,380
• 30 Day Avg. Volume: 54,213
• 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: ¥159.00
• Price Target Upside: -3.05% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥159.00 ▼(-3.05% Downside)

Autowave Co., Ltd. receives a solid score due to its strong valuation metrics, indicating potential undervaluation and attractive dividend yield, which are significant strengths. The company's financial performance is commendable with growth and reduced financial risk, though there's room for improvement in profitability and cash efficiency. Technical analysis presents a mixed picture, with short-term weakness but longer-term bullishness, slightly impacting the overall score.

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 within the automotive sector. The primary revenue sources include the sale of automotive products such as car accessories, electronic components, and maintenance supplies. Additionally, the company provides car maintenance and repair services, which contribute significantly to its earnings. Key partnerships with automotive manufacturers and suppliers enable Autowave Co., Ltd. to offer a diverse product range and competitive pricing. The company may also engage in the distribution of automotive-related goods, further supporting its revenue model.

Autowave Co., Ltd. Financial Statement Overview

Summary

Autowave Co., Ltd. demonstrates a healthy financial position with 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. Overall, the company is on a positive trajectory with opportunities to optimize profitability and cash generation.

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: 164.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 164 is above the 20-day moving average (MA) of 161.35, above the 50-day MA of 155.18, and above the 200-day MA of 140.05, indicating a bullish trend. The MACD of 2.40 indicates Positive momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 34.39 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
2674	81 Outperform	25.58B	11.73	12.67%	4.12%	8.63%	-3.75%
9832	76 Outperform	123.29B	13.36	6.17%	3.79%	14.83%	62.73%
2666	71 Outperform	¥2.37B	8.03		1.83%	9.21%	24.86%
2751	70 Outperform	40.90B	22.98	12.86%	0.26%	18.32%	-18.02%
2681	63 Neutral	67.77B	19.90	5.02%	1.99%	1.10%	-64.41%
3059	52 Neutral	4.13B	-4.86	-11.83%	2.36%	-1.81%	-5177.46%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%