Apple International Co., Ltd. (2788) AI Stock Analysis

• Market Cap: ¥4.87B
• Dividend Yield: 4.45%
• Average Volume (3M): 26.22K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.68
• Revenue Growth: -2.69%
• EPS Growth: -48.36%
• Country: JP
• Employees: 88
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 34.79
• Shares Outstanding: 13,861,400
• 10 Day Avg. Volume: 18,570
• 30 Day Avg. Volume: 26,216
• PEG Ratio: -0.16
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -46.36
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥362.00 ▲(5.85% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven by weak cash generation (negative operating/free cash flow in most recent years) and cooling financial performance, partially offset by an equity-supported balance sheet, neutral-to-slightly-positive technicals, and an attractive valuation with a low P/E and moderate dividend yield.

Positive Factors

Equity-supported balance sheet

Sustained equity accumulation and moderate debt (debt-to-equity ~0.78–0.92) provide durable solvency support. This cushioning reduces short-term distress risk, preserves borrowing capacity for capex or working capital, and helps the firm withstand cyclical demand swings without forcing fire-sales.

Diversified OEM product exposure

A broad product mix (semiconductors, connectors, displays) sold to OEMs and long-term contracts supports stable revenue streams and customer stickiness. Ongoing R&D and scale advantages underpin competitive positioning, making the core business less susceptible to a single-product disruption over the medium term.

Sustained operating profitability

Maintaining positive operating earnings despite recent revenue weakness shows underlying margin capability and cost discipline. Persistent profitability provides retained earnings to fund operations, supports lender confidence, and gives management flexibility to invest selectively or shore up weaker areas over the coming quarters.

Negative Factors

Weak cash generation

Repeated negative operating and free cash flows materially erode liquidity and raise structural funding risk. Over several years this pattern limits the firm's ability to self-fund capex, R&D, or working-capital needs, increases reliance on external financing, and narrows strategic options if conditions worsen.

Recent revenue and EPS contraction

A measurable pullback in revenue and a steep EPS decline signal softening demand or margin pressure. If this trend persists, operating leverage will worsen, margins and cash flow could compress further, and investments in products or customer retention may be constrained, harming medium-term competitiveness.

Meaningful leverage in a cyclical sector

Material leverage in a cyclical industry increases vulnerability to downturns: falling sales and negative cash flow combined with rising debt heighten refinancing and covenant risk. This structural exposure can limit flexibility for R&D or capital allocation and magnify downside in pressured markets.

Apple International Co., Ltd. Business Overview & Revenue Model

Company Description

Apple International Co., Ltd. (2788) is a diversified company primarily engaged in the manufacturing and distribution of electronic components and related products. The company operates in various sectors, including technology, telecommunications, and consumer electronics, focusing on providing high-quality components such as semiconductors, connectors, and display solutions. Apple International aims to serve a global market, catering to the needs of both original equipment manufacturers (OEMs) and end users, leveraging innovation and quality in its product offerings.

How the Company Makes Money

Apple International generates revenue primarily through the sale of electronic components to OEMs and other businesses in the technology and consumer electronics sectors. The company's key revenue streams include the sale of semiconductors, connectors, and display technology, which are essential for various electronic devices. Additionally, Apple International may engage in long-term contracts and partnerships with major manufacturers, ensuring a steady flow of income. The company also benefits from economies of scale and continuous investment in research and development, which enhances its product line and market competitiveness, contributing to its overall earnings.

Apple International Co., Ltd. Financial Statement Overview

Summary

Income statement is mid-range (profitability remains positive but revenue and profits cooled in 2025 vs 2024). Balance sheet is relatively solid with equity support and moderate leverage, but cash flow is a major drag given mostly negative operating cash flow and free cash flow in recent years, increasing funding and liquidity risk.

Income Statement

Revenue has grown materially over the longer run (2022 step-up, continued gains through 2024), but 2025 annual revenue pulled back versus 2024. Profitability has also cooled from the 2022 peak: operating profit and net income declined in 2023–2025 from higher prior levels, suggesting margin pressure and/or a tougher demand environment. Still, the business remains profitable with positive operating earnings across the period, which supports a mid-range score despite the recent downshift.

Balance Sheet

The balance sheet looks reasonably supported by equity, with equity building over time and debt sitting at a moderate level versus equity (debt-to-equity in the ~0.78–0.92 range where provided). Total assets also increased steadily, indicating balance sheet expansion. Offsetting this, leverage remains meaningful for a cyclical auto-dealership model, and rising debt in absolute terms warrants monitoring, keeping the score below top-tier.

Cash Flow

Cash generation is the key weakness: operating cash flow is negative in most years shown (2020 and 2022–2025), and free cash flow is also negative in those same periods, including 2024–2025. While 2021 was a strong positive cash-flow year, the subsequent pattern suggests working-capital swings and/or reinvestment needs are absorbing cash, which increases funding risk and reduces financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	39.33B	40.81B	43.80B	30.91B	29.22B	18.66B
Gross Profit	3.31B	3.02B	3.82B	3.45B	3.55B	1.96B
EBITDA	843.78M	479.45M	1.67B	1.38B	1.80B	675.36M
Net Income	627.85M	787.81M	1.20B	1.01B	1.33B	403.36M
Balance Sheet
Total Assets	20.02B	20.54B	19.76B	16.87B	15.96B	14.20B
Cash, Cash Equivalents and Short-Term Investments	4.58B	4.73B	4.38B	4.50B	4.46B	4.58B
Total Debt	8.15B	8.15B	7.91B	6.61B	6.63B	5.86B
Total Liabilities	9.97B	9.65B	9.58B	7.90B	8.01B	7.36B
Stockholders Equity	9.45B	10.27B	9.59B	8.43B	7.47B	6.40B
Cash Flow
Free Cash Flow	0.00	-93.34M	-1.23B	-290.00M	-626.08M	2.72B
Operating Cash Flow	0.00	-70.73M	-1.21B	-275.00M	-608.65M	2.75B
Investing Cash Flow	0.00	387.05M	-25.63M	449.62M	-24.68M	-437.46M
Financing Cash Flow	0.00	35.94M	1.10B	-138.88M	491.05M	-135.20M

Apple International Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 342.00
• 50DMA: Positive
• 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:2788, the sentiment is Neutral. The current price of 342 is below the 20-day moving average (MA) of 351.25, below the 50-day MA of 346.63, and above the 200-day MA of 341.01, indicating a neutral trend. The MACD of 3.07 indicates Negative momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 53.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2788.

Apple International Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4732	83 Outperform	¥851.16B	19.01	19.13%	2.64%	7.58%	15.12%
3184	81 Outperform	¥9.22B	6.32	―	1.59%	5.91%	10.99%
7599	70 Outperform	¥145.29B	8.08	―	2.82%	11.66%	-7.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3186	61 Neutral	¥279.91B	16.36	―	1.24%	21.79%	9.89%
2788	59 Neutral	¥4.87B	5.49	―	4.45%	-2.69%	-48.36%
7602	48 Neutral	¥4.41B	-10.59	―	1.08%	-2.36%	-1738.42%